The global energy landscape is undergoing a major transformation as the world accelerates its shift toward sustainability. As industries across sectors are increasingly integrating renewable energy into their operations, a significant surge in demand for efficient and scalable energy storage solutions has been observed over the past decade. This is because battery technologies help store surplus power generated during high-output periods and release it when production wanes, thereby ensuring grid stability and a consistent supply of electricity.
According to the International Energy Agency’s (“IEA”) February 2025 outlook, global electricity demand is set to grow at its fastest rate between 2025 and 2027. This trend underscores the rising relevance of companies operating in the renewable energy and energy storage space. On one hand, utilities like DTE Energy DTE and Brookfield Renewable Partners BEP are expanding their clean energy portfolios and thus stand to benefit from this growing market. On the other hand, technology-focused players such as Bloom Energy BE, which offers solid oxide fuel cell-based power generation, and Stem Inc. STEM, known for its AI-driven clean energy optimization solutions, are also gaining traction among clean energy investors.
Notably, several macroeconomic and environmental factors like expanding industrial output, rapid growth in electric vehicle (EV) adoption, data center proliferation, and heightened use of cooling systems amid worsening climate conditions are contributing to the expected surge in electricity demand over the coming years. With renewables projected to source a major portion of this surge, the IEA projects that renewables will surpass coal-fired generation in 2025 and coal’s share in global electricity will fall below 33% for the first time in the last 100 years. This milestone further strengthens the role of energy storage in enabling a reliable and resilient renewable power infrastructure.
From an investment standpoint, the renewable energy and battery storage sector presents compelling growth opportunities. These industries offer relative stability due to the essential nature of electricity, even during economic slowdowns. Furthermore, robust policy support, fiscal incentives and international commitments to net-zero emissions are accelerating growth. With declining technology costs enhancing the competitiveness of clean energy, companies in this space are well-positioned to deliver sustainable long-term value in an evolving global energy market.
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DTE Energy, a diversified energy company, continues to expand its renewable generation assets. As of March 31, 2025, it had brought 2,300 MW of renewables online and plans to invest $10 billion in clean energy projects between 2025 and 2029.
The company targets adding 1,000 MW of wind and solar annually, aiming to power 5.5 million homes with renewable energy by 2042. It also plans to develop over 2,900 MW of energy storage by the same year.
Through its MIGreen Power program, nearly 100,000 residential customers have opted to source their electricity from renewables as of June 2024. These initiatives support DTE’s goal of achieving net-zero carbon emissions by 2050 across its electric and gas operations. Backed by these long-term strategies, this Zacks Rank #2 (Buy) stock is projected to achieve 2025 sales and earnings growth of 5.8% and 6%, respectively, per the Zacks Consensus Estimate. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Brookfield Renewable Partners owns and operates a global portfolio of renewable assets with an operating capacity of 43,300 MW, over 98% of which was from renewables as of March 31, 2025.
The company also develops and sells renewable projects, enhancing its financial position. In the first quarter of 2025, BEP invested $1,546 million in projects across wind, solar, distributed generation and battery storage. It also generated $551 million in proceeds from asset sales, including 999 MW of wind and solar assets in India and a 25% stake in a 2.2 GW pumped storage facility in Europe.
Looking ahead, BEP has a renewable power development pipeline of around 227,200 MW, positioning it to deliver over 10.5 GW of new capacity in the United States and Europe between 2026 and 2030. The Zacks Consensus Estimate for this Zacks Rank #2 company’s 2025 sales suggests growth of 12.6% year over year, implying strong momentum in its clean energy operations.
Bloom Energy manufactures one of the most advanced and versatile fuel cell energy platforms. With approximately 1.4 GW of BE’s Energy Server systems deployed in more than 1,000 locations and nine countries, its fuel cell platform empowers businesses, essential services, critical infrastructure, utilities, and communities with resilient, reliable and sustainable energy solutions.
In February 2025, Bloom Energy announced an expansion of its longstanding relationship with Equinix, the world’s digital infrastructure company. Its fuel cells allow Equinix to generate on-site power at its data centers more sustainably than typical grid-delivered energy. The latest collaboration should further strengthen this Zacks Rank #2 stock’s position in the rapidly evolving renewable energy space. The Zacks Consensus Estimate for BE’s 2025 sales and EPS implies year-over-year growth of 18.7% and 39.3%, respectively.
Over the past 15 years, Stem Inc. has emerged as a leading clean energy software provider, with achievements including partnerships with Fortune 500 companies and operating California’s largest virtual power plant.
As of March 31, 2025, over 16,000 customers worldwide used its AI-driven solutions to optimize clean energy portfolios. The company manages nearly 30 GW of solar assets and over 5 GWh of contracted energy storage globally, operating one of the largest distributed clean energy networks.
In the first quarter of 2025, Stem had 1.6 GWh of energy storage and 32.4 GWh of solar systems in operation, which rose 100% and 20.4%, respectively, year over year, highlighting strong growth in renewables and storage. These trends underscore Stem’s expanding footprint in the clean energy space. Per the Zacks Consensus Estimate, this Zacks Rank #2 company will witness a 0.4% rise in 2025 sales.
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DTE Energy Company (DTE) : Free Stock Analysis Report
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