An updated edition of the Dec. 26, 2025 article.
Renewable energy is increasingly recognized for its significant role in combating climate change, transforming from an alternative source to a mainstay of global energy policy. Among various alternative energy sources, wind power stands at the forefront of the global transition toward renewables, a critical theme in combating climate change.
Key drivers behind its growing popularity include its abundant supply, sustainable zero-emission technology and lower production costs, thereby providing enormous ecological benefits, energy efficiency and job creation. In recent years, wind energy has emerged as one of the largest renewable sources of electricity generation in the United States.
Per the latest Short-Term Energy Outlook published by the U.S. Energy Information Administration (EIA), the US has experienced significant growth in wind power capacity over the years, reaching more than 159 gigawatts (GW) of installed capacity at 2025-end. This report highlights that wind power output accounted for nearly 11% of total U.S. utility-scale electricity generation in the year.
The wind energy market is capitalizing on several favorable trends, including growing electricity demand driven by Artificial Intelligence (AI)-powered data centers, widespread adoption of electric vehicles (EV) and rapid industrialization. Per the EIA report, the U.S. grid is projected to add 11.7 GW of wind generation capacity in 2025, reflecting an increase from around six GW added last year. It also suggests wind power generation to increase roughly 6% and 7% in 2026 and 2027, respectively.
The wind energy sector is expected to gain momentum with greater flexibility and scalability, despite a shift in the U.S. federal policy regarding offshore wind development projects. The sector is likely to benefit from major upcoming wind projects like the 800-megawatt (MW) Vineyard Wind 1 in Massachusetts and the 715-MW Revolution Wind project in Rhode Island.
Leading wind energy companies like Consolidated Edison, Inc. ED, Pinnacle West Capital Corporation PNW, The AES Corporation AES and Portland General Electric Company POR present compelling opportunities for investors, given their strong foothold in the market, research and development capabilities and market expansion. As clean energy technologies evolve, they are set to capitalize on growth opportunities and provide lucrative investment prospects.
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Headquartered in New York, Consolidated Edison is a diversified utility holding company, with subsidiaries engaged in both regulated and unregulated businesses. The company is involved in the regulated electric, gas and steam delivery businesses across the US.
The Zacks Rank #2 (Buy) company is currently building the Brooklyn Clean Energy Hub, a transmission substation that will strengthen New York’s power grid and provide the flexibility for offshore wind resources to interconnect to it during construction and after commencing operation. This hub, expected to be completed by 2028, should be able to accommodate up to 1,500 megawatts (MW) of electricity.
Meanwhile, in October 2023, the New York State Energy Research and Development Authority (NYSERDA) announced that it had selected three new offshore wind projects for contract negotiations, representing 4,032 MW of energy by 2030. One of the conditional awards, the Community Offshore Wind project, is expected to connect 1,314 MW of offshore wind electricity through the Brooklyn Clean Energy Hub by 2030.
Phoenix, AZ-based Pinnacle West Capital is involved in the generation, transmission and distribution of electricity from coal, wind, nuclear, gas, oil and solar. As part of its renewable energy portfolio, PNW, through its subsidiary, Arizona Public Service, operates wind farms to serve the growing electricity demand in Arizona. In 2025, the company successfully added 500 MW of wind power capacity in Navajo County, AZ.
The Zacks Rank #2 company has a capital investment plan of $8 billion for the 2026-2028 period. Pinnacle West’s Metro Phoenix service region continues to witness solid growth in commercial activities. Improved economic conditions in Arizona have resulted in an expanding customer base and rising demand for its services.
As part of its clean energy strategy, the company has also been focused on reducing its carbon emission load. For instance, PNW’s Clean Energy Commitment is based on a three-pronged approach that focuses on minimizing carbon-emitting resources from its electric generation portfolio.
Arlington, VA-based, AES Corp. is a leading power generation and utility company. The Zacks Rank #2 company is taking advantage of the global transition to renewable energy by making strategic investments in clean energy solutions such as energy storage and utility-scale renewables, which offer a long-term growth opportunity.
Along with using innovation and Artificial Intelligence (AI) to speed up clean energy improvements, it is also reaping the benefits of its worldwide diversification, which may result in more stable sales and an operational recovery. AES is also benefiting from the increased demand from data centers, a market that is expanding quickly due to AI and cloud computing.
The company’s subsidiary, AES Indiana, completed the acquisition of the 170 MW Crossvine solar-plus-storage project during the second quarter of 2025, which is expected to come online in 2027. It further plans to add up to 1,300 MW of wind, solar and battery energy storage by 2027.
Based in Portland, OR, Portland General Electric is a vertically integrated electric utility that serves residential, commercial and industrial customers in Oregon. The company has more than a century of experience in power delivery. POR generates power primarily from wind, solar and hydropower. Portland General Electric currently operates four wind farms, as well as several other thermal and hydroelectric facilities.
The Zacks Rank #2 company is poised to benefit from strong industrial load growth, driven by high-tech and data center customers. To further expand its renewable portfolio, POR plans to add a significant clean power generation asset over the long term. Portland General Electric’s major capital projects continue to proceed per plan and the addition of new renewable projects continues to boost its renewable portfolio.
The company’s focus on projects related to upgrades across its transmission and distribution systems is expected to support its long-term growth. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Consolidated Edison Inc (ED): Free Stock Analysis Report Pinnacle West Capital Corporation (PNW): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis Report Portland General Electric Company (POR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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