3 Energy Stocks to Buy That Are Crushing the Market in 2025

The energy sector continues to be one of the most dynamic and influential areas of the stock market. With increasing demand for sustainable energy, coupled with innovations in clean technology, investors are closely monitoring companies that have the potential to outperform the market. In 2025, several Australian energy stocks are proving to be exceptional picks. These companies not only deliver strong returns but also align with the global push for greener alternatives and more efficient energy solutions. In this article, we highlight three energy stocks in Australia that are expected to crush the market in 2025.

 

Woodside Energy Group (ASX: WDS)

Woodside Energy is one of Australia’s leading energy companies, involved in the exploration, production, and marketing of oil and natural gas. It has a strong presence in the liquefied natural gas (LNG) sector and has strategically positioned itself to meet the increasing global demand for clean energy.

Why Woodside Energy Will Thrive in 2025

Woodside Energy completed its merger with BHP’s petroleum business on 1 June 2022, forming one of the world’s top 10 independent energy companies by production. The merger has significantly expanded its assets and increased its ability to leverage economies of scale. As of 2025, the company is benefiting from both its traditional oil and gas operations and its increasing focus on renewable energy projects, including hydrogen and carbon capture and storage (CCS).

Woodside has committed to reducing its net equity Scope 1 and 2 greenhouse gas emissions by 15% by 2025 and 30% by 2030, with an aspiration to achieve net-zero emissions by 2050 or sooner. The company is investing in carbon capture and storage (CCS) and hydrogen projects as part of its transition strategy.

Future Outlook

The strong fundamentals of Woodside Energy, coupled with rising global energy demand, make it an attractive long-term investment. The company’s stable revenue from its LNG assets, combined with its transition towards renewables, ensures that it will continue to be a dominant player in the energy sector for years to come.

Key Takeaway

Woodside Energy’s diversified portfolio of oil, gas, and renewable energy assets makes it a standout in the Australian energy market. As the demand for cleaner energy alternatives increases, Woodside’s focus on sustainability will likely lead to continued growth and market outperformance.

 

AGL Energy (ASX: AGL)

AGL Energy is one of Australia’s largest integrated energy companies, providing both electricity and gas to residential and commercial customers. AGL is also heavily involved in the renewable energy sector, with significant investments in wind and solar power, and is gradually transitioning away from fossil fuels.

Why AGL Energy is Leading the Charge

AGL Energy has been undergoing a major transformation in recent years. In 2025, the company will lead the transition to clean energy in Australia with aggressive investments in renewable projects and an ongoing focus on reducing its carbon footprint. Its commitment to phasing out coal-fired power plants and increasing its renewable energy capacity has positioned it as a leader in the clean energy space. AGL is actively investing in renewable energy and battery storage, with plans to develop 1.4 gigawatts of grid-scale battery storage to support Australia’s growing clean energy network. Additionally, AGL’s substantial investment in battery storage technologies ensures that it can support Australia’s growing renewable energy grid and offer stable energy supplies.

Why AGL Is Performing Well in 2025

With energy prices expected to remain high and demand for clean energy rising, AGL’s ongoing pivot to renewables ensures it remains well-positioned to generate sustainable profits. AGL has accelerated its coal exit plans and now aims to close its Loy Yang A power station by 2035, earlier than previously planned, as part of its decarbonisation strategy.

Future Outlook

AGL is poised to benefit significantly from Australia’s commitment to achieving net-zero emissions by 2050. With its well-established renewable energy assets and strategic investments in energy storage, AGL’s stock is set to grow as demand for sustainable energy solutions increases in the coming years.

 

Origin Energy (ASX: ORG)

Origin Energy is one of the largest integrated energy companies in Australia, with interests spanning gas, electricity, and renewable energy. The company provides electricity and gas to millions of Australian homes and businesses while also managing a portfolio of renewable energy projects.

Why Origin Energy is Gaining Traction

In 2025, Origin Energy is making strides in the transition to renewable energy, particularly in the solar and wind sectors. The company has invested heavily in large-scale renewable energy projects and battery storage solutions and is working to reduce its reliance on fossil fuels. While Origin initially explored hydrogen projects, it announced in October 2024 that it would exit its Hunter Valley hydrogen hub project due to uncertainties around the pace of hydrogen market development.

Origin’s commitment to sustainability is evident in its operations, with a clear focus on reducing emissions and improving energy efficiency across its portfolio. Origin continues to operate a large-scale gas and electricity business while investing in renewable energy and energy storage, including an 8 GW pipeline of solar and battery projects.

Future Outlook

Origin Energy’s robust strategy to transition to cleaner energy and its innovative moves in the hydrogen sector provide a solid foundation for future growth. With Australia’s energy market becoming increasingly green, Origin’s proactive investments in renewable energy projects will help it capture market share and benefit from government incentives and policies promoting clean energy.

Key Takeaway

Origin Energy is well on its way to becoming a major player in the renewable energy space. Its strong focus on innovation, sustainability, and growth in the hydrogen market ensures that it will remain a key stock to watch in 2025.

 

Conclusion

Energy stocks continue to be a key focus for investors looking for stable growth and long-term returns. As we enter 2025, Australian companies such as Woodside Energy, AGL Energy, and Origin Energy are leading the charge in the transition to renewable energy. With strong financials, strategic investments in sustainability, and a clear path forward, these companies are set to outperform the market in the coming years. Investing in these energy stocks not only aligns with the global energy shift but also offers the potential for significant returns as they capitalise on Australia’s green energy future.

 

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Frequently Asked Questions

• Which energy stocks are expected to perform well in 2025?

  In 2025, energy stocks such as Woodside Energy, AGL Energy, and Origin Energy are expected to perform well due to their strategic investments in renewable energy, strong market positions, and commitment to sustainability.

• How can I invest in Australian energy stocks?

  You can invest in Australian energy stocks by purchasing shares through a stockbroker or an online trading platform that provides access to the Australian Securities Exchange (ASX).

• What is the outlook for renewable energy stocks in Australia?

  Renewable energy stocks in Australia have a positive outlook due to the country’s commitment to achieving net-zero emissions by 2050. Companies like AGL Energy and Origin Energy are positioning themselves as leaders in the green energy transition, which will likely drive growth.

• Are energy stocks a good investment in 2025?

  Energy stocks, particularly those focused on renewables, are expected to offer good returns in 2025. As the demand for clean energy increases, companies like Woodside Energy, AGL Energy, and Origin Energy are poised to benefit from the global shift towards sustainable energy solutions.