Due to concerns about climate change, the world is moving away from carbon-based fossil fuels toward cleaner alternative energy sources. Decarbonizing the global economy will require huge investments in the coming decades. Across the globe, work on the energy transition is in full swing, with renewables playing a critical role. In this article, we present a selection of companies and shares from the renewable energy sector.
Vestas Wind Systems
- Company: Vestas Wind Systems A/S
- Symbol (TWS): VWS
- ISIN: DK0061539921
- Stock Exchange: Copenhagen Stock Exchange
- Country: Denmark
- Currency: Danish krone (DKK)
- Market capitalization: DKK 216.72 billion / USD 31.79 billion
- Sales (TTM) in USD: 15.59 billion
Vestas Wind Systems we have presented to you in our article Wind energy shares already presented. However, the company should not be missing in this article of the most important renewable energy stocks. Vestas is a Danish-based company that manufactures, sells, operates and maintains wind turbines. Vestas is one of the world's leading wind energy companies and operates in 85 countries. The company's revenue comes not only from the sale and installation of turbines; the maintenance contracts for a large number of wind turbines with an average term of 10 years also provide continuous income.
Clearway Energy
- Company: Clearway Energy Inc
- Symbol (TWS): CWEN
- ISIN: US18539C2044
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar
- Market capitalization: USD 6.98 billion
- Sales (TTM) in USD: 1.29 billion
Clearway Energy is one of the largest renewable energy companies in the United States. Clearway complements its wind and solar energy portfolio with high-efficiency natural gas-fired power plants and district heating facilities. Clearway also sells its electricity through so-called PPAs (Power Purchase Agreements). These are often long-term power supply contracts that provide the company with a steady cash flow. Since its inception, Clearway Energy has generated annual total returns of nearly 10 %. Returns have increased, particularly since 2018, when private equity firm Global Infrastructure Partners took control. As a result, new investment opportunities have continually emerged, which should help to continue to drive cash flow and returns in the years ahead.
NextEra Energy
- Company: NextEra Energy Inc
- Symbol (TWS): NEE
- ISIN: US65339F1012
- Stock Exchange: New York Stock Exchange
- Country: USA
- Currency: US Dollar
- Market capitalization: USD 155.65 billion
- Sales (TTM) in USD: 17.07 billion
With a market capitalization of currently around 150 billion, NextEra Energy is one of the largest utility companies in the world. We had already presented NextEra to you in our article Utilities Shares presented. In addition to fossil fuels, the company also produces "green" solar, nuclear and wind energy. NextEra has very strong growth prospects in the coming years and is rated as a "strong buy" by many analysts. NextEra is also included in numerous exchange-traded funds (ETFs), such as the Utilities Select Sector SPDR Fund (XLU), which is the largest utilities ETF in the USA.
Enphase Energy
- Company: Enphase Energy Inc
- Symbol (TWS): ENPH
- ISIN: US29355A1079
- Stock exchange: Nasdaq
- Country: USA
- Currency: US Dollar
- Market capitalization: USD 22.91 billion
- Sales (TTM) in USD: 1.38 billion
Enphase Energy sells solar products for residential use. The company's microinverters are already installed in more than 1.7 million homes, enabling homeowners to convert solar energy for their own use. Using its proprietary technologies, Enphase Energy also offers monitoring and control services to homeowners. In addition, the company offers AC battery storage for excess energy generated during sunny hours. The solar market is expected to continue to grow in the coming years, so the prospects are good for Enphase Energy to benefit from this growth as well.