The year 2020 has certainly been a challenging one for most industries operating across the globe due to the widespread impacts of the COVID-19 pandemic. However, the global clean energy market has successfully weathered the pandemic-induced storm and has been on a solid growth trajectory.
What Boosted Clean Energy Market Growth in 2020?
Several reasons were instrumental in driving inthe global clean energy market growth in 2020. According to International Energy Agency’s (IEA) earlier made estimates, almost 90% of new electricity generation by the end of 2020 must have come from renewable energy sources, accounting for 200 megawatts (MW) of installed capacity around the world.
In this context, it is imperative to mention that the need for adopting clean energy to avoid the adversities of the greenhouse effect has been the primary catalyst driving renewables’ popularity on a global scale. Alongside, the rapidly plummeting cost of renewable electricity generation is a pivotal reason behind the global clean energy boost in 2020. Further, favorable government initiatives and federal policies, which include tax incentives to encourage installation, boosted global market growth for clean energy.
Despite challenges arising from the COVID-19 pandemic, both solar and wind energies have been dominating growth within the global renewable space in recent times. Notably, annual net wind capacity additions are expected to be 65 gigawatts (GW) in 2020, 8% more than that in 2019, per IEA. Meanwhile, the global solar PV installations are expected to hit 115 gigawatts (GWdc) by the end of 2020, which is 5% higher than the total global installations in 2019.
Global Renewables Market Growth Prospects in 2021
The renewable energy market is anticipated to accelerate as renewable capacity additions are on track for a record expansion of nearly 10% in 2021, per the
IEA
. Nations such as the United States, India and China are expected to see capacity additions in 2021.
Furthermore, per
a report by the Markets and Markets research firm
, the global renewable energy market will reach $226.1 billion by 2021, at a CAGR of 22.7%, driven by the solar energy segment that is projected to be the largest segment in the renewable energy market.
5 Clean Energy Stocks That Soared in 2020
Considering the clean energy industry’s growth prospects in 2021, one can keep the following five large-cap stocks on their watchlist, each of which registered share price growth beyond 100% in 2020, so far.
Enphase Energy
’s
ENPH
products are deployed in more than 130 countries and it shipped more than 30 million microinverters worldwide at the end of the third quarter. Its shares have gained 551.4% year to date, while its Zacks Consensus Estimate for 2021 earnings implies an improvement of 6.5% over the past 90 days. This $21.5 billion worth of stock has a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
.
FuelCell Energy
FCEL
, a Zacks Rank #3 company, progressed the development of its solid oxide energy platform in support of commercializing hydrogen power generation and long-duration hydrogen-based energy storage, during the third quarter. Its shares have gained 334.5% year to date, while its Zacks Consensus Estimate for 2021 earnings indicates an improvement of 2 cents over the past 60 days. This stock has a market capitalization of $3.51 billion.
Bloom Energy
’s
BE
proprietary solid oxide fuel cell technology, Bloom Energy Server, is a stationary power-generation platform capable of delivering highly reliable, uninterrupted, 24×7 power that is clean and sustainable. The Zacks Rank #3 company’s shares have gained 272.4% year to date, while its Zacks Consensus Estimate for 2021 earnings suggests an improvement of 2 cents over the past 60 days. This stock has a market capitalization of $4.62 billion.
Ameresco
AMRC
, sporting a Zacks Rank #1, is currently designing and constructing a wide range of renewable energy plants using LFG, wastewater treatment biogas, solar, biomass, other bio-derived fuels, wind and hydro sources of energy. Its shares have gained 190.5% year to date, while its Zacks Consensus Estimate for 2021 earnings indicates an improvement of 8.1% over the past 60 days. This stock has a market capitalization of $2.43 billion.
Vestas Wind Systems
’
VWDRY
combined backlog during the third quarter increased EUR 1.1 billion year over year, whereas revenues increased 31%, mainly driven by high activity levels in its power solutions business. The Zacks Rank #3 company’s shares have gained 137.3% year to date, while its Zacks Consensus Estimate for 2021 earnings implies an improvement of 3.8% over the past 60 days. This stock has a market capitalization of $47.1 billion.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 top tickers for the entirety of 2021?
These 10 are painstakingly hand-picked from over 4,000 companies covered by the Zacks Rank. They are our primary picks to buy and hold.
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