Newer, eco-friendly businesses have sprouted up, and mindful investors seek more sustainable and environmentally aware companies for investing opportunities. This is the result of the rapid escalation of the climate crisis, and as debates intensify, progress isn’t just around the corner – it’s already here. Companies worldwide are turning over a newer and greener chapter, from vehicle manufacturing and power generation to waste management.
What Is Environment Friendly and Green Stocks
Green stocks are shares of companies whose primary business is beneficial to the environment. These environment-friendly stocks are likely to concentrate on alternative energy, pollution control, carbon reduction, and recycling. These companies produce energy from natural resources, such as sunlight, wind, or water. Such companies focus on saving the environment from pollution and other destructions such as drilling or mining, which might destroy the ecosystem.
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Green Energy Stocks Are the Future
- Because global warming and climate change are some of the major concerns of the world, and to save the environment, the world has already started taking measures by replacing fossil fuel vehicles with electric vehicles, solar water heaters, wind turbines, geothermal heat pumps systems, hydropower, etc. and the companies which are involved in manufacturing such appliances will always be in demand.
- Governments of various countries have started investing in the green energy sector. They have been making conscious efforts toward saving the environment by setting up green energy projects.
- Crude oil prices have risen by 70% over the last 12 months, making it a volatile energy source. This is not the case with green energy, such as solar, hydro, or wind.
- Investors today are more interested in cleaner and sustainable living. So, investors, today prefer investing in a company that is making conscious efforts toward saving the environment.
List of top 10 Green Energy Stocks in India
Tata Power
Tata Power is the leading player in the renewable energy sector. The company also has several subsidies like Tata Power Renewable Energy, Tata Power Solar Systems (TPSSL), and Walwhan Renewable Energy (WREL), whose primary focus lies in the sector. If we look at the revenue segment of the company, it generates 30% of revenues from renewable energy sources, i.e., wind and solar. Apart from just producing renewable energy, they also focus on some of the core problems plaguing the industry—the most important being setting up charging stations.
Adani Green Energy Ltd
Part of the Adani group, it is one of the largest renewable companies in India. The company has power projects in 11 states across India. It focuses on generating power from solar, wind, and hybrid sources. Billionaire and founder of Adani Group have made it clear that the group has huge plans for the renewable energy space in the future.
JSW Energy
JSW Energy is one of the largest power-producing companies in the country. The company has a combined power-producing capacity of 4,559 MW, of which 3158 MW is thermal power, 1391 MW is hydropower, and 10 MW is solar power. Currently present across several Indian states and have stakes in natural resource companies in South Africa.
Borosil Renewable Ltd
India's first and only solar glass manufacturer. They also won a National Award for developing the “World’s First” fully tempered 2mm thick solar glass. They have recently expanded their production capacity to 2.5 GW and working on the next expansion to add another 2.5 GW. They also manufacture a range of products such as labware, scientific ware, and consumer ware products.
Sterling and Wilson Renewable Energy Ltd.
Sterling and Wilson rank among the top 5 EPC manufacturers in the country. It is a leading end-to-end solar engineering, procurement, and construction (EPC) solutions provider in India and globally. It is also engaged in the operation and maintenance of solar power projects. Recently Reliance New Energy Solar acquired a 40% stake in Sterling & Wilson for? 2,850 crores. Presently the company’s pipeline of solar projects covers Asia, the Middle East, Africa, and Latin America.
GAIL
Gas Authority of India Ltd. (GAIL) is India’s largest natural gas processing and distribution company. It was incorporated in 1984. GAIL has a total installed capacity of 130.26 MW of alternate energy, out of which 118MW are wind projects and 12.6MW is solar energy projects. It has installed India’s 2nd largest solar rooftop of 6MW. The company is committed to reducing carbon emissions and implementing renewable projects.
Websol Energy
Established in 1984, India’s leading photovoltaic monocrystalline solar cells and modules manufacturer. To enhance its competitive edge, the company has undertaken a 120MW expansion. India is on the cusp of a solar energy revolution as the Union government plans to achieve 500 GW (gigawatts) of installed renewable capacity by 2030, with solar contributing about 280 GW (over 60%). As of now, Solar energy capacity is around 50GW. This represents an excellent opportunity for the company.
Synergy Green Industries
It manufactures different products that are used in setting up Wind Turbines. Nearly 75% of total revenues are derived from this segment. Apart from turbines, they also produce castings for Mining, Pumps & Plastic Injection parts. The company generates the remaining 25% of revenue from these segments.
INOX Winds
Part of the Inox Groups, one of the largest manufacturers of Wind Turbine Generators and independent parts like blades, tubular towers, nacelles, etc., is expected to constitute nearly 50% of the company’s overall power generation capacity by 2032.
Torrent Power
One of the most prominent private sector players in India has interests in power generation, transmission, distribution, and manufacturing and supply of power cables. It has a thermal power generation capacity of 3092MW and a renewable energy generation capacity of 1018MW, taking the total to 4110MW.
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