Green Energy picks up steam, 10 players to look at

Summary

• The United Nations Climate Change (UNCC) in its historic Paris Agreement has asked all signing members to intensify their efforts and investments for sustainable development and low carbon emission targets.
• 190 out of 197 signatories have already signed the Paris Agreement.
• Many U.S.A states have mandates to produce 50% of their electricity from renewables by 2030. Germany produces 36% of its electricity from renewables.

The cost of electricity generation from the renewables continues to decline, because of the new innovations from China, India and United States. Development in the field of battery technology, smart charging, EVs and open power market is pushing the Green Energy sector.

The Fukushima Daiichi nuclear disaster of 2011 shocked the world and countries like France who were heavily reliant on nuclear energy have to rethink their energy policy. Nuclear powered power plants are not responsible for global warming directly but post the Chernobyl disaster of 1986 put the policy makers have been extra cautious as far as this sector is concerned.

The renewable energy share is expected to increase to 40% of the total energy consumption of the world by 2040. Renewables contribution to the global electricity generation was 10.4% in 2019.

Let us look at 10 players from this space.

Infigen Energy Ltd (ASX: IFN): Infigen Energy is a leading producer of wind energy in Australia. The company has seven wind farms generating a total of 185 GWh in the month of August 2020 (3% high from the previous year).

The company’s share prices doubled in the last six months. According to the latest press release from the company, Iberdrola has given an offer of 92 cents per Infigen Stapled Security for an off- market takeover bid.

The company’s revenue stands at $296.85 million for the year ended June, 2020. Revenue has increased by 11.24% y.o.y basis. The company has reported a profit of $3.457 million after taxes for the year 2019-2020.

Bluglass Ltd. (ASX:BLG): The company is involved in research and development of laser diodes, LEDs and microLEDs. Blueglass has a patent for low-temperature Remote Plasma Chemical Vapour Deposition (RPCVD) technology which is used to manufacture semiconductors and laser diodes.

The company’s share price has risen by 265% in the last six months. Revenue of the company stands at $ 3.822 millions for the year ended June 2020. The company’s reported a net loss of $5.994 million which is lower than the $ 14.420 million reported in the previous year.

Mercury NZ Limited (ASX: MCY): Mercury is involved in power generation through hydro and geothermal energy. The company will very soon add to its portfolio a 840GWh solar farm at Turitea. Company’s EBITDAF is $494 million, down by $12 million from the previous year.

The company has set $515 million EBITDAF guidance for the fiscal year 2021.

Meridian Energy Limited (ASX: MEZ): The company has 5 wind farms in New Zealand and 2 in Australia. Meridian Energy has reported an increase of 2% to $854 million of EBITDAF. Net profit after tax decreased by 48%, which can be attributed to the higher depreciation values.

The company is planning development of two new wind farms in New Zealand. Meridian has also established a wind farm in Antarctica to provide power for expedition camps.

JinkoSolar Holding Co Ltd. (NYSE:JKS): JinkoSolar is a manufacturing and distribution company of solar panels worldwide. Company’s revenue for Q1 was $1.2 billion, down by 11% on QoQ basis and up by 45.7% on YOY basis.

To meet the demand for the U.S market, the company has launched a fully automated assembly facility in Jacksonville, Florida. The share price of the company has increased by 17% in the past one year.

Enphase Energy INC. (NASDAQ:ENPH) Enphase Energy Inc is a global energy technology company. The company is a leading supplier of solar microinverters, and the microinverter system transforms energy received at each solar module level. The system brings high technology approach to energy generation, storage and management.

The company reported gross revenue of $125.5 million which is down by 37% QoQ basis.

Ørsted A/S (CPH: ORSTED) Ørsted is a Danish company, engaged in construction and operation of offshore and onshore wind farms and solar farms. Ørsted was ranked the most sustainable company in the world in the Corporate Knight 2020 Global 100 index of a most sustainable company.

The company, in its half-yearly report, reported an operating profit of DKK 9.8 billion, 11% higher than the previous year. The operational profit from the wind energy segment rose to 17% from the previous year.

Enel (BIT: ENEL) Enel is an Italian company with operations in more than 30 countries worldwide. The company produced 56TWh renewable power globally for the period H1, 2020. The company has planned to invest 14.4 billion euros in developing new renewable power generation and phase out coal generation.

Enel in its H1 report has report EBITDA of 8.794 billion euros, marginally high from previous year data. Net income increased by 6% to 2.405 billion euros.

EnBW (ETR: EBK) EnBK is a German electric utility company which operates in both segments- Renewables and Non-Renewables power generation. The company currently produces nearly 32% of its installed capacity from renewable sources. EnBK operates one of the largest offshore wind farms in North Sea.

The company reported a drop of 2.9% or 9726 million euro in its revenue for H1 of 2020. The corresponding dip in net profit was observed at 184.2 million euros, 35.6% lower than H1 of 2019. The company is trying to mark a strong presence in United States.

BP Plc (LSE:BP) BP is planning to become a renewable energy giant as a part of their sustainable development process. BP is planning to develop an installed capacity of 50 GW of renewable power generation by investing $ 60 billion.

BP is working in many joint ventures for the development of green energy. Lightsource BP, a subsidiary of BP has recently completed financing 260 MW solar projects in Texas.