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4 Utilities With an Edge After Texas Power Outages

We look at which utility companies stand to benefit as the Lone Star state recovers from last month's blackouts.

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Widespread power outages in Texas left millions without power during severe winter weather last month. This focused attention on utilities companies nationwide, and our Utilities equity research team believes they must address three key areas going forward.

1. Renewable Energy Growth
We expect wind and solar energy to double their market share in the United States by 2030. That includes 50 gigawatts in wind and solar energy to go online in the next three years--with a significant portion going to Texas. Despite Texas being a large producer of wind and solar energy, there will be hurdles to expand renewable energy across the U.S. The biggest challenge is intermittency: producing solar and wind energy when it isn’t sunny or windy. In addition, wind turbines can produce energy in cold temperatures, but investment is required for them to operate more efficiently during extreme cold.

Sachin Nagarajan does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.