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Clean Energy Stocks What Can It Offer and How It Can Help
Several clean energy stocks are available on the stock market. For instance, Fuelcell Energy is a full-service solar energy company that offers storage and installation. It also offers cutting-edge technology for hydrogen fuel cells, which have not yet reached widespread distribution.
Its innovative technology has made it one of the leading clean energy stocks in its niche. Its products range from solar panels and wind turbines to fuel cells for industrial applications. If you are looking for a reliable company in a niche area, consider Fuelcell Energy.
Canadian Solar
The company was founded in Guelph, Ontario in 2006 and was listed on the NASDAQ stock exchange in November 2006. The company has since created an ISO/IEC 17025-compliant testing laboratory on its own campus, and this facility is now used to ensure that its solar panels meet international reliability and safety standards.
Its management predicts a 10% increase in battery storage shipments this year, and it already has 1.5GWh of projects under contract or under construction.
The Canadian Solar HiKu and Ku series are the two most common commercial panels. Both are available in mono and polycrystalline cell configurations.
The company is also developing larger format commercial panels with higher peak efficiencies, and the latest models can generate up to 665 watts. They use cast mono-crystalline PERC half-cut cells and feature a zero-gap structure.
The company expects to sell its highest-rated panels in 2021, with a maximum front-side power rating of 655 watts.
CSI Solar, a majority-owned subsidiary of Canadian Solar, is providing the 80 MWh battery storage portion of the project. This company will provide a complete lithium-iron phosphate-based battery storage solution. CSI Solar is also providing performance guarantees.
In addition, Matrix Renewables is expanding its presence in the U.S. and will open its Miami headquarters in August 2021. There is no reason why Canadian Solar shouldn't be one of the leading renewable energy companies in the world.
In fact, Canadian Solar is the largest provider of solar photovoltaic modules worldwide and is the world's leading developer of solar power plants. It has delivered 46 GW of solar modules to its customers in 160 countries – enough to power the homes of 10 million households.
The company's global footprint allows it to meet the unique needs of various stakeholder groups. So, what makes Canadian Solar so special? So, what's next for Canadian Solar?
In addition to its global sales and distribution network, Canadian Solar has three world-class solar research centers that employ over 400 researchers. The company has forged strategic research partnerships with DuPont and ECN.
It has more than 400 global patents covering its PV modules. Moreover, the company has a dedicated team to design and operate large-scale solar farms all over the world. If you're interested in learning more about Canadian Solar, read on!
NextEra Energy
With a market cap of about $30 billion, NextEra Energy is a great place to invest if you're a proponent of renewable energy. The company boasts of producing electricity that is zero carbon.
It has an estimated carbon footprint of just over half of a ton. In addition, NextEra has generated 530% shareholder returns over the last decade, more than double the S& P 500. But it's not all green, as the company also owns a large number of brown assets.
While NextEra claims to be a leader in renewable energy, it has also lobbied for changes in the political system. The company acknowledges that it spends $4 million annually on political lobbying. NextEra also participates in heavyweight trade associations.
In the first half of 2020, it donated $4.3 million to groups that support renewable energy, including the Edison Electric Institute, the Business Roundtable, the Florida Chamber of Commerce, and the Renewable Energy Association.
NextEra's aggressive acquisition efforts may have put it at odds with its peers. For example, it spent years lobbying in South Carolina to acquire Santee Cooper, but in April, the company withdrew the offer.
While NextEra claims to be the world's leading generator of wind energy, it will have to shed some of its brown assets before it can become a truly global powerhouse.
Jim Robo, NextEra's CEO, rarely speaks to the press. He was a top-management refugee from General Electric, which was in the midst of a massive exodus of senior talent. Jim Robo was a Harvard graduate and a Baker Scholar.
NextEra filed with the Securities and Exchange Commission in 2016, reporting 864 U.S. subsidiaries and 187 foreign ones.
The next generation of renewable energy is rapidly gaining popularity. In fact, it is already the largest electric utility in the world. And because of its competitive position, it is poised for a sustainable future.
The company is also among the world's largest generators of renewable energy and a pioneer in battery storage. Its aggressive combat against global warming is only proving to be beneficial to shareholders. In addition, NextEra Energy's financial performance is also impressive.
Renewable Energy Group
Chevron Corp. has announced plans to acquire Renewable Energy Group Inc. in a $3.15 billion deal. Shares of the company surged 37% in premarket trading. This move by one of the world's largest oil companies comes at a critical time for global emissions reduction and a greater need to curb climate change.
Renewable energy is one of the fastest-growing sources of energy in the world, and Renewable Energy Group's management team has extensive experience in renewable energy projects.
Renewable Energy Certificates
The growth of renewable energy has a dramatic effect on the use of fossil fuels and carbon emissions. While this effect cannot be directly measured in a one-to-one MWh exchange, it is still important to understand that renewable energy certificates have a substantial and indirect impact on the economy.
While buying RECs will likely not have any direct effect on the economics of individual projects, the purchase of RECs will encourage the development of new renewable energy projects.
What is a Renewable Energy Certificate (REC)? RECs are the ‘official' documents that authenticate renewable electricity. They represent a megawatt-hour or 1,000 kWh of electricity produced from renewable energy sources and delivered to the power grid.
These certificates are not generated by solar panels used for home use. They are produced by clean energy companies and then sold or given to other organizations that use that electricity. Renewable Energy Certificates are a great way to support clean energy projects while also supporting the environment.
While renewable power can meet a factory's demand for energy, it won't be enough to sustain the company. So most companies will use a combination of green credits and direct purchases of renewable energy.
Companies such as Facebook will claim up to 138 megawatts of RECs for its wind farms. Companies like Equinix and SunEdison are investing in renewable assets as well. In Calexico, California, for instance, they are developing a 150-megawatt solar farm that will connect to the city's electricity grid.
RECs are a market-based instrument for tracking the environmental benefits of renewable electricity. Each REC represents one megawatt-hour of electricity produced by clean energy sources. The certificate is a unique property right over a unit of greenness.
The certificates are sold as a separate revenue stream. Renewable Energy Certificates represent the value of clean generation by separating green electricity into two revenue streams. Electricity is sold as a unit (KWh) and greenness is sold as RECs.
RECs are a widely accepted legal instrument for substantiating the benefits of renewable energy in the renewable electricity market in the U.S. RECs have been endorsed by various levels of government, regional transmission authorities, and trade associations.
In fact, the Center for Resource Solutions has written a paper explaining the legal basis for renewable energy certificates. For more information on the legal basis of renewable energy certificates, read the paper below.
Sources for Clean Energy Stocks:
https://www.energytransition.org/renewable-energy-certificates
https://www.sciencedirect.com/science/article/pii/S0360544213006134
https://www.bloomberg.com/news/articles
https://www.investopedia.com/articles/markets/102415/what-are-renewable-energy-credits.asp
https://www.energypost.eu/what-are-renewable-energy-certificates
