Five ASX renewable energy stocks to keep a close watch on

Highlights

  • Climate change is one of the greatest threats to human health.
  • The renewable energy sector may have the answers to carbon emissions.
  • The sector is witnessing heavy investments globally as the demand for energy is rising.

Energy crisis in Europe and Asia has led to an unprecedented rise in demand and price of fossil fuels, but this is just a temporary setback to the fight against carbon emissions.

The long-term goals remain intact to lower the emission levels and move gradually to the net-zero-emission target.

Energy has become one of the fundamental needs of the human race, and global leaders are trying to replace the existing fossil fuel-based energy system with greener sources. Massive solar and wind farms are cropping up around the globe.

Green stocks, MEZ, MCY, IFT, NEW, GNX

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Related read: 5 ASX solar stocks powering the green energy sector

The rise in demand for electric vehicles (EVS) demonstrates that public participation is also growing in the fight against climate change.

As more investment will pour in, more optimum and efficient projects with lesser carbon footprint will be implemented. Investment in future energy sources can return multi-fold returns.

In this article, we will skim through a few of the ASX-listed renewable energy producers and retailers that should be on investors’ watchlist.    

Related read: Commodities Gaining Strength from the Green Energy Drive

Meridian Energy Limited (ASX:MEZ)

Dual-listed Meridian Energy is one of the largest energy producers and retailers in New Zealand. The Kiwi government is one of the largest shareholders of the Company, with a 51% holding. The Company generates energy through renewable sources, boasting commercial solar arrays, wind farms and hydro power stations.  

Meridian has an energy retailing software company called Flux Federation, which operates in New Zealand, Australia, and the United Kingdom. Flux Federation is also licenced to nPower in the United Kingdom.

A dividend-paying company, Meridian announced a dividend of AU$0.104 per share with an annual yield of 3.25%. The dividend is due for payment on 15 October 2021.

Mercury NZ Limited (ASX:MCY)

Mercury NZ is a 100% renewable energy player and has operations in New Zealand. Like Meridian Energy, 51% of the shareholding in the Company is with the government. The Company generates its renewable power using hydro and geothermal sources. The Company will soon make its foray into wind energy generation.

Mercury MZ is regular in paying dividends to its shareholders. The last dividend paid stood at AU$0.098 in September with an annual yield of 2.69%.

Related read: Iceland starts the world’s largest carbon dioxide capturing plant

Infratil Limited (ASX:IFT)

Infratil is a diversified company with exposure to energy, transport, and social infrastructure businesses.

Its partner company Longroad Energy Holdings LLC operates wild and solar power generation facilities throughout North America.

Through its investee company Galileo Green Energy, Infratil plans to capture the potential of green energy in Europe. Infratil will have a 40% interest in Galileo Green.

New Energy Solar Limited (ASX:NEW)

Established in 2015, New Energy Solar is engaged in large-scale solar power generation. The Company has acquired large portfolios of solar power plants across Australia and the United States.

The Company has plans to enter into other booming renewable energy sectors, including hydro, wind, geothermal, battery storage and hybrid solutions.

Currently, New Energy Solar has an installed capacity of 772MW.

The Company paid its last dividend of AU$0.03 with an annual yield of 9.8% in August 2021.

Related read: Buying in Energy and Basic Materials Stocks Supported Australian Market

Genex Power Limited (ASX:GNX)

Genex Power is into the generation of hydro, wind, and solar power. The Kidston Clean Energy Hub in Queensland is the Company’s flagship project, which houses a solar generation unit with a capacity of 50MW and a pumped storage hydro project with a nameplate capacity of 250MW.

The Company also operates the Jemalong Solar Project in NSW and is developing a battery energy storage system in Queensland.

Related read: Would green hydrogen play a major role in NZ’s clean energy future?

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