The energy crisis in Europe has become headline news here in North America. Whether we’re talking about Germany or a host of European nations that are seeing sky-high gas prices, investors watching from the sidelines have few ways to trade this news. That is, outside of select stocks such as Enphase (NASDAQ:ENPH) stock.

A leading provider of solar and battery systems, Enphase is a renewables company that’s been making a big push into Europe. Last week, the company announced its acquisition of German company GreenCom in a deal that’s expected to close by the end of the year. Today, Enphase went a step further, announcing an expansion of its distribution partnership with BayWa to distribute the company’s micro converters and IQ batteries in Germany and Benelux.

Accordingly, investors may not be surprised to see ENPH stock up more than 5% today on this news. Let’s dive more into what these announced moves could mean for investors in Enphase.

Why Is ENPH Stock Gaining Today?

Interestingly, most energy-related stocks are seeing downside today. Investors appear to be pricing in continued demand destruction arising from central bank tightening globally. Accordingly, alongside lockdown fears in China, there’s little to like about the outlook for this sector over the medium term.

That said, for companies operating in Europe’s growing renewables market, this turbulent energy market could provide some significant growth in the years to come. As Germany and other countries scramble to replace their natural gas inputs with renewables, companies like Enphase that are positioning themselves in these European markets could see significant pricing power and growth. At least, that’s what the market is pricing in today.

These combined announcements signal Enphase is serious about its entry into the German market. This appears to be a move that investors and consumers alike will cheer for some time. Accordingly, this is a stock I’ve put on my watchlist today.