10 High Growth Utility Stocks To Invest In

4. Enlight Renewable Energy (NASDAQ:ENLT)  

5-Year Revenue CAGR: 56.89%  

No of Hedge Fund Investors: 2 

Enlight Renewable Energy (NASDAQ:ENLT) is an Israeli-based Independent Power Producer (IPP). As a leading developer, constructor, and operator of renewable energy projects, Enlight Renewable Energy (NASDAQ:ENLT) has established a significant presence in Israel, Europe, and the United States.

On October 14, Enlight Renewable Energy (NASDAQ:ENLT) announced the full commencement of commercial operation of its Solar and Storage Cluster in Israel. The Cluster, which is comprised of 12 installations located in the northern and southern regions of the country, has a combined solar generation capacity of 254 MW and energy storage capacity of 594 MWh. This makes it one of the largest renewable energy facilities operating in Israel’s newly deregulated power market, accounting for over 50% of the clean electricity produced under the new regulatory framework.

The Cluster’s entire output will be sold to the company’s supplier division, which will market the electricity directly to customers in Israel. This includes signing corporate power purchase agreements (PPAs) with large industrial clients, as well as sales to households and small businesses through a joint venture with Electra Power. The Cluster is expected to generate revenue of $34-36 million in its first full operating year, before taking into account the additional margin generated by the company’s supplier division.

Enlight Renewable Energy (NASDAQ:ENLT) has a pipeline of projects, which are expected to increase its gross installed capacity by 618MW by the end of 2025. The company’s expansion into the US market, where it has several projects under construction, is particularly noteworthy.

The Inflation Reduction Act provides a unique opportunity for Enlight Renewable Energy (NASDAQ:ENLT) to access tax credits of up to 30%, increasing the inherent profitability of each new project. This, combined with the decrease in costs and the higher tax credits in the US market, provides a growth opportunity for the company. Industry analysts are bullish on the company’s stock price and have a consensus Buy rating at a target price of $20.00, which implies a 24.34% increase from its current level.