When summer rolls around, investors often zero in on oil and gasoline, and this year is no different, especially with ongoing geopolitical tensions in the Middle East. Those issues are making headlines daily, and they are set to overshadow the usual summer driving trends, no matter how much people hit the road.
Nonetheless, rising energy costs could shift demand patterns, making electricity a crucial player in the energy sector. Three companies worth monitoring during this time are NextEra Energy (NYSE:Nee), Constellation Energy (NASDAQ:CEG), and Brookfield Renewable (NYSE: BEP) (NYSE: BEPC). Let’s take a closer look at what each of these companies offers.
Remember Nvidia back in 2009? A similar signal is flashing again. Back then, a “double down” signal appeared for an obscure chipmaker called Nvidia, and now, a company much smaller than Nvidia seems to be showing the same “full conviction” sign.
The scale of EV vehicles is expanding like never before.
Traditionally, summer is when major energy players like Chevron (NYSE:CVX) and Valero (NYSE:VLO) see a boost in performance due to increased travel. Chevron operates across the entire energy chain, from extraction to refining into gasoline, while Valero focuses on refining. While these companies should benefit from seasonal driving, the real focus right now is the geopolitical landscape in the Middle East, which may have a greater influence on energy prices—and subsequently on stock performance—than the usual summer travel patterns.
Interestingly, sales of used electric vehicles (EVs) are expected to surge starting in early 2026. The rapid growth in EV sales, which currently make up only about 2% of total vehicles, is largely attributed to high energy prices. While that may seem like a small fraction, we’re talking about over 5.5 million vehicles—a significant figure, especially as gas prices climb, leading consumers to consider EVs over traditional combustion vehicles.
Electricity demand is already high.
The demand for power during this driving season is likely to add to the existing strain from data centers and AI developments. Collectively, these factors indicate a gradual shift in electricity demand, projected to rise by 60% from 2025 to 2045. In contrast, demand only increased by 9% from 2005 to 2025, according to insights from NextEra Energy, a leading electricity provider globally and a major player in solar and wind energy.
NextEra is also looking to broaden its horizons by acquiring Dominion Energy (NYSE:D), which would extend its geographical footprint across four states and potentially enhance long-term growth. Should oil prices remain high, this may drive more consumers to rely on electricity over the summer. Fast forward to 2026, it could be a crucial moment for various companies and their stock performances.
Nuclear power is emerging as a vital source of electricity, as Constellation Energy commands one of the largest reactors in the U.S. With growing demand from data centers, transportation needs could push that demand even higher. The recent acquisition of Calpine, a firm specializing in natural gas plants, positions Constellation to cater to peak demands, particularly during hot summer months, potentially giving it a significant short-term advantage.
Brookfield Renewable stands to gain from the long-term increase in electricity demand, thanks to its global portfolio of renewable energy assets. Although the firm’s business model relies on long-term contracts and may not reflect immediate changes, a shift toward EVs this summer could elevate the importance of clean energy. This growth may accelerate the pace at which Brookfield expands its assets, and investors may quickly reflect that in stock valuations.
This summer could be the cusp of important change.
Electricity is becoming an increasingly important energy source. When oil prices dip, the transition from carbon-based energy to electricity feels less urgent. But with rising oil prices, electricity looks increasingly appealing. This upcoming driving season might just be a significant test of that shift.
That said, Constellation is more focused on growth, sporting a lower dividend yield of about 0.6%, whereas NextEra offers a yield of 2.9% and Brookfield Renewable has a 4.2% yield. Both NextEra and Brookfield have a solid track record for consistent dividend increases, making them attractive to investors who prioritize dividends.
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