4 Reasons to Invest in Renewable Energy Stocks
Renewable energy stocks have been on fire over the past six months asinvestors have realized the potential of this disruptive energy industry. Butthe transition to renewable energy has been taking place for years.As the cost to build wind and solar power plants has come down and theirefficiency has gone up, we’ve seen them replace coal, nuclear, and in somecases even natural gas power plants. Those trends should continue, which leadsus to four big reasons to invest in renewable energy.Image source: Getty Images.
1. Renewable energy is grabbing a bigger piece of a growing pie
The chart below shows the long-term trends in solar, wind, coal, and nuclearenergy production in the U.S. You can see that wind and solar are growing muchmore quickly than energy production overall and are taking market share fromcoal and nuclear power plants.US Solar Energy Production data by YCharts.The reason for this shift is primarily cost. Wind and solar power plants canproduce electricity at a lower cost than coal and nuclear in most of the U.S.,and they’re winning bids for power contracts as a result.What this does is create a growing pie of investment opportunities forcompanies like renewable energy asset owners NextEra Energy Partners(NYSE:NEP), Brookfield Renewable Partners (NYSE:BEP), and AtlanticaSustainable Infrastructure (NASDAQ:AY). These are the companies that financeand own billions of dollars of renewable energy projects.NextEra Energy Partners is one of the largest renewable energy asset owners inthe world with 4,855 megawatts (MW) of wind power and 975 MW of solar powerplants. Brookfield owns 19,400 MW of renewable energy assets with 64% of thosebeing hydroelectric power plants. And Atlantica has 1,551 MW of renewableenergy assets with 1,166 miles of transmission and transportation, naturalgas, and water assets as well.If there’s a growing pool of assets and ample funding available to drivegrowth, each of these companies will be able to grow their asset base anddividends long term.
2. The technology is improving
Falling costs go hand in hand with improving technology. Solar panels aregetting more efficient, bigger wind turbines provide more energy per dollar ofinvestment, and small improvements in components like inverters are squeezingmore energy from every project. But the big technology improvement that willdrive the industry’s growth for a decade is energy storage.Battery storage is already being included in projects around the world. Itallows power plant owners to better regulate energy supply to the grid insteadof when the sun is out or the wind is strongest. This reduces stress on thegrid and increases the value of energy coming from renewable power plants. Butthis may just be the start.Batteries are now being included in home and commercial solar installationsand both the installers and manufacturers supplying equipment to installers.Sunrun (NASDAQ:RUN) and SunPower (NASDAQ:SPWR) are playing a role in bothinstallation and equipment design and manufacturing while Enphase Energy(NASDAQ:ENPH), and SolarEdge Technologies (NASDAQ:SEDG) are leading equipmentsuppliers, leaning on their installation partners to grow their installedbase, including batteries. These companies are not only providing backuppower, they’re also adding the option to create virtual power plants that canaggregate thousands of energy storage systems together and bid energy into thegrid.There are also potentially disruptive technology and capacity increases in thepipeline in the form of hydrogen power storage and electric vehicles thatcould drive even more demand for renewable energy long term.
3. Corporate America loves renewable energy
It’s great to see more solar panels on rooftops, but the real impact for windand solar renewable energy is at the corporate level. Not only are utilitiesacross the country building and buying more renewable energy, but corporateAmerica is as well.According to the Solar Energy Industries Association, commercial customershave acquired either the assets or power from more than 8,350 megawatts ofsolar cumulatively. That’s enough to power 1.6 million homes, and the industryis growing. Between 2017 and 2019, installations were at least 1,100 MW peryear and hit 1,286 MW last year. As solar energy becomes more cost-effective,we should expect this number to grow.And that’s just solar energy. Corporate wind-energy investment and electricityprocurement now tops 17,000 MW, or enough to power 5 million American homes.Both of the main forms of renewable energy are getting a lot of corporatemoney right now.Corporations are important in renewable energy because they’re key to demandand financing. If companies are pushing renewable financing, it’ll makeprojects more cost effective. And if big corporate customers push utilitiesfor more renewable energy to hit their emissions goals, it can impact theutility’s energy mix. It’s a virtuous cycle once it gets going.
Renewable energy is set for a great decade
The renewable energy industry has a lot of tailwinds. With new forms of energystorage and continuously falling costs, it’s starting to answer some of thequestions critics have raised. And with momentum on its side, it’s time to bevery excited about the renewable energy industry in 2021.This article represents the opinion of the writer, who may disagree with the“official” recommendation position of a Motley Fool premium advisory service.We’re motley! Questioning an investing thesis — even one of our own — helpsus all think critically about investing and make decisions that help us becomesmarter, happier, and richer.12 Best Renewable Energy Stocks to Invest in 2021Renewable energy stocks have been very popular in the year 2020 and theirpopularity continues to increase in 2021. The newly elected president of theUnited States Joe Biden is a big supporter of renewable energy resources andhas big plans for the clean energy sector. Biden administration has pledged toinvest $2 trillion into the development of renewable energy technology overthe next four years. Biden plan on making America a net-zero-emissions countryby 2050. As a result of Biden’s plans towards a renewable energy sector, majoroil and gas projects in Alaska were pulled back.Goldman Sachs predicts that capital expenditures in the renewable sector willsurpass the capital expenditure in the oil and gas sector. This will happenfor the very first time in history. Talking about shifting from oil and gas torenewable energy sources, Chevron plans to build 500 megawatts of renewableenergy plants to power some of its global plants. BP and Chevron, the twogiants of the oil and gas sector, have joined hands to fund a Canadiangeothermal energy company called Savor.As we always do at Elliottwave-Forecast, we look at the stock market as awhole. We track over hundreds of instrument around the world to get a morecomplete forecast.Sources of energy are shifting. Far-sighted investors have started shiftingtheir investments with the changing demand to gain from the future trends ofthe market. According to a report by IEA, renewable energy sources, especiallysolar, will be supplying 80% of the global electricity by the year 2030.
2. Renewable Energy Group Inc. (REGI)
Renewable Energy Group is a global producer and supplier of renewable fuelslike biodiesel and renewable diesel, renewable chemicals, and other products.EG is committed to being a long-term leader in bio-based fuel and chemicals.It has announced to increase the production capacity of one of its plans.Renewable Energy Group is evolving to meet the demand of customers and deliversustainable fuel solutions.The price of the stock of Renewable Energy Group Inc is on an upward trend andhas gained more than 260% from last year till date. Moreover, its solidliquidity position makes its financial position very strong.Study the price movement of First Solar Stock of last two years in the belowchart:
3. First Solar Inc (FSLR)
First Solar is a leading global provider of comprehensive photovoltaic (“PV”)solar energy solutions, which use its advanced module and system technology.The Company’s integrated power plant solutions deliver an economicallyattractive alternative to fossil-fuel electricity generation today. FirstSolar is categorized as one of the most profitable solar energy providers witha promising future.First Solar has developed the world’s first EPEAR-rated PV module. This Series6 has revolutionized the industry’s benchmarks for quality, durability,reliability, design, and environmental performance. In the last quarter of2020, First Solar started shifting the focus of its operations towardsspecializations of solar panel manufacturing. Since then, the gross margins ofthe company have started improving and have risen. This shift in focus hasbeen in perfect alignment with Biden’s government announcement of investmentin renewable energy.Study the price movement of First Solar Stock of last two years in the belowchart:
4. Plug Power Inc (PLUG)
Plug Power is building the hydrogen economy as the leading provider ofcomprehensive hydrogen fuel cell turnkey solutions. The Company’s innovativetechnology powers electric motors with hydrogen fuel cells amid an ongoingparadigm shift in the power, energy, and transportation industries to addressclimate change and energy security, while meeting sustainability goals.Plug Powers has been accredited with building the first commercially viablemarket for hydrogen fuel cell technology. It recently raised $2 billionthrough share issuance which is considered the largest bought deal in thecleantech sector. The ability to raise such huge amounts of cash reflectsinvestor’s confidence.You may also like reading: Fibonacci Retracement, Extension & TradingStrategiesPlug Power has purchased United Hydrogen Group and Giner ELX in the year 2020.Its fuel cells have been preferred by companies like Walmart to whom it willbe providing fuel cell-powered vehicles for its eCommerce network. With PLUGproviding GenKey hydrogen and fuel cell solutions to giants like Walmart atits logistics centers, investors’ confidence is expected to spike. Plug Poweris on the right track of its vision to become the leader in the GlobalHydrogen EconomyStudy the price movement of Plug Power Stock of last two years in the belowchart:
5. Canadian Solar Inc. (CSIQ)
Canadian Solar Inc is one of the world’s largest solar technology andrenewable energy companies. It is a leading manufacturer of solar photovoltaicmodules, provider of solar energy and battery storage solutions, and developerof utility-scale solar power and battery storage projects with ageographically diversified pipeline in various stages of development. It has aModule capacity of over 16 GW and Cell capacity of around 10 GW and 17manufacturing facilities in Asia & America.Canadian Solar has raised $230 Million through IPO in 2020. These funds willbe contributed towards expanding the manufacturing capacity of the company.Canadian Solar recently announced that it has sold ownership interest in itsHays and Jenner solar projects to BluEarth Renewables. This project will beusing Canadian solar bifacial modules and singles axis trackers. This projectwill commercialize solar technology in Canada.Study the price movement of Canadian Solar Stock of last two years in thebelow chart:
None of the information published in this article should be construed asinvestment advice. We strongly advise our readers to always do their duediligence before investing.You may also like reading:BackTop 57 Green Energy startups in UK
Top 57 Green Energy startups in UK
Last updated: August 29, 2021| —|— 1Funding: $520M Octopus Energy develops cloud-based smart grid platform and provides fairprices forever and greener energy from the UK’s largest investor in solargeneration. It uses an innovative AI and data-based platform to balance loadsaround the grid.2Funding: £247M OVO Energy is an independent energy technology company and supplier. OVO alsoinstalls world’s most advanced storage heaters3Funding: £200M Zenobe Energy is the largest independent owner and operator of battery storagein the UK. It buys and manages grid-scale batteries for its commercialcustomers, such as utilities and electric-vehicle operators.4Funding: €100M Arrival is a technology company, that creates Generation 2 Electric Vehicles.Devices on wheels — they outperform legacy technology to deliver an experiencelike no other, but are priced the same as fossil fuel equivalents.5Funding: $100.1M BBOXX designs, manufactures, and distributes plug and play solar systems. Italso offers pay-as-you-go solar power. BBOXX Power DC product range is closedDC systems in standardised sizes. BBOXX Hub brings the smart capabilities ofremote monitoring and control to larger capacity systems and projects. BBOXXPulse is a comprehensive management platform that enables growth of nextgeneration utility businesses.6Funding: £61.4M Green gas and electricity supplier. It buys energy from independent renewablegenerators from across the UK7Funding: $58.1M Oxford PV is the technology leader in the field of perovskite solar cells.8Funding: £35.8M Origami Energy is creating a real-time marketplace for a distributed energyworld. It’s smart technology intelligently manages and remotely controlsdistributed energy assets to access the most profitable current and futurevalue opportunities.9Funding: £23.7M First Light Fusion (FLF) develops Inertial confinement fusion reactor that canproduce power.10Funding: £25M Made up of Faraday Exchangers – independently-verified ‘plug and play’ devicesthat dynamically balance and smooth power flowing across the energy system – aFaraday Grid gradually transforms a traditional electricity network to delivera more resilient system and lower energy costs.AdAdvertise your startup11Funding: $24.3M Moixa is the UK’s leading smart battery company. We develop our Smart Batteryhardware and GridShare software to facilitate smart energy storage andsharing.12Funding: $23.8M Advano’s silicon nanoparticles dramatically increase the energy densitylithium-ion batteries 30-40% without sacrificing battery life or increasingthe battery cost. Better batteries for ioT, consumer electronics, and EVs.13Funding: $22.2M Scotrenewables Tidal Power is a renewable energy research and developmentcompany focused on tidal power.14Funding: $15.9M Verv is an intelligent home hub, which gives the power to take control ofenergy usage to ultimately reduce energy bills.15Funding: $15.3M Hometree operates as an online-led boiler installation company.16Funding: £10M Tokamak Energy aims to accelerate the development of fusion energy. TokamakEnergy was founded by leading scientists from the world’s leading fusionresearch establishment at Culham to develop the potential to use fusionneutrons for a variety of applications from material treatments to medicalapplications or low cost hydrogen production. The technology is alsoapplicable in the area of nuclear waste, where it…17Funding: $10.3M Kite Power Systems has created commercial kite-driven power station. The kitesfly in a figure-of-eight pattern 450 metres in the air, pulling a tether thatturns a turbine and produces electricity. Two kites working in tandem create acontinuous energy source.18Atlantis Turbine and Engineering Services division designs, supplies andmaintains world leading tidal turbines and subsea connection equipment.19Funding: $8.5M Pavegen is the global leader in harvesting energy and data from footfall.20Funding: £6.3M Trojan Energy develops a system that offers an equal chance for EV driverswithout a driveway to charge effectively at home, while eliminating residualclutter on the pavement.21Funding: £6.2M Upside Energy reduces greenhouse gases by enabling people to make smartchoices about when to use energy. It uses advanced algorithms and artificialintelligence to match energy demand with the available supply, helping theelectricity grid deal with fluctuations and times of peak usage.22Funding: £6m OX delivers clean, affordable transport in emerging markets, creating a self-reinforcing cycle of economic growth and social impact.23Funding: $6.6M BuffaloGrid connects communities by giving stores, kiosks and kiranas theability to generate and provide affordable mobile phone power.24Funding: £4.4M Tempus Energy connects customers with the cheapest available energy using AIand smart algorithms to control and optimise when flexible assets use energy.25Funding: £4M 3D vision and artificial intelligence applied to subsea robotics servicingoffshore wind decommissioning26Funding: €4.7M Powervault has developed the UK’s most affordable and easiest to install homeenergy storage device, which can lower consumer electricity bills and provideemergency power to critical devices. The ‘emergency power socket’ enablescustomers to use their stored energy during black-outs. Founded by Joe Warren,the patent-pending product uses an integrated battery and control system tostore the free electricity generated from solar panels during the day and thenrelease the stored energy in the evening.27Funding: £4.4M Limejump’s Virtual Power Platform is an aggregation of flexible energygeneration and storage assets of different sizes and technology types. Theyaim to deliver 100% renewable energy at all times to customers through thedirect real-time connectivity between renewable energy sources, batteries anddemand response.28Funding: $6M Addionics is creating next-generation batteries for electric cars throughintelligent 3D battery architecture and engineering.29Funding: £4.2M Mocean Energy develops new technologies which can harness the power of waves –and accelerate the transition to a zero-carbon world.30Funding: £3.1M Riversimple develops hydrogen fuel-cell cars for clients in the UnitedKingdom.31Funding: £3.8M OXIS Energy is developing the next generation Lithium Sulfur battery chemistrythat will revolutionize the rechargeable battery market.32Funding: £2.3M Highview Power’s CRYOBattery delivers, clean, reliable, and cost-efficientlong-duration energy storage to enable a 100% renewable energy future. It isstoring energy in “liquid air”—when you compress a gas enough, it turns liquid33Funding: £1.4M Electron is a start-up harnessing blockchain technologies to design moreefficient, resilient and flexible systems for the energy sector.34FeTu specialises in reducing energy consumption and emissions through itsself-developed two-stage turbine technology, which applications in the energymarket and manufacturing industries including aerospace and marine.35Funding: $3M Ecolution is converting homes and businesses into renewable energy powerstations as part of a sustainable solution to climate change. We will maintainand monitor those renewable solutions to maximise their life span and keep ourworld green.36Funding: £2.7M Monodraught manufactures natural lighting, air conditioning and ventilationtechnology that is now widely used by the likes of IKEA, Ford and Waitrose.37Funding: $2.8M Aceleron is using new battery technology to create the World’s firstrecyclable, upgradeable and serviceable lithium-ion batteries to drive theglobal circular economy.38SEaB Energy is an international specialist, UK based company, working in therenewable energy and energy from waste sectors. SEaB Energy has developed acompact easy to install turnkey Anaerobic Digestion (AD) systems in shippingcontainer.39H2GO Power develops hydrogen energy storage. It’s solution stores hydrogen gasthat can be burned in fuel cells by using nanomaterials to create a flexiblesponge that traps hydrogen atoms in its pores.40Funding: £300k Gravitricity is developing a novel storage technology which offers some of thebest characteristics of lithium batteries and pumped storage. Its patentedtechnology is based on a simple principle: raising and lowering a heavy weightto store energy.41Industrial Power Response develops energy storage systems for intensiveapplications. Its proprietary energy storage technology is designed forelectrifying industrial equipment and the needs of the modern grid.42Funding: £1.2M Ripple Energy is building world’s first consumer-owned wind farm43Funding: $2.1M SEaB Energy manufactures compact, easy-to-install, turnkey Anaerobic Digestion(AD) systems in shipping containers that turn organic waste into energyexactly at the point where the waste is produced and the energy is required.44Funding: $2.3M Witt Limited has developed a technology called the WITT which convertsmotional energy into electricity Motional energy45Funding: £606.9K Igloo Energy is a company help make their customers’ homes smarter, moreefficient and cost less to run.46Funding: £150K Aceleron is an innovative advanced lithium battery developer aiming toaccelerate the global shift to cleaner, more renewable energy and to empowerpeople to benefit from sustainable battery technology.47My Energi makes Electric Vehicle charging equipment and eco-smart homedevices.48Funding: £170K enee.io designs and develops battery monitoring systems that makes both usersand suppliers of renewable power systems more profitable. Using the latest IoTtechnology and data analytics we improve battery efficiency and can extend thebattery life by up to 40%.49Supercritical Solutions is developing the world’s most efficient electrolyserfor hydrogen production50Funding: £231.9K RheEnergise is bringing innovation to pumped energy storage. We call our newsolution High-Density Hydro51Funding: $686K Open Climate Fix is aiming to build an online solar electricity forecastingservice52AEROPOWDER is creating novel materials from surplus feathers. It developedworld’s first thermal packaging material made from surplus feathers.53RFC Power is a developer of flow battery systems. RFC Power are developing newclasses of low-cost redox flow battery chemistry, leveraging concepts fromfuel cells.54So Energy is an award-winning renewable energy supplier.55Evercharge Energy is developing a high-capacity Li-ion battery based oninnovations in electrode materials – that has the potential of utilizing asubstantially domestic supply chain as well.56Fusion Reactors is developing a fusion reactor to deliver electricity to thegrid from fusion energy.57Nevana Designs produces cutting edge, light responsive coatings and compoundsfor environmentally sustainable, self-sufficient energy saving solutions.4 Best Battery Technology Stocks in 2021Last Updated on August 1, 2021 by Henry JohnThe battery market is huge, having an estimated global market size of USD108.4 billion in 2019 and expected to grow at a compound annual growth rate(CAGR) of 14.1% from 2020 to 2027, according to Grand View Research. This isno surprise, as many technologies ‘need’ batteries.There is an ever-increasing demand for batteries, a result of high demand ofconsumer electronics and clean technologies that requires batteries. Electricvehicles specifically has gained mainstream traction surging the demand forbatteries drastically.A market that is expected to grow at a CAGR of 14.1% in the next seven yearsis quite promising. However, for years, the battery sector has being one ofthe underperforming sectors in the stock market.Batteries are not a thing of today, even before EVs became mainstream,traditional vehicles use batteries (and they still do); batteries has long hadautomotive applications.And are likewise applied in consumer electronics for long, nonetheless, itstill underperforms.The battery sector had established a track record that scares investors away,but there is a changing narrative that is making the sector looking quitepromising today.Normally, batteries are expensive to produce and battery companies make littleprofit from their huge revenue. As such, even though, demand in batteries hasbeen increasing, the low profit margin associated batteries makes batterystocks unattractive.An analysis by research company Bloomberg New Energy Finance (BNEF) shows thatthe benchmark levelized cost of electricity, or LCOE, for lithium-ionbatteries has fallen 35% in the first half of 2018. This is because ‘there hasbeen a dramatic decline in manufacturing costs of Lithium ion batteries’ theBNEF report reveals.There are publicly traded companies working on battery technologies with theaim of increasing its capacity and reducing cost of production, all of whichwill make batteries a more profitable venture.It’s this trend and these companies that are making the once underperformingsector promising for smart investors like you.Batteries are really the future. Imagine all those growth in market size withan increasing profit margin, battery stocks are going to be winners in thenext few years.Cutting the chase…If you’re interested in investing in electric vehicle battery stocks, here are4 battery technology stocks to buy now:
3. Energizer Holdings (ENR)
Energizer Holdings, Inc., together with its subsidiaries, manufactures,markets, and distributes household batteries, specialty batteries, andlighting products worldwide.It offers lithium, alkaline, carbon zinc, nickel metal hydride, zinc air, andsilver oxide batteries under the Energizer and Eveready brands, as well asprimary, rechargeable, specialty, and hearing aid products.The company also provides headlights, lanterns, children’s and area lights, aswell as flash lights under the Energizer, Eveready, Hard Case, Dolphin, andWeatherReady brands.In addition, it licenses the Energizer and Eveready brands to companiesdeveloping consumer solutions in gaming, automotive batteries, portable powerfor critical devices, LED light bulbs, and other lighting products.Further, the company designs and markets automotive fragrance and appearanceproducts under the Armor All, Nu Finish, Scratch Doctor, Refresh Your Car!,LEXOL, Eagle One, California Scents, Driven, and Bahama & Co. brands.It sells its products through direct sales force, third party distributors,and wholesalers; and through various retail and business-to-business channels,including mass merchandisers and warehouse clubs, food stores, drug andconvenience stores, electronics specialty stores and department stores,hardware and automotive centers, and military stores, as well as throughe-commerce.Energizer Holdings, Inc. is headquartered in St. Louis, Missouri.
4. QuantumScape Corporation (QS)
QuantumScape is an industry-leading public company (NYSE: QS) that isdeveloping solid-state lithium metal batteries for electric vehicles thatprovides both high specific energy and high energy density. The company isbased in San-Jose and backed by Bill Gates, Volkswagen, Continental AG, andGeorge Soros among other prominent investors.Arguably, QuantumScape’s all-solid-state battery technology is currently themost advanced. Its prototype battery can charge to 80% capacity in 15 minutesand that’s “faster than either conventional battery or alternative solid-stateapproaches are capable of delivering”.One of the biggest challenges of developing all-solid-state batteries is thecomplication around increasing their capacity and charging time. In other toincrease the capacity of these batteries, their energy density per volume andper kilo has to be increased.The trick is to be able to pack as much energy as possible per kilo of thebattery, deliver high rates of power and avoid dendrites formation. Dendritesare formed during the charging process at high rates power and they causebatteries to fail.As such when normal solid-state batteries are being charged at a very highpower rate, in order to speed up the charging time, dendrites are formed andthe battery fails, and nobody wants that.QuantumScape recently announced that it has overcome this problem, a majortechnological breakthrough, according to its recent data, its solid-stateseparators can work at very high rates of power while avoiding dendriteformation. This breakthrough enabled its batteries to fast-charge to 80%capacity in 15 minutes.And the company also announced in February that it was able to producemultilayer solid-state batteries that can charge at high rates of power andget to 80% capacity in 15 minutes while avoiding dendrites formation.This is a much-needed and awaited breakthrough that puts the company ahead ofthe pack in the race to develop commercial solid-state batteries that could beused by electric vehicles.