Invest in Renewable Energy?

Updated: Feb 3


The reason for energy shortage?


While there is no single reason for this shortage some of the main reasons include:


- Increase in demand, overpopulation

- Technical problems and lack of maintenance

- No future Investments


With the shortage of coal and oil in the pandemic prices surged to new highs. The shortage forces companies to reduce production which leads to shortage of products and in return higher prices.


The world is concerned about the shortage of limited natural resources, we need to reduce our dependence on fossil fuels and reduce gas emissions.


Renewable Energy Options.


The magic words:

- Steam

- Solar

- Wind

- Hydro (water drives turbines)

- Tidal (uses tides in the ocean)

- Geothermal (natural heat below earth)

- Biomass (from plant material)


Nuclear-generated electricity isn't renewable but it's zero-carbon (low CO2), this source is not reliable on weather.


The future of reliable energy.


“Renewable energy sources make up 26% of the world’s electricity today, but according to the International Energy Agency (IEA) its share is expected to reach 30% by 2024. “This is a pivotal time for renewable energy,” said the IEA’s executive director, Fatih Birol.” The future for renewable energy will increase as demand increases and it will also drive down the price.


How do I invest in renewable energy?


77% of new global electrical generation capacity from now until 2050 will come from wind and solar


Fossil fuels will continue to exist for a long time due to large existing infrastructure, but natural gas will gradually take market share from coal.


So Where Can I invest?


Solar / Wind Product Manufacturers


  • High reward, High risk, go directly to the source that supply this technology.

  • Companies that build power generation assets

  • ETF’s to reduce risk


Mining Companies


There is a demand for rare earth metals due to lithium batteries being used in households, cars etc.


These metals include:

o Graphite

o Nickel

o Aluminium

o Copper

o Lithium

o Cobalt

o Manganese


There is higher risk when you invest individually into these stocks but you can always make use of a ETF to lower your risk.


This industry has a big growth potential.

This should definitely be part of your diverse portfolio!

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