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Green Energy Stocks in Europe

by | Sep 10, 2022 | Green Investments

Introduction

Green energy stocks in Europe will benefit from the world’s energy transition. The energy transition is the shift among energy sectors worldwide from fossil fuel-based energy production and consumption systems to energy from renewable sources such as solar, wind, and biofuels.

The current major investment trends in Europe in the green energy sectors are:

1. Renewable energy products like electric vehicles and solar panel installations are at a record high.

2. Renewable power projects became the largest area of energy spending in 2021.

3. Electricity from renewable sources is increasingly becoming cheaper day by day, year by year. It is now cheaper than any new power capacity based on fossil fuels.

Europe is currently looking for ways to cut its reliance on Russian oil and gas amid the Ukraine war. Even though the Russian invasion of Ukrainian territory caused global stock markets to plummet, the renewable energy sector soared. At the end of February 2022, the European Renewable Energy Index surged by nearly 9.3%.

Green Energy Stocks in Europe

Europe’s reliance on Russia for oil and gas has shown the nation how critical it is that they diversify their energy supplies to achieve energy security. The European Union aims to reduce its greenhouse gas emissions by 55% by 2030. Europe needs to keep investing in renewable energy sources to increase energy independence. They also need to take more measures to decrease their dependence on fossil fuels.

Europe is home to the world’s most notable solar panels and battery manufacturers. The demand for these products worldwide is soaring. This indicates that investors are open to diving into the renewable energy sector.

Green Energy Stocks in Europe

The current high-ranked green energy stocks in Europe are:

1. Orsted A/S

Orsted A/S is a Danish company based in Fredericia. The company develops and operates solar and wind farms, bioenergy plants, and energy storage facilities. The company provides its service to businesses and individuals in the United Kingdom, Taiwan, Japan, the United States, South Korea, Germany, Denmark, and the Netherlands.

2. Iberdrola, S. A.

Iberdrola, S. A. is a Spanish company. It deals with the generation and supply of energy all around the world. The company obtains its electrical power from renewable sources like solar, wind, hydro, nuclear, biomass, photovoltaic cells, combined cycle gas, and through the installation of batteries. The company recorded a profit of 3.88 billion euros in 2021.

It is a company with plenty of green assets. The company will gain more as Europe reduces its dependence on oil, gas, and fossil fuels and moves towards greener alternatives.

3. JinkoSolar Holding Co., Ltd.

Though JinkoSolar is a China-based company, it has consumers all over the world, especially in Europe. The company designs and develops photovoltaic cells. It carries out commercial solar power projects and also provides solar system integration services.

4. TransAlta Corporation

TransAlta Corporation has its headquarters in Calgary, Canada. It owns and operates wind, solar, natural gas-fired, hydro, and coal-fired facilities for energy generation. The company serves industries, utility customers, businesses, and municipalities. In February this year, the company invested 2 million dollars in Ekona Power’s Series. Ekona carries out research into technology that produces clean and low-cost hydrogen. TransAlta Corporation believes hydrogen is a promising fuel source and has the potential to decarbonize the electricity sector.

5. Enel SpA

Enel SpA is an Italy-based company. It is a multinational power company and an integrated global renewable energy market operator. The company has a presence in more than 30 countries and is particularly active in Europe. It produces energy over 86 GW. Enel supplies electricity to over 74 million businesses and households across the world. The company owns geothermal, wind, solar, and hydrothermal plants located in the Americas, Europe, Asia, Africa, and Oceania. The company products include distribution systems and batteries and energy and electric mobility.

6. RWE AG

This is a German company. The company deals with generating, transmitting, distributing, and trading gas and electricity. It focuses on electricity generation in Germany using lignite, nuclear power, gas, and hard coal power plants. It also deals in trading electricity, oil, coal, natural gas, and biomass.

7. SSE PLC

SSE PLC is a British electricity network company. It deals with generating electricity from renewable sources. The company focuses on clean electricity infrastructure and develops, operates, and owns low-carbon infrastructure to promote the transition to zero-carbon. They own onshore and offshore hydro power, wind, and electricity transmission and distribution grids and also provide energy products and services for businesses.

It has consumers in Northern Ireland, Great Britain, Spain, Japan, Denmark, Poland, and Portugal. They operate an electricity transmission network and an electricity distribution network in Northern Scotland. It also owns an electricity distribution network in Southern England. Apart from these, the company also deals in generating power from renewable sources.

Renewable Energy in Europe

The robust performances of green energy stocks in Europe are a result of the nation trying to distance itself from Russian oil and gas supplies. Russia is the world’s third-largest oil producer. Russia meets 40% of Europe’s natural gas needs.

Germany’s economy minister recently announced plans to diversify towards renewable energy. Germany is Europe’s largest economy. The country has targeted 2035 to shift to renewable sources like solar and wind energy for their electricity requirements. It aims to give up its dependency on fossil fuels by 2040 completely.

Europe aims to become the world’s first climate-neutral continent by 2050. The European Green Deal is an ambitious package of measures that will enable European citizens and businesses to benefit from the sustainable green transition.

Green Energy Stocks in Europe

Source

In 2020, 22.1% of Europe’s energy consumption came from renewable sources. This positive development results from legally binding targets for increasing the energy supply from renewable sources. The COVID-19 pandemic’s effect of decreasing emissions related to transport played a role in this as well. While Europe, as a whole, met its 2020 targets, some member states could not meet theirs. Sweden had the highest share of energy from renewable sources, which stood at 60%. Malta, Luxembourg, and Belgium had the lowest proportion of renewable energy.

 

Author

  • 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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