An updated edition of the Sept. 22, 2025, article.

Three powerful trends are currently fueling the global renewable energy boom. These are skyrocketing demand from sectors like transportation and AI, alongside plummeting costs for solar and wind. But this very growth is not void of a critical challenge — the intermittent nature of renewables.

To ensure a stable grid, the industry has been turning to energy storage, with powerful battery back-ups storing surplus clean power for times of high demand. Driven by falling prices and government backing, the energy storage market has thus emerged as a cornerstone of the global energy transition.

To this end, it is worth noting that, for the first time on record, renewable energy sources collectively generated more power than coal, driven by a record 31% increase in global solar generation and a 7.7% rise in wind, according to a new analysis by energy think tank Ember published in October 2025 (as cited in a report from Associated Press).

No doubt, this monumental achievement of renewable energy storage was duly supported by corresponding advances in energy storage capacity, with global energy storage battery shipments having reached 246.4 (gigawatt-hour) GWh, reflecting a year-on-year increase of 115.2%, in the first half of 2025, as per data from the CESA Energy Storage Application Branch (as cited in a report of Better Technology Group Limited).

Consequently, utility providers like Ameren Corp. ((AEE Quick QuoteAEE - Free Report) ) and American Electric Power Company ((AEP Quick QuoteAEP - Free Report) ) are capitalizing on these growth opportunities through the rapid expansion of their renewable generation portfolio. On the other hand, core clean energy stocks, such as solar module manufacturer Canadian Solar ((CSIQ Quick QuoteCSIQ - Free Report) ), already hold a strong position in a clean energy investor’s watchlist.

Looking ahead, factors like soaring electricity demand from renewable resources, accelerating electric vehicle (EV) adoption, explosive growth in data centers, along with improving economic development and favorable policy support in emerging countries, are promoting significant growth in renewable energy and storage, despite the challenges offered by the current U.S. administration.

Nevertheless, the recent trade truce between the United States and China, concerning the export of rare earth elements, has instilled renewed optimism for the U.S. clean energy industry, a major forerunner in renewables worldwide.

These factors should collectively enable sustainable long-term value creation in the global energy transition space and must have led prominent global organizations to expect a bright future for both renewable energy and battery storage.

Evidently, the International Energy Agency (“IEA”) predicted global renewable power capacity to double between 2015 and 2030, increasing by 4,600 GW, in its October 2025 report. In support of this massive renewable energy capacity expansion, BloombergNEF expects global annual energy storage deployment (excluding pumped hydropower plants) to hit another all-time high at 92 gigawatts (247 gigawatt-hours) in 2025, indicating 23% growth from 2024. 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.

Ready to uncover more transformative thematic investment ideas? Explore 36 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

3 Renewable Energy & Battery Storage Stocks to Watch

Ameren, a well-known utility provider in the United States, invests steadily to offer electricity through cleaner and more diverse sources of energy generation, such as solar, wind, natural gas, hydro and nuclear power. To this end, it is imperative to mention that in September 2025, the company filed a proposal with the Missouri Public Service Commission (“PSC”) to construct the 250-megawatt (MW) Reform Renewable Energy Center, which is a solar facility. Pending timely approval, construction will begin next year, with the project ready to serve customers in 2028.

Looking ahead, the company targets to expand its renewable portfolio by adding 3,200 MWs of renewable generation (including 650 MWs of solar generation projects) by 2030 and an additional 1,500 MWs by 2035. It also aims to add 1,000 MWs of battery storage (including the 400-MW Big Hollow Battery Energy Storage Project) by the end of 2030 and an additional 800 MWs by 2042.

Such a development pipeline should further strengthen this Zacks Rank #2 (Buy) stock’s footprint in the renewable energy and battery storage space, amid the growth trends.

The Zacks Consensus Estimate for AEE’s 2025 and 2026 sales implies year-over-year growth of 16.2% and 7.8%, respectively. The stock boasts a long-term earnings growth rate of 8%.

American Electric Power is one of the largest integrated utilities in the United States, which operates and maintains the nation’s largest electricity transmission system with a network of more than 40,000 miles. As one of the key forerunners in the clean energy space, AEP has received regulatory approvals from various state regulatory commissions to acquire approximately 1,826 MWs of owned renewable generation facilities, totaling approximately $4.5 billion, as of September 2025.

In addition, AEP has received regulatory approvals for 1,059 MWs of renewable power purchase agreements (PPAs). Looking ahead, the company aims to invest $8.6 billion in renewables through 2027 and grow its renewable generation portfolio to 50% by 2030.

These announcements imply American Electric Power’s rapidly expanding footprint in the renewable energy industry worldwide. Per the Zacks Consensus Estimate, this Zacks Rank #3 (Hold) company will witness an 8% and 6.1% year-over-year rise in 2025 and 2026 sales, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its long-term earnings growth rate is pegged at 6.7%.

Canadian Solar is a leading manufacturer of solar photovoltaic modules and a provider of solar energy and battery energy storage solutions. It enjoys a well-established presence in diverse nations across the globe, ranging from the United States, China, Japan, the U.K., and Canada, to the emerging markets of Brazil, India, Mexico, Italy, Germany, South Africa and the Middle East.

The company boasts a strong pipeline of solar and battery energy storage projects. Notably, as of June 30, 2025, CSIQ’s total solar project development pipeline was 27.3 GWp, including 2 GWp under construction and 4.2 GWp in backlog, as well as 21.1 GWp in the advanced and earlier-stage pipeline. As of the same date, the company’s battery storage project development pipeline was 80.2 GWh, including 6.4 GWh under construction and in the backlog, as well as 73.8 GWh of projects in advanced and early-stage pipelines.

These trends underscore Canadian Solar’s steadily expanding footprint in the solar and energy storage market and, in turn, in the global renewables industry.

The Zacks Consensus Estimate for this Zacks Rank #3 stock’s 2026 sales implies year-over-year growth of 22.2%.