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Renewables to Comprise 22% of US Electricity Generation in 2022
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Thanks to the rapid installation of solar and wind energy systems across the nation in recent times, renewables are now projected to account for 22% of electricity generation in the United States this year, as stated recently by the U.S. Energy Information Administration (EIA). This projection surely reflects an improvement in the country’s clean energy adoption count, with renewable sources accounting for 20% of generation in each of the past couple of years.
No doubt, such an impressive outlook turns the spotlight on prominent renewable stocks like Enphase Energy (ENPH - Free Report) , Canadian Solar (CSIQ - Free Report) and NextEra Energy Partner (NEP - Free Report) , which are expected to gain notably amid the increased contribution of clean energy to electricity generation.
Details of the Latest Forecast
Per EIA’s latest short-term energy outlook, renewable sources are projected to contribute 22% of the country’s electricity generation in 2022 and thereafter 24% in 2023. In fact, the largest increases in U.S. electricity generation in EIA’s forecast came from renewable energy sources, mostly solar and wind.
To this end, it is imperative to mention that the U.S. electric power sector added 13 gigawatts (GW) of utility-scale solar photovoltaic (PV) capacity in 2021, which is expected to increase 53.8% to 20 GW in 2022 and 84.6% to 24 GW in 2023.
On the other hand, according to the American Electric Power Association, during the second quarter of 2022, the industry started construction on 3,964 MW of projects, while 7,000 MW entered advanced development. There are 1,155 projects in the pipeline with a total capacity of 128,889 MW.
Stocks to Gain
Considering the aforementioned discussion, it is obvious that renewable stocks with a keen involvement in solar and wind space should benefit and thus must stay on investors’ watchlist. Some of these stocks are:
Enphase Energy: The company designs, develops, manufactures and sells home energy solutions, which connect energy generation, energy storage and control and communications management on one intelligent platform, apart from being a leading solar microinverter manufacturer. As of Jun 30, 2022, more than 48 million of its microinverters were shipped, while approximately 2.5 million Enphase residential and commercial systems were deployed in more than 140 countries.
The company boasts a long-term earnings growth rate of 47.10%. The Zacks Consensus Estimate for ENPH’s 2022 sales implies an improvement of 63% over 2021’s reported figure.
Canadian Solar: The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide. As of Jun 30, 2022, the company’s global solar project pipeline stood at 26 GWp (gigawatt-peaks), while the storage pipeline expanded to over 31 GWh (gigawatt-hours).
The company boasts a four-quarter average earnings surprise of 154.03%. The Zacks Consensus Estimate for CSIQ’s 2022 sales implies an improvement of 41.2% over 2021’s reported figure.
NextEra Energy Partners: It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects in North America, as well as seven contracted natural gas pipeline assets in Texas. The company owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage.
The stock boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for NEP’s 2022 sales implies an improvement of 56.4% over 2021’s reported figure.
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Renewables to Comprise 22% of US Electricity Generation in 2022
Thanks to the rapid installation of solar and wind energy systems across the nation in recent times, renewables are now projected to account for 22% of electricity generation in the United States this year, as stated recently by the U.S. Energy Information Administration (EIA). This projection surely reflects an improvement in the country’s clean energy adoption count, with renewable sources accounting for 20% of generation in each of the past couple of years.
No doubt, such an impressive outlook turns the spotlight on prominent renewable stocks like Enphase Energy (ENPH - Free Report) , Canadian Solar (CSIQ - Free Report) and NextEra Energy Partner (NEP - Free Report) , which are expected to gain notably amid the increased contribution of clean energy to electricity generation.
Details of the Latest Forecast
Per EIA’s latest short-term energy outlook, renewable sources are projected to contribute 22% of the country’s electricity generation in 2022 and thereafter 24% in 2023. In fact, the largest increases in U.S. electricity generation in EIA’s forecast came from renewable energy sources, mostly solar and wind.
To this end, it is imperative to mention that the U.S. electric power sector added 13 gigawatts (GW) of utility-scale solar photovoltaic (PV) capacity in 2021, which is expected to increase 53.8% to 20 GW in 2022 and 84.6% to 24 GW in 2023.
On the other hand, according to the American Electric Power Association, during the second quarter of 2022, the industry started construction on 3,964 MW of projects, while 7,000 MW entered advanced development. There are 1,155 projects in the pipeline with a total capacity of 128,889 MW.
Stocks to Gain
Considering the aforementioned discussion, it is obvious that renewable stocks with a keen involvement in solar and wind space should benefit and thus must stay on investors’ watchlist. Some of these stocks are:
Enphase Energy: The company designs, develops, manufactures and sells home energy solutions, which connect energy generation, energy storage and control and communications management on one intelligent platform, apart from being a leading solar microinverter manufacturer. As of Jun 30, 2022, more than 48 million of its microinverters were shipped, while approximately 2.5 million Enphase residential and commercial systems were deployed in more than 140 countries.
The company boasts a long-term earnings growth rate of 47.10%. The Zacks Consensus Estimate for ENPH’s 2022 sales implies an improvement of 63% over 2021’s reported figure.
Canadian Solar: The company designs, manufactures and delivers solar products and solar system solutions for both on-grid and off-grid use to customers worldwide. As of Jun 30, 2022, the company’s global solar project pipeline stood at 26 GWp (gigawatt-peaks), while the storage pipeline expanded to over 31 GWh (gigawatt-hours).
The company boasts a four-quarter average earnings surprise of 154.03%. The Zacks Consensus Estimate for CSIQ’s 2022 sales implies an improvement of 41.2% over 2021’s reported figure.
NextEra Energy Partners: It owns a portfolio of contracted renewable generation assets consisting of wind and solar projects in North America, as well as seven contracted natural gas pipeline assets in Texas. The company owns a competitive clean energy business, NextEra Energy Resources, LLC, which, together with its affiliated entities, is the world's largest generator of renewable energy from the wind and sun and a world leader in battery storage.
The stock boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for NEP’s 2022 sales implies an improvement of 56.4% over 2021’s reported figure.