How I learned Scotland is sitting on transformational wealth while investing £2.6 billion in energy
Scotland’s energy transition is a smart bet for both investors and the planet, writes Eric Knight
At the start of the year, it is natural to reflect on where we have come from and, more importantly, where we are headed. For all the debate about climate policy and economic headwinds, our company’s results from 2025 leave little room for doubt.
At Knight Vinke, we have a ‘bullish’ view on the energy transition, which we view as a 30-year investment opportunity that is poised to accelerate massively. The energy transition is not only good for the environment but also an exceptionally smart move for investors.
This may come as a surprise to those who still listen to the naysayers. But as recent developments in Scotland and across the UK show, investment in regulated energy infrastructure is delivering both resilience and growth, and Scotland is showing the world how it is done.
Our results in 2025
In a year of much geopolitical turmoil, our funds and managed accounts ended 2025 with a consolidated net return of 14.1 per cent, and our flagship fund, which is almost fully invested in the energy transition, delivered 17.9 per cent net. These results stand as a direct challenge to those who still claim that sustainable investment comes at the expense of performance.
Our experience with SSE, one of Scotland’s leading energy companies, is a case in point. We wrote to the board in early 2025, calling for a bolder and more focused strategy, and increased our investment shortly thereafter.
Since then, SSE has generated a total shareholder return of more than 60 per cent. By increasing its planned capital expenditure to £33 billion and allocating 80 per cent of this to regulated networks, SSE has effectively transformed itself from a conglomerate into a specialist grid company, even more focused than National Grid. Its Scottish transmission business is now one of the fastest-growing in the world, with regulated asset value increasing by 30 per cent a year.
‘80 million barrels of oil a day’
The timing of this transformation could hardly be better. The UK’s recent AR7 offshore wind auction has underlined Scotland’s unique potential to lead in clean energy. The North Sea’s wind resource is vast – equivalent to 80 million barrels of oil a day, far exceeding Opec’s oil output on an energy equivalent basis. Exploiting just a fraction of this could deliver trillions in economic value, sharply lower household bills, and genuine energy independence for both Scotland and the wider UK.
Each new gigawatt of offshore wind capacity brings billions of pounds of investment to the economy and supports thousands of skilled jobs, from the shipyards along the Clyde to the steelworks of Teesside. Projects such as SSE’s Berwick Bank, without doubt one of its crown jewels, are not just feats of engineering but investments in the UK’s future prosperity.
Some still argue that the energy transition is a risky venture or a threat to traditional industries. Our experience at Knight Vinke shows the opposite.
‘Almost no risk’
We have deliberately avoided the more speculative corners of the sector – solar manufacturing, batteries, and electric vehicles – and have focused instead on the backbone of the transition: regulated energy infrastructure.
These assets are core monopolies, immune to commodity price swings, protected from inflation, and insulated from rising interest rates. If demand falls, lost revenue is automatically recovered from customers in the following year. In Western Europe, where the rule of law prevails, these businesses carry almost no risk.
What is more, the energy transition is turning what were once seen as slow-moving utilities into genuine growth stocks. SSE’s Scottish grid business is growing faster than almost any other regulated utility worldwide.
Investment in renewables and grids globally now stands at $2.1 trillion (£1.56 trillion) a year, three times more than investment in data centres. This figure is expected to double by 2030, propelled by the intertwined forces of energy transition and artificial intelligence.
An engine of national renewal
There is a real opportunity for Scotland to show the world what a successful energy transition looks like. Here, clean energy is not simply a climate imperative – it is an economic one. With the right focus, Scotland can turn the North Sea into the engine of Britain’s national renewal, exporting power, technology, and expertise across Europe.
Let us not be distracted by those who would have us look backwards. The numbers are clear that investing in clean energy infrastructure delivers for shareholders, workers and communities.
This is not just a feel‑good message about doing the right thing for the planet. It is a hard‑headed economic case that shows how modern energy investment creates real and measurable value.
The transformation at SSE is a sign of what is possible. With continued ambition and the right policies, Scotland can become a global leader in clean energy, building on its industrial heritage and unlocking lasting prosperity.
Seize the moment
There is still work to do. SSE’s transformation is far from complete, and the energy transition is a 30-year journey – at least. But the direction of travel is clear. Since 2003, Knight Vinke has invested more than three billion euros (about £2.6bn) in publicly traded energy companies, outperforming the market by a factor of nearly three times, without ever resorting to leverage or short positions.
The lesson for investors and policymakers is simple: driving the energy transition is more than just a question of stewardship. It is about delivering superior returns, economic resilience, and a brighter future for Scotland and the UK.
As 2026 unfolds, let us seize this moment, harness Scotland’s strengths, and show the world that a cleaner future is, above all, a prosperous one.
Eric Knight is chief executive and founder of Knight Vinke, and a long-term shareholder in SSE plc.
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