How well can renewable energy stocks do this year? 

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How well can renewable energy stocks do this year? 

 How well can renewable energy stocks do this year? 
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Highlights

  • The UK government has announced an investment of £285 million a year in the flagship renewable energy support scheme.
  • The Contracts for Difference (CfD) scheme has been a success and led to fall in per unit prices of offshore wind by 65% between 2015 and 2019.

Over half of the global energy production is expected to come from renewable energy sources such as solar power, hydropower, biomass, and wind energy by 2050. This has led to increase in the investment flow into the renewable energy sector globally.

In December 2021, the Boris Johnson government declared the investment of £285 million for the renewable energy support scheme in a bid to build the next generation of green energy projects.

With an aim to secure 12GW of electricity capacity in the third round, the renewable energy project can now bid for the fourth round of the Contracts for Difference (CfD) scheme with the offshore wind that has the capacity to generate electricity to power over eight million households to support the country’s transition to net zero.

The Contracts for Difference (CfD) scheme has been a success and led to fall in per unit prices of offshore wind by 65% between 2015 and 2019. The total investment of £284 million in the fourth round has been allocated as £200 million in offshore wind, £10 million in established technologies such as onshore wind and solar energy, and £75 million on emerging technologies such as floating offshore wind, tidal stream, and island wind.

The UK has been facing national energy crisis due to consistent rise in wholesale gas price

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By 2030, the UK government has taken the initiative to take the 10GW offshore capacity to 40GW. The £24-million funds from the given fund for emerging technologies must be invested in floating offshore wind projects a year and £20 million has to be set aside for tidal stream projects.

The UK has been facing a massive energy crisis due to rising gas prices, which led energy suppliers to be under tremendous pressure. According to government sources, the energy prices are expected to keep rising until 2023, which will create more problems for households, factories, and businesses.

As the UK and other countries are set to tackle climate changes let us now look at some renewable energy stocks that can do well in 2022. 

  1. SSE Plc (LON: SSE)

FTSE 100 Index constituent SSE Plc is an international energy company across UK and Ireland. SSE Plc has given a return of 0.22% to its shareholders in the last one year and its year-to-date return stands at -3.05% as of 14 January 2022. Its shares were trading at GBX 1,582.50, down by 0.38% at 4 PM BST, with a market capitalization of £ 16,930.73 million as on 14 January 2022.

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

Gore Street Energy Storage Fund Plc is a diversified closed-ended investment business that invest in utility-scale energy storage projects in UK and internationally.

Gore Street Energy Storage Fund Plc has given a return of 9.20% to its shareholders in the last one year and its year-to-date return stands at -1.44% as of 14 January 2022. Its shares were trading at GBX 116.50 at 4 PM BST, with a market capitalization of £401.97 million on 14 January 2022.

  1. AFC Energy Plc (LON: AFC)

AFC Energy Plc is a leading alkaline fuel cell power business that uses hydrogen for electricity production and is engaged in providing lowest operating cost and high performing fuel cells to decarbonize industry.

AFC Energy Plc has given a return of -45.39% to its shareholders in the last one year and its year-to-date return stands at -13.59% as of 14 January 2022. Its shares were trading at GBX 42.50, down by 1.96%, at 4 PM BST, with a market capitalization of £318.40 million on 14 January 2022.

  1. EQTEC Plc (LON: EQT)

EQTEC Plc is a global expert in advanced gasification technology that is engaged in designing and delivering advanced gasification plants.  The company has entered inti an agreement with a consulting and engineering firm, Wood to develop waste-to-hydrogen and synthetic natural gas solutions.

EQTEC Plc has given a return of -43.23% to its shareholders in the last one year and its year-to-date return stands at 7.44% as of 14 January 2022. Its shares were trading at GBX 1.25, down by 1.58%, at 4 PM BST, with a market capitalization of £109.1 million on 14 January 2022.

  1. Ceres Power Holdings Plc (LON: CWR)

Ceres Power Holding Plc is a fuel cell technology and engineering business to help in sustaining a clean and green environment. 

Ceres Power Holdings Plc has given a return of -45.98% to its shareholders in the last one year and its year-to-date return stands at -22.16% as of 14 January 2022. Its shares were trading at GBX 776, down by 6.05%, at 4 PM BST, with a market capitalization of £1,575.43 million on 14 January 2022.

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