Investing.com – Wolfe Research analysts have identified ten main questions for the energy sector on 2025.
These questions address market performance, organizational changes, integration, and other factors that are likely to affect the facilities and independent energy producers (IPPS).
The first question is taught whether the energy sector can maintain its last operation of the superior performance.
More than 2023 and 2024, stocks like Vistra, Constellation (Nasdaq :), Talen Energy has seen huge gains.
Analysts monitor whether this momentum will continue or explode, as the investor's enthusiasm showed signs of slowing down.
the next (LON :), WOLFE Research thinks about the possibility of integration, acquisitions, or new primary public shows.
With the Constellenge of $ 29 billion in the activity of Calpine, the questions are still ongoing whether private portfolios such as Lightning Power or Alpha Gen may be considered public or if they will merge with current players instead.
Data center expanding remains an urgent problem. It is expected that companies such as Visstra, NRG Energy (NYSE :), Pseg and Constellation will announce the projects to maintain the investor's confidence.
However, the competition between independent and organized markets can create challenges.
The main risks of this sector lie in superior spending by companies like NVIDIA (NASDAQ 🙂 and major technology companies like Microsoft (Nasdaq :), Amazon (Nasdaq :).
Wolfe Research warns that any slowdown in the growth of the AI's data center can disrupt expectations, especially for IPPS depends on these deals.
The organizational scene offers additional uncertainty. The Federal Energy Regulatory Committee has not yet set a clear policy on the common generation, an issue that incited a constellation against Excel (NASDAQ :).
The solution to this discussion will determine the speed of projects in areas such as PJM to move forward.
Analysts also follow the potential effects of the political scene, especially the impact of the new administration.
The main issues include whether greenhouse gases in the Biden administration will back down from power plants and whether there will be new benefits for former President Trump.
Auction of capacity in PJM markets is another field of concentration. The pricing of 2025/2026 reached its highest level ever reached 270 dollars per megawam per day, which raised questions about sustainability amid the high demand and changes in the ruling.
The narrow market conditions are also looming on the horizon for regional networks such as ERCOT, PJM and MISO, where reliability risk can drive energy prices up.
Building new buildings and determining what to do with the current assets is the structural questions facing the sector.
Main trends include late retirement, coal transfers to gas, and organized facilities that may have generation.
Among the recent developments in the state of Pennsylvania and Ouhayu, as well as those under the Texas Energy Fund.
