As nations rally around green initiatives, green energy stocks are gaining prominence, driven by major policy tailwinds. The U.S. is targeting a 52% cut in emissions, and China is on a path to neutralize its CO2 emissions over the next four decades.

Moreover, the energy transition is anchored in rising demand. The International Energy Agency underscores this shift and predicts that renewables will satisfy more than 90% of the burgeoning global energy appetite by 2025. And with Morningstar forecasting a 1.4% annual uptick in U.S. electricity consumption through 2032, the growth trajectory for clean energy remains evident.

Moreover, discerning investors are eyeing the renewable energy space with keen interest. Below, we explore three top renewable energy stocks that stand out for their potential to capitalize on this green transition.

NextEra Energy (NEE)

NextEra Energy (NYSE:NEE) remains a pivotal player in Florida’s energy sector and vital to the region’s electricity supply chain. Moreover, its most recent third-quarter report showcases a sturdy operational performance with adjusted earnings rising to $1.92 billion, or 94 cents per share, from last year’s $1.68 billion, or 85 cents per share.

Through its subsidiary Florida Power & Light Company, NextEra Energy is streamlining its operations by selling Florida City Gas to Chesapeake Utilities Corporation (NYSE:CPK) for a sizable $923 million. The commitment to shareholder value is evident in the announced regular quarterly dividend of 46 cents per share, set for distribution in mid-December.

Furthermore, the company’s EBITDA soared by 90.78% year-over-year, a significant increase of 1034.7% when measured against the sector median of 8%. Even more compelling is the forward return on equity growth, posting at 15.88%, a figure that eclipses the sector median of 0.50% by an overwhelming 3050%. This growth reflects NextEra’s robust resilience against economic headwinds.

Enbridge (ENB)

Enbridge (NYSE:ENB) is a key player in energy transport and distribution and delivered a solid financial showing in the recent quarter. The company reported a 3% rise in adjusted EBITDA to $3.9 billion and a substantial increase in operating cash flow from $2.1 billion to $3.1 billion over the previous year, signaling robust operational health.

Moreover, Enbridge is advancing its infrastructure ambitions by building the Rio Bravo pipeline, a key conduit for the Rio Grande LNG project’s natural gas supply. This move exemplifies the company’s commitment to tapping into energy sector growth. Furthermore, its strategic acquisitions of The East Ohio Gas Company and Questar Gas Company should bolster Enbridge’s natural gas network, likely to drive long-term value.

Recently, Enbridge reported an impressive forward free cash flow per share growth of 49.12%, substantially exceeding the sector median of 11.84%. This performance indicates a healthy financial trajectory in a competitive energy market.

Dominion Energy (D)

Dominion Energy (NYSE:D) is carving out a leadership role in renewable energy with the expansion of its $9.8 billion offshore wind project. Once operational, this initiative is likely to claim $3 billion in tax credits and slightly raise customer bills by an estimated $4 monthly in Virginia, reflecting a balance between growth and customer impact.

Dominion has outlined plans for over 12 new solar projects in Virginia. Upon completion, these initiatives have the potential to power around 200,000 homes and could secure additional tax credits under the Inflation Reduction Act. Financially, Dominion’s revenue growth stands at 10.47%, outperforming the sector median of 7.24%, and its operating cash flow has soared by 75.21%, greatly exceeding the sector median of 19.3% by a jaw-dropping 289%.

Clearly, the company is strategically in a position to capitalize on the escalating demand for electricity. Coupled with a substantial dividend yield of 6%, the company presents a unique investment opportunity for steady income and growth.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines