Under the new energy trend, which U.S. stocks are worth our attention?

Over the past two decades, coal and natural gas have been vying for dominance in the U.S. electricity generation market. In 2016, natural gas generation surpassed coal generation for the first time. Natural gas is now the new king, commanding a 35% market share. The battlefield is now shifting: over the next decade, we expect natural gas and renewable energy—especially solar and wind—to compete head-to-head. Renewables have been growing at an astonishing pace, yet still account for only 10% of the market. We project that by 2030, renewables’ share of U.S. electricity generation will reach 22%, surpassing coal, nuclear power, and hydropower. Meanwhile, we do not foresee natural gas declining; rather, its market share is expected to rise to over 41% in the next decade, thanks to its flexibility and reliability—which help compensate for the intermittency of wind and solar power. The U.S. Energy Information Administration (EIA) and other institutions anticipate that renewable growth will plateau in the early part of the next decade as wind and solar tax credits gradually phase out. We disagree with this view and believe renewables will continue expanding at a similarly rapid pace. Our optimistic outlook rests on investments made by utilities to meet state-level Renewable Portfolio Standards (RPS) and corporate demand, supported by a favorable regulatory framework. Integrated utilities operating under such supportive regulation stand to benefit significantly, as they retire coal-fired plants and replace them with natural gas, renewable assets, and transmission infrastructure.

Despite Trump’s various crackdowns, the renewable energy sector has ‘unexpectedly’ become a major winner in the U.S. stock market.

The explosive growth of artificial intelligence is the core driver behind this round of clean energy market momentum. According to BloombergNEF, electricity demand from AI training and services is projected to quadruple over the next decade—making data centers one of the fastest-growing sources of global electricity consumption. This massive energy gap means all forms of energy will be needed. Helen Jewell, Chief Investment Officer of International Fundamental Equities at BlackRock, stated that energy demand is rising so sharply that Trump may well be forced to abandon his 'war' against renewable energy. She added: “I’m certain he’ll recognize the need for additional energy by 2026—and respond in a way that embraces all energy sources. This will provide an extra super-boost to stocks that are already performing exceptionally well.” Corporations are already acting. Last year, Microsoft signed an agreement with Brookfield Renewable Partners to secure over 10.5 gigawatts of energy capacity in the U.S. and Europe starting in 2026—a deal hailed as the largest corporate clean energy procurement ever announced. Policy Divergence and Global Capital Flows Although the U.S. government has taken measures—including attempting to block wind farm projects and withdrawing from a global greenhouse gas reduction agreement—other major economies continue ramping up investments in clean energy, creating a stark policy divergence. Reports indicate countries like Germany have pledged billions of dollars toward grid development and energy transition infrastructure, providing solid support for the industry. This support is reflected in global investment flows. According to a BloombergNEF report, renewable energy projects attracted a record $386 billion in investment during the first half of 2025—an increase of 10% year-on-year. Data shows that while U.S. investment declined by 36% compared to the second half of 2024, EU investment surged by over 60%, driven by onshore and offshore wind power. Major transactions further confirm this trend—for instance, Apollo Global Management agreed in November to invest $6.5 billion in a UK offshore wind farm operated by Denmark’s Ørsted A/S.

Montauk Renewables Shares Surge 44% Amid Expansion Projects

Oct 24, 2026

Montauk Renewables shares rose 44% in six months, driven by improved earnings and expansion projects like the Turkey, NC facility. Investors weigh growth potential against risks such as environmental credit prices and debt.

The Globe and Mail

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