Companies committed to making alternative energy sources more widely available are becoming more significant and well-known as the world shifts away from fossil fuels and its reliance on fossil fuels. Whether it be in the form of solar, wind, hydroelectricity, geothermal energy, or biofuel, these businesses are not only working to reduce reliance on fossil fuels but also offer potentially promising investment possibilities. Here are 5 renewable energy companies to look out for in 2023.
The market for renewable energy was valued at $881.7 billion in 2020, and Allied Market Research estimates that it will nearly double in size by 2030. In addition, their analysis shows that 7% of the world’s energy needs are currently met by all renewable energy sources put together. Renewable energy sources will continue to be primarily used to produce electricity, which is anticipated to make up over 30% of the world’s electricity demand this year. The largest contribution, hydropower, is expected to account for 16% of the world’s electricity needs, followed by wind, solar, and biofuels at 6%, 4%, and 3%, respectively.
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5 Top Renewable Energy Companies To Support In 2023
1. Canadian Solar
Canadian Solar Inc. is a solar energy company with headquarters in Ontario that specialises in the design, production, and sale of solar modules, inverters, system kits, and utility-level products. The company, which was founded in 2001, has subsidiaries across six continents and has active clients in over 160 nations. The business adheres to fair trade practices and neither buys conflict minerals nor uses child labor.
For Canadian Solar, the well-being of its more than 13,500 workers is of utmost importance. It also takes environmental protection and conservation very seriously. In fact, the business keeps reducing the amount of water and electricity used during the production process in an effort to stop climate change. Additionally, the company incorporated the UN Sustainable Development Goals (SDGs) into its business plan by doing things like providing solar panels to a hospital in Sierra Leone.
2. Brookfield Renewable Partners L.P. (BEP)
Located in Canada, Brookfield Renewable is a company that owns and manages renewable energy assets. The corporation has a global portfolio of renewable energy-generating installations. In addition to its primarily focused on hydroelectric power operations, it also owns and manages wind, solar, distributed generation, and storage facilities. Currently, the company employs more than 3,200 employees just in its renewable energy division. It is a leader in the field of renewable energy and one of the biggest producers of hydroelectricity, which accounted for 50% of the company’s portfolio in 2022.
Moreover, Brookfield’s portfolio, like other companies on this list, has made significant strides in reducing its emissions. More specifically, the company is able to save about 29 million metric tonnes of CO2 emissions, equivalent to the emissions of approximately 6 million vehicles. Around 6,000 power-generating facilities with a combined capacity of about 24,000MW spread across North America, South America, Asia, India, China, and Europe are part of this renewable power business.
3. Vestas Wind Systems
Vestas Wind Systems is a Denmark-based wind energy company. It creates, produces, and installs wind turbines. The business also runs a service component that offers service contracts, replacement parts, and related services. The company provides wind turbines for numerous nations across the world.
By designing, producing, installing, developing, and maintaining wind energy and hybrid projects all around the world, 29,000 employees contribute to making the world a better place every single day. Their sustainable energy solutions have already prevented 1.5 billion tonnes of CO2 from being released into the environment and contributed to a more sustainable energy system, with +145GW of wind turbines installed in 85 countries.
4. Clearway Energy
One of the biggest owners of renewable energy generating facilities in the US is Clearway Energy. With extremely effective natural gas-powered facilities, it complements its portfolio of wind and solar energy. Additionally, Clearway sells its power through PPAs, which give the business a consistent stream of income. In 2022, the company sold its thermal division, bringing in $1.35 billion in cash that is being reinvested in the expansion of its operations.
Clearway Energy now anticipates that, as a result of its transactions, it will be able to increase its dividend toward the high end of its target range of 5 to 8% annually through at least 2026. It plans to keep up it’s good financial standing in the interim. In the upcoming years, the company is expected to further expand its activities in the renewable energy sector while also generating significant value for shareholders.
5. SolarEdge Technologies (SEDG)
Last on our list of renewable energy companies is SolarEdge Technologies, an Israeli-based company founded in 2006. SEDG specialises in inverter systems for solar projects all around the world. The business has also started to develop other smart energy solutions using its experience in inverters. Through a series of acquisitions, it has increased the range of products it offers. These new products and services address a number of energy market segments, including solar, storage, electric vehicle charging, batteries, uninterruptible power supplies (UPS), electric vehicle powertrains, and grid services solutions.
Although SolarEdge presently rules the solar hardware market, its future is likely to be influenced by energy storage. Developers of residential solar energy systems like SunPower, Sunrun, and Tesla are combining their energy storage systems into what are essentially power plants that can provide electricity as needed. In order to add value to all parties and establish a long-term new cash flow stream, they can charge an in-home energy storage system while power is cheap and discharge into the grid when electricity is expensive using control systems.
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