12 Best Utility Stocks to Buy According to Hedge Funds

4. NRG Energy, Inc. (NYSE:NRG)

Number of Hedge Fund Holders: 49

NRG Energy, Inc. (NYSE:NRG) based in Houston, Texas, is an integrated power company that provides electricity generation and retail energy services. The company operates a diverse energy portfolio, including natural gas, coal, nuclear, solar, and wind assets. NRG Energy, Inc. (NYSE:NRG) operates in the retail energy sector through brands such as Reliant Energy and Direct Energy.

NRG Energy, Inc. (NYSE:NRG) is actively expanding its Virtual Power Plant (VPP) initiatives. The company has announced a strategic partnership with Renew Home and Google Cloud to develop a 1 gigawatt residential VPP in Texas. The VPP will be offering a Home Essentials bundle that includes a Vivint Smart Thermostat, doorbell camera, and professional installation at no cost to customers enrolled in a VPP plan. This initiative aims to enhance customer engagement and retention as well as provide NRG Energy, Inc. (NYSE:NRG) with a flexible and cost-effective asset to manage supply during periods of volatility. The VPP is expected to generate a significant recurring margin, with projections of $110 million annually for a 650-megawatt VPP and over $160 million for a 1-gigawatt VPP, making it a highly profitable and resilient asset.

NRG Energy, Inc. (NYSE:NRG) is also expanding its commercial and industrial (C&I) energy services footprint by incorporating AI into both sales and customer care. This approach aims to increase speed, improve service quality, and reduce costs, making the company’s offerings more attractive to C&I clients. NRG Energy, Inc. (NYSE:NRG) is expanding its product portfolio to include advanced solutions such as load management and reduced carbon options, catering to the growing demand for sustainable energy solutions.