Should you invest in renewable energy stocks in the UK? – ForexLive – ForexLive

A closer look at renewable energy opportunities in the UK

FXL
The
COVID-19 had an assault on economies globally. As per the business standard
report in July 2020, the estimation of losses equalled $ 3.8 trillion global
consumption loss. There was a loss of $ 2.1 trillion in salaries and wages,
where around 147 million people lost their jobs. However, not everything was
about misery and grim situations. An unbelievable amount of USD 300 billion was
spent on green and clean energy resources worldwide during the same
period.  

Despite
the economic upsets, the investment surged by 9 per cent compared to 2019. It
scripted a new found love in people for keeping the environment clean. 

Moreover,
energy
stocks
have received a needed push from it. 

As per
the bludgeoning estimates, to reduce the impact of hydrocarbons, nations would
need to induce $ 22.5 trillion by 2050 to battle climate change. 

Thus,
prospects of the solar, wind and other renewable energies are sound. The influx
of funds will keep on happening, which will keep the stocks of the field afloat
and kicking.
 

Plenty of growth opportunities

IEA (International Energy Agency)
predicted that renewable energy would be sufficiently supplying around 12.4 per
cent of the entire world’s demand by 2023. In 2018, it remained 10.3 per cent.
So, it’s an improvement of ⅕ , which is huge. All types of consumptions will happen in it.

All types
of renewable energies will see a surge, and it will continue to grow over a
decade and a half. The renewable energy seems to be in line with bio-energy,
solar power, wind and hydropower. 

The IEA
believes that around seventy per cent of new power generating capacity would be
available online. 

Hence,
power stocks are seeing hikes, and traders are readily spending in the market
using brokers like ROinvesting. 

Top renewable energy stocks

Tesla:- The company scripted history during the global
pandemic crisis of 766.11B. It has been game-changer with the technology,
and Elon Musk became the richest man on the planet due to that. The energy
storage solutions, electric vehicles, and electrical energy generations have
taken the world by storm.  In the third quarter of 2020, the company
delivered 139,000vehicles. It eclipsed the record of 2019
(selling 112,000). There is zero-emission from the vehicles,
claims Tesla. 

Green Coat UK Wind 

The Green Coat UK wind recently announced to raise
pound 198 for channelising renewable energy. The company would reduce
borrowings by using the funds. It would be its revolving credit facility. The
market cap of the company is pound 2.40 billion. In the immediate admission,
the company would have 1.9 million shares. Overall, it will admit 151 million
shares. 

The wind farm investor is growing through acquiring
different companies. 

Enphase energy inc

The company has a market cap of 23.92 billion
pounds. Interestingly, the company has infused investments into thirty-eight. 

The company has invested in 38 operating UK wind
farms with a net generating capacity of 1,173 MW. Greencoat Capital manages it,
which is a leading renewable investment manager of Europe. It has assets worth
more than pound 6 billion. 

Solar edge technology: 

Its optimised
inverter revolutionised the way solar power was perceived. The game of solar
energy is going on the top with it. The company is adding a plethora of
products with each passing day. 

Ørsted A/S

The
market cap of Ørsted A/S is 433.13 billion. The company is the market leader in
wind power and solar power. It is an offshore wind power company. 

Solar power in the United Kingdom

Interestingly,
the capacity of solar energy witnessed vehement growth in Britain. It was 5,488.6 MW in
2014 to 13,259 MW in 2019. 

For 2018, the net generating
solar capacity in the EU was estimated 171 GW. Germany held Germany held the
top position (45.9 GW), followed by Italy in the second (20.1 GW) and the UK in
the third (13.1 GW)

However, at the end of 2020, the
solar capacity of the UK grew by 545 MW. On a year-on-year comparison, it grew
by 27 per cent compared to 2019. 

UK’s future for solar in 2023
looks bright. As per predictions, the solar capacity of the UK will increase to
15,674 MW, a jump of 2,711 MW. That would be a compound growth of 4 per cent in
the area for the next few years. 

As per reports, the wind
turbines offered around a quarter of the total electricity in the UK, outpacing
the fossil fuel consumptions in the EU. It was a maiden chance when renewable
electricity outclassed the traditional source.

The previous year, against
the 41 per cent produced by coal and gas, Britain produced 42 per cent
electricity from sunlight, water, wind etc. That was monumental.
 

Conclusion: The demand for renewable energy and
resources
accentuated in the UK during
COVID-19. The national grid had to face a drop in electricity requirement
following strict restrictions and lockdowns, which led to shutting down shops,
restaurants, businesses, and offices. The LSE witnessed a sharp turn in traders
investing in renewable energy stocks.

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