Grid Investment Will Hit $300 Billion In The U.S. And Canada (GRID, FLM, GII)

According to a new report from The Brattle Group, investment in power transmission infrastructure will reach $16 billion per year in the U.S. and $5 billion annually in Canada, through 2030. Since the 1980s and the adoption of cell phones, iPads, computers and other "modern" conveniences, peak power demand has exceeded transmission growth by 25% each year. While the grid functions almost all of the time, it's far from perfect. Power interruptions and blackouts cost the American economy between $80 and $150 billion a year in lost productivity. Based on 1960s technology, the grid is essentially an antique and is nearly 100 years old in places.

The recent report highlights the continued potential of North America's grid build-out. Brattle estimates that the U.S. will see $30 to $40 billion in annual economic activity and support 150,000 to 200,000 full-time jobs each year over the 20-year period. For Canada, the grid infrastructure investment will support between 20,000 and 50,000 full-time jobs annually.

For investors, these sorts of big spending numbers means loading up on infrastructure stocks. The First Trust NASDAQ Clean Edge Smart Grid Infrastructure (NASDAQ: GRID), First Trust ISE Global Engineering & Construction (NYSE: FLM) and the SPDR FTSE/Macquarie Global Infrastructure 100 (NYSE: GII) make compelling choices to play the theme.