Clean Energy Funds Target Growing Demand for Renewable Energy
a reprint from triplepundit, 2018-10-25
Renewable energy funds are on the rise, seeking to match profits with
a commitment to sustainability. These funds invest not only in
generators of solar and wind power and their suppliers, but also in
manufacturers of LED light bulbs, electric cars and automobile
batteries.
Stock mutual funds and exchange-traded funds (ETFs) are jumping on the bandwagon—from big players like Fidelity Investments and its Select Environment and Alternative Energy Portfolio to smaller ones that have been at it for decades, such as the New Alternatives Fund.
The fact that major companies like Facebook, with its pledge to power global operations with 100 percent renewable energy by 2020, are going in big for renewables sweetens the financial prospect for investors.
According to the International Energy Agency’s latest market forecast,
renewables will continue their expansion in the next five years,
covering 40 percent of global energy consumption growth. Their use
continues to increase most rapidly in the electricity sector, and will
account for almost a third of total world electricity generation in
2023.
As such, large utilities like NextEra Energy and MidAmerican Energy are making huge investments in renewables. James L. Robo, CEO of NextEra Energy, one of the country’s largest power generators, predicted that solar and wind power will be cheaper than coal or nuclear generation by the beginning of the next decade. MidAmerican Energy, the majority of which is owned by billionaire investor Warren Buffet’s holding company, Berkshire Hathaway, has set its sights on getting 100 percent of its electricity from wind power by 2020.
With the recent report by a United Nations scientific panel calling for immediate action to reduce greenhouse gas emissions, demand for renewable energy may continue to surge—and with it investment in renewable technologies.
Stock mutual funds and exchange-traded funds (ETFs) are jumping on the bandwagon—from big players like Fidelity Investments and its Select Environment and Alternative Energy Portfolio to smaller ones that have been at it for decades, such as the New Alternatives Fund.
The fact that major companies like Facebook, with its pledge to power global operations with 100 percent renewable energy by 2020, are going in big for renewables sweetens the financial prospect for investors.
Electricity sector leads the way in renewable energy investment
As such, large utilities like NextEra Energy and MidAmerican Energy are making huge investments in renewables. James L. Robo, CEO of NextEra Energy, one of the country’s largest power generators, predicted that solar and wind power will be cheaper than coal or nuclear generation by the beginning of the next decade. MidAmerican Energy, the majority of which is owned by billionaire investor Warren Buffet’s holding company, Berkshire Hathaway, has set its sights on getting 100 percent of its electricity from wind power by 2020.
With the recent report by a United Nations scientific panel calling for immediate action to reduce greenhouse gas emissions, demand for renewable energy may continue to surge—and with it investment in renewable technologies.