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Watch These Renewable Energy & Battery Energy Stocks for Valuable Gains
Read MoreHide Full Article
An updated edition of the May 6, 2025 article.
The global shift toward sustainability is transforming the energy landscape, with industries rapidly adopting renewable sources like solar and wind. However, their intermittent nature has highlighted the critical need for reliable energy storage. This has fueled growing interest in battery storage technologies, which store excess power generated during peak periods and release it when production dips, ensuring grid stability and consistent supply.
As a result, demand for scalable storage solutions has surged, in tandem with increased adoption of renewable energy, over the past decade, positioning both of them as key pillars of the global energy transition.
According to the International Energy Agency’s (“IEA”) Global Energy Review report, published in March 2025, global electricity generation grew over 1,200 terawatt-hours (TWh) in 2024, with clean energy accounting for 80% of this growth. This trend, reflecting the clean energy’s prowess in driving the majority of global electricity expansion, thus implies strong growth opportunities in renewable energy and battery storage space. Notably, utility providers like Ameren Corp. (AEE - Free Report) and American Electric Power Corp. (AEP - Free Report) are capitalizing on these growth opportunities through the rapid expansion of their renewable generation portfolio. On the other hand, technology-driven core clean energy stocks, like Vestas Wind Systems (VWDRY - Free Report) , a wind turbine manufacturer, and Stem Inc. (STEM - Free Report) , known for its AI-driven clean energy optimization solutions, have already found their place in a clean energy investor’s watchlist.
Looking ahead, the IEA projects that new renewable energy capacity added globally between 2024 and 2030 will amount to more than 5,500 gigawatts (GW) — almost three times the increase seen between 2017 and 2023. To support this massive renewable energy capacity expansion, energy storage is projected to increase six times. Such solid projections naturally boost growth opportunities for those who have invested in or intend to invest in the renewable energy and battery storage space.
A key catalyst driving growth in this space is the essential nature of electricity, which continues to fuel strong demand even during economic downturns. This offers relative stability to stakeholders in the renewable energy and battery storage space, as more and more industries are inclining toward clean energy. Other factors like expanding industrial output, rapid growth in electric vehicle (EV) adoption, data center proliferation, and heightened use of cooling systems amid worsening climate conditions are contributing to a rapid surge in electricity demand and thereby attracting more investments in renewables and batteries.
Furthermore, robust policy support, fiscal incentives, international commitments to net-zero emissions, along with declining costs of installation, particularly for solar and wind, are enhancing the competitiveness of clean energy companies, enabling them to deliver sustainable long-term value in an evolving global energy market.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Renewable Energy & Battery Storage Stocks to Watch
Ameren, which generates and distributes electricity, has been steadily investing in offering electricity through cleaner sources of energy generation, such as solar, wind, natural gas, hydro and nuclear power. To this end, it is imperative to mention that the company has 1,200 MW of approved generation currently under construction.
Looking ahead, AEE targets to expand its renewable portfolio by adding 3,200 MWs of renewable generation by 2030 and an additional 1,500 MWs by 2035. It also aims to add 1,000 MWs of battery storage by the end of 2030 and an additional 800 MWs by 2042.
To facilitate this renewable expansion, in February 2025, the company’s Ameren Missouri segment filed an update to its Smart Energy Plan, which includes a five-year investment worth $16.2 billion during the 2025-2029 period to upgrade the company’s grid, harden its poles and conductors, as well as accommodate more renewable energy. Such an elaborate investment plan reflects this Zacks Rank #3 (Hold) stock’s long-term vision of delivering reliable, affordable and cleaner energy to all its customers. The Zacks Consensus Estimate for AEE’s 2025 and 2026 sales implies year-over-year growth of 10.4% and 5.3%, respectively. The long-term (three-to-five years) earnings growth rate is estimated to be 7%.
American Electric Corp., one of the largest integrated utilities in the United States, has been investing steadily to enhance its renewable generation portfolio. In 2024, the company received regulatory approvals from various state regulatory commissions to acquire approximately 2,303 MWs of owned renewable generation facilities through investments worth $5.5 billion. In addition, AEP received regulatory approvals for 637 MWs of renewable power purchase agreements (PPAs).
Looking ahead, the company aims to spend $9.9 billion during 2025-2029 in regulated renewable expansion and enhance its renewable generation portfolio to 50% by 2030.
In November 2024, AEP placed an order to secure up to 1GW of Bloom Energy’s solid oxide fuel cells, marking the largest commercial procurement of fuel cells in the world to date. In April 2025, AEP’s Indiana Michigan Power company submitted a filing requesting approval of a certificate of public convenience and necessity to acquire the Oregon Clean Energy Center, an existing 870 MW natural gas plant located in Oregon, OH. Such initiatives should further strengthen this Zacks Rank #3 stock’s position in the rapidly evolving renewable energy space. The Zacks Consensus Estimate for AEP’s 2025 and 2026 sales implies year-over-year growth of 6.8% and 4.9%, respectively. Its long-term earnings growth rate is estimated to be 6.4%.
Vestas Wind Systems, the world’s largest wind turbine manufacturer, has been consistently engaged in the development and deployment of sustainable energy solutions. The company had around 56,700 wind turbines, equivalent to 157 GW under service, as of March 2025.
At the end of the first quarter of 2025, turbines produced and shipped by VWDRY (in the last 12 months) are expected to avoid 490 million tons of CO2, over the course of their lifetime, reflecting a 25% improvement year over year.
On June 17, 2025, Vestas received a 124 MW order from EDF power solutions North America (EDFps) to supply 20 EnVentus V162-6.2 MW wind turbines for the Haute-Chaudière wind project in Québec, including a 10-year Active Output Management (“AOM”) 5000 service agreement. In May 2025, Vestas announced that it will acquire LM Wind Power’s blade factory in Poland to expand its European manufacturing capacity and support growing regional energy demand. These announcements imply VWDRY’s rapidly expanding footprint in the renewable energy industry. Per the Zacks Consensus Estimate, this Zacks Rank #2 (Buy) company is projected to witness an 8.8% and 11.5% rise in 2025 and 2026 sales, respectively. Its long-term earnings growth rate is 33.4%.
Over the past 15 years, Stem Inc. has emerged as a leading clean energy software provider, with achievements including partnerships with Fortune 500 companies and operating California’s largest virtual power plant.
As of March 31, 2025, over 16,000 customers worldwide used its AI-driven solutions to optimize clean energy portfolios. The company manages nearly 30 GW of solar assets and over 5 GWh of contracted energy storage globally, operating one of the largest distributed clean energy networks.
In the first quarter of 2025, Stem had 1.6 GWh of energy storage and 32.4 GWh of solar systems in operation, which rose 100% and 20.4%, respectively, year over year, highlighting strong growth in renewables and storage. These trends underscore Stem’s expanding footprint in the clean energy space. Per the Zacks Consensus Estimate, this Zacks Rank #2 company is likely to witness a rise of 0.4% and 8.3% in 2025 and 2026 sales, respectively.
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Watch These Renewable Energy & Battery Energy Stocks for Valuable Gains
An updated edition of the May 6, 2025 article.
The global shift toward sustainability is transforming the energy landscape, with industries rapidly adopting renewable sources like solar and wind. However, their intermittent nature has highlighted the critical need for reliable energy storage. This has fueled growing interest in battery storage technologies, which store excess power generated during peak periods and release it when production dips, ensuring grid stability and consistent supply.
As a result, demand for scalable storage solutions has surged, in tandem with increased adoption of renewable energy, over the past decade, positioning both of them as key pillars of the global energy transition.
According to the International Energy Agency’s (“IEA”) Global Energy Review report, published in March 2025, global electricity generation grew over 1,200 terawatt-hours (TWh) in 2024, with clean energy accounting for 80% of this growth. This trend, reflecting the clean energy’s prowess in driving the majority of global electricity expansion, thus implies strong growth opportunities in renewable energy and battery storage space. Notably, utility providers like Ameren Corp. (AEE - Free Report) and American Electric Power Corp. (AEP - Free Report) are capitalizing on these growth opportunities through the rapid expansion of their renewable generation portfolio. On the other hand, technology-driven core clean energy stocks, like Vestas Wind Systems (VWDRY - Free Report) , a wind turbine manufacturer, and Stem Inc. (STEM - Free Report) , known for its AI-driven clean energy optimization solutions, have already found their place in a clean energy investor’s watchlist.
Looking ahead, the IEA projects that new renewable energy capacity added globally between 2024 and 2030 will amount to more than 5,500 gigawatts (GW) — almost three times the increase seen between 2017 and 2023. To support this massive renewable energy capacity expansion, energy storage is projected to increase six times. Such solid projections naturally boost growth opportunities for those who have invested in or intend to invest in the renewable energy and battery storage space.
A key catalyst driving growth in this space is the essential nature of electricity, which continues to fuel strong demand even during economic downturns. This offers relative stability to stakeholders in the renewable energy and battery storage space, as more and more industries are inclining toward clean energy.
Other factors like expanding industrial output, rapid growth in electric vehicle (EV) adoption, data center proliferation, and heightened use of cooling systems amid worsening climate conditions are contributing to a rapid surge in electricity demand and thereby attracting more investments in renewables and batteries.
Furthermore, robust policy support, fiscal incentives, international commitments to net-zero emissions, along with declining costs of installation, particularly for solar and wind, are enhancing the competitiveness of clean energy companies, enabling them to deliver sustainable long-term value in an evolving global energy market.
Ready to uncover more transformative thematic investment ideas? Explore 30 cutting-edge investment themes with Zacks Thematic Screens and discover your next big opportunity.
4 Renewable Energy & Battery Storage Stocks to Watch
Ameren, which generates and distributes electricity, has been steadily investing in offering electricity through cleaner sources of energy generation, such as solar, wind, natural gas, hydro and nuclear power. To this end, it is imperative to mention that the company has 1,200 MW of approved generation currently under construction.
Looking ahead, AEE targets to expand its renewable portfolio by adding 3,200 MWs of renewable generation by 2030 and an additional 1,500 MWs by 2035. It also aims to add 1,000 MWs of battery storage by the end of 2030 and an additional 800 MWs by 2042.
To facilitate this renewable expansion, in February 2025, the company’s Ameren Missouri segment filed an update to its Smart Energy Plan, which includes a five-year investment worth $16.2 billion during the 2025-2029 period to upgrade the company’s grid, harden its poles and conductors, as well as accommodate more renewable energy. Such an elaborate investment plan reflects this Zacks Rank #3 (Hold) stock’s long-term vision of delivering reliable, affordable and cleaner energy to all its customers. The Zacks Consensus Estimate for AEE’s 2025 and 2026 sales implies year-over-year growth of 10.4% and 5.3%, respectively. The long-term (three-to-five years) earnings growth rate is estimated to be 7%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
American Electric Corp., one of the largest integrated utilities in the United States, has been investing steadily to enhance its renewable generation portfolio. In 2024, the company received regulatory approvals from various state regulatory commissions to acquire approximately 2,303 MWs of owned renewable generation facilities through investments worth $5.5 billion. In addition, AEP received regulatory approvals for 637 MWs of renewable power purchase agreements (PPAs).
Looking ahead, the company aims to spend $9.9 billion during 2025-2029 in regulated renewable expansion and enhance its renewable generation portfolio to 50% by 2030.
In November 2024, AEP placed an order to secure up to 1GW of Bloom Energy’s solid oxide fuel cells, marking the largest commercial procurement of fuel cells in the world to date. In April 2025, AEP’s Indiana Michigan Power company submitted a filing requesting approval of a certificate of public convenience and necessity to acquire the Oregon Clean Energy Center, an existing 870 MW natural gas plant located in Oregon, OH. Such initiatives should further strengthen this Zacks Rank #3 stock’s position in the rapidly evolving renewable energy space. The Zacks Consensus Estimate for AEP’s 2025 and 2026 sales implies year-over-year growth of 6.8% and 4.9%, respectively. Its long-term earnings growth rate is estimated to be 6.4%.
Vestas Wind Systems, the world’s largest wind turbine manufacturer, has been consistently engaged in the development and deployment of sustainable energy solutions. The company had around 56,700 wind turbines, equivalent to 157 GW under service, as of March 2025.
At the end of the first quarter of 2025, turbines produced and shipped by VWDRY (in the last 12 months) are expected to avoid 490 million tons of CO2, over the course of their lifetime, reflecting a 25% improvement year over year.
On June 17, 2025, Vestas received a 124 MW order from EDF power solutions North America (EDFps) to supply 20 EnVentus V162-6.2 MW wind turbines for the Haute-Chaudière wind project in Québec, including a 10-year Active Output Management (“AOM”) 5000 service agreement. In May 2025, Vestas announced that it will acquire LM Wind Power’s blade factory in Poland to expand its European manufacturing capacity and support growing regional energy demand. These announcements imply VWDRY’s rapidly expanding footprint in the renewable energy industry. Per the Zacks Consensus Estimate, this Zacks Rank #2 (Buy) company is projected to witness an 8.8% and 11.5% rise in 2025 and 2026 sales, respectively. Its long-term earnings growth rate is 33.4%.
Over the past 15 years, Stem Inc. has emerged as a leading clean energy software provider, with achievements including partnerships with Fortune 500 companies and operating California’s largest virtual power plant.
As of March 31, 2025, over 16,000 customers worldwide used its AI-driven solutions to optimize clean energy portfolios. The company manages nearly 30 GW of solar assets and over 5 GWh of contracted energy storage globally, operating one of the largest distributed clean energy networks.
In the first quarter of 2025, Stem had 1.6 GWh of energy storage and 32.4 GWh of solar systems in operation, which rose 100% and 20.4%, respectively, year over year, highlighting strong growth in renewables and storage. These trends underscore Stem’s expanding footprint in the clean energy space. Per the Zacks Consensus Estimate, this Zacks Rank #2 company is likely to witness a rise of 0.4% and 8.3% in 2025 and 2026 sales, respectively.