Strategic Alternatives

The UK is acknowledged as a renewables leader. Heavy transmission investment will help it enhance energy security alongside clean power. But when it comes to the third point of the energy trilemma, affordability, there’s a problem: the country’s electricity demand is just too low. Chris Stark, the UK government’s Head of Mission Control for Clean Power 2030, sets out its strategy in conversation at RBC Capital Markets’ Energy Transition Conference.
What is the Clean Power 2030 mission? [00:51]

Chris Stark discusses his background as CEO of the Climate Change Committee, his appointment when Labour won the 2024 election, and the goal of reaching a mostly clean power system by 2030 through investment in clean generation, grids and storage.
How does electrification transform the energy system? [02:27]

Chris explains how doubling the power system will halve overall energy use through the efficiency of electric vehicles and heat pumps, while greater domestic generation boosts energy security.
What is the biggest grid build since the 1960s? [03:58]

The discussion covers the largest transmission build in decades, turning the grid inside out from coal to wind, and the government consenting clean energy projects faster than any previous administration.
How is the government reforming grid connections? [04:56]

Chris details the extension of Contracts for Difference from 15 to 20 years and the radical reordering of the connections queue to prioritize strategically aligned and commercially ready projects.
Can the energy trilemma be solved? [05:44]

The conversation examines the tension between capital investment, delivery speed and consumer costs, the legacy of levies on electricity bills, and the challenge of moving policy costs onto the exchequer.
How can EVs lower electricity bills? [07:20]

Chris outlines how scaling EVs from 3 million to 30 million vehicles, alongside heat pumps, could cut the unit cost of electricity by up to 25% by spreading fixed costs over greater demand.
What role do data centres and flexibility play? [08:19]

The discussion explores smart demand from data centres located where spare electrons would otherwise be constrained off, the benefits of a flexible power system, and targeted rebates for heavy industry.
What about CCS and hydrogen? [09:49]

Chris addresses the remaining 20–30% of decarbonization that electrification cannot reach, the UK’s advantage in CCS through depleted oil and gas wells, and the reality check on costs for carbon capture and hydrogen projects.
What's the risk to investors from political change? [10:53]

Chris explains why he does not expect a change of agenda with a new Prime Minister, how fixed-revenue contracts with an independent counterparty protect investors, and why the cost of finance will determine the future cost of energy.
Listen and subscribe to Strategic Alternatives on Apple, Spotify or wherever you get your podcasts. To learn more about the UK energy transition and RBC Capital Markets research, contact your RBC Capital Markets representative or visit rbccm.com/strategicalternatives.

Consumer staples companies face mounting pressure from changing consumer behavior, a widening K-shaped economy and the growing influence of digital platforms. Nik Modi discusses the key themes from The Great Recalibration: Consumer Staples Edition and the actions boards and management teams should consider for the future.
Key Points
Long-standing valuation pressure and a more volatile operating environment are forcing consumer staples companies to rethink traditional approaches to growth and value creation.
Income bifurcation is reshaping demand patterns, with growth increasingly concentrated at the high and low ends of the market.
Simplifying choice and aligning products with consumer occasions could help brands address rising decision fatigue.
Digital platforms are becoming powerful demand-creation ecosystems where cultural relevance can be as important as brand scale.
Companies should focus on capabilities, resilience and organizational structures that help them compete effectively in a different future landscape.

Introduction [00:05]
Joe Coletti introduces the episode and welcomes Nik Modi, Global Co-Head of Consumer Research at RBC Capital Markets, to discuss the findings of The Great Recalibration: Consumer Staples Edition.

Why Consumer Staples Is at a Pivotal Moment [01:47]
Declining valuation premiums, persistent earnings pressure and a more volatile operating environment are forcing companies to rethink traditional approaches to growth, investment and value creation.

Adapting to a K-Shaped Economy [06:53]
As spending becomes increasingly concentrated at the high and low ends of the market, brands may need to rethink portfolio architecture, consumer targeting and growth strategies.

Decision Fatigue and the Paradox of Choice [09:02]
Growing choice overload is changing consumer behaviour, creating opportunities for brands and retailers to simplify decision-making through assortment and merchandising strategies.

The Eighth Continent and Cultural Relevance [12:06]
Digital platforms are reshaping demand creation and influencing brand success, making cultural relevance, platform-native strategies and creator partnerships increasingly important.

Building Capabilities for a Different Future Landscape [15:01]
Nik outlines five priorities for boards and management teams, including capability building, organizational redesign, resilience and treating digital as core business infrastructure.

In a 40-year career, Francesco Starace has become one of the leading figures in the energy transition – first as CEO at Enel Group, and now as a Partner at specialist investment EQT Group. In a keynote session at RBC Capital Markets’ Energy Transition Conference, Starace shared his views on the progress of the transition, the global challenge posed by soaring electricity demand, and the potential contribution of his first specialism, nuclear.

Payments companies were among the first to experience the pressures that hit the fintech scene and the broader software industry over the past couple of years. Now activity is reviving, with several big deals. What’s changed, and which other parts of the sector stand to thrive amid ongoing disruption? Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, is joined by colleagues Matt Thomas and Asif Ahsan for the second part of their analysis.
Key points
Payments companies are trading at a discount relative to cashflow and are likely to see strong M&A activity.
Agentic commerce and stablecoin are potential game-changers in payments.
Strategics are targeting companies with a hardware component alongside proprietary data as moats against AI.
Digital assets and trading platforms are among the subverticals with strongly favorable signals.

Chapter markers:
Introductions [00:06]
Joe Coletti introduces the second part of a discussion led by Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, with Matt Thomas, Managing Director in Technology Investment Banking, and Asif Ahsan, Managing Director in Technology M&A.

Payments strength [00:46]
Activity in the payments sector has picked up meaningfully in the past three months. The space has become more global and less fragmented, as companies seek to own whole steps of the value chain. Many payments companies are trading at a discount and this is an area of likely continuing M&A activity.

Impact of agentic commerce and stablecoin [04:34]
Agentic commerce is set to transform payments, and will drive transactions to ensure security against fraud. Stablecoin is becoming institutionalized and could prove disruptive to traditional banking when paired with consumers’ digital wallets.

Information services outlook [08:13]
Information services companies’ success rests on whether their data is truly proprietary or can be easily replicated. A combination of proprietary data and hardware is increasingly valued by companies looking to do M&A.

Subvertical verdicts [10:17]
Summing up their views, participants are broadly bullish about payments and financial software. Views on market structure, information services, and disruptive financial services are mixed, with some players facing greater risks. Signs are good for digital assets, crypto, and tokenization, with strong innovation and maturing players.

Amid the SaaSpocalypse panic, fintech companies remain relatively resilient, protected by the specialized and highly-regulated nature of the financial market. But investors are looking for strong retention and growth, including AI-driven revenues. Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, is joined by colleagues Matt Thomas and Asif Ahsan to analyze what will set the winners apart from the competition.
Key Points
Public and private markets in fintech remain robust.
While affected by AI disruption, the sector has been more resilient than the broader software market.
Investors are looking for high retention and growth, including AI-driven revenues.
Wealthtech and Insurtech are attracting most interest and are set to see strong M&A.

Opening and introductions [00:06]
Jason Gurandiano, Head of U.S. Technology Banking and Global Head of Fintech Banking, summarizes RBC’s 11th annual fintech conference. It attracted the biggest engagement of the past five years: 430 delegates and 740 investor interactions. He introduces Matt Thomas, Managing Director in Technology Investment Banking, and Asif Ahsan, Managing Director in M&A.

Hunt for investments [02:15]
Fintech innovation is accelerating. Private investors are actively seeking new investments; public investors are striving to understand the impact of AI on current investments. The winners will be companies demonstrating high gross retention as well as growth that is at least partly driven by AI features.

Fintech’s resilience [7:37]
The specialized and highly-regulated nature of finance is providing fintech with some protection from the disruption affecting software more broadly. But there is a bifurcation, with successful companies achieving robust trading multiples and perceived losers trading near cyclical lows.

Embedding offers insulation [9:10]
Fintechs that are strongly embedded with their end customers have most protection, and have the opportunity to go on the offense with new products.

Areas of opportunity [11:36]
Wealthtech and Insurtech are attracting most interest: M&A is likely to remain strong in these subverticals over the next 12 to 18 months. Capital markets software has strong interest, but incumbents face threats from customers with their own AI budgets.