Renewable Energy Rises as Coal Use Continues to Decline
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 27 2026
0mins
Source: Fool
- Decline of Coal Usage: Coal's share in U.S. electricity supply has dropped from 19.7% five years ago to 12.2%, indicating a significant shift towards renewable energy that could impact the market performance of related energy companies.
- Solar Surpassing Coal: In May 2023, solar power accounted for 12.8% of the U.S. grid, surpassing coal for the first time, marking a pivotal moment for renewable energy that may attract increased investor interest in the sector.
- NextEra Energy's Dual Business Model: As one of the world's largest utilities, NextEra Energy is solidifying its leadership in clean energy by acquiring Dominion Energy, offering a 2.8% dividend yield that appeals to conservative investors seeking stability in their portfolios.
- Investments in Brookfield and HA: Brookfield Renewable Partners boasts a 4.4% dividend yield with a diversified clean energy portfolio, while HA Sustainable Infrastructure Capital provides loans for clean energy projects with a 4.3% yield, highlighting the investment potential in this growing sector.
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Analyst Views on NEE
Wall Street analysts forecast NEE stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 86.370
Low
84.00
Averages
92.50
High
100.00
Current: 86.370
Low
84.00
Averages
92.50
High
100.00
About NEE
NextEra Energy, Inc. is an electric power and energy infrastructure company. It operates through its wholly owned subsidiaries, NextEra Energy Resources, LLC and NextEra Energy Transmission, LLC (collectively, NEER) and Florida Power & Light Company (FPL). Its segments include NEER and FPL. FPL segment is a rate-regulated electric utility engaged in the generation, transmission, distribution and sale of electric energy in Florida. FPL has approximately 35,052 megawatts of net generating capacity, over 91,000 circuit miles of transmission and distribution lines and 921 substations. The NEER segment owns, develops, constructs, manages and operates electric generation facilities in wholesale energy markets in the United States and Canada and includes assets and investments in other businesses with a clean energy focus, such as battery storage, natural gas pipelines, and renewable fuels. It owns, develops, constructs and operates rate-regulated transmission facilities in North America.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Competition Concerns: King highlighted that the merged entity would create the world's largest regulated electric utility by market capitalization, potentially stifling competition and allowing a single firm to exert significant influence across generation and transmission sectors.
- Impact on Clean Energy: The senator expressed worries that NextEra's lobbying efforts in New England have already harmed clean energy competition, alongside other business practices that could lead to increased prices for consumers.
- Regulatory Challenges Ahead: The opposition to this acquisition could pose significant challenges for NextEra's future growth, particularly in a climate where energy market competition and consumer protection are under heightened scrutiny.
See More
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- Acquisition Controversy: U.S. Senator Angus King is urging the rejection of NextEra's proposed $66.8 billion acquisition of Dominion Energy, arguing that the deal would concentrate too much power and potentially impact over 10 million people.
- Competition Concerns: King highlighted that the merged entity would possess 110 gigawatts of electric-generating capacity, which could deter competition and affect market fairness, particularly in regions with high concentrations of data centers.
- Rising Energy Demand: The past few years have seen a surge in electricity demand, driven by the electrification of industries like transportation and the expansion of energy-intensive data centers, leading to several large power mergers, including NextEra's acquisition plan.
- Clean Energy Competition: King noted that NextEra has already stifled clean energy competition through lobbying efforts in New England, raising concerns that this could ultimately lead to higher prices for consumers and further scrutiny of the company's business practices.
See More
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- Vistra's Market Position: With a generation capacity of 44,000 MW serving approximately 5 million customers, Vistra reported a 12.4% revenue decline to $17 billion in FY 2025, yet still achieved a net income of $944 million, demonstrating resilience in both retail and wholesale markets.
- Risks and Challenges: NextEra faces integration risks and regulatory approval pressures from its $67 billion acquisition, while Vistra must navigate wholesale price volatility and environmental compliance costs, particularly after acquiring Cogentrix, which may attract stricter market scrutiny.
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