Power generation in the United States will look very different in 2050 than it does today, and that means there are opportunities for investors, according to Wells Fargo. The passage of the Anti-Inflation Act, which includes $369 billion in climate protection measures, prompted the company to adjust its 2050 forecast to include higher assumed electricity demand, faster growth in renewable energy, and higher nuclear market share. Wells Fargo estimates that wind and solar power will produce 65% of the nation’s energy by 2050, and increased its forecast to $1.4 trillion in investment opportunities in installed renewable capacity — including batteries — from $1.2 trillion . The company also doubled its forecast for the share of nuclear power from 8% to 15%. Additionally, the IRA has accelerated the green hydrogen economy by five to 10 years, with meaningful rollout possible by the late 2020s, analyst Neil Kalton said in a note Tuesday. “We believe a bull-case scenario for clean green hydrogen represents a >$1.5 trillion TAM opportunity for new renewable energy, excluding electrolyzer, storage and transportation costs. Clean hydrogen also represents a growth opportunity for nuclear power plant owners,” he wrote. Here are some of the best tips on the subject. Overall, NextEra Energy is uniquely positioned to capitalize on utility and clean energy investment opportunities, Kalton said. The utility company has strong earnings per share growth prospects, driven by infrastructure investments and unregulated renewable energy development, he said. Its $105 price target implies an almost 25% upside move from Monday’s close. The company’s top nuclear stock is Constellation Energy, the largest nuclear owner in the US. The company is well positioned to capitalize on the long-term trend towards decarbonization, Kalton wrote. He doesn’t think the stock price adequately reflects the potential long-term value of the nuclear fleet. Its price target of $106 implies a 26% upside potential for Constellation Energy, which spun off from Exelon last February. The company’s picks for clean energy stocks include First Solar. The IRA is a game changer for the solar company, Kalton said. “While the IRA-linked low-hanging fruit is discounted in the stock at this point, the potential for further capacity expansions in the coming years could continue to propel the stock higher,” he said. Its price target of $188 per share implies upside potential of 18% from Monday’s close. – CNBC’s Michael Bloom contributed to the coverage.
https://www.cnbc.com/2023/01/10/these-energy-names-to-benefit-from-power-shifts-in-2050-according-to-wells-fargo.html According to Wells Fargo, energy companies set to benefit from power shifts in 2050 include NextEra, First Solar, and Constellation Energy