Green energy stocks go from strength to strength
All in all, 2022 is proving to be a record year for global investments in renewable energy.
In the first six months of the year, $226 billion was invested in green energy, an 11% year-on-year increase, according to BloombergNEF (BNEF).
US$120 billion was invested in large and small-scale solar projects, up 33% from the same period last year.
In fact, solar is having an excellent year. As Bloomberg Intelligence senior analyst Rob Barnett told Yahoo! Finance:
‘The global solar picture is simply stunning at this point. We are on track to install something like 250 gigawatts of solar capacity this year.‘
But the wind also has a crazy year.
Even with global supply chain disruptions and inflation hitting the sector, BNEF expects there will be a record 106 gigawatts of wind power installed globally in 2022.
Much of this comes from China, but more recently also from the European Union, which is moving away from Russian gas.
But of course, when it comes to investing in renewables, the mother load came from the United States this week.
After months of negotiations and a sleepless night, the US Senate passed the Inflation Reduction Act of 2022 on Monday.
As we mentioned last week, this historic agreement will bring one of the most significant investments in clean energy to date. It provides US$369 billion in funding to reduce US emissions by approximately 40% by 2030.
Investing in increased energy supplies and developing local renewable energy when energy prices are soaring is not a bad idea.
But news of the deal quickly seeped into clean energy stocks.
As soon as the news hit the streets, the Invesco Solar ETF jumped 4%. Tesla and hydrogen company Plug Power were up around 5%.
You can see how investment news can have a big impact on stocks.
Read the full article here.
Green energy stocks get a boost