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Can NextEra's Battery Storage Drive a Sustainable Clean Energy Future?

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Key Takeaways

  • NextEra Energy is pairing renewables with battery storage to enhance reliability and growth.
  • FPL operates 469 MW of storage, while NEER manages 3,379 MW with plans to add 4,265 MW.
  • NEE expects 2025 EPS of $3.45-$3.70 and targets 6-8% annual earnings growth through 2027.

NextEra Energy (NEE - Free Report) is advancing on its clean energy transition by pairing renewable generation with increasing battery storage. While solar and wind remain vital components of its portfolio, the company’s increasing investment in large-scale storage projects is emerging as crucial growth driver. These systems tackle the challenge of renewable intermittency by storing excess energy and delivering it when demand peaks, ensuring customers benefit from a consistent and reliable supply of clean power.

Battery storage allows NextEra Energy to store surplus renewable energy and deliver it during high-demand periods, reducing fluctuations and reliance on fossil-fuel-based generation. By pairing storage with solar and wind assets, the company improves efficiency and grid stability, making renewables more appealing to regulators and utilities.

Both subsidiaries of the company, Florida Power & Light (“FPL”) and NextEra Energy Resources (“NEER”), continue to make strategic investments to expand storage capacity. As of Dec. 31, 2024, FPL operated 469 megawatts (“MW”) of battery storage, while NEER managed 3,379 MW connected to the transmission system. NEER has plans to invest nearly $5.5 billion in the period of 2025-2029 to add 4,265 MW of storage projects, underscoring NextEra Energy’s commitment to strengthening storage capabilities that support its growing renewable energy portfolio.

NextEra Energy’s expansion into utility-scale battery storage positions it to benefit from supportive policies, falling technology costs and rising demand for clean power. Storage strengthens its renewable portfolio by ensuring reliability, meeting peak demand and keeping energy affordable. Over time, the storage projects will support NextEra Energy’s zero-emissions mission while driving sustainable growth and long-term shareholder value.

Utilities Gain Flexibility With Battery Storage

Battery storage projects enable utilities to balance supply and demand more efficiently, enhance grid reliability and integrate higher levels of renewable energy. By storing excess generation for peak use, they reduce costs, improve resilience and ensure consistent power delivery.

Companies like Duke Energy (DUK - Free Report) and The Southern Company (SO - Free Report) are leveraging battery storage projects to strengthen grid stability and optimize renewable integration. Duke Energy utilizes battery storage to manage peak demand and cut dependence on fossil fuels, while Southern Company applies it to boost grid resilience, advance clean energy initiatives and provide dependable, affordable electricity to customers across its diverse service areas.

NEE’s Price Performance

NextEra Energy’s shares have lost 1.1% in the past month compared with the Zacks Utility Electric-Power industry’s 3% decline.

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NEE Stock Returns Better Than Its Industry

NextEra Energy’s trailing 12-month return on equity (“ROE”) is 12.31%, ahead of the industry average of 10.34%. ROE is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.
 

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NextEra Energy’s Earnings Estimates Rising

NextEra Energy expects its 2025 earnings per share to be in the range of $3.45-$3.70 compared with $3.43 a year ago. The Zacks Consensus Estimate for NEE’s 2025 and 2026 earnings per share indicates year-over-year growth of 7.3% and 7.9%, respectively. NEE expects to increase its earnings per share in the range of 6-8% annually through 2027 from the level of 2024.

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NEE’s Zacks Rank

NextEra 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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