Clearway Energy Touts Strong 2026 Start, Google PPAs Boost Visibility to 2030 Targets

Clearway Energy (NYSE:CWEN) is entering 2026 “off to a strong start,” with management highlighting a clearer line of sight to its 2027 and 2030 financial targets and pointing to an expanding role for large-scale power buyers such as hyperscalers, according to remarks from CEO Craig Cornelius during a Jefferies clean energy discussion.

Management cites strong visibility into 2027 and 2030 roadmap

Cornelius said the company feels “great about the outlook for 2026” and reiterated confidence in fulfilling its 2026 guidance. He added that Clearway is on track toward goals originally set for 2027 and “uprated twice last year,” and that the “path to a set of goals that we’d outlined out to 2030 is increasingly clear.”

On development progress, Cornelius said Clearway had already commercialized “substantially all” of what it planned to construct to support growth through 2027 and into 2028, with projects supported by power purchase agreements (PPAs), mature interconnection, site control, and equipment secured for builds through 2027.

Google PPA portfolio seen as early step in larger hyperscaler demand cycle

A key topic was Clearway’s recently announced portfolio of contracts with Google, which Jefferies’ Julien Dumoulin-Smith characterized as 1.2 gigawatts and part of a broader wave of hyperscaler renewable procurement. Cornelius said the agreements are “a sign of a lot more to come,” arguing that the Google procurement is meaningful but still “a very beginning point” relative to Google’s long-term carbon-free and grid-supportive needs.

He highlighted several characteristics of the Google PPAs:

• Long contract duration and substantial commitment size.
• Diverse geography, including projects in Missouri, Texas, West Virginia, and elsewhere.
• A structure intended to support “high confidence” construction and equipment procurement through closer collaboration between developer and customer.

Cornelius said he expects continued growth in “front-of-the-meter” contracting for data center customers, with increasing focus on generation and capacity attributes located near where load will interconnect. He also said the market is moving toward “ambitious complexes” that combine solar, wind, batteries, and gas, with “novel electrical interconnections” and a mix of front-of-the-meter and behind-the-meter resources.

Targets tied to construction cadence, CAFD yields, and capital allocation discipline

On financial objectives, Cornelius said the Google-linked projects fit Clearway’s framework: large projects, long-term contracts, and cash available for distribution (CAFD) yields consistent with historical guidance. He said the agreements increase confidence in achieving “the top end or better” of Clearway’s 2030 target of $3.10 CAFD per share.

More broadly, he described Clearway’s “core business” as now set up to execute “at least 2 GW a year” of construction. He said sustaining 5%–8%+ growth beyond 2030 would require building roughly 2 GW annually, producing about $80 million to $100 million of recurring CAFD per year. He also noted that large multi-resource complexes could represent single-project investment opportunities that exceed $100 million of annual CAFD for CWEN, potentially adding an additional lever for growth.

On acquisition economics, Cornelius said Clearway has demonstrated CAFD yields “even above” its 10.5% target in recent transactions, both for third-party acquisitions and sponsor dropdowns. He maintained that Clearway continues to guide investors to expect a “routine tempo” of new assets at 10.5% CAFD yields and “$40,000 a MW or better in CAFD,” while seeking opportunities to exceed those levels where possible.

On financing and balance sheet strategy, Cornelius emphasized sticking with the company’s capital allocation framework, including a 4.0x to 4.5x leverage target and equity issuance “consistent with what you see for premium utilities as a percentage of our float.” He said the company aims over time to steer toward a lower leverage ratio and lower payout ratio, using recurring cash flow to fund growth while sustaining dividend per share growth targets.

“All-of-the-above” approach includes gas alongside renewables and storage

Cornelius said all projects are being developed to fit CWEN’s mandate for predictable, long-term contracted cash flows with low variability—whether wind, solar, battery, or gas. For gas, he said any assets owned within the Clearway structure would be designed to have long-term contracted revenues, citing the tolling-style structure at the Carlsbad Energy Center as an example of the contract type that would fit CWEN’s profile.

He said gas resources under development are intended to complement renewables and batteries and provide capacity confidence for utilities or data center loads across the year. In terms of technology, Cornelius said the mix could include both simple-cycle units (for fast ramping and likely lower capacity factors) and combined-cycle gas turbines (CCGTs) that could operate at higher capacity factors. He also described a general planning mix in which “about 70% of the MW hours” come from zero marginal cost renewables and about 30% from battery and gas dispatch, though he cautioned it varies by location.

Battery performance and post-2030 outlook

Cornelius was particularly positive on battery storage, calling it a technology category that has performed “better than anything we’ve ever seen” in terms of reliability and predictability. He said batteries structured under tolls and long-term resource adequacy contracts can be among the most predictable cash flow sources in the fleet because revenues are fixed and not dependent on weather.

Looking beyond 2030 and potential changes in tax credit availability, Cornelius said he does not expect the overall generation mix to look “that much different” in the early 2030s compared with the late-2020s build cycle. He said Clearway expects continued deployment of renewables where they are least-cost resources, continued steep growth in batteries, and “pretty significant amounts” of new gas-fired capacity additions where it is system-optimal. He also said the company expects hybrid projects to remain common, and that batteries should continue to support tax credit monetization structures into the next decade.

On cadence, Cornelius suggested contracting announcements could become “larger” and more routine as Clearway scales toward building 2 GW or more annually. For larger multi-resource campuses, he said development and financing would likely occur in modules and phases, potentially enabling CWEN investment in increments rather than “one fell swoop.”

He also addressed M&A, saying Clearway does not factor third-party acquisitions into its growth plans, but described the current environment as one in which “large, proficient businesses” with access to financing may be able to execute accretive acquisitions. On California resource adequacy, he said the company likes its position and expects a revenue stream for its thermal assets “consistent with their market value,” noting capacity tightness in adjacent Western markets.

About Clearway Energy (NYSE:CWEN)

Clearway Energy Group (NYSE: CWEN) is a U.S.-based energy company specializing in the ownership, operation and development of clean and conventional power generation assets. The company’s portfolio spans utility-scale wind and solar farms, biogas and natural gas-fired thermal facilities, as well as distributed generation projects such as rooftop solar and energy storage. Clearway’s generation assets are largely underpinned by long-term power purchase agreements and service contracts with creditworthy counterparties, enabling stable, predictable cash flows.

Originally launched in 2013 as NRG Yield and rebranded to Clearway Energy in 2018 following a strategic sponsorship change, the business has grown into one of the largest independent renewable energy platforms in the United States.