Analysis-'Every electron counts': Why renewables stocks are back in play

Core Insights - A resurgence of fund inflows into renewable energy stocks is revitalizing the sector, marking the strongest quarterly rise since the sustainability boom earlier this decade [1] - Improved U.S. power demand outlook and greater policy certainty are attracting investors back to renewable energy [1] - Despite previous bearish sentiment, the renewables industry is seeing a shift as investors refocus on fundamentals [3] Fund Flows and Market Performance - Alternative energy funds experienced their first net monthly inflow in June after 25 months of outflows totaling approximately $24 billion, with inflows nearing $800 million in September [4] - Clean energy indices, ETFs, and individual stocks have shown double-digit gains, with Bloom Energy's shares rising 300% in four months [5] Economic Environment - The Federal Reserve's dovish stance is benefiting capital-intensive renewable projects by lowering borrowing costs, although rates remain higher than during the peak of ESG investments [6] Private Equity Interest - Private equity firms are actively seeking long-term value in the renewable sector, with Global Infrastructure Partners reportedly in talks to acquire AES, indicating significant interest in Wall Street power companies [7]