In this article, we will be taking a look at the 20 biggest power generation companies in the world. To skip our detailed analysis, you can go directly to see the 5 biggest power generation companies in the world.
Consistent generation and supply of power is absolutely integral to the development of any economy, and is one of the primary factors behind industrialization and the growth of Western economies. While just the 20 biggest power generation companies in the world earn annual revenues exceeding $2 trillion, their indirect contribution is even more significant as power supply is the backbone for the vast majority of industries across all sectors, across the world.
Despite its importance, 2022 was not a very good year for the power and utility sector generally, but in the U.S., sales still continued to increase as demand jumped with the country mostly recovering from the Covid-19 pandemic. However, even though revenues increased significantly because of the aforementioned demand, costs increased even more as a result of the Russian invasion of Ukraine, which led to energy supplies being depleted and prices more than doubling. Meanwhile, grid resilience is continuing to be tested from catastrophic climate events, one of the biggest global risks for 2023. To combat this issue, the biggest players in the industry, including some of the biggest power generation companies in the world, improved their reserves, deployed microgrids and worked on improving their infrastructure as well.
Photo by American Public Power Association on Unsplash
While these developments are likely to increase further in 2023 and even beyond, it is important to remember that as the Russian Ukraine war continues with no idea of when hostilities will cease, electricity prices are likely to stay high in 2023 while inflation and supply chain issues will add to the challenges that the industry is facing right now. Other issues such as extreme weather events and even cybersecurity will require innovation to ensure that power generation and its supply remains stable.
As is true for most industries, the investment viability of the biggest power generation companies in the world doesn’t just depend on revenue and profits but Environmental, Social and Governance (ESG), which is continuing to gain momentum, especially with regards to decarbonization practices as companies try to identify societal and environmental disrupters while focus on resolving them. While such disclosures in the U.S. aren’t uniform across power generation companies, this will also change in 2023, after a new SEC proposal in March 2022 regarding certain public disclosures.
Another important consideration for the power generation industry is the requirement of a shift from using non-renewable resources to renewable resources. Companies creating clean energy have a lot of incentives, grants and subsidies from the government. This is why NextEra Energy, Inc. (NYSE:NEE), the biggest renewables energy company by market cap, is also the biggest power generation company by market cap. According its Q4 2022 earnings call, NextEra Energy, Inc. (NYSE:NEE) CEO stated “In short, we believe the IRA provides growth visibility for a broad range of low-cost, clean energy solutions in a predictable way and for a long time. We believe that in this environment, low-cost renewables will help NextEra Energy and NextEra Energy Partners continue to drive long-term value for our customers and our shareholders and unitholders.” This just helps signify the important of renewable energy production in this industry.
The biggest power generation companies in the world are dominated by state-owned companies which earn significant amounts of revenue. To determine our list, we ranked them based on trailing twelve month (TTM) revenue and the latest market, both obtained from Yahoo Finance. We assigned 60% weightage to revenue and 40% to market cap. In case of private companies, we determined their revenue from Fortune Global 500, and ranked them based on revenue alone. So, let’s now take a look at the companies responsible for generating power that contributes trillions of dollars of revenue, either directly or indirectly, starting with:
20. The Kansai Electric Power Company
Total TTM revenue (in billions): $27.1
Total market cap as at 1st March 2023 (in billions): $8.3
The Kansai Electric Power Company is a Japanese power generation company which has recently had a cloud hanging over it, with new sales activities being suspended over a recent data scandal.
19. China Huadian
Total TTM revenue (in billions): $42.9
Total market cap as at 1st March 2023 (in billions): $N/A
China Huadian, one of several Chinese companies in our list of the biggest power generation companies in the world, with the company supporting a power supply project in Cambodia.
18. Veolia Environment
Total TTM revenue (in billions): $37.4
Total market cap as at 1st March 2023 (in billions): $21.5
Veolia Environment is a French company, which in February 2023, agreed a £27 million contract which will result in a major decrease in energy and carbon costs for Eastbourne District General Hospital.
17. Exelon Corporation (NYSE:EXC)
Total TTM revenue (in billions): $19.1
Total market cap as at 1st March 2023 (in billions): $40.2
Exelon Corporation (NYSE:EXC) boasts around 10 million customers in the United States, with its CEO claiming that Exelon Corporation (NYSE:EXC) is the premier T&D company in the industry.
16. Tokyo Electric Power
Total TTM revenue (in billions): $54.1
Total market cap as at 1st March 2023 (in billions): $5.6
The largest power generaton company in Japan, Tokyo Electric Power is set to receive $3 billion in emergency loans from some major lenders in the midst of a weak yen and high fuel prices.
5. General Electric Company (NYSE:GE)
Total TTM revenue (in billions): $16.3
Total market cap as at 1st March 2023 (in billions): $92.3
Since power is only a small percentage of its total revenue, we separated General Electric Company’s (NYSE:GE) power revenue based on its 2022 annual report. To support Kazakhstan’s energy transition, General Electric Company’s (NYSE:GE) “gas turbines will power the first combined heat and power plant in Kazakhstan.”
15. Korea Electric Power Corporation (NYSE:KEP)
Total TTM revenue (in billions): $54.8
Total market cap as at 1st March 2023 (in billions): $8.6
Korea Electric Power Corporation (NYSE:KEP) is the biggest power generation and utility company in South Korea. Korea Electric Power Corporation (NYSE:KEP) recently proposed an agreement to the government of Turkiye for the construction of four reactors, which would have a total output of 5.6 GW.
14. RWE Aktiengesellschaft
Total TTM revenue (in billions): $40.8
Total market cap as at 1st March 2023 (in billions): $28.6
RWE Aktiengesellschaft is a German power generation company and is one of Europe’s largest renewable power generators. Recently, the company announced successful LNG delivery from the UAE to Germany.
13. NextEra Energy, Inc. (NYSE:NEE)
Total TTM revenue (in billions): $21.0
Total market cap as at 1st March 2023 (in billions): $141.2
The most valuable power generationcompany in the world, NextEra Energy, Inc. (NYSE:NEE) is also one of the biggest capital investors in infrastructure in the U.S., investing between $50 to $55 billion planned through 2022. In the wake of the Inflation Reduction Act, NextEra Energy, Inc. (NYSE:NEE) announced its plans to at least double its own renewable energy portfolio.
12. The Southern Company (NYSE:SO)
Total TTM revenue (in billions): $29.3
Total market cap as at 1st March 2023 (in billions): $68.7
The biggest power generation company in the U.S., The Southern Company (NYSE:SO) is also the largest utility company in the country in terms of customers. Serving over 9 million customers primarily across the Southeast, The Southern Company (NYSE:SO) announced in mid-January another postponement regarding the startup of its first nuclear reactor.
11. Energie Baden-Wurttemberg
Total TTM revenue (in billions): $56.5
Total market cap as at 1st March 2023 (in billions): $24.5
Energie Baden-Wurttemberg is one of several German companies in our list, which already has a strong European presence. Energie Baden-Wurttemberg return on equity has been weaker than the industry average, even as it joins forces with Equinor for offshore wind farms in Germany.
10. Fortum
Total TTM revenue (in billions): $122.0
Total market cap as at 1st March 2023 (in billions): $14.0
Fortum is a Finnish state-owned power generation company which is aiming to transition to producing cleaner energy and aiming for carbon neutrality in all operations latest by 2050.
9. Engie
Total TTM revenue (in billions): $81.1
Total market cap as at 1st March 2023 (in billions): $35.5
Engie is one of two French companies among the biggest power generation companies in the world, and has urged Europe to improve its local energy supply chains. The company is continuing to transition from renewable to non-renewable energy, after reducing its footprint from over 70 countries in 2018 to 31 countries.
8. E.ON Energy
Total TTM revenue (in billions): $118.4
Total market cap as at 1st March 2023 (in billions): $26.6
One of the biggest power generation companies in Europe, E.ON Energy has operations in more than 30 countries, serving at least 30 million customers.
6. Iberdrola
Total TTM revenue (in billions): $57.6
Total market cap as at 1st March 2023 (in billions): $71.3
Serving around 32 million customers, Iberdrola is one of the largest producers of wind energy in the world, which is why it Spain is among the countries that produce the most wind energy in the world. Recently, the company has launched a challenge in courts against a windfall tax imposed by the government on some of the biggest companies in the country in the energy sector.
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Disclosure: None. 20 biggest power generation companies in the world is originally published at Insider Monkey.
