An Energetic Approach to Next Generation Energy Investing

By Todd Shriber via Iris.xyz

Gone are the days when investing in energy stocks meant focusing on fossil fuels companies, such as coal and oil producers. In recent years, the movement toward renewables and sustainable energy sources spurred the creation of the alternative or clean energy investment theme.

Said another way, the energy sector is evolving. The corresponding investments should be doing the same. Clean energy extends beyond renewable energy sources, extending to products, technologies and themes that are driving output and consumption of the next generation of energy sources.

In many ways, the clean energy space is evolving on par with the technology sector while delivering new investment opportunities as is the case in the technology universe. Earlier this century, Wall Street did not pay much attention to themes such as cloud computing, cybersecurity, fintech and robotics. Today, those concepts and more are mainstream when discussing the technology opportunity set.

The next generation of energy investing includes familiar concepts, such as solar and wind, as well as fast-growing themes, such as electric vehicles and storage and light-Emitting-Diode (LED) and Smart Grid.

Sun Shines For Solar

Among clean energy concepts, solar is one of the most seasoned. As is often the case with new concepts and technologies, it took solar energy awhile to gain mainstream traction. Today, solar is one of the leading concepts in the disruptive energy space with data pointing to continued adoption.

“Annual solar installations grew almost 20 percent year over year in 2017, and the solar industry is also edging within 100 gigawatts, a milestone the industry will reach this year,” according to IHS Markit.

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