Three Renewable Energy Companies to Purchase in 2025 for a Long-Term Investment
Renewable energy stocks might not be as buzzworthy as they once were, but that doesn't mean they've lost their allure. The sector is maturing, with players becoming more established and a better understanding of what works and what doesn't. Let me introduce you to three renewable energy stocks that have dropped from their recent highs, presenting an excellent opportunity to invest before they soar again.
Cameco
Have you been paying attention to the stock market recently? If so, you've likely heard about the resurgence of nuclear power. After years of neglect due to safety concerns, nuclear power is back in the spotlight as a zero-emission alternative to combat carbon emissions. One example is the plan to reopen a decommissioned nuclear reactor in Pennsylvania's Three Mile Island.
Expect the nuclear power industry to expand considerably in the coming years, according to the International Energy Agency. They predict a 50% increase in nuclear power production capacity by 2050, with potential for doubling or even tripling that figure in certain scenarios. That means the world is going to need more nuclear fuel, primarily uranium.
Enter Cameco, a leading uranium supplier with substantial high-grade reserves in Saskatchewan, Canada. Their operations, Innisfail and Rabbit Lake, currently produce 43 million pounds of uranium yearly, with room to ramp up production with minimal additional cost. With the growing demand for uranium, Cameco is well-positioned to capitalize on this trend, despite occasional market volatility.
Brookfield Renewable
If you're interested in renewable energy but don't know where to start, consider investing in Brookfield Renewable. This company is a one-stop shop for various renewable energy sources, with strong growth potential.
Brookfield Renewable acquires, builds, and operates facilities dedicated to renewable energy production. As of mid-last year, their assets could generate approximately 27,000 megawatts of electricity. There are also 112,000 megawatts in development, primarily focusing on wind and solar energy projects with significant energy storage capabilities.
Thanks to its diverse portfolio and a devoted focus on dividend growth, Brookfield Renewable might be considered a utility stock with an excellent growth potential outside the typical utility sector. From 2016 to present, the company has managed to boost funds from operations at an annual average of 12%.
By investing in Brookfield Renewable, you're not only buying into a low-volatility stock but also a business that's directly contributing to the transition towards renewable energy spending.
First Solar
Searching for a straightforward solar investment opportunity? Look no further than First Solar. Despite some skepticism due to changing political factors, solar power's momentum remains strong with ongoing price parity with traditional fossil fuels and increasing market demand.
First Solar is a prominent photovoltaic panel manufacturer and has remained the top choice in many states for alternative energy generation. Despite recent market volatility, analysts expect robust growth for the company, with projections of 29% top-line growth in 2023, following a 32% increase in 2022.
Solar power's potential for future expansion is immense, with the worldwide photovoltaic panel industry predicting an average annual growth rate of more than 25% until 2032, yet still only accounting for a fraction of the total power generation capacity. As a leader in the solar energy sector, First Solar is well-positioned to capitalize on this trend.
For those willing to gamble on the future of renewable energy, investments in these three companies may promise compelling returns in the years ahead. However, beware of the risks inherent in the unpredictable world of energy production and the potential for short-term market fluctuations.
In the context of the resurgence of nuclear power and predictions of a 50% increase in nuclear power production capacity by 2050, investing in uranium suppliers like Cameco could be a wise financial decision due to the growing demand for nuclear fuel.
Given the transition towards renewable energy spending and the potential for robust growth in the solar power industry, investing in solar panel manufacturers such as First Solar could also yield promising returns.
