OKLO Soared 180%+ in 23 Days, A full Stocks Map on the Electricity Value Chain

Content contributed by @EricFlaningam at X, Author of Generative Value

Among the many bottlenecks for AI data centers, energy might be the most important and the most difficult to address.

IF estimates of data center energy consumption turn out to be true (or even in the vicinity of truth), our current energy infrastructure will not be able to support those demands. Unfortunately, there’s no easy way to increase energy capacity quickly.

I think it will take many solutions to solve this problem, just a few of them are:

- Off-Grid Power Generation

- Nuclear

- Long-Duration Energy Storage (Batteries)

- Building Where the Power’s At

- Grid Optimization Tech

I shared some thoughts on this area

Nuclear

Recently, we’ve seen big tech seemingly go all in on supporting nuclear. Just a few examples of big tech nuclear momentum:

- $Amazon.com(AMZN)$ invested in a $500M round into nuclear startup X-energy while supporting the construction of 320MW worth of nuclear generation.

- $Alphabet(GOOG)$ entered an agreement for 500MW of nuclear generation from startup Kairos Power.

- $Amazon.com(AMZN)$ bought a nuclear-powered data center for $650M, intending to expand energy consumption from 300MW to 960MW over the coming years.

- On its last earnings call, $Oracle(ORCL)$ said they are building a data center powered by nuclear SMRs.

- $Microsoft(MSFT)$ signed an agreement to restart the reactor at Three Mile Island.

Battery Innovation

Also, battery innovation will be important in supporting renewable energy generation. We’ve seen a huge investment in wind and solar over the last decade. The problem is that they’re inconsistent.

Since the grid has to be built for peak capacity, we need to overbuild the grid to account for the fluctuations in energy generation. Long-duration batteries provide a solution for flattening these fluctuations, storing energy at peak generation, and deploying it in valleys.

On the bright side, we continue to see the cost of batteries come down. Unfortunately, that cost curve has flattened, again opening the opportunity for innovation.

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For those interested, I shared a primer on the energy value chain and some thoughts on areas of innovation:

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Here's the fundamental information for each company in the electricity value chain, categorized as mentioned:

Large Reactors

• $Westinghouse Air Brake(WAB)$ : A global leader in nuclear power plant design and construction.

• $Dominion Energy, Inc.(DCUE)$ : An American energy company with a broad energy infrastructure providing electricity and natural gas.

• $NuScale Power(SMR)$ : An innovative company developing small modular reactor technology for nuclear power.

Solar

• $First Solar(FSLR)$ : A global leader in thin-film solar photovoltaic modules.

• $Enphase Energy(ENPH)$ : Offers advanced solar microinverter systems to improve solar power efficiency and reliability.

Oil & Gas

• $Exxon Mobil(XOM)$ : One of the world's largest oil and gas companies with operations worldwide.

• $ConocoPhillips(COP)$ : An international energy company focused on oil and gas exploration, production, and transportation.

• $BP PLC(BP)$ :BP is one of the world's leading oil and gas companies. In 2022, it achieved record profits and plans to increase shareholder returns in 2023 through stock buybacks and dividend increases. BP has recently announced its energy transition plan, aiming to invest heavily to achieve quick returns and lower operational emissions by 2030.

• $SHELL PLC(RYDAF)$ : A global leader in oil and gas, offering a wide range of energy products and services.

• $Chevron(CVX)$ : An international energy company involved in oil, gas, and chemical exploration, production, and sales.

Nuclear

• BWORT: Advanced boiling water reactor technology for efficient and safe nuclear power plants.

• $Oklo Inc.(OKLO)$: OKLO is an advanced fission technology and nuclear fuel recycling company dedicated to developing designs for small modular nuclear reactors.

Microreactors

• XCIMER: Focuses on developing small, modular nuclear reactors to meet the energy needs of remote areas.

Independent Power Producers

• $Exelon(EXC)$ : One of the largest electric and gas companies in the U.S., providing renewable and nuclear energy.

• $Talen(TLN)$ : An independent power producer focusing on power generation and energy wholesale.

• Invenergy: A leading renewable energy company developing, owning, and operating clean energy projects.

• $Southern Company (The) Series(SOJC)$ : A diversified energy company providing electricity and natural gas services.

Vertically Integrated Utilities

• $Constellation(STZ)$ : A leading energy company offering electricity, natural gas, and renewable energy solutions.

• $Energy Focus(EFOI)$ : This category may refer to other unnamed energy companies.

Transmission

• $ABB Ltd(ABB)$ : A global technology leader providing electrical and automation products, systems, services, and solutions.

• PJM Interconnection: An independent system operator managing electricity transmission in the Mid-Atlantic U.S.

• MISO: Responsible for electricity transmission and market operations in the U.S. Midwest and parts of the South.

• $American Electric Power(AEP)$ : This category may refer to other unnamed electric transmission companies.

Distribution

• $Siemens AG(SIEGY)$ : A global technology company offering electrification, automation, and digitalization solutions.

• $National Grid PLC(NGG)$ : A multinational utility company operating in the U.S., U.K., and Europe with electricity and gas services.

• conEdison: One of the largest energy services companies in the U.S., providing electricity, gas, and steam services.

• $Couchbase, Inc.(BASE)$ : This category may refer to other unnamed basic electricity distribution companies.

• $NextEra Energy Partners LP(NEP)$ : A leading clean energy company in North America, offering wind and solar power generation.

• $Duke Energy Corporation(DUKB)$ : One of the largest electric holding companies in the U.S., providing electricity and natural gas services.

Battery Storage

• EXOWATT: Focuses on developing efficient battery storage solutions.

• $Tesla Motors(TSLA)$ : A leading electric vehicle and energy company offering battery storage products like Powerwall and Powerpack.

• terralayr: This category may refer to other unnamed battery storage companies.

The Grid

• FOURTH POWER: This category may refer to other unnamed grid companies.

Electrical Equipment

• $Schneider Electric SE(SBGSY)$ : A global leader in energy management and automation solutions.

• $Eaton Corp PLC(ETN)$ : This category may refer to other unnamed electrical equipment companies.

End Use

• $Sempra(SRE)$ : An energy services company providing natural gas and electricity services.

• $Vertiv Holdings LLC(VRT)$ : Focuses on critical infrastructure technology, offering solutions for data centers, IT, and network rooms.

Please note that some companies may be involved in multiple segments, and this list is not exhaustive. Some entities mentioned, like PJM and MISO, may be operators or regulators in the electricity market rather than companies. Additionally, some company names may contain typographical errors or abbreviations that require further confirmation.

Source:https://x.com/EricFlaningam/status/1848009956961685536