Latest news with #electricityDemand
Yahoo
07-07-2025
- Business
- Yahoo
Why Brookfield Renewable Rallied More Than 11% in June
The overall market rallied sharply last month as tariff fears faded. Brookfield Renewable is benefiting from surging power demand. The company anticipates rapid growth over the next decade. 10 stocks we like better than Brookfield Renewable › Shares of Brookfield Renewable (NYSE: BEPC) surged 11.5% in June, according to data provided by S&P Global Market Intelligence. There was no specific catalyst powering the renewable energy dividend stock last month. Instead, it jumped due to the overall rally in the stock market and its strong growth potential. The S&P 500 (SNPINDEX: ^GSPC) rallied sharply last month, rising 5% as fears of a tariff-driven recession started to fade. After plunging in April, stocks have recovered over the past couple of months as the U.S. paused many of its tariffs while closing in on trade deals with several key partners. That eased the pressure on the economy and stock prices last month. The rally in the market helped lift shares of Brookfield Renewable. The renewable energy company is also riding the wave of surging electricity demand. Catalysts like artificial intelligence (AI) data centers, the onshoring of manufacturing, and the electrification of everything are driving robust demand for power around the world. The International Energy Agency expects global electricity demand from data centers to more than double by 2030 to around 945 terawatt-hours. That's slightly more than the entire electricity consumption of Japan. The robust demand for power, especially from clean energy sources like renewables, is benefiting Brookfield Renewable. It's signing long-term power purchase agreements (PPAs) with companies to support its massive and growing backlog of development projects. For example, the company secured contracts to deliver an incremental 4.5 gigawatt-hours of power per year to customers during the first quarter. These PPAs support the company's plans to scale its development capabilities to 10 GW per year by 2027, up from 8 GW this year. Brookfield also continues to accelerate its growth by making acquisitions. It completed its acquisition of Neoen earlier this year. The deal adds 8 GW of operating or under construction wind, solar, and storage assets. In addition, Neoen has 20 GW of projects in its advanced-stage pipeline across Australia, France, and the Nordics. The company also agreed to buy National Grid Renewables, a leading U.S. onshore renewable power operator and developer. That transaction will add 3.9 GW of operating or under construction assets, a 1-GW construction-ready portfolio, and over 30 GW of solar and energy storage development projects. Brookfield Renewable expects rising power prices, development projects, and acquisitions to drive more than 10% annual growth in its funds from operations (FFO) per share over the next decade. That's rapid growth for a company that also offers a high-yielding dividend (still over 4% after last month's surge). That combination of growth and income still makes it look like a great long-term investment, even after last month's rally. Before you buy stock in Brookfield Renewable, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Brookfield Renewable wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $699,558!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $976,677!* Now, it's worth noting Stock Advisor's total average return is 1,060% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of July 7, 2025 Matt DiLallo has positions in Brookfield Renewable. The Motley Fool recommends Brookfield Renewable and National Grid Plc. The Motley Fool has a disclosure policy. Why Brookfield Renewable Rallied More Than 11% in June was originally published by The Motley Fool
Yahoo
04-07-2025
- Business
- Yahoo
Southern Company's Georgia Power Freezes Base Rates Through 2028
The Southern Company's SO subsidiary, Georgia Power, recently announced the approval of the stable and predictable base rates by the Georgia Public Service Commission ('PSC') through the end of 2028. The decision stems from a stipulated agreement between Georgia Power and the PSC's Public Interest Advocacy Staff and extends an alternate rate plan initially approved in 2022. Georgia's economy is booming, spurring a significant increase in electricity demand. To meet this rising need while keeping energy costs affordable, Georgia Power has collaborated closely with state and local officials, business leaders and community stakeholders. This collaboration has resulted in proactive regulatory measures, including the 2023 Integrated Resource Plan Update and revised rules to better manage the load impacts from large-scale energy users. These steps are designed to balance reliability, resiliency and fairness across Georgia Power's 2.8 million customer base. While base rates are set to remain unchanged, costs related to storm recovery, such as those from Hurricane Helene, will be handled in a separate regulatory proceeding expected in the first half of 2026. This ensures that storm-related expenses are managed transparently, without impacting the stability of base rates for customers. The rate freeze follows five rate increases since 2023 that have pushed the average customer's monthly bill up by $43, a rise of more than 20%. With energy prices surging across the United States, Georgia PSC encouraged the staff and Georgia Power to reach an agreement to hold base rates steady, marking a clear win for ratepayers. The CEO of the company emphasized the importance of maintaining reliable and affordable energy, citing the rate freeze as a testament to the state's robust and cooperative regulatory framework. He further reflected upon the mutual benefits of economic growth and customer affordability, stating that affordable rates among customers will help ensure economic growth in the state of Georgia. The Southern Company deals with the generation, transmission and distribution of electricity and serves approximately nine million customers through its seven electric and natural gas distribution units. Currently, SO has a Zacks Rank #3 (Hold). Investors interested in the utility sector might look at some better-ranked stocks like National Grid plc NGG, Engie SA ENGIY and CenterPoint Energy, Inc. CNP. While National Grid and Engie currently sport a Zacks Rank #1 (Strong Buy) each, CenterPoint Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. National Grid is an international energy delivery business whose principal activities are in the regulated electricity and gas industries. The Zacks Consensus Estimate for NGG's 2025 earnings indicates 42.02% year-over-year growth. Engieengages in the power, natural gas and energy services businesses. It operates through Renewables, Networks, Energy Solutions, FlexGen, Retail, Nuclear and Others segments. The Zacks Consensus Estimate for ENGIY's 2025 earnings indicates 24.58% year-over-year growth. Houston, TX-based CenterPoint Energy is a domestic energy delivery company that provides electric transmission and distribution, power generation and natural gas distribution operations. The Zacks Consensus Estimate for CNP's 2025 earnings indicates 8.02% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Southern Company (The) (SO) : Free Stock Analysis Report CenterPoint Energy, Inc. (CNP) : Free Stock Analysis Report National Grid Transco, PLC (NGG) : Free Stock Analysis Report ENGIE - Sponsored ADR (ENGIY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Zawya
23-06-2025
- Business
- Zawya
Forget AI. Keeping cool is the bigger power sector problem: Maguire
(The opinions expressed here are those of the author, a columnist for Reuters.) DENVER - Utilities in the developed world are stressing over how to keep up with demand from data centres and artificial intelligence searches. But globally, keeping people cool is likely to be a much bigger drain on electricity grids and a more pressing power sector challenge. Worldwide, data centres and air conditioners are both projected to triple their electricity use over the coming decade, and will severely test utilities that are already under strain from aging grids and lengthy backlogs for new supply. Indeed, electricity demand from data centres is projected to rise by roughly 800 terawatt hours (TWh) by 2035, from around 416 TWh in 2024, according to the International Energy Agency (IEA). That is enough to power around 75 million American homes for a year, according to the U.S. Energy Information Administration (EIA). Global demand for cooling systems, however, is set to rise by around 1,200 TWh by 2035, or nearly as much electricity as the entire Middle East consumes annually, data from think thank Ember shows. Importantly, the location of demand growth also differs significantly between the two drivers, as does the consequences of failure to meet this spike. Most data centre expansions are set to be within developed economies with modern power networks, and increased demand will primarily come from processing search requests for businesses and social media applications. In contrast, the vast majority of the demand growth for air conditioning is set to occur in emerging economies where many communities already face the prospect of heat-related deaths and illness within already fragile energy systems. Increased deaths and human suffering, the likely outcome of power system shortfalls in the developing world, are of a different order of magnitude than the risk of slower search results and economic drag that could result from failure to boost power supplies for data hubs. BUILDING IMPACT Climate change is leading to more frequent, more intense and more prolonged heatwaves across the world, but especially in developing regions such as South and Southeast Asia where high humidity levels can amplify the impact of heat stress. "A single heatwave - even one lasting just a few days - causes tens of thousands of excess deaths in India," according to a report published in April by India's Centre for Science and the Environment. To combat the effects, new homes and offices across warm climate countries are scaling up the number of cooling units they contain. And many of these areas are already undergoing a building boom, magnifying the amount of space needing to be cooled. In 2022, around 36% of all households were estimated to possess some air conditioning equipment, according to the IEA. By 2035, that share is expected to jump to 50%, and then to 60% by 2050. To power that expanding footprint, the installed capacity of cooling equipment is set to surge from around 850 gigawatts (GW) in 2022 to 1,750 GW by 2035, and to 2,700 GW by 2050, IEA data shows. INDIA-LED India, which already has the world's largest population and is expected to have the third largest economy by 2035, is expected to be the main driver of cooling system demand in the coming decades. Currently, around 5% of the world's stock of air conditioners is in India, or around 110 million units of the roughly 2.4 billion in use globally, per the IEA. By 2035, India's share of the global air conditioner stock is set to rise to 13% (to nearly 500 million units), and then to more than 1.1 billion units by 2050. Indonesia, another fast-growing populous nation prone to hot and humid spells, is set to treble its air conditioner count by 2035, while Brazil, Mexico and the Middle East are all set to more than double it. WIDENING LOADS Power firms in all regions have their work cut out in ramping up electricity supplies to match the projected demand growth from both data centres and cooling systems. But again, the challenges faced in addressing these two demand drivers will differ based on where the power is needed. In the United States and Europe, most data centre expansions are taking place close to established generation sites, so that server farms can tap uninterrupted power and avoid transmission delays. In developing economies, many of the new cooling systems are within new multi-story apartment buildings or on previously undeveloped land, meaning that power suppliers have to vastly expand their geographic reach while also boosting volumes. Needing to rapidly increase both the scope and scale of electricity production will likely expand the use of coal-fired power in India, Indonesia and elsewhere, which will generate pollution that may further accelerate warming trends. But the sheer magnitude of energy demand growth ensures that fossil fuels alone will not be able to meet it, and that supplies from a multitude of power sources will have to be deployed. This "all of the above" approach, in turn, means that power from clean energy and renewable sources should gain a growing share of the generation mix over time, potentially squeezing out high polluting fuels from electricity production. But in the near term, the fossil fuels burned to meet the rising demand for power will only increase. The need to keep people safe and comfortable as temperatures keep climbing will thus only exacerbate future heat stress, putting ever more pressure on strained electrical grids. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn and X.
Reuters
23-06-2025
- Business
- Reuters
Forget AI. Keeping cool is the bigger power sector problem
DENVER June 23 (Reuters) - Utilities in the developed world are stressing over how to keep up with demand from data centres and artificial intelligence searches. But globally, keeping people cool is likely to be a much bigger drain on electricity grids and a more pressing power sector challenge. Worldwide, data centres and air conditioners are both projected to triple their electricity use over the coming decade, and will severely test utilities that are already under strain from aging grids and lengthy backlogs for new supply. Indeed, electricity demand from data centres is projected to rise by roughly 800 terawatt hours (TWh) by 2035, from around 416 TWh in 2024, according to the International Energy Agency (IEA). That is enough to power around 75 million American homes for a year, according to the U.S. Energy Information Administration (EIA). Global demand for cooling systems, however, is set to rise by around 1,200 TWh by 2035, or nearly as much electricity as the entire Middle East consumes annually, data from think thank Ember shows. Importantly, the location of demand growth also differs significantly between the two drivers, as does the consequences of failure to meet this spike. Most data centre expansions are set to be within developed economies with modern power networks, and increased demand will primarily come from processing search requests for businesses and social media applications. In contrast, the vast majority of the demand growth for air conditioning is set to occur in emerging economies where many communities already face the prospect of heat-related deaths and illness within already fragile energy systems. Increased deaths and human suffering, the likely outcome of power system shortfalls in the developing world, are of a different order of magnitude than the risk of slower search results and economic drag that could result from failure to boost power supplies for data hubs. Climate change is leading to more frequent, more intense and more prolonged heatwaves across the world, but especially in developing regions such as South and Southeast Asia where high humidity levels can amplify the impact of heat stress. "A single heatwave - even one lasting just a few days - causes tens of thousands of excess deaths in India," according to a report published in April by India's Centre for Science and the Environment. To combat the effects, new homes and offices across warm climate countries are scaling up the number of cooling units they contain. And many of these areas are already undergoing a building boom, magnifying the amount of space needing to be cooled. In 2022, around 36% of all households were estimated to possess some air conditioning equipment, according to the IEA. By 2035, that share is expected to jump to 50%, and then to 60% by 2050. To power that expanding footprint, the installed capacity of cooling equipment is set to surge from around 850 gigawatts (GW) in 2022 to 1,750 GW by 2035, and to 2,700 GW by 2050, IEA data shows. India, which already has the world's largest population and is expected to have the third largest economy by 2035, is expected to be the main driver of cooling system demand in the coming decades. Currently, around 5% of the world's stock of air conditioners is in India, or around 110 million units of the roughly 2.4 billion in use globally, per the IEA. By 2035, India's share of the global air conditioner stock is set to rise to 13% (to nearly 500 million units), and then to more than 1.1 billion units by 2050. Indonesia, another fast-growing populous nation prone to hot and humid spells, is set to treble its air conditioner count by 2035, while Brazil, Mexico and the Middle East are all set to more than double it. Power firms in all regions have their work cut out in ramping up electricity supplies to match the projected demand growth from both data centres and cooling systems. But again, the challenges faced in addressing these two demand drivers will differ based on where the power is needed. In the United States and Europe, most data centre expansions are taking place close to established generation sites, so that server farms can tap uninterrupted power and avoid transmission delays. In developing economies, many of the new cooling systems are within new multi-story apartment buildings or on previously undeveloped land, meaning that power suppliers have to vastly expand their geographic reach while also boosting volumes. Needing to rapidly increase both the scope and scale of electricity production will likely expand the use of coal-fired power in India, Indonesia and elsewhere, which will generate pollution that may further accelerate warming trends. But the sheer magnitude of energy demand growth ensures that fossil fuels alone will not be able to meet it, and that supplies from a multitude of power sources will have to be deployed. This "all of the above" approach, in turn, means that power from clean energy and renewable sources should gain a growing share of the generation mix over time, potentially squeezing out high polluting fuels from electricity production. But in the near term, the fossil fuels burned to meet the rising demand for power will only increase. The need to keep people safe and comfortable as temperatures keep climbing will thus only exacerbate future heat stress, putting ever more pressure on strained electrical grids. The opinions expressed here are those of the author, a columnist for Reuters. Enjoying this column? Check out Reuters Open Interest (ROI), your essential new source for global financial commentary. ROI delivers thought-provoking, data-driven analysis of everything from swap rates to soybeans. Markets are moving faster than ever. ROI can help you keep up. Follow ROI on LinkedIn, opens new tab and X, opens new tab.
CNA
17-06-2025
- Business
- CNA
Asia's push towards renewables driven by necessity to diversify beyond fossil fuels
According to the International Energy Agency, electricity demand in Southeast Asia jumped more than 7% in 2024 and is set to keep rising around 4% to 5% annually. China's power use grew about 7% last year and is forecast to climb roughly 6% per year through 2027. That makes it imperative for Asia to scale renewables to cover more than a third of new demand by 2035, even as the region diversifies beyond gas and coal. Roland Lim reports from the Energy Asia conference in Kuala Lumpur.
