2 ASX Renewable Energy Stocks Poised for Big Gains

As the world accelerates toward a cleaner, greener future, Australia is stepping up its renewable energy game in a big way. From vast solar farms to powerful battery systems and green hydrogen hubs, the country is in the middle of a major energy transformation. For investors, this shift is not just about sustainability—it’s about opportunity.

Two ASX-listed companies stand out for their strong momentum and promising growth prospects in the renewable energy space: Origin Energy Ltd (ASX: ORG) and Southern Cross Electrical Engineering Ltd (ASX: SXE). Both are positioning themselves at the forefront of Australia’s clean-energy revolution, and their recent results highlight just how big their upside could be.

Origin Energy Ltd (ASX: ORG): Supercharging Australia’s Green Shift

Origin Energy is one of Australia’s largest and most diversified energy producers, known for its electricity and natural gas operations. However, what’s truly exciting is the company’s rapid transition toward renewable power. Origin is reinventing itself for the clean-energy era—investing heavily in wind, solar, battery storage, and hydrogen projects that will reshape the nation’s power supply over the next decade.

Expanding the Clean-Energy Portfolio

In 2025, Origin has been ramping up its renewable investments. The company recently acquired the Yanco Delta Wind Farm for $80.3 million, with additional payments tied to performance milestones. It also announced a $450 million expansion of its flagship Eraring Battery Project, boosting capacity to a massive 460MW—enough to support grid stability as coal plants wind down.

To further strengthen its energy storage leadership, Origin received a $24 million grant from the Australian Renewable Energy Agency (ARENA) for its 300MW Mortlake grid-forming battery, which will enhance reliability for Victoria’s power grid.

Hydrogen is another big piece of Origin’s long-term strategy. With $28.6 million in federal funding, the company is developing a green hydrogen hub, alongside a $48.2 million Hunter Valley Hydrogen Hub slated for production by 2026. These projects will make Origin one of the first large-scale hydrogen producers in Australia.

Beyond domestic projects, Origin has been expanding internationally. Its $355.1 million investment in UK-based Octopus Energy gives it exposure to advanced clean-tech and smart-grid innovation—helping it ride the global renewable wave.

Financial Performance and Upside Potential

Origin’s clean-energy transition hasn’t been without challenges, but its financial strength remains impressive. For the year ending June 2025, the company reported a statutory profit of $1.48 billion, up from $1.40 billion the previous year. Its underlying profit also rose to $1.49 billion, driven by strong Energy Markets performance, which delivered EBITDA of $1.40 billion.

Origin’s solid balance sheet provides flexibility for future investments, while cash generation remains strong. The temporary delay of the Eraring coal plant closure to 2027 ensures grid reliability while giving Origin more time to scale up renewables.

By 2030, the company aims to develop 4–5 GW of renewable and storage capacity, putting it in a leading position among Australia’s green-energy players. For long-term investors, Origin offers both stability and high growth potential as it transitions from fossil fuels to sustainable energy generation.

Southern Cross Electrical Engineering Ltd (ASX: SXE): Powering the Green Infrastructure Boom

While Origin is known for energy production, Southern Cross Electrical Engineering (SCEE) plays a different but equally crucial role—it builds the infrastructure that makes renewable energy possible. From solar farms and battery systems to data centres and industrial facilities, SCEE is the backbone of Australia’s new clean-energy economy.

Battery Energy Projects and Grid Expansion

SCEE has emerged as a key contractor for Australia’s most ambitious renewable projects. Its subsidiary recently secured a $160 million contract for Synergy’s Collie Battery Energy Storage System in Western Australia—the company’s largest project to date.

Under this deal, SCEE will design, install, and commission one of Australia’s biggest battery energy systems. The Collie Battery will have a 2,000 MWh capacity, helping replace retiring coal-fired stations and stabilizing the South West Interconnected System (SWIS). This project alone cements SCEE’s role as a critical player in Western Australia’s decarbonization roadmap toward 2030.

SCEE is also expanding beyond batteries. It is increasingly involved in solar farms, airport electrification projects, and data centre power systems—diversifying its portfolio and tapping into sectors driving strong demand for renewable infrastructure.

Financial Overview and Growth Outlook

SCEE’s numbers speak for themselves. In FY2025, the company reported record revenue of $801.5 million, up significantly year over year, and a net income of $31.7 million. The surge in demand for renewable energy projects and grid infrastructure was the main growth driver.

With a robust order book and strong cash flow generation, SCEE is well-positioned for further expansion. Management is also exploring acquisitions to enhance capabilities in battery systems, green grids, and electrification—areas expected to see strong tailwinds from Australia’s clean-energy spending plans.

Investors like SCEE for its steady profitability, project diversification, and growing exposure to renewables—all of which make it a unique infrastructure play with strong long-term potential.

What Sets These Stocks Apart

Both Origin and SCEE are not just participating in Australia’s renewable transition—they are driving it forward. Origin brings scale, resources, and a growing portfolio of clean-generation assets, while SCEE provides the technical backbone through engineering and construction of critical infrastructure.

Their complementary strengths—Origin’s renewable energy generation and SCEE’s infrastructure expertise—make them powerful players in the same value chain. Together, they represent two of the best-positioned ASX companies to benefit from Australia’s $120+ billion clean-energy investment pipeline expected through 2030.

Final Thoughts

The world’s energy transition is one of the most significant economic shifts of our lifetime—and Australia is right in the middle of it. For investors looking to tap into this megatrend, Origin Energy Ltd (ASX: ORG) and Southern Cross Electrical Engineering Ltd (ASX: SXE) stand out as two high-potential renewable energy stocks on the ASX.

Origin’s massive battery and hydrogen projects, combined with SCEE’s expanding role in building renewable infrastructure, position both companies for massive upside in the years ahead.

As clean energy demand continues to soar, these two Australian powerhouses are not just adapting—they’re leading the charge toward a sustainable, profitable future.

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