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Power Profits in Biden's Energy Future

Written by Keith Kohl
Posted May 5, 2021

Sometimes an event triggers that can give the right investor a glimpse into the future.

I’m not talking about reading tea leaves, writing obscure quatrains, having your palm read, or rolling a set of bones.

In fact, one of those events took place last fall… Did you miss it?

Don’t feel bad if you did — you weren’t alone. Investors everywhere missed it as well and, as usual, it passed right by the herd without a whiff of recognition. 

It occurred right around the beginning of last October, when the only stories people paid attention to were COVID-related.

What happened, you ask?

Well, for the first time in market history, the market cap of a renewable energy company briefly surpassed that of the mighty ExxonMobil. 

That’s no small feat, mind you.

It didn’t last long, as oil’s rally during the latter half of 2020 has helped push Exxon’s market cap back to the $260 billion it’s at today.

But it was a sign of things to come, and it was an omen for the future of U.S. energy.

Power Profits in Biden’s Energy Future

I know what some of my readers are thinking: We’re too late, aren’t we? or perhaps It can’t be this lucrative, can it?

The answer to both questions is a resounding no!

Remember, renewable energy companies weren’t even in this race a decade ago, when the U.S. only derived 5% of its electricity generation from green energy — and more than one-third of THAT came from hydropower

As I mentioned last week, renewables’ share of our electrical generation has surged higher since 2011 and now accounts for one-fifth of our power sources. In fact, sources like wind and solar have taken a huge chunk of that pie and make up roughly half of our power generation from renewables today. 

To put some hard numbers on this for us, U.S. electrical generation last year totaled 4.12 trillion kilowatt-hours. 

So which horse are we betting on?

Race for the Prize

Look, every player in the power sector today is racing for one prize.

Upward to the vanguard, you could say… and billions of dollars in pure profit could be up for grabs.

Of course, watching NextEra Energy’s market cap surpass Exxon's last year was just another huge sign we can’t afford to ignore any longer. NextEra just happens to be a major player in the U.S. power sector, and it generates its electricity from a wide range of sources, including wind, solar, and natural gas

All three of those energy sources are playing a pivotal role in U.S. power generation.

Why?

Because from here on out, the hype in the media will be razor focused on developing and building our renewable power. 

And the proof is in the profits…

The Biden administration is in full PR mode over the president’s infrastructure bill. It won’t be a hard sell, given how the media have been pumping up their rhetoric on climate change over the last few weeks.

I guess COVID is out and climate change is in.

Don’t worry, that’s good news for us. The government's push for cleaner energy will drive public sentiment right where we want it.

Up until now, we’ve talked about the nearly $200 billion in spending that will be allocated toward the EV market, including the necessary infrastructure that is vital for the successful transition away from traditional ICE vehicles. 

More recently, the president released a few more juicy details on how his multitrillion-dollar spending plan will funnel right into your pocket. 

Upgrading our country’s electrical grid will be a key component and has targeted at least 20 major transmission projects that will create approximately 600,000 jobs. Granted, that’s not to mention the additional 640,000 jobs the government expects will be created from new clean energy projects by these new transmission lines. 

We saw last week that tomorrow’s electricity won’t come from our coal resources. And that gap between coal and renewable electrical generation will widen going forward.

Last year, the U.S. added 39.7 gigawatts of capacity to its electrical grid from renewable energy sources. Wind and solar accounted for nearly 70% of that capacity.

Are you late to the party?

No, this trend is going to accelerate over the next few years.

The only question left is whether you are able to recognize this fact and position yourself appropriately right now.

Tomorrow’s power profits are up for grabs. 

Make sure you get your piece. 

Until next time,

Keith Kohl Signature

Keith Kohl

follow basic@KeithKohl1 on Twitter

A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing's Energy Investor and Technology and Opportunity.

For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.

Keith’s keen trading acumen and investment research also extend all the way into the complex biotech sector, where he and his readers take advantage of the newest and most groundbreaking medical therapies being developed by nearly 1,000 biotech companies. His network includes hundreds of experts, from M.D.s and Ph.D.s to lab scientists grinding out the latest medical technology and treatments. You can join his vast investment community and target the most profitable biotech stocks in Keith’s Topline Trader advisory newsletter.

 

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