An updated edition of the March 7, 2025, article.
The demand for renewable energy continues to rise globally as efforts to reduce greenhouse gas emissions intensify. Out of several forms of alternative energy, wind power stands out at the forefront of the global transition toward renewables, a critical theme in combating climate change. In the United States, wind energy has been the largest renewable source of electricity generation since 2019.
There has been a significant growth in the U.S. wind power capacity over the years, reaching more than 153 gigawatts (GW) of installed capacity in 2024. Per a report by the International Energy Agency (IEA), wind power output accounted for 10% of total U.S. utility-scale electricity generation in 2024, reflecting an increase of 6.4% year over year. In March and April 2024, electricity generated from wind energy surpassed coal-fired generation for two consecutive months for the first time in U.S. history.
The wind energy sector is reaping the benefits of robust demand for electric power led by Artificial Intelligence (AI)-driven data center growth, widespread adoption of electric vehicles (EV) and an increase in residential demand. Per the Short-Term Energy Outlook published by the U.S. Energy Information Administration (EIA) in February 2025, the U.S. grid is projected to add 7.7 GW of wind generation capacity in 2025. This indicates an increase from 5.1 GW of wind capacity added last year.
According to a Skyquest report, the global wind energy market size was valued at $95.55 billion in 2024 and is expected to witness a CAGR of 9% from 2025 to 2032 to reach $190.39 billion.
As the wind energy sector gains traction with greater flexibility and scalability, it has emerged as an attractive theme for investors seeking to invest in high-potential stocks. This has made wind energy companies like Exelon Corporation EXC, Brookfield Renewable Partners L.P. BEP, The AES Corporation AES and PG&E Corporation PCG indispensable for any investment portfolio. By leveraging advanced tools, our thematic screens identify companies shaping the future, making it easier to benefit from emerging trends.
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4 Wind Energy Stocks to Bet on Now
AES Corporation is a leading power generation and utility company in the United States and internationally. The company currently owns and operates a generation portfolio of 34,596 megawatts (MW), including generation from its integrated utility, AES Indiana. Exiting 2024, AES had an approximate customer base of 2.6 million.
This Zacks Rank #1 (Strong Buy) company remains one of the forerunners in the utility industry's transition to clean energy by investing in sustainable growth and innovative solutions while delivering superior results. In 2024, AES completed the construction of three GW of wind, solar, gas and energy storage. It expects to add a total of 3.2 GW of new renewables to its operating portfolio by the end of 2025. It also signed long-term purchase-power agreements (PPAs) for 4.4 GW of new renewables and remains on track to sign 14-17 GWs of new PPAs during the 2023-2025 period.
Looking ahead, the AES Indiana subsidiary plans to add up to 1,300 megawatts (MW) of wind, solar and battery energy storage by 2027. To this end, it is imperative to mention that AES’ U.S. renewables business has a 51 GW pipeline that it intends to utilize to continue to grow its business. As global investments in clean energy are expected to grow significantly over the years, such a renewable capacity maximization strategy should fetch solid revenue growth for AES Corp.
Exelon is engaged in the transmission and distribution of electricity and natural gas to retail customers. The company serves more than 10 million customers in its service territories.
The Zacks Rank #2 (Buy) company is currently concentrating on the transmission and distribution of clean energy. EXC is expected to invest $21.7 billion in electric distribution, $12.6 billion in electric transmission and $3.8 billion in gas delivery in the 2025-2028 period.
Traditionally, demand for electricity gets adversely impacted by weather fluctuations and lower usage by customers, which affect operations and profitability of an utility company. To offset the loss of revenues due to lower customer usage, nearly 78% of Exelon’s distribution revenues are decoupled, which insulates the top line from the impact of load fluctuations and leads to stable earnings. Exelon has a diversified rate base as it operates under seven different regulatory jurisdictions. Its initiatives in grid modernization are also likely to improve the resilience of its operations.
PG&E operates as the parent holding company of California’s largest regulated electric and gas utility, Pacific Gas and Electric Company. The Zacks Rank #2 company’s exposure in wind energy stems from the procurement of power from several renewable resources, including wind, and developing its wind farms.
PCG has a solid portfolio of regulated utility assets that offer a stable earnings base and substantial long-term growth potential. It strives to optimize generation margins by improving the cost structure, performance and the reliability of its nuclear and fossil fuel-fired units.
Going forward, its bottom line is expected to be driven by favorable decisions from the California Public Utilities Commission (CPUC), long-term supply agreements, diversification into alternative power sources and infrastructure improvement programs, resulting in rate base growth.
Brookfield Renewable Partners owns and operates several renewable power generating facilities. The company's power generating portfolio is comprised of hydroelectric generating, wind facilities and natural gas-fired plants. It operates in the United States, Canada and Brazil.
The Zacks Rank #2 company’s exposure in wind and utility-scale solar generation sectors has been enabling it to capitalize on the growing opportunities across the renewable power sectors, with high cash margins and minimum fuel input cost. BEP intends to invest about $8-$9 billion over the next five years and targets to raise its funds from operations (FFO) per unit by more than 10% on an annual basis in the long term.
Brookfield Renewable has a strong development pipeline, with a massive 200 GW worth of projects. Also, its pace of commissioning projects is tracking toward 10 GW a year, which is expected to grow in the coming years. It’s worth noting that it entered into a renewable energy framework deal with Microsoft to provide more than 10.5 GW of clean energy capacity between 2026 and 2030.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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Exelon Corporation (EXC): Free Stock Analysis Report Pacific Gas & Electric Co. (PCG): Free Stock Analysis Report The AES Corporation (AES): Free Stock Analysis Report Brookfield Renewable Partners L.P. (BEP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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