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Can Vistra's Energy Storage Power the Next Wave of Clean Energy?

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Key Takeaways

  • Vistra leads in energy storage with major facilities like the Moss Landing site in California.
  • The company plans new storage projects at retired or retiring plant sites in Illinois.
  • VST's ROE of 108.41% exceeded smoothly the industry average of 10.36%.

Vistra Corp. (VST - Free Report) stands as a pivotal player in the U.S. energy transition, leveraging its advanced energy storage systems to enhance grid reliability and support the broader integration of renewable energy. The company’s strategic investments in large-scale battery facilities position it to capture value from this growing market need.

Vistra’s Moss Landing Energy Storage Facility in California, one of the world’s largest, exemplifies its leadership in deploying utility-scale storage. These assets provide critical peak-shaving capabilities, store surplus renewable generation and mitigate grid instability during periods of high demand or low renewable output. This operational flexibility strengthens Vistra’s role in supporting state and national decarbonization goals while also unlocking new revenue streams.

As of Dec. 31, 2024, Vistra owns 750 megawatt (MW) in California, 270 MW in Texas and 4 MW in Illinois. Vistra has unveiled plans to build additional battery energy storage systems at sites in Illinois where plants have been retired or are scheduled for retirement. Development of battery storage is essential for the wider adoption of renewable sources like solar and wind, as these sources do not produce energy 24/7 like conventional fuel sources.

Energy storage also offers Vistra a competitive edge by enabling greater participation in ancillary service markets, where fast-response systems are rewarded for maintaining grid frequency and stability. Vistra’s diverse portfolio of generation assets — spanning renewables, gas and storage — creates synergies that optimize both costs and output, enhancing profitability in an evolving market landscape.

How Storage Projects Aid Utilities in Building Clean Power Projects?

Battery storage projects enable utilities to improve grid stability, capture surplus renewable generation and deliver electricity during peak demand periods. They facilitate seamless integration of wind and solar power, lower dependence on fossil fuels and promote a stronger, more efficient, and sustainable energy network.

Battery storage projects are fueling growth for utilities like NextEra Energy (NEE - Free Report) and PG&E Corporation (PCG - Free Report) by improving grid resilience, maximizing renewable output and ensuring reliable supply during demand spikes. The utilities utilize these systems for greater wind and solar integration, reduce operational costs and create new revenue opportunities, strengthening their competitive position in the evolving clean energy market.

VST Stock’s Price Performance

Vistra stock has gained 22.4% in the past six months compared with the Zacks Utility Electric Power industry’s rise of 11.5%.

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VST’s Earnings Surprise

The company’s earnings beat expectations in two of the last four reported quarters, met once and missed the remaining one, with an average surprise of 69.75%.

 

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Image Source: Zacks Investment Research

VST Stock’s ROE Is Higher Than Its Industry

Vistra’s trailing 12-month return on equity (“ROE”) is 108.41%, way ahead of its industry average of 10.36%. ROE, a profitability measure, indicates how effectively a company is utilizing its shareholders’ funds in operations to generate income.

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VST's Zacks Rank

Vistra currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 


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