The energy transition to renewables is one of the biggest investing megatrends of our generation. The global economy needs to invest trillions of dollars over the coming decades to build out renewable energy and storage capacity and drive the extinction of carbon-emitting fossil fuels.

Despite that massive opportunity, some of the fastest-growing renewable energy investors have been in a bear market over the past year. Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) and NextEra Energy Partners (NYSE: NEP) are both down more than 20% from their high. That makes them look like extremely compelling investment opportunities, given the colossal growth ahead as we enter what could be a big bull market run for renewable energy stocks.

Shares of Brookfield Renewable and NextEra Energy Partners are down sharply despite one of the biggest catalysts to hit the sector in years. Last year's passage of the Inflation Reduction Act is "transformational for our industry and business," according to John Ketchum, the CEO of NextEra Energy Partners and its parent NextEra Energy (NYSE: NEE). He noted that the legislation supports clear incentives for a broad array of renewable energy technologies that will be in place for a long time. Because of that, it should "help NextEra Energy and NextEra Energy Partners continue to drive long-term value for our customers and our shareholders and unitholders."

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Source Fool.com