If Hollywood remade The Graduate today, the film's famous lines by Mr. McGuire to Benjamin would likely have a different ending. Today's dialog would probably go something like, "I just want to say one word to you. Just one word...Power." That's because the world needs a tremendous amount of new power-generating capacity to support the transition to electric vehicles, operate new automated industrial manufacturing facilities, and support power-hungry AI data centers. Brookfield Renewable (NYSE: BEPC)(NYSE ...

03 Feb 2026 11:18:42 ET │ 19 pages Vi e w p o i n t | China Diversified Utilities Higher Grid Capex Growth in 2026E; Lifting Solar & Wind Installations CITI'S TAKE PRC electricity demand growth in 2025 was +5.0% y/y, a deceleration of 1.8ppts from the previous year due to a warmer-than-usual winter in 1Q25. We expect electricity demand growth to accelerate to 6.5% y/y in 2026 based on a 1.3x multiple for annual electricity demand growth versus annual GDP growth, similar to those in 2020-24. Meanwhile, 2025 ...

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Power** sector, specifically highlighting the growth in **wind and solar energy installations** in 2025, which exceeded expectations [1][5]. Core Insights and Arguments - **Power Demand Growth**: - National power consumption increased by **5.0% year-over-year (yoy)** in 2025, aligning with the China Electricity Council's (CEC) projections [8]. - Power demand by sector showed varied growth: - Primary: **9.9%** - Secondary: **3.7%** - Tertiary: **8.2%** - Residential: **6.3%** - This represents a moderation compared to 2024's growth rates [2]. - **Power Generation Statistics**: - Total power generation rose by **2.2% yoy** to **9,716 billion kWh** in 2025. - Solar and wind power generation increased significantly, with solar up **24.4%** and wind up **9.7%**, contributing **17%** of total generation (up from **14%** in 2024) [3]. - Thermal generation decreased by **1.0% yoy** to **6,295 billion kWh**, while hydro and nuclear generation rose by **2.8%** and **7.7%** respectively [3]. - **Capacity Additions**: - China added **543 GW** of power capacity in 2025, marking a **26.5% yoy** increase. This included: - **315 GW** of solar (up **13.7%**) - **119 GW** of wind (up **50.4%**) - **95 GW** of thermal, which accelerated from previous years [4]. - By the end of 2025, total installed power capacity reached **3,891 GW**, with solar and wind comprising **47.3%** of this total [4]. - **Sector-Specific Drivers**: - The major drivers for tertiary power consumption were identified as **electric vehicle (EV) charging** and **software & IT services**, which grew by **48.8%** and **17.0% yoy** respectively [8]. Additional Important Insights - The report indicates that the growth in renewable energy installations was higher than previously forecasted, with cumulative solar and wind capacity reaching **1,202 GW** and **640 GW** respectively by the end of 2025 [8]. - The thermal power installation for 2025 was below the CEC's forecast of **106 GW**, indicating a potential area of concern for future thermal energy investments [8]. This summary encapsulates the key findings and insights from the conference call regarding the state of the power sector in China, particularly focusing on the growth of renewable energy sources and the overall demand for power.

Core Insights - Brookfield Renewable Partners is positioned as a key player in supplying renewable energy to major AI companies like Microsoft and Google, ensuring their data centers remain operational [1][4] - The company has a diversified portfolio of clean energy assets, including solar, wind, hydroelectric, battery, and nuclear power, which supports its long-term power supply contracts and reliable cash flows [2][3] Company Overview - Brookfield Renewable Partners owns a globally diversified portfolio of clean energy assets, making it a one-stop shop for companies seeking renewable or zero-carbon power [2] - The average contract length for power supply agreements is 13 years, with approximately 70% indexed for inflation, providing stability and reliability [3] AI Opportunity - Brookfield Renewable Partners has secured contracts to supply Google with 3 gigawatts and Microsoft with 10.5 gigawatts of power for their data centers, indicating significant future growth potential [4] - The company anticipates capital investments between $9 billion and $10 billion over the next five years to support these developments [4] Financial Performance - The company has a market capitalization of $8.8 billion, with a current price of $28.81 and a dividend yield of 5.18% [6] - Expected growth in funds from operations is projected at 10% or more annually, supporting a long-term distribution increase of 5% to 9% per year [6] Investment in Westinghouse - Brookfield Renewable Partners' investment in Westinghouse is noteworthy, especially with a new $80 billion deal with the U.S. government for nuclear reactors, which could enhance revenue streams as demand for electricity rises [7] Alternative Investment Option - For investors preferring a corporate structure, Brookfield Renewable Corporation offers a similar investment opportunity, albeit with a lower yield of 3.7% due to high institutional demand [8]

Core Viewpoint - Tor Lønnum has been appointed as the new Executive Vice President and Chief Financial Officer (CFO) of Statkraft, effective from 1 February 2026, succeeding Tone Aastveit Skuterud [1][3]. Group 1: Appointment Details - The recruitment process for the new CFO was initiated in December 2025 and was conducted by Korn Ferry, combining search and open applications [3]. - Lønnum brings over 25 years of senior financial leadership experience from various large Nordic and international companies, including previous CFO roles in regulated and capital-intensive sectors [1][5]. Group 2: Leadership Perspective - Birgitte Ringstad Vartdal, President and CEO of Statkraft, expressed confidence in Lønnum's ability to contribute to the company's success, highlighting his broad strategic, financial, and leadership experience [2]. - Lønnum emphasized his eagerness to support Statkraft's refined strategy and long-term value creation, recognizing the company's critical role in Europe's energy system and renewable resource development [4]. Group 3: Company Background - Statkraft is recognized as Europe's largest generator of renewable energy, specializing in hydropower, wind power, solar power, and gas-fired power, with operations in over 20 countries and approximately 7,000 employees [7].

Industry Overview - The demand for renewable energy, particularly wind power, is rising globally as efforts to reduce greenhouse gas emissions intensify [1] - Wind energy has become one of the largest renewable sources of electricity generation in the U.S., driven by lower production costs, supportive government policies, and increasing demand [2] - U.S. wind power capacity reached over 154 gigawatts (GW) by the end of 2024, accounting for approximately 10% of total utility-scale electricity generation [3][11] Growth Drivers - The wind energy sector benefits from robust demand for electric power, particularly from AI-driven data centers, the growing popularity of electric vehicles (EVs), and increased residential demand [4][11] - The U.S. grid is projected to add about 7.5 GW of new wind generation capacity in 2025, indicating strong growth potential [4][11] Company Highlights - **NextEra Energy, Inc. (NEE)**: A leading generator of wind energy globally, expanded its wind generating capacity by 1,365 MW in 2024 and plans to add significant clean power generation assets from 2024 to 2027 [8][9][10] - **PG&E Corp. (PCG)**: Operates California's largest regulated electric and gas utility, focusing on optimizing generation margins and diversifying into alternative power sources, with capital expenditures of $10.6 billion in 2024 and plans for $12.9 billion in 2025 [12][14] - **Arcosa, Inc. (ACA)**: A manufacturer of infrastructure-related products, benefiting from strong demand for wind towers, with revenues from its Engineered Structures segment increasing by 11.3% year over year in Q3 2025 [15][16] - **Constellation Energy Corp. (CEG)**: Operates 27 wind projects capable of producing about 1,400 MW of electricity, launching a $350 million initiative to enhance the efficiency and lifespan of its renewable energy portfolio [18][19] Investment Opportunities - The wind energy sector is viewed as an attractive investment theme, with companies like NextEra Energy, Constellation Energy, PG&E, and Arcosa being highlighted for their growth potential [6] - The passing of the Inflation Reduction Act (IRA) has catalyzed growth for companies like Arcosa, which secured $1.1 billion in new orders for wind energy projects [16]

Core Insights - CFO Anna Nord Bjercke of Statkraft AS will step down to pursue opportunities outside the company, effective January 1, 2026, with Tone Aastveit Skuterud appointed as acting CFO [1][2][3] Group 1: Leadership Changes - Anna Nord Bjercke joined Statkraft as CFO in January 2024 and has contributed to refining the business strategy, divesting non-core activities, and reducing costs significantly during her tenure [2] - Tone Aastveit Skuterud, the new acting CFO, has extensive experience, having previously held senior management roles at Telenor and served in various capacities at Statkraft for 12 years [1][3] Group 2: Company Performance and Strategy - The company has focused on strengthening its financial robustness and competitiveness amid increased uncertainty in the energy sector, with planned divestments being a key milestone for new investments [3] - Statkraft is recognized as Europe's largest renewable energy producer, with a diverse portfolio that includes hydropower, wind power, solar power, and gas-fired power [6]

Core Viewpoint - Clearway Energy (CWEN) is recognized as a strong player in the renewable energy sector, with a positive outlook from Morgan Stanley and Zacks Investment Research, indicating potential for growth and market outperformance [1][2][5] Company Overview - CWEN operates a diverse portfolio of wind, solar, and natural gas power generation facilities, focusing on clean energy solutions [1] - The company's market capitalization is approximately $7.12 billion, highlighting its significant presence in the energy sector [3][5] Stock Performance - As of the latest update, CWEN's stock price is $34.95, reflecting a slight decrease of 0.71% or $0.25 [3][5] - The stock has experienced volatility over the past year, with a high of $36.89 and a low of $24.40, indicating potential for growth [3] Analyst Ratings - Morgan Stanley upgraded CWEN to "Overweight" and raised its price target from $47 to $50, suggesting a positive outlook for the stock [1][5] - Zacks Investment Research identifies CWEN as a strong momentum stock, indicating its potential for short-term market outperformance [2][5] Trading Activity - Today's trading volume for CWEN is 179,674 shares on the NYSE, indicating active investor interest [4] - The combination of positive ratings and active trading suggests that CWEN is a stock to watch, with confidence in reaching the updated price target of $50 [4]

Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **China Power** industry, highlighting significant trends in power consumption and generation in the country [1][2]. Key Insights on Power Consumption - **National power consumption** increased by **5.1% YoY** in the first ten months of 2025, up from **4.6%** in the previous months [3][9]. - In **October 2025**, power demand surged by **10.4% YoY**, with notable increases in various sectors: - **Primary sector**: +13.2% YoY - **Secondary sector**: +6.2% YoY - **Tertiary sector**: +17.1% YoY - **Residential demand**: +23.9% YoY [3][9]. Sector-Specific Growth Drivers - The **tertiary sector** growth was primarily driven by: - **Retail services**: +24.4% YoY - **IT services**: +21.0% YoY - The **accommodation and catering** sector also saw an increase of **18.4% YoY**, attributed to the strong National Day holiday [4][9]. - **Residential power consumption** growth was influenced by temperature variations, with regions like Jiangxi, Zhejiang, and Shanghai experiencing significant increases of **66%**, **63%**, and **47%** YoY, respectively [4]. Power Generation Insights - Total power generation in **10M25** rose by **2.3% YoY** to **8,063 billion kWh**. - Renewable energy sources showed strong growth: - **Solar power generation**: +23.2% YoY - **Wind power generation**: +7.6% YoY - The share of wind and solar in the energy mix increased to **16%**, up from **14%** in the same period last year [5][9]. Capacity Expansion - China added **398 GW** of power capacity in **10M25**, marking a **42.4% YoY** increase, including: - **253 GW** from solar (up **39.5% YoY**) - **70 GW** from wind (up **52.9% YoY**) - **65 GW** from thermal sources (up **54.3% YoY**) [5][9]. Investment Trends - Investments in power generation capacity reached **Rmb722 billion**, a **0.7% YoY** increase, while investments in the power grid rose to **Rmb482 billion**, up **7.2% YoY** [9]. Analyst Ratings and Industry Outlook - The overall view of the **China Utilities** sector is considered **attractive**, with several companies rated positively, including: - **China Resources Power**: Overweight - **China Longyuan Power Group**: Overweight - **Huaneng Power International Inc.**: Equal-weight [7][59]. Additional Considerations - The report emphasizes the potential for continued growth in the renewable energy sector, driven by government policies and increasing demand for cleaner energy sources [7][9]. - Analysts caution that while the growth is promising, investors should remain aware of potential risks associated with market fluctuations and regulatory changes [7][9].

Energy Transition Overview - Zero-emission power sources are reshaping markets [1] - Hydrogen, biofuels, and batteries are transforming industry and mobility [1] Bloomberg New Economy Forum - The Bloomberg New Economy Forum will be held November 19-21 [1] - The forum will discuss how the energy transition is changing the balance of power and opportunity [1]