Let’s look at the investments in the renewable energy sector,

In 2021, the renewable energy sector was booming, with global investment reaching a record $366 billion. The reasons for this boom were factors such as declining costs, increasing government support, and growing concerns about climate change.

The current trends in the renewable energy sector are as follows:

• The rapid growth of solar and wind power shows that they are the cheapest forms of new electricity generation in many parts of the world. As a result, they account for the lion’s share of new renewable energy capacity additions.

• Battery storage is becoming increasingly important for integrating renewable energy into the grid. It also helps store excess renewable energy when the sun is not shining or the wind is not blowing, releasing it when needed.

• The expansion of distributed renewable energy systems, such as rooftop solar panels and community solar farms, is becoming increasingly popular due to affordability, flexibility, and resilience.

• Transport electrification is a major trend in the renewable energy sector. Electric vehicles are becoming more affordable and efficient and are expected to play a major role in reducing greenhouse gas emissions from transportation.

These expected trends are likely to continue in the coming years as the renewable energy sector continues to grow and mature. Renewable energy is expected to account for over 40% of global electricity generation by 2030.

Companies with significantly high investments in the renewable energy sector include:

1. Tesla: Led by CEO Elon Musk, the company has positioned itself prominently in the renewable energy sector, attracting significant investments. Tesla, known for electric vehicles, expanded its reach in energy storage with products like Powerwall and Powerpack. The company has received substantial investments to support its ambitious goals in sustainable transportation and renewable energy.
2. Sunrun: One of the largest residential solar companies in the United States, Sunrun offers solar panel installations along with battery storage solutions and other clean energy services. Sunrun has also received significant investment for expanding and adopting residential solar power.
3. Enphase Energy: The company specializes in microinverter systems for solar installations. Its technology converts solar power at the individual panel level, improving system performance and efficiency. The company has received notable investments as it gained a good market share in the solar energy industry.
4. First Solar: A leading manufacturer of thin-film solar modules and a provider of utility-scale solar solutions, First Solar focuses on developing and constructing large-scale solar projects. Significant investment has supported the growth of its advanced utility-scale solar power initiatives.
5. Vestas: A Danish company and one of the world’s largest manufacturers of wind turbines, Vestas provides wind energy solutions for both onshore and offshore applications. Substantial investments have supported its research and development efforts and expanded its global presence in the wind energy sector.
6. Ørsted: Formerly known as DONG Energy, Ørsted is a Danish renewable energy company focusing on offshore wind power. The company develops and operates numerous offshore wind farms globally. Significant investments have been made to support its offshore wind projects and its transition from a fossil fuel-focused company.

Sources:- GWEC, IEA, BloombergNEF, Clean Energy Australia Report 2022, IRENA, SEIA, Mckinsey & Company