Latest news with #electricutilities
Yahoo
2 days ago
- Automotive
- Yahoo
California is pushing the limits of crowdsourced energy
The News California's biggest electric utilities pulled off a record-breaking test of cutting-edge grid technology that should make powering the data center boom and avoiding heatwave blackouts cheaper, easier, and greener. The groundbreaking test, carried out with Tesla and the top US rooftop solar installer, will help keep the state's clean energy momentum going despite the Trump administration's crackdown on renewables. On a hot Tuesday last week, during the 7pm-9pm window that is typically its time of peak demand as people come home from work and turn on appliances, Pacific Gas & Electric and other top California power companies switched on residential batteries in more than 100,000 homes and drew power from them into the broader statewide grid. The purpose of the test — the largest ever in the state, which has by far the most home battery capacity in the US — was to see just how much power is really there for the utility to tap, and to ensure it could be switched on, effectively running the grid in reverse, without causing a crash. The result, which the research firm Brattle published this week, was 535 megawatts, equal to adding a big hydro dam or a half-sized nuclear reactor at a fraction of the cost. 'Four years ago this capacity didn't even exist,' Kendrick Li, PG&E's director of clean energy programs, told Semafor. 'Now it's a really attractive option for us. It would be silly not to harness what our customers have installed.' Tim's view So-called 'virtual power plants' — networks of customer-owned assets that utilities can control as an alternative to building new traditional power plants — are the solution to a lot of the biggest problems facing the US power system. Every home battery, smart thermostat, or plugged-in electric car offers a chance for utilities to either draw more electrons into the grid, or shave down peak demand. VPPs are becoming especially important as data centers, heat waves, and other factors drive demand up while costs, supply chains, and bureaucracy remain major impediments to quickly building new power infrastructure. And, as the federal government wipes out tax credits and other support for renewables, VPPs offer a way for residential solar-plus-storage systems to remain economically attractive for homeowners — who get paid for the withdrawn power — and technically viable for utilities. At the same time, to the extent that federal policy changes make the construction of additional renewable projects more difficult, VPPs are a way to make better use of clean energy resources that have already been built. Last week's test proved that in times of peak demand, PG&E can lean on its customers' batteries rather than turn on a gas-fired peaker plant or risk a blackout, Li said. VPPs also facilitate the addition of more solar energy on the grid: At the moment, California has so much solar generation at peak hours that it can push the wholesale power price close to or even below zero, a headache for grid managers and a disincentive for renewable project developers. The careful manipulation of networked residential batteries smooths out the timing disparity between peak sunshine at midday and peak demand in the evening, allowing the excess to be soaked up and redeployed when it's actually needed, and making power cheaper for everyone. The expanded use of VPPs shouldn't be noticeable to battery owners, Li said, except for the money back on their power bill; nothing about the process prevents them from running their AC or dishwasher while their battery is being tapped. The network can also run in reverse, with the utility taking excess power from the grid at times of low demand and sending it into home batteries for storage. California could easily reach over a gigawatt of VPP capacity within five years, Li said. Nationwide, a Department of Energy study during the Biden administration forecast that VPP capacity could reach up to 160 gigawatts by 2030, essentially negating the need for dozens of new fossil fuel power plants, with no emissions and at a far lower cost. In 2024, utilities in 34 states moved to initiate or expand VPP networks, according to the advocacy group VP3. The biggest problem VPPs face is the complicated paperwork that customers sometimes need to complete for their utilities or battery providers in order to participate, said Ben Brown, CEO of the VPP management firm Renew Home: 'There are more barriers in enrollment than there needs to be in a lot of markets.' Room for Disagreement Joining a VPP program means homeowners give up a degree of control over their battery, and runs a small risk of draining the battery just ahead of a blackout when it's most needed. And VPPs can't solve the growing US power deficit on their own. Even in the most optimistic scenario for VPP adoption the US will still need hundreds of gigawatts of new power generation capacity in the next two decades. Renewables are still the cheapest and fastest form of new capacity to build, and the Trump administration is making it harder to build them; an analysis this week by the advocacy group American Clean Power Association found that even the administration's actions that ostensibly only limit renewable energy project development on federal land will snarl projects on all types of property across the country. Notable US power demand broke records multiple times in July, according to federal data, driven by heat waves and a rising baseline from data centers and factories. 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Globe and Mail
30-07-2025
- Business
- Globe and Mail
VST or D: Which Utility Stock Offers More Upside in the AI Era?
The companies operating in the Zacks Utility – Electric Power industry present an attractive investment opportunity, driven by stable cash flows and the predictable earnings derived from a regulated business model. Many U.S.-focused utilities operate under long-term power purchase agreements, providing insulation from economic fluctuations. Rising electricity demand from artificial intelligence based data centers, increasing adoption of electric vehicles and the reshoring of some manufacturing activities are creating fresh opportunities for the utilities. Consistent capital investments in the adoption of new technology and the upgrade of existing infrastructure are improving operational efficiency. This allows utilities to generate reliable earnings and maintain steady dividend payouts to shareholders. The industry is also undergoing a significant transformation amid the global push for decarbonization. Many utilities are proactively investing in clean energy infrastructure, such as solar, wind, battery storage and grid modernization. Early adopters of renewable and low-carbon technologies are well-positioned to capitalize on market expansion, benefit from lower fuel cost volatility, and attract growing interest from both institutional and retail investors. Amid this positive development, let's focus on Dominion Energy D and Vistra Corp. VST, two prominent U.S. electric utilities that are actively investing in renewable energy, making them pivotal players in the shift toward cleaner power generation. Dominion represents a solid long-term investment, supported by its regulated utility model and reliable dividend payments. Operating across the Mid-Atlantic and Southeastern U.S., the company benefits from steady cash flows and increasing electricity demand. Dominion is actively reshaping its energy portfolio by investing in renewables like offshore wind, solar, and battery storage, while shedding non-core assets to enhance operational focus. As AI and data center power demands surge, Dominion's presence in key high-growth regions positions it well to capture emerging opportunities. This makes the company an attractive choice for investors seeking stable income and exposure to the evolving clean energy landscape. Vistra offers a strong investment opportunity, anchored by its diversified multi-fuel generation portfolio and robust cash flow visibility. As one of the leading competitive power producers in the U.S., Vistra operates a well-balanced mix of natural gas, nuclear, solar and battery storage assets. This versatility allows the company to efficiently manage power dispatch, navigate price volatility, and benefit from renewable energy incentives. Its cost-effective thermal assets ensure reliable baseload generation, while continued investments in clean energy and storage enhance its ESG profile. With disciplined capital allocation and healthy free cash flow, Vistra is well-positioned for growth and consistent shareholder returns. Given their strong presence in the utility sector, analyzing the fundamentals of both companies is crucial. A comprehensive comparison will shed light on which stock offers greater investment appeal and long-term value for investors. VST & D's Earnings Growth Projections The Zacks Consensus Estimate for Vistra's earnings per share in 2025 decreased by 0.16% and increased by 1.01% for 2026, in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 13.18%. The Zacks Consensus Estimate for Dominion's earnings per share in 2025 remained unchanged and increased by 0.28% for 2026, in the past 60 days. Long-term earnings growth per share is pegged at 13.59%. D & VST's Dividend Yield Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company's financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their shareholders. Currently, the dividend yield for Dominion Energy is 4.6%, while the same for Vistra is 0.46%. Capital Expenditure Plans Capital expenditure is vital for utilities as it supports infrastructure upgrades, grid modernization, and the integration of renewable energy. These investments enhance reliability, meet rising electricity demand, and ensure long-term growth, positioning utilities for success in an evolving energy landscape. Dominion plans to invest $50 billion in the 2025-2029 period to further strengthen its operations. Vistra aims to invest $2.27 billion in 2025, up from $1.85 billion and $1.61 billion invested in 2024 and 2023, respectively. Debt to Capital The Zacks Utilities sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, utilities borrow from the market and add it to their internal cash generation to fund their long-term investments. Dominion's debt-to-capital currently stands at 58.94% compared with Vistra's debt-to-capital of 77.12%. Both companies are using higher debt to fund their business, as the industry's debt-to-capital stands at 54.08%. Return on Equity (ROE) ROE is an essential financial indicator that evaluates a company's efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value. VST's current ROE is 87.33% compared with D's ROE of 9.51%, while the industry's ROE is pegged at 10.41%. Valuation Dominion currently appears to be trading at a discount compared with Vistra on a Price/Earnings Forward 12-month basis. (P/E- F12M). VST is currently trading at 26.94X, while D is trading at 16.74X compared with the industry's 14.65X. Price Performance Dominion's shares have gained 3.8% in the month-to-date period compared with Vistra's rally of 2.2% and the industry's return of 1.3%. Conclusion Vistra and Dominion are strategically investing in their infrastructure to serve customers more efficiently and reliably. Based on the above discussion, Dominion is currently in a better position compared with Vistra, despite the stocks carrying a Zacks Rank #3 (Hold) each. D's better dividend yield, cheaper valuation, lower percentage of debt usage and better price performance make it a better choice in the utility space. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. #1 Semiconductor Stock to Buy (Not NVDA) The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow. One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be. See This Stock Now for Free >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Dominion Energy Inc. (D): Free Stock Analysis Report Vistra Corp. (VST): Free Stock Analysis Report
Yahoo
28-07-2025
- Business
- Yahoo
NextEra Energy Ranks No. 1 In Industry On Fortune's ‘World's Most Admired Companies' List
NextEra Energy, Inc. (NYSE:NEE) is among the 13 Best Electrical Infrastructure Stocks to Invest In. Fortune's 2025 World's Most Admired Companies list features NextEra Energy, Inc. (NYSE:NEE) at the top of the electric and gas utilities industry, marking the company's 17th consecutive top spot in 19 years. The company's excellent performance in innovation, management caliber, and long-term investment value is reflected in the rating. A wind turbine, its blades spinning to generate clean renewable energy. Florida Power & Light is the major electric utility owned by NextEra Energy, Inc. (NYSE:NEE), which has its headquarters in Juno Beach, Florida. It is the leader in renewable energy generation in the United States. The firm intends to invest an extra $120 billion through 2029, having already spent over $150 billion on energy infrastructure in the past ten years. It added 8.7 GW of storage and renewable energy in 2024. Its energy mix includes nuclear, gas, and renewables, keeping electricity rates more than 30% lower than the national average. Furthermore, NextEra Energy, Inc. (NYSE:NEE) saved customers an average of $24 per month and prevented 2.7 million outages in 2024 through grid innovation. It employs more than 16,000 people, operates in 49 states, and over the last ten years, it has contributed $1.6 billion in land payments and $8 billion in property taxes to rural America. It is among the Best Electrical Equipment Stocks. While we acknowledge the potential of NEE as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 High-Growth EV Stocks to Invest In and 13 Best Car Stocks to Buy in 2025. Disclosure. None.
Reuters
09-07-2025
- Business
- Reuters
Breakingviews - Trump's big bill shrinks America's energy future
NEW YORK, July 9 (Reuters Breakingviews) - One fact dominates the U.S. economy: it needs more power. After a long period in which demand for electrons flatlined, it is now rising again. Beyond gigantic data centers essential to artificial intelligence, the rise of battery technology, factory robots and more means that everything from transportation to industrial production will increasingly be electrified. This surge has, in large part, been fed by renewables like solar and wind. Yet President Donald Trump's recently passed 'Big, Beautiful Bill' may vaporize construction of a vast sum of green power that looked set to be built under previous policy, equivalent in capacity to every nuclear plant in the country. Trying to substitute in fossil fuels or atom-splitting is impractical and expensive. Slowing population growth, increased efficiency and a pair of recessions in the 2000s halted once-steady expansion of electricity generation in developed economies like the United States and the European Union. That's now over. Industries that show the most transformative promise – AI, autonomous vehicles, robots – are electricity hogs. Demand is increasing by about 2% annually and is projected to rise by 50% by 2050, according to the National Electrical Manufacturers Association, opens new tab. Failing to meet substantial growth can be disastrous, resulting in blackouts. Power providers, regulators and investors are rushing to oblige. Aggregate investment by 47 U.S. electric utilities should reach $212 billion this year, according to S&P Global. That's up 50% from 2022 and is expected to rise yet further. This binge was nurtured not just by the vast hunger of companies like ChatGPT developer OpenAI, whose Stargate project aims to build data centers consuming as much power as about 8 million homes, but also government intervention. The Inflation Reduction Act, passed in 2022 under President Joe Biden, offered tax credits for building carbon-free electricity generation and storage, as well as domestic production of solar panels, batteries, wind turbines, and components for nuclear and geothermal plants. These were substantial fillips: new solar farms, for instance, received either credits worth up to 30% of their required investment, or subsidies per watt of power generated. In turn, this begat a manufacturing boom, with investments in clean technology rising five-fold to $33 billion annually, according to tracker Clean Investment Monitor. Much of this went to an industry that will be placing yet more demand on the grid: electric vehicles. Ultimately, though the United States is a colossal extractor of fossil fuels, many of these extra electrons are coming from the sun or the breeze. The U.S. Energy Information Administration estimates that over half of all utility-scale generation added this year will be solar power, while a further 12% will come from wind. With subsidies, they are the cheapest source of new generation for utilities and their customers, according to Lazard, opens new tab. Trump's signature tax-and-spending legislation kicks out much of this support. Subsidies remain, for the moment, but will be cut years before they were scheduled to expire, beginning next year. Granted, those for nuclear, geothermal and batteries remain, but solar is the biggest chunk of growth on the grid and will be pummeled. Beyond spending cuts, unpredictable regulatory enforcement can stymie investment. The White House has promised new restrictions on green power. Whether a project qualifies as having begun before any subsidy cut-off date is open to some interpretation. Trade restrictions could bite: just look at batteries, which – starting in 2026 – become ineligible for financial support if over 45% of their content comes from China. The People's Republic is overwhelmingly the world's dominant supplier. This is particularly important because storing energy is a crucial complement to intermittent renewables, which wane when the sun sets or the wind stills. U.S. utilities are expected to add 18 gigawatts of batteries in 2025, equivalent at peak discharge to about 18 nuclear reactors and 80% above 2024's sum, according to the EIA. The alternative might seem simple: build new natural gas generation instead. While it's more costly than solar in most locations, it's consistent. Snag is, if you're in line to set up a new plant, you'll be waiting until 2030 or later. Manufacturers of gas turbines, an essential component, say they are sold out. Even when they become available, high demand has pushed up prices, as well as the cost of labor to install them. Utility NextEra Energy (NEE.N), opens new tab said this year that the cost of building new gas-fired plants has tripled over the past three years. Nuclear – an early favorite of technologists like OpenAI boss Sam Altman – promises the ultimate in steady power without interruption. Yet it is exceptionally expensive, prone to spectacular cost overruns, and takes years to build even before inevitable delays are factored in. Other sources, like geothermal, are simply too speculative at any meaningful scale. What this all means is that power producers, facing down subsidy-starved options, will probably just build less. Existing fossil-fuel plants would therefore be run harder, which means employing older technologies with higher marginal costs. According to the REPEAT Project at Princeton University, this will result in losing 820 terawatt-hours of new generation by 2035, more than all current nuclear capacity, costing consumers and businesses some $50 billion in higher bills over that span. What has been done can be undone, and this is not set in stone. For now, though, the U.S. is set to burn more and build less. Follow Robert Cyran on Bluesky, opens new tab.
Yahoo
27-06-2025
- Business
- Yahoo
NRG vs. NEE: Which U.S. Power Stock Has Better Investment Potential?
The companies operating in the Zacks Utility – Electric Power sector offer a compelling investment case, underpinned by consistent cash flows and the reliability of regulated business models. Many utilities with a domestic focus operate under long-term power purchase agreements, providing insulation from broader economic volatility. As electricity demand continues to grow and sustained capital investments drive operational efficiency, these companies are well-positioned to deliver stable earnings and maintain dependable dividend Electric Power industry is undergoing a transformative shift toward cleaner energy sources. Utilities are increasingly allocating capital toward renewable infrastructure, including solar, wind, nuclear, battery storage and grid modernization. In response to accelerating global decarbonization efforts, early adopters of low-carbon technologies are gaining a strategic advantage. These forward-looking utilities not only mitigate risks associated with fuel price swings but also enhance their investment appeal to both institutional and retail investors. In the evolving electric power market, let's focus and compare NextEra Energy NEE and NRG Energy NRG. Both are major U.S. energy companies in the electric utilities and power generation industry, competing in clean energy, grid operations and wholesale electricity Energy stands out as a premier clean energy investment, offering a strong blend of growth and stability. Its regulated utility subsidiary, Florida Power & Light, is the largest in the U.S. and provides predictable cash flows through a stable, rate-regulated model. NextEra's subsidiary NextEra Energy Resources is the world's largest generator of wind and solar energy, driving long-term growth through clean energy projects and battery storage. NEE's strategic focus on decarbonization, supported by disciplined capital allocation and strong ESG credentials, positions it well for continued outperformance in a transitioning energy Energy presents a compelling investment case with its integrated power model and commitment to decarbonization. The company secures steady cash flows through its retail electricity operations while pursuing ambitious sustainability targets, including net-zero emissions by 2050. Strategic moves like portfolio streamlining and investments in clean energy improve efficiency and support long-term growth. By maintaining a balanced energy mix of traditional and renewable sources, NRG is well-positioned to capitalize on market stability and the momentum of the global energy companies mentioned above are strong operators in the Zacks Utilities sector; a closer examination of their fundamentals is essential. A comprehensive comparison will provide valuable insight into which stock presents a more compelling investment opportunity for investors. The Zacks Consensus Estimate for NRG Energy's earnings per share in 2025 and 2026 has increased by 2.78% and 9.12%, respectively, in the past 60 days. Long-term (three to five years) earnings growth per share is pegged at 16.2%. Image Source: Zacks Investment Research The Zacks Consensus Estimate for NextEra Energy's earnings per share in 2025 has gone down by 0.27% in the past 60 days, and 2026 earnings per share has remained unchanged in the same time period. Long-term earnings growth per share is pegged at 6.55%. Image Source: Zacks Investment Research Dividends are regular payments made by a company to its shareholders and represent a direct way for investors to earn a return on their investment. They are an important indicator of a company's financial health and stability, often signaling strong cash flow and consistent earnings. Utilities are known for regular dividend payments to their the dividend yield for NextEra Energy is 3.22%, while the same for NRG Energy is 1.15%. The dividend yields of both companies are lower than their industry's yield of 3.33%. ROE is an essential financial indicator that evaluates a company's efficiency in generating profits from the equity invested by its shareholders. It demonstrates how well management is utilizing the capital provided to increase earnings and deliver value. NRG's current ROE is 73.78% compared with NEE's ROE of 12.06%. NRG outperforms the industry's ROE of 10.09%. The Utilities sector is a capital-intensive one, and huge investments are required at regular intervals to upgrade, maintain and expand operations. The usage of new evolving technology also requires investments. Therefore, utilities borrow from the market and add it to their internal cash generation to fund their long-term Energy's debt-to-capital currently stands at 79.56% compared with NextEra Energy's debt-to-capital of 59.79%. NEE's debt level is a tad lower than he industry's debt-to-capital, which stands at 60.81%. NRG Energy currently appears to be trading at a slightly higher premium compared with NextEra Energy on a Price/Earnings Forward 12-month basis. (P/E- F12M).NRG is currently trading at 18.81X, while NEE is trading at 18.06X compared with the industry's 15.1X. NRG Energy's shares have gained 69.7% in the past three months compared with NextEra Energy's rally of 0.7% and the industry's return of 1.6%. Image Source: Zacks Investment Research NRG Energy and NextEra Energy are investing steadily in their infrastructure to serve customers more currently has a VGM Score of A compared with NEE's score of C. NRG's score indicates a better growth forecast, promising momentum and attractive value compared with NEE. In addition, NRG's higher ROE and increasing earnings estimates make it a better choice in the utility space. Based on the above discussion, NRG Energy currently has a marginal edge over NextEra Energy, despite the stocks carrying a Zacks Rank #3 (Hold) each. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NextEra Energy, Inc. (NEE) : Free Stock Analysis Report NRG Energy, Inc. (NRG) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
