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You Can’t Afford to Ignore Renewable Energy Stocks

You Can’t Afford to Ignore Renewable Energy Stocks

The future of global energy will look much different than in the past. That’s because renewable energy will undoubtedly dominate the power supply in the years to come.

Renewable energy stocks were among the top performers in 2020, and the trend should continue in 2021.

Some may consider last year’s gains the result of a speculative bubble. But the data paint a different picture — one you can’t afford to ignore.

Investing in Renewable Energy Stocks Is a No-Brainer

Renewable energy capacity is expected to increase 379% by 2050 and will account for the majority of all energy capacity installations.

Fossil fuel capacity is only expected to increase a mere 16%, a drop in the bucket.

Global Installed Power Capacity

(Source: Bloomberg.)

According to Bloomberg, the shift to renewable power will require $11 trillion in capacity investment over the next 30 years.

The solar and wind industries will be the prime beneficiaries, seeing $4.2 trillion and $5.9 trillion, respectively.

The data show that directing new energy investment to renewable sources is a no-brainer.

Electricity generation from renewables will climb to 69% in 2050, up from 30% in 2021.

Global Electricity Generation

(Source: Bloomberg.)

These aren’t just lofty forecasts.

Solar and wind are now the cheapest new sources of electricity in the countries that account for 72% of global gross domestic product. And they are expected to get even cheaper.

Levelized Cost of Electricity Solar PV

Levelized Cost of Electricity Onshore Wind

(Source: Bloomberg.)

Growth in renewable energy will also lead to a surge in demand for energy storage and better grid infrastructure.

Over the next 30 years, energy grid and storage investments are expected to surpass $14 trillion and $1.1 trillion, respectively.

The U.S. government has committed to boosting clean energy spending. President-elect Joe Biden is calling for an accelerated $2 trillion investment in clean energy during his first term in office.

In the most recent stimulus bill, Congress included tax perks for the coming years that should net the solar and wind industries $11 billion and $3 billion, respectively.

If the Democrats win Tuesday’s Georgia Senate runoff elections, renewable energy spending in the U.S. could be much higher than expected.

The Companies Powering the New American Economy

There are plenty of catalysts that will send renewable energy stocks soaring.

In Automatic Fortunes, we invest in companies that are in big, growing industries such as renewable energy.

I encourage you to watch Ian King’s special new presentation about how these companies will play a key role in the New American Economy.

Regards,

Autonomous delivery will change the dynamic of the food industry, as well as boost U.S. productivity and quality of life over the coming decade.

Steve Fernandez

Analyst, Automatic Fortunes

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