An example of what an investment Bank could do

Europeanutilities have on occasion had to pay a penalty for excess power put on the grid. This penalty phase comes about when wind and solar power is filling the grid and the less desirable nuclear and carbon based power can not be shut off.  Hydrogen powered automobiles that are about two years away from commercial deployment and where the problem is distribution of hydrogen gas to filling stations. What could an investment bank do with sort of information?

First, secure a long position in depressed European utilities, then sell the idea of making the electric grid the means of conveying hydrogen gas to the various filling stations for automobile use. Filling stations would convert electricity into hydrogen thru electrolysis on the spot. The electrolysis would happen when sensors on the grid inform the various stations that excess capacity needs to be sopped up. Usually post midnight to 6 am and of course anytime high wind and good solar collecting is filling the grid. Such a system would tolerate waste in electric transmission and conversion to hydrogen as it would be preferable to paying a fine. Since the utility wires are already in place, infrastructure costs are minimized. Safety is enhanced because of the small volumes of hydrogen gas of this scheme versus any other.

The scheme solves the utility battery problem as well as promoting a clean energy solution that is safe and distributed for auto and truck transport. Utilities will price their power more optimally and improve their valuations in stock and bond portfolios. This is an example of a long term win win type of proposition that investment banks were made for, versus Goldman Sach's scandalous rent seeking intrusion in the aluminum trade exposed early in 2013.