Offset your soaring power bills with 2 'excellent value' ASX energy shares

Renewable sources will take years to fill the gap, so one expert reckons these existing producers could be a great bet.

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Even though ASX energy shares had a great 2022, courtesy of Vladimir Putin's invasion of Ukraine, they're set to continue their boom run in 2023 and 2024.

That's because the energy crisis still persists. There is black hole in supply due to Western embargoes on Russian oil and gas, while renewable sources will take time to fill the gap.

All Australians are facing large increases to their retail energy bills this year. Some customers have reportedly been told that their electricity tariffs would be hiked 51.4%

Even the regulated benchmark tariffs set out by the Australian Energy Regulator are increasing between 19.6% and 24.9% when the next financial year begins next week.

While this is bad news for consumers, investors can offset the impacts by buying some ASX energy shares.

Here are two such stocks that Shaw and Partners portfolio manager James Gerrish is interested in:

'Excellent medium-term value'

Back in March, Gerrish's team bullishly predicted Strike Energy Ltd (ASX: STX) shares would "break out to new all-time highs" above 41 cents.

Well, they closed Wednesday at 47 cents.

Gerrish believes there's more upward movement to come.

"In terms of what next, we remain bullish but second-guessing the WA government is a tricky game," Gerrish told a Market Matters Q&A.

"The trend remains up and we like the energy sector medium term — a healthy combination in our opinion."

The Strike Energy share price has rocketed almost 80% over the past 12 months.

As dirty as it is, coal will be a necessity of life for the next few years as the world waits for enough renewable sources to be brought online.

Playing this theme, Gerrish's team likes the look of coal miner Coronado Global Resources Inc (ASX: CRN).

"We see excellent medium term value with $2.5 billion Coronado Global Resources, which is trading on 3.3x earnings."

According to the Market Matters team, Coronado is also seeking to grow inorganically.

"We're confident the miner is looking for acquisitions, following its comments in May, with BHP Group Ltd (ASX: BHP)'s assets that I'm sure they are running the slide rule over."

The Coronado share price is down 20% year to date.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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