The coronavirus pandemic heavily impacted the energy sector due to the shelter-in-place measures that forced the demand to go down. Nevertheless, one industry in the energy industry has witnessed vast growth: renewable energy. A perfect example of companies in this sector that have recorded growth and profit is the iShares Global Clean Energy ETF (ICLN) that returned over 100 percent on its stocks. The International Energy Agency (IEA) records revealed that the newly developed renewable energy utilities are witnessing the highest share capacity in history. The agency reported that over 200 gigawatts of renewable energy have been infused into the energy industry and that renewables will entail close to 99 percent of the energy increase in the next five years. Moreover, the agency anticipates the installed wind and solar energy to supersede fossil fuels in the next three to four years consecutively.
One renewable energy utility that has amassed profits and growth considerably before the onset of the coronavirus pandemic is NextEra Energy Inc. The company performed exceedingly better, recording a 27% increase in earnings in the last five while witnessing a 20% growth in profits for the past decade. The company is America’s leading developer of wind and solar energy, with a third of its energy being sourced from renewables. Nevertheless, the pandemic slumped the growth of the company before it kicked off once again on a high note. This piece will be looking at three renewable energy stocks that will operate at better margins than NextEra Energy.
First, we have Algonquin Power & Utilities Corporation, which deals with the production, distribution, and transmission of utility assets through the United States and Canada. Algonquin generates about 3 gigawatts of renewable energy and runs 2.7 million electric, water, and natural gas utilities that help customers in their daily activities. These statistics approach the 3.2 gigawatts of renewable energy storage that NextEra runs. This situation validates the company’s 20% increase in earnings that will see it operate at twice the dividends that NextEra generates in a year. Moreover, Algonquin’s subsidiary, Atlantica Yield, will bring the company $20 million when the subsidiary kicks off in June next year, opening up the company’s capital base to run efficiently.
Next is Bloom Energy Corporation, a renewable energy firm that develops, produces, and sells solid-oxide fuel cell units for energy developers. The company’s Bloom Energy Server is a power production portfolio that integrates clean natural gas, biogas, or hydrogen to electricity by electrochemical means minimizing the production of carbon gases. The company revealed that it would be venturing into hydrogen technology after realizing that the sector is kicking off and expenses are reducing. The company will be utilizing the Green Hydrogen Catapult Initiative to generate 25 gigawatts of hydrogen power in the next six years.
Finally, we have First Solar, which deals in solar energy production and is at a revenue mark of $3.1 billion. The company develops solar PV panels, installs photovoltaic energy plants, and other operations that characterize the solar energy industry. The company recorded $982 million in revenue in the last earnings call surpassing Wall Street’s predictions.