The Covid-19 pandemic impact was highly significant on all aspects of life. Aside of the huge numbers of positive cases, post pandemic health issues and death numbers in millions, there were negative economic and social consequences due to global freeze on all levels which included lockdowns. However, the pandemic had at least one positive impact, less Pollution.
Pollution is the main reason for disease, premature birth and death, as it contributes to 16% of all deaths worldwide mainly in low and medium-income countries; in addition to, costing the globe an average payback of $1.6 trillion dollars in 2019. Logically, this is one of many reasons that governments and the private sector have been allocating investments in renewable energies.
As stated by the International Energy organization, the usage of renewable energy increased by 3% in 2020 with electricity generation contributing 7% growth resulting from 45% increase in renewable capacity from 1999. Adding to the previously mentioned, market update is forecasting that new global renewable power capacity additions for 2021-2022 would contribute to 90% from total new power capacity expansion with higher stakes for Solar PV followed by wind.
Source: International Energy Association www.iea.org
Scanning the industry stocks, the following are trending ones, Clearway energy ( SWEN) with a market cap of 6.4 $ billion, NextEra energy ( NEE) Mkt Cap $146 billion and Enphase Energy (ENPH) Mkt Cap $19.20 billion. Aside of trending upward throughout 2020 like most peers, they are few of many companies of which their stocks are sustaining a buy mode on the medium- and long-term perspective given the Oil demand rush at the partial economic recovery from the pandemic in 2021.
The above mentioned stocks achieved significant returns in 2019 and 2020 with the major stake to Enphase Energy (ENPH) which recorded 464% in 2019 and 565% in 2021 followed by NextEra energy ( NEE) recording 40% in 2019 versus 27% in 2020, and finally Clearway energy ( SWEN) 17% and 59.4% for 2019 and 2020. Given that they peaked Q4 2021, currently they are in a down move correction on the monthly time frame which would add to the bullish long-term investors if they stand above their current support levels.
Source: Trading View – www.tradingview.com
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