Top Renewable Energy Stocks to Watch for 2024
Renewable energy and (Environmental, Social, and Governance) (ESG) criteria are closely linked, and renewable energy investments often align well with ESG principles.
Dive into the boundless potential of tomorrow’s investments with renewable energy stocks. Harnessing the power of sun, wind, and innovation, these stocks not only promise financial growth but pave the way towards a cleaner, brighter future for all. Join the sustainable revolution and ride the wave of renewable energy stocks to power your portfolio toward success in 2024.
Why the world is increasingly focusing on renewable energy?
Climate Change Mitigation: The urgency to mitigate climate change is a primary driver. Renewable energy sources produce fewer greenhouse gas emissions compared to fossil fuels, offering a crucial solution to reducing carbon footprints and combatting global warming.
Energy Security: Dependence on finite fossil fuel resources poses risks to energy security. Renewable energy diversifies energy sources, reducing reliance on imports and volatile global markets, thereby enhancing energy security for nations.
Economic Opportunities: The renewable energy stocks sector presents economic opportunities. It fosters innovation, drives job creation, and stimulates economic growth, attracting investments in research, development, and infrastructure.
Technological Advancements: Advances in renewable energy technology, such as improvements in solar panels, wind turbines, and energy storage systems, have made these sources more efficient and cost-effective. Continued innovations drive down costs, making renewable energy more competitive.
Policy Support: Many governments worldwide are instituting policies and incentives favoring renewable energy. This includes subsidies, tax credits, renewable portfolio standards, and commitments to carbon neutrality or net-zero emissions, encouraging the adoption of clean energy sources.
Public Demand and Awareness: There’s a growing public demand for sustainable practices and clean energy sources. Increased awareness about environmental issues has led to consumer preferences for products and services aligned with sustainability, influencing businesses and policymakers.
Health and Environmental Benefits: Renewable energy contributes to cleaner air and water, reducing health risks associated with pollution from traditional energy sources. This leads to improved public health and lower healthcare costs.
Decentralization and Resilience: Renewable energy systems often offer decentralized and distributed solutions, making them more resilient to disruptions, such as natural disasters or grid failures, compared to centralized fossil fuel-based systems.
Global Goals and Agreements: International agreements, such as the Paris Agreement, and global goals for sustainability and carbon reduction are driving nations to prioritize renewable energy as a means to achieve these targets.
Renewable energy stocks have diversified across various sectors within the industry and I will mark what i already started adding to my renewable energy stocks portfolio.
Solar Energy Companies:
Companies involved in manufacturing solar panels, solar cells, and related equipment.
- First Solar, Inc. (FSLR) First Solar, Inc. is a leading American solar energy company specializing in the manufacturing and development of thin-film photovoltaic (PV) modules and solar power solutions. It’s one of the largest solar panel manufacturers globally and is known for its cadmium telluride (CdTe) thin-film solar modules, which I include in my renewable energy stocks portfolio (1).
- SunPower Corporation (SPWR) A company that designs and manufactures high-efficiency solar panels and solar systems. Waiting for it’s next Earning Release to decide if I will add to my Portfolio.
- Canadian Solar Inc. (CSIQ) A global solar power company that designs, manufactures, and sells solar products which I include in my renewable energy stocks portfolio (2).
- Enphase Energy, Inc. (ENPH) Provides micro inverter systems for solar photovoltaic installations, offering advanced monitoring and control capabilities which I include in my renewable energy stocks portfolio (3).
- JinkoSolar Holding Co., Ltd. (JKS) A leading solar module manufacturer with a global presence, producing solar panels and related products which I include in my renewable energy stocks portfolio by end of Oct 2023 (4).
- Sunrun Inc. (RUN) A residential solar and energy services company that installs and maintains solar panels for homeowners which I include in my renewable energy stocks portfolio (5)
- Renewable Energy Group, Inc. (REGI) Although not exclusively focused on solar, it’s a leading producer of biodiesel and a significant player in renewable fuels and one of new green energy stocks.
Wind Energy Companies:
Businesses engaged in manufacturing wind turbines, blades, and providing wind energy solutions.
- Vestas Wind Systems A/S (VWS.CO) – A global leader in wind turbine manufacturing and wind power solutions which I include in my renewable energy stocks portfolio (6).
- Siemens Gamesa Renewable Energy (ENR) – Engaged in the manufacturing and servicing of wind turbines for onshore and offshore wind farms which I include in my renewable energy stocks portfolio (7).
- GE Renewable Energy (GE) – A division of General Electric focused on providing onshore and offshore wind turbines, as well as other renewable energy solutions. already in my portfolio since May 2022.
- Nordex SE (NDX1.DE) – A German company that designs, sells, and manufactures wind turbines, primarily for onshore installations.
- Suzlon Energy Limited (SUZLON.NS) – An Indian wind turbine manufacturer and renewable energy solutions provider.
- EDP Renewables (EDPR.LS) – A global leader in the renewable energy sector, with a significant portfolio in onshore and offshore wind farms.
- Ørsted A/S (ORSTED.CO) – A Danish renewable energy company heavily involved in offshore wind farm development which I include in my renewable energy stocks portfolio (8).
- Pattern Energy Group Inc. (PEGI) – Engaged in developing, owning, and operating wind and renewable energy projects primarily in North America.
Hydroelectric Power Companies:
Companies involved in generating electricity through water turbines in dams or rivers.
- Brookfield Renewable Partners LP (BEP) – It operates one of the world’s largest publicly traded renewable power platforms, including a significant portfolio of hydroelectric power assets which I include in my renewable energy stocks portfolio (9).
- Innergex Renewable Energy Inc. (INE.TO) – A Canadian company engaged in the development, acquisition, and operation of hydroelectric facilities, along with other renewable energy sources.
- Verbund AG (VER.VI) – An Austrian company primarily focused on hydropower generation and distribution.
- Hydro One Limited (H.TO) – A Canadian electricity transmission and distribution company with hydroelectric power assets.
- American Electric Power Company, Inc. (AEP) – Although not solely focused on hydroelectric power, it owns and operates several hydroelectric plants as part of its diverse energy portfolio.
These companies might have a presence in hydroelectric power but may also be involved in other energy generation sources. It’s essential to conduct in-depth research and consult with financial advisors before making investment decisions, especially considering the specific focus and performance of these companies in the energy market.
Biomass and Bioenergy Companies:
Companies focusing on converting organic materials into energy. This can include biomass power plants or companies specializing in biofuels like ethanol.
- Renewable Energy Group, Inc. (REGI) – A leading producer of biodiesel and a significant player in the biomass-based renewable fuels industry.
- Enviva Partners, LP (EVA) – Specializes in manufacturing and distributing utility-grade wood pellets used in renewable energy generation, primarily in biomass-based power plants.
- Pacific Ethanol, Inc. (PEIX) – Involved in the production and marketing of low-carbon renewable fuels, including ethanol.
- Gevo, Inc. (GEVO) – Focuses on the development and commercialization of renewable alternatives to petroleum-based products, including biofuels and renewable chemicals.
- Bunge Limited (BG) – Although not solely focused on biomass, it has a presence in bioenergy through its operations in biofuels and biomass-based power generation.
Please note that companies engaged primarily in biomass and bioenergy might also be involved in other sectors or have diverse business interests. Always conduct thorough research and consult with financial experts to assess the companies’ specific focus, financial health, and growth prospects before investing.
Energy Storage Companies:
Companies developing and manufacturing energy storage solutions, including batteries and grid-scale storage systems. Tesla (with its Powerwall and Megapack) and Panasonic are key players here.
- Tesla, Inc. (TSLA) – Known for its electric vehicles, Tesla also manufactures energy storage solutions like Powerwall (residential) and Megapack (utility-scale) which I include in my renewable energy stocks portfolio (10).
- Panasonic Corporation (PCRFY) – Partnered with Tesla for battery production, Panasonic is a key supplier of lithium-ion batteries used in various energy storage applications.
- Enphase Energy, Inc. (ENPH) – Provides microinverter systems for solar installations and has expanded into energy storage solutions like the Enphase Encharge battery system.
- Sunrun Inc. (RUN) – Besides residential solar installations, Sunrun offers energy storage options through its Brightbox battery system.
- LG Chem Ltd. (051910.KS) – A major supplier of lithium-ion batteries used in various energy storage applications, including electric vehicles and stationary storage.
- BYD Company Limited (BYDDF) – Known for its electric vehicles, BYD is also involved in producing batteries for energy storage systems which I include in my renewable energy stocks portfolio (11).
- AES Corporation (AES) – Operates in various energy segments, including energy storage solutions through its subsidiary, AES Energy Storage.
- Samsung SDI Co., Ltd. (006400.KS) – Engaged in manufacturing lithium-ion batteries for various applications, including energy storage systems.
These companies play significant roles in developing and providing energy storage solutions essential for optimizing renewable energy usage and grid stability. Always conduct thorough research and consider market dynamics before making investment decisions in this sector.
Geothermal Energy Companies:
Businesses utilizing the Earth’s heat for energy generation. Ormat Technologies and Terra-Gen are among those operating in this sector.
- Ormat Technologies Inc. (ORA) – A company primarily focused on the development, manufacturing, and operation of geothermal and recovered energy based power plants.
- Calpine Corporation (CPN) – While not exclusively focused on geothermal, Calpine operates geothermal power plants along with natural gas and other renewable energy assets.
- Alterra Power Corp. (AXY.TO) – Involved in the renewable power generation sector, including geothermal, wind, and hydroelectric projects.
- Mighty River Power Limited (formerly Mercury NZ Limited) (MCY.NZ) – A New Zealand-based power generation company that operates geothermal power stations among its energy portfolio.
- Contact Energy Limited (CEN.NZ) – Engaged in the generation and retail of electricity, including geothermal energy, in New Zealand.
Geothermal energy might not have as many standalone investment options compared to other renewable energy sectors, but companies like Ormat Technologies have a more concentrated focus on this renewable energy sector. Always conduct thorough research and consult with financial advisors before investing in any specific companies or sectors.
Electric Vehicle (EV) Ecosystem Companies:
Companies involved in the production of electric vehicles, charging infrastructure, and associated technologies. Tesla, BYD, and ChargePoint are prominent in this renewable energy sector.
- Tesla Inc. (TSLA) – A pioneer in electric vehicles, energy storage, and clean energy solutions. Tesla is known for its electric cars like the Model S, Model 3, Model X, and Model Y, along with energy storage products like Powerwall and Powerpack.
- NIO Inc. (NIO) – A Chinese electric vehicle manufacturer producing premium electric cars, including SUVs like the ES8, ES6, and EC6.
- BYD Company Limited (BYDDF) – A Chinese company involved in various industries, including electric vehicles and batteries. BYD manufactures electric cars, buses, trucks, and forklifts.
- XPeng Inc. (XPEV) – Another Chinese electric vehicle manufacturer specializing in smart EVs, including SUVs and sedans.
- Li Auto Inc. (LI) – Focuses on extended-range electric vehicles, combining electric power with an internal combustion engine for charging.
- Rivian Automotive, Inc. (RIVN) – An American electric vehicle manufacturer specializing in electric trucks and SUVs.
- Workhorse Group Inc. (WKHS) – Engaged in the manufacturing of electric delivery and utility vehicles, including electric vans and trucks.
- Lordstown Motors Corp. (RIDE) – Developing electric pickup trucks for commercial use.
Clean Energy Infrastructure and Utilities Companies:
Companies that own, operate, or invest in renewable energy projects or assets like solar farms, wind farms, and transmission infrastructure.
- NextEra Energy Inc. (NEE) – One of the largest clean energy companies in the world, operating in renewable energy generation, primarily wind and solar, and also involved in utility operations green energy stocks.
- Brookfield Renewable Corporation (BEPC) – A global renewable energy company with a diverse portfolio of renewable power generation facilities, including hydro, wind, solar, and energy storage.
- Ørsted A/S (ORSTED.CO) – A Danish renewable energy company primarily focused on offshore wind farms but also involved in onshore wind, solar, and bioenergy.
- Atlantica Sustainable Infrastructure plc (AY) – Engaged in the ownership and management of renewable energy, efficient natural gas, electric transmission lines, and water assets.
- Pattern Energy Group Inc. (PEGI) – Develops, owns, and operates wind and renewable energy projects primarily in North America.
- Vestas Infrastructure Limited (VIL) – A subsidiary of Vestas Wind Systems, focusing on developing and managing wind and renewable energy projects which I include in my renewable energy stocks portfolio (12).
- Capital Power Corporation (CPX.TO) – Involved in the ownership and operation of various power-generation facilities, including wind, solar, natural gas, and coal-fired facilities.
- TransAlta Renewables Inc. (RNW.TO) – Owns and operates a diverse portfolio of renewable power-generation assets, including wind, hydro, and solar facilities.
These companies represent diverse aspects of the green energy stocks of infrastructure and utilities sector, offering exposure to renewable energy stocks of generation and transmission, which are critical components of the transition towards a sustainable energy future. As always, it’s essential to conduct thorough research and consider market conditions before making any investment decisions.
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