Electricity shortages could be common this summer, we said in July 2022.
In fact, according to Bloomberg, “California declared a power grid emergency Monday as a blistering and sustained heat wave threatens to push the state’s electricity system to its limit. Each day the heat drags on, the risk of power failures rises. Searing temperatures seep into concrete over time, making it increasingly difficult to cool buildings. And the longer power plants run full tilt, the more likely they are to break down. California Governor Gavin Newsom has issued an emergency proclamation to free up extra power supplies.”
Of course, that’s the last thing we need these days. But, whether we like it or not, it’s already happening and could benefit microgrid and home generator stocks, such as CleanSpark Inc. (CLSK), Enphase Energy (ENPH), and Generac Holdings (GNRC).
Plus, “As mounting weather-related power failures hammer the country’s electrical grid, a growing number of homeowners are looking for new ways to get their power. For those with the means, that search has led to a boom in microgrids, which allow residents to hitch a power source such as natural gas, wind or sun to technology that can convert that energy into electricity,” as reported by NBC News.
Until the heatwave cools off, investors may want to keep an eye on stocks like CleanSpark Inc. (CLSK), Enphase Energy (ENPH). and Generac Holdings (GNRC).