Green Energy Stocks ASX: 3 Companies to Watch
Written by
Varun Ratra
Green energy stocks ASX investors research offer exposure to renewable electricity generation, including hydro, wind and geothermal power. As electricity demand grows and energy providers invest in lower-emission generation, these companies are expanding their renewable energy assets and infrastructure.
Three ASX-listed companies to watch are Meridian Energy Limited (ASX: MEZ), AGL Energy Limited (ASX: AGL) and Mercury NZ Limited (ASX: MCY).
3 Green Energy Stocks on the ASX
1. Meridian Energy Limited (ASX: MEZ)
Meridian Energy is New Zealand's largest renewable electricity generator, with a portfolio centred on hydro and wind power.
On 30 September 2026, the company announced a NZ$440 million–NZ$510 million investment to upgrade its 92-year-old Waitaki power station over the next decade. The project is expected to increase capacity from 105 MW to 120 MW and extend the station's operating life through completion targeted for 2036.
Its August 2026 operating report also highlighted strong renewable generation amid record peak electricity demand in New Zealand.
Key figures
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Market capitalisation: A$12.14 billion
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Dividend yield: 3.92% (unfranked)
What to watch: Progress on the Waitaki upgrade, hydro conditions and dividend sustainability.
2. AGL Energy Limited (ASX: AGL)
AGL Energy is transitioning its electricity portfolio towards lower-emission generation while investing in battery storage and renewable energy agreements.
In its FY26 results released on 12 August 2026, AGL reported underlying EBITDA of A$2.1 billion, up 2% year-on-year, and underlying net profit after tax of A$631 million. Operating cash flow increased 60% to A$850 million.
The company also signed two long-term wind power purchase agreements with Tilt Renewables. Its plans include adding 6 GW of renewable and firming capacity by 2030, alongside battery projects such as the 500 MW Tomago Battery.
Key figures
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Market capitalisation: A$5.93 billion
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Dividend yield: 5.66% (fully franked)
What to watch: Battery project delivery, renewable capacity additions, earnings and dividend coverage.
3. Mercury NZ Limited (ASX: MCY)
Mercury NZ generates electricity through hydro, geothermal and wind assets, providing exposure to several renewable energy sources.
In its September 2026 quarterly operational update, released on 14 October, Mercury reported a trading margin of NZ$445 million, up 19% from the prior corresponding period, despite weak Waikato hydro inflows.
Its renewable development pipeline also progressed during the quarter. Kaiwera Downs Stage 2 reached full generation, while all 12 turbines were installed at the Kaiwaikawe Wind Farm, which began generating in July 2026.
For FY27, the company expects growth capital expenditure of NZ$300 million–NZ$400 million, alongside approximately NZ$150 million in sustaining and improvement expenditure.
Key figures
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Market capitalisation: A$7.77 billion
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Dividend yield: 4.05% (unfranked)
What to watch: Wind project commissioning, hydro conditions, capital expenditure and earnings growth.
What to Consider When Comparing Green Energy Stocks ASX
Market capitalisation and dividend yield are useful starting points, but investors should also assess project costs, electricity prices, generation conditions, debt and future capital requirements.
Renewable energy companies face risks from variable weather conditions, construction delays, financing costs and changes in electricity market prices. A high dividend yield alone does not establish that a stock is attractively valued.
Bottom line: Meridian Energy, AGL Energy and Mercury NZ offer different forms of exposure to renewable generation and the energy transition. Their investment prospects depend on project execution, financial performance and the ability to deliver sustainable returns.
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