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Best Renewable Energy Stocks for 2022

by | Oct 4, 2022 | Green Investments

Introduction

The best renewable energy stocks for 2022 are paving the way for the future of the renewable energy industry. For about ten years now, green energy investment has been a hot topic. The growth in renewable energy stocks is something many investors are eagerly anticipating. The world’s economies are working to make the change to renewable energy sources quickly. Climate change concerns are pushing world leaders to move away from carbon-based fossil fuels to cleaner alternative energy sources. The decarbonizing of the global economy will need investments of more than 100 trillion dollars over the next three decades. Renewable energy will play a crucial role in this power transition.

Wind, solar, hydroelectric, and other renewable energy sources supply a quarter of the electricity generated by the power industry. The energy industry has slowly and steadily been increasing its electricity generating capacity. The rate has been roughly 8% annually over the past decade. However, with the recent climate change and global warming scenario, the pace has quickened. To decarbonize the economy, it needs to accelerate further.

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Because of our changing climate, companies, businesses, and other institutions are looking for ways they can contribute to decarbonizing our world. A growing number of companies and businesses are signing power purchase agreements with an electric utility and electricity-generating companies to buy energy specifically produced from renewable resources. Some others are directly pumping their investments into renewable energy development projects. With this, the economic benefits of renewable energy increase due to falling costs. All these are making the energy sector today an attractive investment opportunity.

Apart from companies and businesses, governments are also working towards accelerating global decarbonization. National and local governments are proposing and passing legislation to increase investment in the renewable energy sector.

The Top Renewable Energy Stocks for 2022

There are a number of energy companies worldwide focusing on generating power from renewable energy sources. Their focus on renewable energy puts them in excellent positions to benefit from investments. Today’s top-tier renewable energy companies include:

1. Brookfield Renewable

Brookfield Renewable is one of the world leaders in renewable energy. Hydroelectric power makes up 62% of its portfolio. It is among one of the largest producers of hydroelectric power in the world, with a capacity of 8,100 MW. Brookfield also has wind (onshore and offshore) and solar farms. The company distributes its solar energy on a utility-level scale and also offers services for installing rooftop solar panels.

Brookfield has an incredible track record. Since the company’s inception, it has generated an annualized total return of 20%. Its acquisitions and development projects have steadily expanded its portfolio and powered its growth.

Brookfield envisions more growth along its path ahead. Its extensive pipeline of renewable energy development will power its expansion.

2. Clearway Energy

This company is one of the largest owners of renewable energy in the world. It operates highly efficient natural gas power facilities and wind and solar energy farms. The company’s wind and solar energy capacity stood at 3.7 GW and 1.6 GW, respectively. Clearway also sells its power, generating a steady cash flow for the company.

Clearway has placed a lot of value on its shareholders over the years, delivering annual total returns of around 10% since it first formed. Ever since a private equity giant took control of the company in 2018, Clearway’s total annualized returns have more than doubled.

3. JSW Energy

JSW is one of the largest energy-producing companies in India. The company has a total power-producing capacity of 4543 MW from solar, hydro, and thermal power plants. It has 2,458 MW of renewable energy projects in progress. 2,218 projects out of these are wind and solar power projects. The completion of these projects will increase the company’s renewable energy share from 30% to 55%.

4. Inox Wind

Inox Wind is one of the largest Indian manufacturers of wind turbines. It is a fully integrated wind energy solutions provider. The company supplies independent wind turbine parts such as blades.

The company owns three state-of-the-art manufacturing plants located in Madhya Pradesh, Himachal Pradesh, and Gujarat. Inox is constructing a 150 MW wind power project for NTPC Renewable Energy. When completed, this project will account for nearly 50% of the company’s power generation capacity by 2032.

5. Adani Green Energy Limited

Adani has announced that it has huge plans in place for the renewable energy space. The company owns a thermal and a solar power plant with capacities of 12,450 MW and 40 MW, respectively. Adani Solar has a power production capacity of 3.5GW. Once it completes its commissioned and under-construction projects, Adani Green Energy will have a production capacity of 25 GW.

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6. SolarEdge Technologies

SolarEdge Technologies is an Israeli photovoltaic company. They develop and manufacture optimized inverter systems. These systems help maximize the power produced by solar panels. The company is changing the way we harvest and manage solar energy.

SolarEdge has installed photovoltaic systems in more than 133 countries across five continents.

Conclusion

The best renewable energy stocks for 2022 are extremely capital-intensive. They are rightly so since we know that the future is green, and companies that fail to be aggressive in renewable energy production will be left behind.

The world’s expectation of a greener future has given these companies a head start.

Climate change and socially responsible investing are the major drivers of the clean energy revolution.

The protection of the Earth and our environment will bring trillions of dollars of investments in renewable energy in the decades to come.

Renewable energy stocks will generate some of the best returns for investors because there will be a growing number of people interested in obtaining renewable energy as our planet takes a turn for the worst.

The best renewable energy stocks for 2022 have already proved that they have the ability to capture green opportunities.

 

Author

  • Sigma Earth

    The author has done a master's in Environmental science and is currently working as chief Environmental Advisor with New Delhi State Government.

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