Published on 22 Oct 2023 on Insider Monkey via Yahoo Finance
13 Best Alternative Energy Stocks To Buy Now
In this article, we shall discuss the 13 best alternative energy stocks to buy now. To skip our detailed analysis of the alternative energy sector in 2023, go directly and see 5 Best Alternative Energy Stocks To Buy Now.
Amid a disrupted market landscape and lower carbon expectations, the global energy sector is hurrying to adapt to the evolving market conditions. Some of the best alternative energy stocks to buy in the oil and gas sector have been ramping up investments in the renewable energy business, clean energy players are expanding operational capabilities, and a greater number of sustainability-focused entrepreneurial ventures are springing up to capitalize upon the fast transition to renewable energy and to deliver innovative solutions to the transforming market. According to McKinsey's Global Energy Perspective 2022, despite being significantly well-positioned to cash in on the energy transition, oil and gas companies are expected to continue their reliance on fossil fuels as a substantial part of the global energy mix, at least till 2050. Some of the reasons for this is the increased affordability and security of supply which is indicative of fossil fuels in the 21st century. However, the report postulates that these companies are also likely to continue investments in clean energy due to their sheer global scale, the magnanimous capacity for risk of their investors, their substantial income statements and balance sheets, and their favorable equations with energy consumers and shareholders. Some of the most prominent players leading the clean energy transition are NextEra Energy Inc. (NYSE:NEE), General Electric Co. (NYSE:GE), and Tesla Inc. (NASDAQ:TSLA).
However, according to Bloomberg, the power sector, which includes some of best alternative energy stocks to buy, needs to make a more concerted effort in its transition towards alternative energy models by 2050. The International Energy Agency updated that the energy sector is still the world's largest emitter of atmospheric carbon. And although solar power and EV sales have boomed since the IEA's 2021 update, the current projected limit to global warming of 2.4C is still too much. This is coupled with the fact that carbon emissions by the energy sector set a new total high of more than 40 billion tons in 2022 owing to the post-COVID economic rebound and the global energy crisis which was exacerbated by Russia's 2022 invasion of Ukraine. This led to a widescale competition to produce and burn a greater number of fossil fuels, especially in China, India and other developing countries around the world. Wind power is also struggling due to skyrocketing inflation rates and political pushbacks, the latter causing numerous large-scale wind projects to be stalled indefinitely. To read more on some of the challenges and upside potential facing the alternative energy industry in 2023, check out our article on 30 Countries With the Cleanest Air in the World.