Renewable Energy Stocks Eye Rebound Amid New Capacity Growth

Renewable energy stocks may bounce back as stabilization occurs. The International Energy Agency forecasts a major capacity addition, suggesting long-term investment opportunities. Investors should look closely at firms like NuScale Power and CleanSpark for potential growth.

Date: 12-01-2025

AI Rating: 7

Market Overview

The report highlights significant challenges faced by renewable energy stocks due to inflation and rising interest rates, which have led to reduced spending on green energy projects. However, with macro conditions stabilizing, this could indicate a potential rebound for the sector.

Future Capacity Addition

The International Energy Agency (IEA) projects that over 5,500 gigawatts of new renewable energy capacity will be added worldwide from 2024 to 2030. This is nearly three times the amount added from 2017 to 2023, suggesting strong growth potential for the industry.

NuScale Power Analysis

NuScale Power has seen a remarkable 650% increase in its stock price over the past year in anticipation of regulatory approval for its 77 megawatt reactors. Analysts project a revenue growth of 268% from 2024 to 2026 to reach $321 million. However, it is important to note that it remains deeply unprofitable, with soaring costs leading to project cutbacks. This indicates potential risks despite the anticipated growth.

CleanSpark Insights

CleanSpark has experienced impressive growth, with its revenue surging by 125% to $379 million. Forward-looking projections forecast a 36% compound annual growth rate (CAGR) for its revenue from fiscal 2024 to 2027. The company also reported significant growth in its adjusted EBITDA, which rose nearly tenfold to $246 million. This systemic growth is underpinned by the increasing price of Bitcoin and their operational efficiency.

The analyst insights point toward a bright future for companies in the green energy space, particularly those like NuScale and CleanSpark that intersect with burgeoning fields such as nuclear power and Bitcoin mining, respectively. Therefore, investor interest in the stocks of these companies could see a significant uptick.

Stocks: SMR CLSK