The year 2021 will go down as the first time in the history of energy production that capex on renewable energy projects exceeded oil and gas exploration and production.

Examples that decarbonization is a global imperative include these targets by 2030:  the U.S. reentered the Paris Agreement and will reduce emissions by up to 52%, Canada will reduce emissions by up to 45%, the U.K. will reduce emissions by up to 68%, the E.U. will reduce emissions by up to 55%, China will reduce emissions by up to 65%, India will reduce emissions by up to 35%, and Australia will reduce emissions up to 28%. There are now 131 countries with long-term net-zero commitments.

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As capital costs to produce solar, wind and storage projects continue to decline vs. fossil fuel counterparts and as new disruptive green technologies emerge such as green hydrogen and small modular reactors, renewable energy investment opportunities will continue to flourish.

Furthermore, with continued improvement in green tech economics, large government subsidies,  more countries targeting net-zero emissions, and more corporate boards addressing the climate crisis and sustainability, the future looks very green indeed!

Today we highlight a half dozen green energy companies who stand to benefit from this continuing green energy mega trend that is expected to achieve $16 trillion of investments for the remainder of this decade.

NextEra Energy (NYSE: NEE) is a Fortune 200 company and member of the S&P 100. They are the world’s largest generator of renewable energy from the wind and sun and are a world leader in battery storage. The bulk of their current revenue comes from Florida Power & Light customers. With a $177B market cap and 1.7% dividend yield, NEE is a solid, blue chip stock for conservative green tech investors. They received the No. 1 ranking in Fortune’s 2021 list of “World’s Most Admired Companies” and received the S&P Global Platts 2020 Energy Transition Award for leadership in ESG. The company is headquartered in Juno Beach, Florida.

Vestas Wind Systems (OTC: VWDRY) is a $32B market cap company based in Denmark and is one of the top three wind energy businesses in the world whose main competitors include GE and Siemens Gamesa. Vestas designs, manufactures, installs and services wind turbines worldwide. As long as the wind blows, Vestas should continue to be a good conservative bet in this portion of the renewable energy industry.  

Plug Power (Nasdaq: PLUG) is a Latham, NY-based company who is emerging as the leader of the hydrogen revolution. They received $3.5B in capital from investors in 2021 to continue to expand their hydrogen fuel cell turnkey solutions. Plug focuses on green hydrogen and fuel cell systems to power electric motors. At a $19B market cap, this company trades at a high multiple to revenue and is riskier than blue chips based on valuation. However, if they execute on their forecast of $3 billion in sales after the next 3 years, investors should be rewarded in a big way.

First Solar (Nasdaq: FSLR) is a $10B market cap leading global provider of solar energy solutions. Their modules are one of only five in the world to pass Atlas 25+, the Thresher and TUV Long-Term Sequential Tests. In other words, their proprietary advanced thin-film semiconductor module technology delivers more usable energy per nameplate watt than competitors and they stand the test of time. First Solar stock looks compelling for the long term due to its 9.8GW YTD current net bookings and its current pipeline opportunity of 44.9GW  worldwide. First Solar is based in Tempe, AZ.

Brookfield Energy Partners (NYSE: BEP) out of Toronto, Canada is a pure-play renewable power platform provider with high-quality hydroelectric, wind, solar and storage energy assets globally. They realize that the global power sector represents the largest carbon creation (73% of emissions are from energy and power generation) and therefore, the biggest decarbonization opportunity of all. They have become a green energy super major and should continue in this role. At a $9B market cap and over $4B in annual revenue, BEP is a solid bet on renewable energy for years to come.

Ideal Power, Inc. (Nasdaq: IPWR) is an Austin, TX-based provider of a disruptive power semiconductor targeting a $10B+ opportunity. Their patented Bi-Directional Bi-Polar Junction Transistor (B-TRAN) improves conduction losses by a factor of 5X vs. traditional technology and will help manufacturers of renewable energy storage systems achieve efficiency never seen before. B-TRAN’s breakthrough design provides a 75% reduction in components vs. legacy bi-directional power switches and the end result is smaller, faster, much more efficient products that generate less waste heat, which in turn significantly reduces the need for costly and bulky thermal management systems. B-TRAN also has significant market potential in other green tech applications including: solid-state circuit breakers, UPS systems for data centers, EV charging stations, within EVs themselves and other industrial electric motor applications. Ideal Power is a speculative microcap stock for aggressive investors. If they are able to execute their B-TRAN commercialization strategy, this could be one of the most rewarding green tech plays of all in terms of capital appreciation.