12 High-Growth Utility Stocks to Buy Now

8. Clearway Energy, Inc. (NYSE:CWEN)

Number of Hedge Fund Holders: 33

Average 5-Year Revenue Growth: 5.72%

Clearway Energy, Inc. (NYSE:CWEN) is one of the best high-growth utility stocks to buy. On October 6, the company agreed to a binding contract to acquire a functional solar portfolio of 613 MWac from Deriva Energy.

The solar portfolio is spread across eight states, with its major assets located in the CAISO and PJM markets. Since 227 MWac of the solar portfolio, comprising 12 assets, is located in the Western states, the company will form a 50/50 joint venture with a current investment partner, namely Fengate Asset Management.

This transaction is anticipated to conclude by the second quarter next year and will need a capital funding of nearly $210 million to $230 million, after adjustments for estimated closing items and financing at the asset level.

The company expects the purchase to immediately lead its 5-year annual CAFD yield to more than 12%, offering an incremental 5-year average annual cash available for distribution (CAFD) of nearly $27 million starting January 1, 2027.

The solar portfolio has an average contract duration of 10 years, which matches Clearway Energy, Inc. (NYSE:CWEN)’s present assets. The company also mentioned that it will finance the acquisition using the existing capital framework provided, and it does not expect additional equity issuances apart from those already in the pipeline.

Clearway Energy, Inc. (NYSE:CWEN) is a renewable energy company with a portfolio of wind, solar, and battery energy storage systems, along with combustion-based power plants that promote grid reliability.