Investing.com – Wolfe Research analysts have identified ten main questions for the energy sector as it moves to 2025.
These questions deal with market performance, organizational changes, integration processes, and other factors that are likely to affect the independent facilities and power producers (IPPS).
The first question looks at whether the energy sector is able to maintain its recent performance.
During the years 2023 and 2024, stocks will rise like Vistra, Energy constellation (Nasdaq :), Talen Energy has seen tremendous gains.
Analysts monitor whether this momentum will continue or will decline, as investor enthusiasm showed signs of slowdown.
the next (LON :), WOLFE Research is studying the possibility of integration, acquisitions, or new initial public offers.
With the acquisition of $ 29 billion at Constellation on Calpine, who raised the activity, there are still questions about whether private portfolios such as Lightning Power or Alpha Gen may be asked for public subscription or whether they will instead with the current players.
Data center expansion still represents an urgent problem. It is expected that companies such as Vistra and NRG Energy (NYSE :), Pseg and Constellation will announce projects to maintain investor confidence.
However, the competition between independent and organized markets can create challenges.
The main danger to the sector lies in excessive spending by companies like NVIDIA (NASDAQ 🙂 and major technology companies like Microsoft (Nasdaq 🙂 and Amazon (NASDAQ :).
Wolfe Research warns that any slowdown in the growth of artificial intelligence -related data centers can disrupt expectations, especially for independent energy service providers who rely on these deals.
The organizational scene raises additional doubts. The Federal Energy Regulatory Committee has yet to set a clear policy on obstetrics in a joint location, the issue that the Constilation company against Xilon (NASDAQ :).
The solution to this discussion will determine the extent of the speed with which projects in areas such as PJM can move forward.
Analysts also follow the potential effects of the political scene, especially the impact of the new administration.
The main issues include whether the bases of greenhouse gases imposed by the Biden administration for the power plants will be retracted and whether there will be new benefits during the era of former President Trump.
The PJM auction auction is another field of focus. Prices for the period 2025/2026 have reached its highest level ever at $ 270 per megatic daily, raising questions about sustainability amid high demand and changing rules.
Difficult market conditions are also waving on the horizon for regional networks such as ERCOT, PJM and MISO, where reliability risk can lead to high energy prices.
Building new buildings and determining what to do with the existing assets is the structural questions facing the sector.
The main trends include late retirement cases, conversions from coal to gas, and the possibility of organized facilities for power generation.
Among the recent developments that occurred in Pennsylvania and Ouhayu, as well as those being implemented within the framework of the Texas Energy Fund.
