UKW, GRP, TRIG: Stocks to watch amid ongoing race to build windfarms

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UKW, GRP, TRIG: Stocks to watch amid ongoing race to build windfarms

 UKW, GRP, TRIG: Stocks to watch amid ongoing race to build windfarms
Image source: zhengzaishuru, Shutterstock

Highlights

  • The Crown Estate has recognised five sites in the Celtic Sea to host floating offshore windfarms.
  • By 2035, approximately 4 million homes would be powered with the 4GW of this floating offshore wind energy.

Floating offshore windfarms may potentially be built off the Cornwall and Pembrokeshire coasts over the coming years. To host these windfarms, a few sites have been recognized by the crown estate, which is engaged in funding the Treasury and the royal family. Five “areas of search” have been classified in the Celtic Sea to host these wind power generation projects.

By mid-2023, a tender process is expected to be launched to offer the projects to businesses following the finalisation of the project development areas. It is anticipated that by 2035, approximately 4m homes would be powered with the 4GW of floating offshore wind energy generated via these projects.

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Generally, floating windfarms are built on the sea floor near the shore. The windfarms in the Celtic Sea would be affixed to the seabed, and thus wouldn’t ruin the aesthetic grounds with wind turbines. The businesses and residents onshore wouldn’t be obstructed by the windfarms and the stronger winds would in turn help in more offshore energy generation.

The Crown Estate said last month that the value of its marine business had surged by 22% to £5bn as compared to the previous year, owing to record-high sales of sites for building offshore windfarms.  

Considering the prospects of wind energy, UK investors can keep an eye on the following wind energy stocks.

Greencoat UK Wind PLC (LON: UKW)

Renewable infrastructure firm Greencoat UK Wind plc holds a market cap of £3,584.94 million as of 5 July. The FTSE 250 company has performed well over the past year, giving its shareholders a YTD return of 10.09%, while its one-year return stood at 20.37%. Its earnings per share (EPS) stands at 0.18 at present. Greencoat UK Wind plc’s shares were seen trading at GBX 154.70 at 8:36 AM (GMT+1) on Tuesday.

Greencoat Renewables plc (LON: GRP)

The FTSE AIM 100 Index constituent, Greencoat Renewables plc, on Tuesday, had a market cap of £1,168.42 million. The company has provided its shareholders with a YTD return of 6.25% as of 5 July, while its one-year return stands at 2.43%. Its EPS stands at 0.02 at present. Greencoat Renewables plc’s shares were trading at EUR 1.19 at 8:41 AM (GMT+1) on 5 July.

The Renewables Infrastructure Group (LON: TRIG)

The Renewables Infrastructure Group is an investment trust which invests in renewable energy sources, including wind and solar. The FTSE 250 company holds a market cap of £3,339.43m as of 5 July. The company has provided its shareholders with a YTD return of 0.15% as of 5 July, while its one-year return stands at 5.90%. Its EPS stands at 0.10 at present. Renewables Infrastructure Group’s shares were trading at GBX 134.40, down by 0.15%, at 8:45 AM (GMT+1) on 5 July.

 

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