ASX listed renewable energy stocks with good potential
The following three ASX stocks will provide investors with direct exposure to the renewable energy space along with decent dividend yields.
Meridian Energy Limited (ASX: MEZ)
in January 2026 reported strong hydro conditions as inflows were 108% of the historical average for the month and 138% of the historical average year-to-date which marks the second highest July to January inflow period on record.
Total generation in January 2026 stood at 1,373 GWh compared to 1,199 GWh in January 2025 which was supported by higher hydro and wind output.
Retail sales volumes rose by 2.9% and total New Zealand customer connections reached 456,274 which reflects continued retail expansion.
The average generation price in January declined compared to the prior year due to higher hydro storage levels and softer wholesale electricity prices which shows the cyclical nature of electricity markets while the current annual dividend yield stands at 3.78%.
Mercury NZ Limited (ASX: MCY)
is one of New Zealand’s leading renewable energy generators with a diversified portfolio across hydro, geothermal and wind assets.
The company for the December 2025 quarter reported national hydro inflows at the 98% percentile which led to lower wholesale electricity prices that averaged $40/MWh in Auckland for the quarter.
Hydro generation rose to 1,072 GWh for the quarter which was up 23% year-on-year while wind output increased 6% and geothermal production was lower due to scheduled maintenance.
With a current annual dividend yield of 4.11%, Mercury provides exposure to hydro and geothermal assets together with stable retail cash flows which makes it a notable renewable energy stock on the ASX.
Contact Energy Limited (ASX: CEN)
is a major New Zealand renewable electricity generator and retailer which operates a diversified portfolio of hydro, geothermal and thermal assets supported by long-term retail contracts.
For January 2026, mass market electricity and gas sales rose to 322 GWh from 271 GWh in January 2025 while customer netback stayed firm at $166.61 per MWh.
On the wholesale side, contracted electricity sales reached 900 GWh for the month compared with 700 GWh a year earlier and electricity generated or acquired stood at 761 GWh.
Unit generation cost including acquired generation came in at $52.77 per MWh in January 2026 which reflects higher input costs than the prior year while own generation cost remained controlled at $41.20 per MWh.
Total customer connections increased to 672,000 which shows continued scale across the customer base while the stock currently offers an annual dividend yield of 4.04%.
(Source: Company Reports)
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