Renewable or Green Energy Investments
There are a number of reasons for investing in the green energy sector. The main driver for this sector is that governments across the developed world are supporting this sector in line with their policy to reverse the increase in global carbon emissions. This widespread state support to this new energy sector, will give competitive advantages to companies involved in green energy versus those companies still focused on energy created from fossil fuels.
Apart from the growing state support for the green energy sector, fossil fuel supplies are finite and are becoming more and more expensive. Consumers can not only become greener by moving to a green energy supply or supplier, but they can actually save on their fuel bills.
Companies in this sector
There are many new entrants to this energy sector and many of these companies while growing rigorously now may eventually be taken over by more traditional energy companies who will look to access the sector.
The types of company in this sector include;
- Companies involved in the manufacturing of; wind turbines, wave energy turbines, solar panels and biomass fuel systems.
- Companies which produce or distribute biomass fuels.
- Companies which supply specialist engineering services into the sector
Investors can access this sector through specific stock choice in their stock portfolios, or by accessing an ETF (Exchange Traded Fund) tracking a sector index or more traditionally by investing in a managed fund which provides managed exposure to this sector.