I last wrote about Clearway Energy (CWEN) in August of 2023. There are 3 big changes since then which I think warrant a new thesis: The stock price is up substantially with the cheaper A shares (CWEN.A) now trading at a 16.3X CAFD. Demand for incremental power development has become ubiquitous. Power purchase agreement (PPA) pricing has nearly doubled which has implications for both going in yield and rollover organic growth. I believe changes 2 and 3 make CWEN capable of hitting its recently issued ambit ...

Core Viewpoint - Clearway Energy (CWEN) has made significant changes that support its ambitious growth guidance, projecting a Cash Available For Distribution (CAFD) of $2.90-$3.10 by 2030, indicating a compound annual growth rate (CAGR) of 7%-8% through 2030 [2][4]. Company Guidance - CWEN's long-term guidance includes a target CAFD of $2.90-$3.10 by 2030, reflecting a growth rate of 7%-8% CAGR [2]. - The growth rate is considered unusual for a yield-co, which typically focuses on steady cash flows to pay dividends, limiting retained cash for further investments [3][4]. Market Environment - The demand for energy has surged, driven by the rise of AI and the need for increased power capacity, while regulatory frameworks have not kept pace with this demand [5][6]. - CWEN is well-positioned to capitalize on this demand due to its developer mindset and a parent company pipeline of over 11 GW, which will be dropped down into CWEN at strong CAFD yields [6]. Project Pipeline - CWEN has a robust pipeline of projects, with several repowering initiatives already in progress, targeting CAFD yields of about 10.5% [12][14]. - The company has 863 MW of repowering projects locked in with power purchase agreements (PPAs), which are expected to yield double-digit returns [17]. Pricing Trends - Power purchase agreement (PPA) pricing has nearly doubled, which positively impacts CWEN's yield and organic growth potential [8][19]. - Historical PPA prices have seen a significant decline, but recent trends indicate a recovery, with prices expected to stabilize around $70/MWh for solar and wind by 2025-2026 [31][32]. Organic Growth Potential - The upward trend in PPA prices enhances CWEN's organic growth prospects, allowing for better contract renewals and reducing the risk of revenue declines from expiring contracts [34][36]. - CWEN aims to maintain a growth rate of CAFD per share at 5% or more beyond 2030, supported by favorable market conditions [37]. Share Structure and Valuation - CWEN has a dual share structure, with CWEN.A trading at a discount compared to CWEN, presenting an arbitrage opportunity for investors [38][39]. - The current valuation suggests that a 16X CAFD multiple is reasonable, given the company's growth ambitions and market conditions [37].

Core Insights - Clearway Energy has announced a significant portfolio of contracts with Google, totaling 1.2 gigawatts, indicating a growing trend in hyperscaler renewable procurement, which is seen as an early but meaningful signal of increasing demand in the sector [1][5] Development Progress - Clearway has commercialized nearly all planned projects to support growth through 2027 and into 2028, backed by power purchase agreements (PPAs), mature interconnections, site control, and secured equipment [2] - The company is optimistic about its outlook for 2026 and is confident in meeting its 2026 guidance, with a clearer path to its 2027 and 2030 financial targets [3] Financial Objectives - Clearway aims to achieve approximately $3.10 cash available for distribution (CAFD) per share by 2030, planning to construct at least 2 gigawatts annually to sustain growth [5][7] - The Google-linked projects align with Clearway's framework of large projects and long-term contracts, enhancing confidence in reaching the upper end of its 2030 target [7] Strategic Approach - The company emphasizes an "all-of-the-above" strategy, incorporating renewables, batteries, and contracted gas, with a focus on predictable cash flows and disciplined capital allocation [4][12] - Clearway's projects are designed to ensure predictable, long-term contracted cash flows with low variability, utilizing a mix of renewable and gas resources [12][13] Market Trends - There is an expected increase in "front-of-the-meter" contracting for data center customers, with a shift towards ambitious projects that integrate solar, wind, batteries, and gas [6] - The company anticipates that contracting announcements will become larger and more routine as it scales towards building 2 gigawatts or more annually [16] Battery and Gas Integration - Clearway is particularly positive about battery storage, citing its reliability and predictability as a cash flow source, with structured long-term contracts [14] - Gas resources are intended to complement renewables and batteries, providing capacity confidence for utilities and data centers [13] Acquisition and Financing Strategy - Clearway has demonstrated CAFD yields above its 10.5% target in recent transactions and aims to maintain a disciplined capital allocation framework [10][11] - The company does not factor third-party acquisitions into its growth plans but sees potential for accretive acquisitions in the current market environment [16]

Group 1 - The discussion focuses on the clean energy landscape and specific trends related to Clearway [1][2] - There is a sense of optimism as the conversation shifts towards new directions and higher expectations for the future [2] - The analyst emphasizes the importance of understanding key trends for the year 2026 and invites insights from Craig Cornelius [2]

Summary of Clearway Energy Conference Call Company Overview - **Company**: Clearway Energy, Inc. - **Industry**: Clean Energy, specifically focusing on renewable energy projects and power purchase agreements (PPAs) with major corporations like Google. Key Points and Arguments 1. Strong Outlook for 2026 - Clearway Energy is optimistic about its performance in 2026, following a successful execution year in 2025. The company feels confident in meeting its guidance for 2026 and has already commercialized most of its planned projects through 2027 and into 2028 [3][4]. 2. Partnership with Google - The recent announcement of a 1.2 GW PPA with Google is seen as a significant milestone, indicating a shift in the clean energy landscape. This partnership is expected to lead to more contracts with other hyperscalers and renewable energy companies [7][9]. - The contracts with Google are long-term and diverse in geography, which enhances Clearway's growth prospects and aligns with Google's clean energy goals [9][10]. 3. Growth Projections - Clearway aims for a sustainable growth rate of 8%+ over time, supported by a robust pipeline of projects and strong relationships with key customers [5][18]. - The company has set a target of achieving $3.10 in cash available for distribution (CAFD) per share by 2030, with a focus on constructing 2 GW of projects annually [20][21]. 4. Capital Allocation and Financial Metrics - Clearway maintains a capital allocation framework aiming for a leverage ratio of 4-4.5x and a CAFD yield of 10.5% or better. The company is focused on delivering predictable cash flows and high returns to shareholders [29][49]. - The company has successfully exceeded the 10.5% CAFD yield in recent projects, which is expected to continue as they capitalize on new opportunities [49]. 5. Technology and Resource Mix - Clearway is committed to a diverse energy portfolio, including renewable resources, gas, and battery storage. The company believes that a mix of these technologies will provide the most reliable and cost-effective energy solutions [54][56]. - The company sees a significant role for gas resources in complementing renewable energy, especially in providing reliability and firming capabilities [54][55]. 6. Future of Renewable Energy Post-2030 - Clearway anticipates that the renewable energy landscape will continue to grow even after the expiration of tax credits in 2030. The company expects to see a mix of renewable, gas, and battery resources remain essential for meeting energy demands [62][66]. - The company is preparing for a future where renewable projects will need to stand on their own economically, without tax incentives [63][66]. 7. Storage Opportunities - Clearway is optimistic about the potential for battery storage, which has proven to be reliable and effective in enhancing grid performance. The company is focused on developing domestic supply chains for battery production [70][73]. 8. Capital Raising Strategy - Clearway plans to maintain a disciplined approach to capital raising, balancing equity issuance with its growth objectives. The company aims to continue raising capital in a manner consistent with premium utilities [29][80]. Additional Important Insights - The company is focused on building large-scale projects and expects to see larger contracting announcements as it grows. This shift reflects the increasing scale of the clean energy market and Clearway's capabilities [75][76]. - Clearway's strategy includes developing projects in phases, allowing for incremental capital allocation and reporting on progress [77][78]. This summary encapsulates the key insights and strategic directions discussed during the conference call, highlighting Clearway Energy's commitment to growth, innovation, and sustainable energy solutions.

Unlike prior energy cycles, this demand surge is not being met by a single favored source. Instead, everything is needed, from traditional generation, renewables, nuclear, hydrogen, battery storage, and distributed on-site power solutions. That reality has created a unique setup for alternative energy companies operating across infrastructure, storage, and next-generation power technologies.AI data centers are massive consumers of electricity. As hyperscalers race to expand capacity, and as companies reshor ...

Alphabet Inc. (NASDAQ:GOOGL) is one of the 15 Best S&P 500 Stocks to Look For in 2026. On January 15, Alphabet Inc.’s (NASDAQ:GOOGL) Google recently awarded three new long-term power purchase agreements (PPAs) to Clearway Energy Group, Inc. (NYSE:CWEN), as reported by Clearway Energy. This development is part of Clearway’s 2025 plan, which includes three projects in states including Missouri, Texas, and West Virginia. These projects total approximately 1.17 GW of carbon-free energy projects. As per the ...

Key Points Clearway Energy is in a strong position to capitalize on growing clean power demand. It has excellent growth visibility through 2030. Clearway has plenty of power to continue growing at a healthy rate in 2031 and beyond. 10 stocks we like better than Clearway Energy › Clearway Energy (NYSE: CWEN)(NYSE: CWEN.A) is one of the largest owners of clean generation assets in the country with 12.7 gigawatts (GW) of wind, solar, energy storage, and natural gas capacity. Despite that, it tends to ...

PRINCETON, N.J., Jan. 20, 2026 (GLOBE NEWSWIRE) -- Clearway Energy, Inc. (NYSE: CWEN, CWEN.A) plans to report Fourth Quarter 2025 financial results on Monday, February 23, 2026. Management will present the results during a conference call and webcast at 5:00 p.m. Eastern. A live webcast of the conference call, including presentation materials, can be accessed through the Company’s website at http://www.clearwayenergy.com and clicking on “Presentations & Webcasts” under the Investor Relations section. The we ...

Group 1: Renewable Energy Stocks Overview - Quanta Services, WEC Energy Group, and Clearway Energy are highlighted as key renewable energy stocks to monitor, based on their high trading volume recently [2] - Renewable energy stocks represent companies focused on producing energy from renewable sources or providing related equipment and services, appealing to investors seeking exposure to the shift from fossil fuels [2] Group 2: Quanta Services (PWR) - Quanta Services, Inc. offers infrastructure solutions across various sectors including electric and gas utilities, renewable energy, and communications, operating in the U.S., Canada, Australia, and internationally [3] - The company’s Electric Power Infrastructure Solutions segment is involved in the design, construction, and maintenance of electric power transmission and distribution infrastructure, including smart grid technologies [3] Group 3: WEC Energy Group (WEC) - WEC Energy Group, Inc. provides regulated natural gas and electricity services, along with renewable energy services through its subsidiaries, operating in multiple states including Wisconsin and Illinois [4] Group 4: Clearway Energy (CWEN) - Clearway Energy, Inc. operates in the renewable energy sector in the U.S., with approximately 6,000 net MW of installed wind, solar, and energy generation projects, and around 2,500 net MW of natural gas-fired generation facilities [4]