Even setting aside the boost of the recent U.S. initiatives at funding and tax relief on renewable power sources, eco-friendly investors can still expect more upside potential from the green energy stocks that have already risen as a result of the moves of the Obama administration. There’s more room for growth worldwide on renewable energy sources, based on 2012 research data from the International Energy Agency (IEA). This study showed that global renewable electricity generation for the 2011–2017 period is growing by 1,840 terawatt-hours (TWh), nearly 60% over the 1,160 TWh increase seen from 2005 to 2011.
By 2017, it is expected that worldwide power generated from renewable sources will approach 6,400 TWh for an annual growth rate of close to 6%. The IEA also estimated that in 2009, renewables already accounted for nearly 20% of worldwide electricity generation. This share is expected to increase further as renewables have: (i) become more economically attractive with established market networks, (ii) retained government policy support as recently shown by the U.S., and (iii) as important, generated a widening public sympathy.
A peek at Canada
There are many probable additions to an investment portfolio for those who want to be part of (and from an investor’s standpoint, materially benefit from) the snowballing worldwide movement to reduce mankind’s carbon footprint in our planet by using renewable energy sources.
Given that hydropower account for the bulk of total renewable electricity (80% worldwide, per IEA), a spur-of-the-moment choice is Innergex Renewable Energy. This Canadian company generated revenues of $132.4 million during the first nine months of 2012, up 15% from a year earlier. For the same comparative period, earnings rose 14% to $102.1 million.
Innergex has power generating facilities in Quebec, Ontario, British Columbia, and in the state of Idaho. Its renewal energy sources are also diversified, with its capacities drawn from hydroelectric sources, solar photovoltaic farms, and wind energy farms in North America. Besides selling electricity to utilities, Innergex also provides services on the development of sites for renewable energy sources.
Taking a crack at the $67.7-billion market in China
Taking this into account, a business trip to Beijing may be worth considering for Innergex executives these days. China, according to a Bloomberg New Energy Finance research released this January, posted a 20 percent increase in renewable energy investments to $67.7 billion in 2012, in the process overtaking the U.S. as the world’s biggest investor in green power. The same study showed that China, for the fourth year in a row, beat the U.S. as the world’s top market in wind energy, installing 15.9 gigawatts last year. This represents 35% of total world onshore wind capacity installed last year. Wind power now ranks third as China’s largest energy source, with coal and hydropower ahead.