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Highlights
- The UK’s Department for Business is soon expected to launch a review of power suppliers in the UK market.
- The department want to investigate whether the power companies are using renewable source of energy or greenwashing to make fossil fuel generated electricity look clean.
The UK government is expected to launch a review of the power suppliers in the UK market. The Department for Business wants to investigate whether the green energy provided to the UK household is actually coming from a green source like wind/solar energy or energy companies are greenwashing- which is a false impression and marketing spin to make fossil fuel generated electricity seem clean.
Around nine million UK household use the green energy products provided by the energy companies, but the clear information about the source like when it was generated or type of renewable energy used like solar or wind energy is still missing. At present, energy suppliers are using Renewable Energy Guarantee of Origin (REGO) certificates. These certificates are issued by the energy regulator Ofgem to the firm, which actually generates energy from a green source. The company which generate electricity from the fossil fuel buy these certificates, which cost around £1 or £2 per customer per year and make their entire dirty fossil fuel sourced electricity look clean.
Let us look at FTSE listed stocks that are into renewable energy business:
Good Energy Group Plc (LON:GOOD)
The company owns multiple solar and wind power generation site and iengaged in the purchase, generation and distribution of clean energy in the United Kingdom. The company has been in the clean energy business for the last 20 years, and also provides the electric vehicle market data services.
The company enable the investors to participate in the renewable energy market. The company provides SMART meters, accelerating the digital offering of the company and building block of energy services. It also provides the subscription based service to the electric vehicle driver. The company’s management continues to have a positive outlook and is investing on new innovative projects to drive future growth of the company.
Good Energy Group Plc shares trades at GBX 327, down by 0.46% on 16 August at 8.40 GMT+1, with a market cap of £54.92 million. In the last one year, the stock has given 76% return to its shareholders.
The Renewables Infrastructure Group (LON: TRIG)
FTSE 250 listed company specialise in the renewable energy investment like wind farm or solar energy park. It invests through the equity and debt funding in the different companies. The company invest in the companies located in the United Kingdom and other European countries.
The company provides a great investment opportunity for the investors who want exposure to the multiple renewable energy companies by investing in one company. The company’s NAV per share stands at 114.3p as of six months’ period ended 30 June 2021. The company invested £341 million during the first half of this year in the Beatrice offshore wind farm and construction commitments for Venelle, Blary Hill and Grönhult. Also, the company has reaffirmed dividend target of 6.76p per share for its shareholders for the year ending December 2021.
The Renewables Infrastructure Group shares trade at GBX 132.60, up by 0.30% on 16 August at 8.40 GMT+1, with a market cap of £2780 million. The stock has given 9.2% total return to its shareholders since the IPO, including the share price rise and dividend.
Also Read: Why did TRIG increase its dividend for 2020?
Eqtec Plc (LON: EQT)
The company generates the green energy from the various feedstock like municipal and industrial waste as well as biomass. The company has operations in the Ireland, Spain and the United Kingdom.
The company operates in the very niche market segment of waste-to-energy industry, hence offer a good prospect as the waste-to-energy segment is an underpenetrated market segment. The company estimates revenue of €15 million for the year ending 31 December 2021 which remain in-line with the previous forecast.
Shares of Eqtec Plc currently trades at GBX 1.40, up by 1.82% on 16 August at 8.35 GMT+1, with a market cap of £117.75 million. In the last one year, Eqtec Plc has given 193.3% return to its shareholders.
