The AGL Energy Limited (ASX: AGL) share price has been an underperformer so far this year.
The group's shares are up just 3.79% compared to the 23.24% delivered by the S&P/ASX 200 Index (INDEXASX: XJO) this year.
Its relative performance hasn't been too flash either, with fellow ASX-listed energy giant Origin Energy Ltd (ASX: ORG)'s shares surging 39.08% higher in 2019.
So, why could AGL be in a great position to rocket higher over the next decade?
The renewables boom
According to an article in the Australian Financial Review (AFR), Australia's economy could benefit significantly from further renewables investment.
Modelling by PwC and Jacobs shows more renewables projects and an upgrade for the national power grid would add $13 billion to Australia's GDP over two decades.
Supporting Australia's coal-fired electricity plants would halve those economical benefits.
AGL shareholders could be in the box seat to benefit from such a boom. The company is already invested in renewable energy projects across Australia.
The group is the largest ASX-listed investor in renewable energy and a partner in the Powering Australia Renewables Fund (PARF).
As one of the largest energy groups in Australia, alongside Origin and EnergyAustralia, AGL could benefit from further projects.
AGL shares have struggled to climb higher in recent times, largely due to weak earnings. The group has pointed the finger at the Federal Government and its battles are well-documented.
The large energy companies have complained about the lack of consistent, long-term energy policy in Australia. Now that the Coalition has been returned and we enter a new year, energy policy could be on the agenda.
Will the AGL share price rocket higher in the 2020s?
AGL shares have struggled in 2019 but I think their big break could be just over the horizon.
The energy group is well-placed in the national energy market and has the resources to invest further.
Once Australia's energy policy environment has been clarified, I'd expect AGL to be investing for the long-term.
That could make AGL shares a great buy-and-hold option for the next decade and invest in the renewables boom.
