Power Stocks: Demand Recovery and Attractive Valuations to Boost Performance

Power stocks may rebound in H2FY26 due to recovering demand, expanding coal capacity, and accelerating renewable additions. Utilities in the power sector present an interesting investment case, with most stocks down 22% in the past year. Reduced valuations and long-term trends such as increased coal thermal capacity and growth in battery energy storage systems and pumped storage plants may trigger investment interest.

Brenmiller Energy (NASDAQ: BNRG), a leading global provider of Thermal Energy Storage (TES) solutions, has signed a System Purchase Agreement with Baran Energy for two bGen ZERO Thermal Energy Storage (TES) systems at Tempo Beverages and Wolfson Medical Center. The agreement, valued at $44 million, represents a strategic pivot in Brenmiller's business model, shifting from capital-intensive project ownership to a more capital-efficient growth strategy Brenmiller Signs System Purchase Agreement with Baran Energy for bGen ZERO Systems at Tempo Beverages and Wolfson Medical Center^[1].

Under the agreement, Baran Energy will acquire ownership of the projects while Brenmiller will receive milestone-based payments during construction and commissioning, plus profit-sharing from future revenues. This deal provides Brenmiller with non-dilutive capital to advance its global project pipeline valued at over $500 million Brenmiller Signs System Purchase Agreement with Baran Energy for bGen ZERO Systems at Tempo Beverages and Wolfson Medical Center^[1].

The partnership leverages complementary strengths: Brenmiller's thermal storage technology and intellectual property (which they retain) paired with Baran's project financing capabilities and execution experience. This multi-layered approach creates three distinct revenue streams for Brenmiller: upfront milestone payments, ongoing profit-sharing, and recurring maintenance service fees Brenmiller Signs System Purchase Agreement with Baran Energy for bGen ZERO Systems at Tempo Beverages and Wolfson Medical Center^[1].

The transaction effectively transforms fixed assets into working capital that can be deployed across Brenmiller's broader project pipeline. The right of first refusal granted to Baran for future Israeli projects suggests this deal could be the first in a series of similar arrangements, potentially establishing a repeatable model for capital-efficient growth Brenmiller Signs System Purchase Agreement with Baran Energy for bGen ZERO Systems at Tempo Beverages and Wolfson Medical Center^[1].

This strategic partnership aligns with broader trends in the power sector. Power stocks may rebound in the second half of 2026 due to recovering demand, expanding coal capacity, and accelerating renewable additions. Utilities in the power sector present an interesting investment case, with most stocks down 22% in the past year. Reduced valuations and long-term trends such as increased coal thermal capacity and growth in battery energy storage systems and pumped storage plants may trigger investment interest .