Alternative energy is progressively becoming an important part of the energy market sector (source : italian stock market), along with growth for both alternative energy companies and higher investments.
Investments on energy are different: despite companies which still remain interested exclusively in conventional forms of energy (oil, for example), other are mixing up the basket observing both of them.
Only a small -but rapidly growing- number of investors focuses exclusively on alternative energy.
The reasons behind such choice are different, but it’s mostly about trust and profit: conventional energy gives more trusted profit and lands on safe ground. On the other hand, the experimental and “challenging” nature of alternative energies remains a matter for the risky-business fans or for futuristic tycoons.
As oil prices rise, traditional energy companies will no doubt dominate the energy sector, but alternative energy is here to stay, and the companies on this list have the potential to make investors some money in 2017. The stock charts on each of these companies show positive developments that could create upward momentum for the year. A clear example is NRG Yield Inc, focused on renewable energy assets and with an improving growth (17$ share at the end of 2016). Similarly, Atlantica Yield PLC promotes solar and wind energy and has had solid incomes in the last couple of years, with stocks that pay a dividend of 3.05 percent.
A smart inforgraphy from iea.org
On the other hand, other stocks remain very low and for this reason investors remain dubious and cautious. MagneGas Corp, for example, has very big potential due to its positive approach towards a waste-to-energy conversion. However, its low share makes buyers leave. MagneGas Corp is a clear example of how big ideas need sometime a push by stronger stakeholders that encourage buyers: with a new project for the conversion of waste to usable fuel, this company takes advantage of an important partnership with the NYC Department of Transportation that led to its breakout.
What are the bottlenecks?
As we affirmed before, investors still need solidity. Despite the growth of these companies and national sponsorship, alternative energy stocks need to fight volatility. It needs securing contracts for their products and services.
Lat but not least, alternative energy stocks are fighting Goliath: they are relatively small compared to the giants of the conventional energy sector, which most often appear as political stakeholders and are able to influence political environmental laws to cut down every positive change and nudge them out of the competition.