Soaring energy costs are accelerating investments in renewable energy around the world. The US has revealed plans to spend her $370 billion on new energy supplies through the Inflation Reduction Act. Meanwhile, her REPowerEU plan for the European Union targets an investment of €210 billion ($221.4 billion). Companies across the sector have responded accordingly with plans to replace traditional thermal generators fueled by coal, oil and gas with renewable energy sources powered by wind, solar and nuclear. Government-backed investments mean the sector is likely to see long-term growth at least over the next 10 to 20 years, according to UBS. “The sector as a whole will experience a difficult year in 2022 due to rising interest rates, and some of these headwinds may continue into 2023,” said analysts led by UBS European Utilities Head Sam Arie. In a December 16 memo to customers, UBS shared with CNBC Pro a list of prominent renewable energy companies that are expected to outperform in the next 12 months. The table below shows the biggest gains among the 10 global stocks rated by UBS.Texas-based energy company Vistra Corp is up 51% over the next year, according to UBS’s $35 price target. Last year, Vistara’s share price outperformed the broader market with a 2% return, while the S&P 500 fell 20%.Vistra is already the largest “capacity” with 39 gigawatts of total capacity. Competitive Generator”. UBS said last year it commissioned about 200 megawatts of solar power, enough to power 100,000 homes. The company says it has more than 10 gigawatts in development. NextEra Energy, one of the world’s largest wind power companies, was also on his UBS list. Investment banks expect the company’s stock to rise 21%, above the 15% consensus forecast compiled by FactSet. NextEra produces more than 35% of its 58 gigawatts of electricity from wind and solar, according to UBS. Shares of NextEra Energy Partners, the publicly traded subsidiary of Florida-based NextEra Energy, are also expected to rise 28%. Italy’s Eni and Spain’s Repsol also made the list. European companies known to generate the majority of their revenue through oil and gas extraction started diversifying towards renewable energy last year.