What Are The Top Renewable Energy Shares On LSE?

Summary 

• Renewable energy stocks have the potential to deliver immense returns for investors as the fight for a cleaner future continues.
• IEA stated the green energy sector is growing exponentially, and the market reached 30% of the global electricity generation capacity in 2020.

Green energy has been much discussed topic for some years now and so are green stocks. Renewable energy stocks have the potential to deliver immense returns for investors as the fight for a cleaner future continues. The popularity of such stocks therefore comes as no surprise given the publicity around climate change and big environment-focused events.

Companies around the world are pumping in trillions of dollars in renewable energy businesses and it believed that it will be fuel of the future and falling costs and governmental support are key drivers of the growth of renewable energy.

Though till now green energy stocks have not seen a great run at the stock markets and with the investors, there is enough excitement around them as a big bet for future. Experts feel sustainability and climate change can turnaround many things with many developed and developing countries committing to go green in the coming years. These green stocks are generally growth stocks due to huge potential that green energy has going forward and ensure a green future with these stocks.

According to the International Energy Agency (IEA), the green energy sector is growing exponentially and the market reached 30% of the global electricity generation capacity in 2020. It is believed that this will only continue to grow, leaving coal behind and making renewable energy the world’s largest source by 2025, having around 33% share.

Let’s look at some of the top Renewable energy shares listed on the London Stock Exchange:

1. BP PLC (LON: BP)

The company is a UK-based global energy business with operations in North America, South America, Europe, Asia, Australasia and Africa. It provide customers with fuel for transport, energy for heat and light, power for industry, and the petrochemicals products used to make everyday items such as paints, clothes and packaging.

The company reported profit for the quarter was US $4.7 billion in the first quarter of 2021, compared with US $1.4 billion profit for Q4 2020. The company agreed to acquire a stake alongside Daimler and BMW in Digital Charging Solutions and BP pulse announced the roll out of new EV-only ultra-fast charging hubs across the UK. BP also added further strategic convenience sites to its network during the quarter.

Also read: Penny stocks: 7 AIM listed green energy options to look at

The company successfully tied up with its Equinor for the US offshore wind project and announced plans for the UK's largest blue hydrogen production facility in Teesside. Start of production from two new gas projects – Raven in Egypt and Satellite Cluster in India. BP Plc’s current market cap stands at £61,723.23 million as of 10 August 2021.

2. SSE PLC (LON: SSE)

The firm is engaged in the generation, transmission, distribution and supply of electricity. Besides, it is also engaged in the production, storage, distribution and supply of gas and in other energy services.

Some of the company’s projects under construction are offshore wind farm at Dogger Bank, largest offshore wind farm at Seagreen in Scotland, and one of the most productive onshore wind farms at Viking on Shetland, as well as the associated link connecting the island to the mainland.

The company reported a profit before tax of £1,064.9 million during the first six month ended 30 June 2021. SSE Plc’s current market cap stands at £16,937.19 million as of 10 August 2021.

3. The Renewable Infrastructure Group (LON: TRIG)

The company is a UK-based closed-ended investment company that is engaged in investing in operational renewable energy generation projects, predominantly in onshore and offshore wind and solar photovoltaics (PV) segments across the UK and Northern Europe. The company is a constituent of the FTSE 250 Index. Its portfolio consistd of around 79 Solar, Onshore wind, offshore wind and battery storage projects with aggregate net generating capacity of 1,941 MW.

Also read: Can Green Mortgages Revolutionise Energy Efficency In The UK?

The company reported decrease in NAV per share by 0.9% at 114.3p and the Directors’ portfolio valuation was up by 12.6% at £2,491million during the first six month ended 30 June 2021. The company in May 2021 acquired 50% interest in two onshore pre-construction wind farms, Ranasjö and Salsjö located in Central Sweden.

The Renewable Infrastructure Group’s current market cap stands at 2,769.09 as of 10 August 2021.

4. Tesla Inc. (LON: 0R0X)

The company is an US-based company engaged in designing, developing, manufacturing, selling and leasing electric vehicles and energy generation and storage systems, and offer services related to its sustainable energy products. Founder Elon Musk has been getting unique ideas of even developing solar panels in the shape of roof tiles. It is experimenting with many other products, such as tabless battery that could improve the range and power of the EVs.  The company also plans to reduce the cost of its EVs. The company’s shares are listed on both NASDAQ and LSE.

The company reported that its total revenue was up by 98% YOY at $11,958 million during the second quarter. Tesla’s current market cap stands at US $706.633 billion.

5. Greencoat UK Wind Plc (LON:UKW)

The renewable infrastructure fund invests in existing wind farms with a goal to deliver investors with an annual dividend that increases in line with retail price index inflation. Besides, preserving the capital value of its investments of excess cash flow and the prudent unlevered operating gearing. The company is a constituent of FTSE 250 index.

With its investments in Slieve Divena II, Walney, and Humber Gateway, its portfolio now has 38 operating wind farms and net generating capacity to 1,173MW as on 31 December 2020. The deal to acquire Kype Muir Extension and South Kyle subsidy free wind farm projects, expected to become operational in 2022 and 2023, respectively. Acquisition of the remaining part in Braes of Doune wind farm increased net generating capacity to 1,209MW, as on 30 June 2021.

The company also invested another £16 million into Douglas West wind farm which is expected to commence commercial operation in September 2021. The company intends to acquire Windy Rig, Twentyshilling and Glen Kyllachy in the H2 2021. The company reported a Net cash generation of £103.6 million during the first six month ended 30 June 2021. Greencoat UK Wind Plc’s current market cap stands at £2,651.25 million as of 10 August 2021.

6. ITM Power Plc (LON: ITM)

The company is a UK-based manufacturer of hydro energy solutions based on Proton Exchange Membrane (PEM) technology to enhance the utilization of renewable energy. Its products include HGas1SP, HGas2SP, HGas2SP and HGasXMW.

Strategic partnership with Linde and formation of ITM Linde Electrolysis (ILE) GmbH joint venture, allows the company to focus exclusively on the manufacture of electrolysis equipment for larger scale systems. Commercial partnership agreement with Snam, one of the world’s leading energy infrastructure operators, including a £30m strategic investment, including an initial 100MW preferred supplier indicative commitment to 2024.

The company reported decrease in revenue by 69% at £5.4 million.

ITM Power Plc’s current market cap stands at £2,209.24 million as of 10 August 2021.

Also read: Take a look at top 10 global renewable energy stocks

7. Ceres Power Holding Plc (LON:CWR)

The company is a UK-based fuel cell technology and engineering company that aims to bring cleaner and cheaper energy to businesses, homes and vehicles. It’s operating across Europe, North America and Asia.

The company reported increase in revenue from £19.1 million in 2019 to £21.9 million in 2020.  

Ceres Power Holding Plc’s current market cap stands at £1,980.28 million as of 10 August 2021.

8. Gore Street Energy Storage Fund Plc (LON:GSF)

The company is a diversified closed-ended investment company with the first pure-play energy storage fund and it is one of the largest contributors of battery storage facilities in Britain and the largest on the Irish gird network. The company aims to offer investors with a sustainable and attractive dividend over the long term by investing in a diversified portfolio of utility scale energy storage projects primarily located in the United Kingdom as well as in North America and Western Europe. 

The company reported increase in NAV per share from £49.7 million in 2020 to £145.1 million in 2021. In June 2020, the Company completed the acquisition of a 100 per cent interest in Ferrymuir (50 MW) in Scotland. The acquisition of Anesco’s operational portfolio of 14 assets in October 2020 further increased the Company’s operational portfolio by 81 MW, generating cashflow immediately upon acquisition and acquired Stony Energy Storage Limited, an 80 MW development project.

Gore Street Energy Storage Fund Plc’s current market cap stands at £310.75 million as of 10 August 2021.