Optimizing the use of scarce resources is the ultimate goal of human beings. Therefore, it is important to find alternative sources of energy in order to maintain our lives on earth using renewable energy sources. This sector is one that is experiencing rapid expansion, and hence, a potential investment opportunity. According to a BloombergNEF predictions, renewable energy will account for 70% of all new installations of capacity worldwide during the next decade. The renewable energy sector is an opportunity to contribute to saving the environment as it contributes to a sustainable future.
Governments globally are encouraging investments in renewable energy driven by the Increasing costs of traditional energy production. The US has established the Inflation Reduction Act of 2022 which encompassed the promotion of clean energy. Also, the Renewable Portfolio Standard (RPS) mandates a certain percentage of electricity generation to come from renewable energy sources which the US Initially adopted, and then other countries followed including China, India, Germany, Japan, and Australia.
This article will provide you with some of the top-performing renewable energy stocks in 2023 with expansion potential as they benefit from the global transition from traditional to renewable energy.
Brookfield Renewable Partners (BEP)
Brookfield Renewable Partners L.P. owns and operates renewable power assets headquartered in Toronto, Ontario, Canada. It is 60% owned by Brookfield Asset Management. It is positioned as one of the largest renewable energy businesses in the U.S. It has one of the largest operating wind portfolios in the U.S and a 6,100-megawatt development pipeline that is well-positioned to benefit from a highly supportive regulatory backdrop and growing demand for renewable energy from commercial and industrial buyers. The company recorded total revenues of $4.997B representing a 9.58% increase YoY and recorded an annual revenue for 2022 of $4.847B representing a 10.16% increase from 2021.
The company works on expanding its products and services; it recently announced on June 12th that it has agreed to acquire Duke Energy Renewables which may possibly lead to more revenues and growth in the future.
NextEra Energy, Inc. (NEE)
NextEra Energy, Inc. is an American energy company with about 58 GW of generating capacity and revenues of around $21 billion in 2022 and a net profit of $4.15B in 2022. It is the largest electric utility holding company by market capitalization. the company runs one of the largest regulated utilities in the United States. Additionally, it runs NextEra Energy Resources, the largest producer of wind and solar energy worldwide.
Clearway Energy (CWEN)
The company was founded on December 20, 2012, and is headquartered in Princeton, NJ. operates in renewable and conventional generation facilities and thermal infrastructure assets. The majority of its assets are wind, solar, and battery storage besides conventional energy assets. It has no corporate debt maturities until after 5 years, and most of its debts are at a fixed rate. The $750 million in extra money from the sale of CWEN's thermal energy assets might possibly aid the business to grow its portfolio of renewable energy sources for years without having to issue equity as a result. The company also is able to generate profits in which it achieved a YoY growth in net income in 2022 of 1041% from $51M to $582M.
First Solar (FSLR)
First Solar, Inc. is an American manufacturer of solar panels and a provider of utility-scale PV power plants and supporting services that include finance, construction, maintenance, and end-of-life panel recycling. The company has the smallest carbon footprint, fastest energy payback time, and lowest water use of any solar technology in the market. Despite the company recorded a decline YoY in net income, it has achieved a significant YoY increase in net income of 198% during the quarter ended in March 2023 compared to the same period of the year before.
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