Summary

  • Small-cap utility stocks are interesting investment options in volatile markets, as they remain relatively unaffected by the market forces, and deal with unconventional energy sources.
  • The British government, as well as the European Union, have over the years, taken various initiatives, which make these companies vital.
  • Investors are also queuing up to invest in these companies to take advantage of the market boom.

With the increased thrust from the British government to make the businesses operating in the country less carbon emitting, it has created excellent opportunities for renewable energy businesses. Taking advantage of this new environment, a lot of companies have jumped into the fray offering solutions, in solar photovoltaic energy. Biomass energy, wind energy, bio methane, fuel cells and several other niche areas in the renewable energy space. Investors are also queuing up to invest in these companies to take advantage of the market boom. However, the largest thrust to this industry is coming from large companies from various sectors who are investing in these companies in an effort to lower their own carbon footprints. The AIM (Alternative Investment Management) segment of the London Stock Exchange has been home to most of these companies, who have seen massive growth in the past few years.            

Below are four prominent British companies in this space that are worth taking note of

  1. Eqtec Plc (LON: EQT) – Eqtec Plc is a United Kingdom based renewable energy company specialising in the conversion of waste to energy.

(Source- Thomson Reuters) 

The shares of Eqtec Plc have been continually rising on the London Stock Exchange since the starting of 2020. On 2 January 2020, the shares of the company opened trade on the exchange at GBX 0.18 per share. Last checked on 9 October 2020, the shares of the company ended at GBX 0.59 per share, gaining 12.38 per cent over the previous day’s close.

  1. Active Energy Group Plc (LON: AEG) – This company is the United Kingdom based renewable energy company specialising in the conversion of biomass to energy.

(Source- Thomson Reuters) 

The shares of Active Energy Group Plc have been volatile on the London Stock Exchange since the starting of 2020.  On 2 January 2020, the shares of the company were trading at GBX 0.49 per share at the exchange. Last checked on 9 October 2020 however, at the close of the day’s trade, the shares of the company were at GBX 0.55 per share, losing 1.82 per cent over the previous day’s close.

  1. AFC Energy Plc – (LON: AFC) the United Kingdom domiciled renewable energy company is in the field of alkaline fuel cell batteries, to produce electricity from hydrogen.

(Source- Thomson Reuters) 

The shares of AFC Energy Plc have been witnessing wide fluctuations on the London Stock Exchange since the starting of 2020.  On 2 January 2020, the shares of the company were trading at GBX 18.85 per share. Last checked the shares of the company were at GBX 18.00 per share on 9 October 2020 at the close of the day’s trade, losing 2.7 per cent over the previous day’s close.

  1. Good Energy Group Plc (LON: GOOD) – This company is one of the very few companies in the United Kingdom in the business of producing and procuring energy from various renewable energy sources and supplying them to British households.

(Source- Thomson Reuters) 

The shares of Good Energy Group Plc have seen continued volatility on the London Stock Exchange since the starting of 2020.  On 2 January 2020, the shares of the company were trading at GBX 205.00 per share. Last Checked the shares of the company were at GBX 168.00 per share on 9 October 2020 at the close of the day’s trade, gaining 0.42 per cent over previous day’s close.

Outlook

The next decade is going to be the era of Renewable energy. The need to find urgent and sustainable solutions to the carbon emission induced environmental emergency is the reason for a surge of investor interest in this industry. Governments and corporates alike are investing a vast amount of money into the new infrastructure development in this space with the industry set to become one of the largest business sectors in the world in the coming years. The sector thus, holds the maximum investment value creation potential at least for the next decade.

It is also highly likely that major merger and acquisition activity in this industry space may be witnessed in the next years to come, as companies try to attain a higher level of efficiencies. Enhanced institutional support and a proper regulatory environment will also go a long way in helping the industry to work and excel in fulfilling the national objective of achieving lower carbon emission levels for all.

 

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