Business
Two Stocks That Play Pivotal Roles In America’s Infrastructure
Rolling blackouts, freezing homes, and skyrocketing electricity prices. Back in February, Texas’ primary electric grid suffered a one-two punch wrought by the deep freeze and off-the-charts demand for power as power plants struggled to keep up with heating demand. Power outages such as the Texas one are not only becoming much more frequent compared to the situation two decades ago but are also increasing in severity mainly due to climate stresses and a power grid that’s increasingly unable to hold up. The Texas blackouts marked the third time the electric system failed to perform adequately in winter in recent years (1989, 2011, and 2021).
The devastating blackouts once again brought into sharp focus the fact that the United States is relying on an aging electrical grid that’s increasingly unstable, underfunded, and incapable of taking us to a new energy future. Despite being the wealthiest country in the world, the U.S. only ranks 13th in the quality of its infrastructure.
Indeed, our power grid is the weakest link in the ongoing energy transition.
Last year, a new study from UC Berkeley and GridLab found that it will be economically feasible for renewable energy to power 90% of a reliable grid by 2035, while only depending on natural gas for 10% of annual electricity production.
Unfortunately, whereas renewable power sources have grown dramatically in recent years, our aging electrical grid is simply incapable of fully integrating them into our energy use, leading to so much potential power wasted.
Yet, therein lies a great investment opportunity.
A Wood Mackenzie analysis has estimated the cost of shifting the U.S. power grid to 100% renewable energy over the next 10 years at a staggering $4.5 trillion. That runs the gamut from constructing and operating new generation facilities, investing in transmission and distribution infrastructure, making capacity payments, delivering customer-facing grid edge technology, and more.
President Biden’s 10-year, $2 trillion American Jobs Plan seeks to re-energize the power grid, upgrade roads, bridges, and water systems and help make U.S. infrastructure more resilient to the impacts of climate change.
But that amount will hardly be enough to go the distance, and private investors will have to step up to the plate. Modernizing the power grid alone will require $300 billion per year spread out over 15 years, or double the current annual spending of $150 billion.
That’s why investing in companies working hard to build the next-generation grid could pay off big dividends for long-term investors.
Here are our top picks, with good dividend growth opportunities serving as a safety net.
Next Era Energy Inc. NEE (-1.74%) is a Florida-based clean energy company and America’s largest electric utility holding company by market cap. NEE (-1.74%) is the world’s largest producer of wind and solar energy, with more than 50,000 megawatts of generating capacity. Next Era Energy is one of the largest utilities in the country, with two electric utilities in Florida. The company owns eight subsidiaries, with the largest, Next Era Energy Services, supplying 5 million homes in Florida with electricity. Next Era Energy Transmission integrates renewable energy and strengthens the electricity grid.
Next Era is quickly establishing itself as a leader in building next-generation grids designed to handle increased loads from renewable energy.
NextEra has been building its grid business both organically through development projects as well as inorganically through acquisitions. For example, earlier this year, NextEra acquired GridLiance for $660 million, adding 700 miles of high-voltage transmission lines across six states. Last year, NEE (-1.74%) won regulatory approval to build a new transmission line in Western New York that will ease grid congestion and facilitate the delivery of renewable energy from the region.
During the company’s latest earnings call, management reiterated its 30×30 goal to install more than 30 million solar panels, or roughly 10,000 megawatts of incremental solar capacity, in Florida by 2030 through one of its subsidiaries, Florida Power & Light (FPL).
Another of NEE (-1.74%)’s subsidiaries, Next Era Energy Partners LP(NYSE: NEP), is publicly listed and pays a 3.4% dividend one of the highest in the industry. NEP acquires, manages, and owns contracted clean energy projects with a preference for businesses with stable, long-term cash flows. NextEra Energy Partners owns interests in dozens of wind and solar projects in the United States, as well as natural gas infrastructure assets in Texas. These contracted projects use leading-edge technology to generate energy from the wind and the sun. The company’s management is shooting for 12-15% dividend growth through 2024, making this an ideal stock for income investors.
Minneapolis-based Xcel Energy Inc. XEL (-2.56%) is a leading electricity and natural gas utility serving 3.6 million customers in Minnesota, Michigan, North Dakota, South Dakota, Wisconsin, Colorado, Texas, and New Mexico.
Xcel boasts nearly 9,000MW in operating capacity for its wind projects and another 1,600MW for solar. The company has increased solar generation by more than 4x since 2011 and plans to grow its wind generation capacity by 50% over the next couple of years.
Like NextEra, Xcel Energy operates one of the biggest and fastest-growing investor-owned transmission systems with more than 20,000 miles of transmission lines across 10 states.
Xcel has a goal to invest $24.3 billion through 2025 to expand its operations, with 25% of that earmarked to expand its transmission business to help support increased renewable energy deployment. One of the company’s top projects is the proposed Colorado Pathway Transmission expansion that will see the company invest up to $1.7 billion to build 560 miles of new transmission lines to support 5.5 gigawatts of new renewable power generation.
As part of the company’s own investment thesis, Xcel shoots for consistent shareholder returns based on 5-7% annual EPS growth and similar dividend growth with a 60-70% payout ratio. The company aims to maintain a 3% dividend yield, meaning there’s room for improvement on the current yield of 2.63%.
Kimani writes for Oilprice.com
By: Alex Kimani
In a concerted effort to tackle racketeering and reduce inflated transportation costs in the Nigeria’s seaports, Trucks Transit Parks Ltd. (TTP) has trained Licensed Customs Agents and Freight Forwarders on the use of its Ètò electronic call-up system.
The training was held recently at Customs Processing Centre (CPC) Auditorium, Apapa, Lagos, in collaboration with the Nigeria Customs Service (NCS) and supported by the leadership of the Joint Association of Licensed Customs Agents and Freight Forwarders (JALCAFF), Apapa Command.
Speaking at the event, Comptroller Babatunde Olomu expressed appreciation to TTP for facilitating the training and emphasized the need for customs agents to take personal ownership of the Ètò booking process.
“I want to thank TTP for this impactful training. I encourage all customs agents to begin doing their own bookings directly. By doing so, they can take back power from the unscrupulous elements exploiting their lack of knowledge, selling tickets at highly inflated prices,” Olomu declared.
He noted that empowering agents with hands-on training was key to dismantling racketeering networks that have plagued access to the ports and frustrated efficient logistics processes.
Also speaking, the Chairman, Apapa Chapter of the Association of Nigerian Licensed Customs Agents (ANLCA), Chief Emeka Chukwumalu, said the engagement was critical to the ongoing push to reduce cargo transportation costs and ease business operations at the Apapa Port.
According to a freight forwarder, “The training is basically for us to have awareness of the operations of the Ètò call-up system through TTP. We also want to brainstorm on ways to reduce the high cost of cargo transportation in Apapa Port.
“This training opened our eyes to how simple it is to book tickets ourselves. We now know the right steps to follow and how to avoid falling victim to fraudsters.”
Earlier, Head of Operations at TTP, Mr. Irabor Akonoman, talked on common misconceptions about ticket pricing, reaffirming that the cost of Ètò bookings had remained consistent since its inception.
“The official price remains the same since inception. What people are paying higher amounts for is the manipulation by racketeers”.
Towards strengthening small businesses and promoting a more supportive regulatory environment, the Nigeria Employers’ Consultative Association (NECA) says it will hold the 2025 edition of its flagship MSMEs Fair on Tuesday (May 6, 2025).
The event, themed, “Galvanising MSMEs for Economic Growth and Stability”, will take place at NECA House in Lagos.
According to NECA’s Director-General, Mr Adewale Smatt Oyerinde, the fair seeks to provide micro, small, and medium enterprises with essential tools, resources, and strategic networks to thrive in Nigeria’s challenging business climate.
He emphasised the vital role MSMEs play in national development, describing them as the “lifeblood of Nigeria’s economy.”
Oyerinde noted that the fair is designed to offer entrepreneurs practical solutions to navigate economic uncertainties, regulatory hurdles, and business scalability issues.
A major attraction of this year’s event is the keynote address by the CEO of FATE Foundation, Mrs. Adenike Adeyemi, a prominent advocate for MSME development.
She is expected to share transformative insights on innovative strategies for sustaining and growing small businesses in Nigeria.
A unique feature of the fair will be interactive sessions with key regulatory bodies. Entrepreneurs will engage directly with agencies responsible for licensing, compliance, taxation, and business registration.
NECA said these sessions aim to demystify bureaucratic processes and foster a more enabling business environment.
It also said the fair will provide a platform for entrepreneurs to exhibit their products and services, connect with potential investors, and explore new markets.
It added that participants would gain critical knowledge on digital transformation, access to finance, and strategies for sustainable business growth.
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· NECA stressed that the fair aligns with its broader mission of promoting enterprise development and economic resilience.
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· “By empowering MSMEs with the right support and information, the organisation aims to stimulate job creation, innovation, and long-term economic stability”, NECA said.
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· The 2025 MSMEs Fair is expected to attract a wide range of stakeholders, including financiers, tech experts, regulators, and industry leaders, all united in advancing the growth of Nigeria’s MSME sector.
The Lagos State Commissioner for Transport, Mr Oluwaseun Osiyemi, says over two million passengers have been transported on the Blue Line Rail since its launch, while state-run buses move an average of 42,000 commuters daily.
Osiyemi, who disclosed this during the Year 2025 Ministerial press briefing held at the Bagauda Kaltho Press Centre, Alausa, on Tuesday, noted that the Lagos State Transport Policy, launched in May 2024, was now in its implementation phase, focusing on inclusivity, safety, affordability, and sustainability.
“On rail development, Phase One of the Blue Line (Marina to Mile 2) has served over two million passengers, with Phase Two (Mile 2 to Okokomaiko) in progress.
“Phase One of the Red Line (Agbado to Oyingbo) is now operational with eight stations and additional rolling stocks procured, while Phase two (Oyingbo to link Blue Line at National Theatre) is underway”, he said.
The Commissioner said in the state-owned bus operations, over 60 million commuters have been served since 2019, with daily ridership exceeding 40,000.
He also said plans were on to deploy new buses with Quality Bus Corridors under construction, adding that the Abule=Egba Bus Terminal had also been commissioned.
“For water transport, 15 locally-built Omibus Ferries have been launched and are in operation, with the Ijegun Egba Terminal now open.
“The OMI EKO project, in partnership with the French Development Agency (AFD), will deliver 25 terminals and 78 electric ferries.
“Over 280,000 passengers have used ferry services in the past year, and 12 boats have been upgraded to meet safety standards”, he said.
On road infrastructure and traffic management, the Commissioner said 49 junction improvement projects had been completed, including ongoing ones at Ikorodu, Iju, as well as Allen-Opebi-Toyin axis.
He added that solar-powered Traffic Signal Lights, road markings covering 67.9km, new medians, laybys, and 3,941 parking lots had also been provided.
Additionally, Osiyemi announced that the deployed Automatic Number Plate Recognition cameras had detected over 470,000 traffic violations and that the Vehicle Inspection Service issued over one million roadworthiness certificates.
He also said that the Lagos State Drivers’ Institute trained more than 32,000 drivers in the past 13 months.
The event marked the second anniversary of Governor Babajide Sanwo-Olu’s second term, showcasing major strides in the transport sector under the THEMES+ agenda.
Nkpemenyie Mcdominic, Lagos