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Should Investors Add Wind Energy to Their Portfolio?

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Investment in Wind Energy

Guest Post

Any investor with a green conscience will definitely be considering investing in something they believe in, and not just to make money from. There are many different types of renewable energy stocks and shares available to invest in, but with wind energy set to increase by 64% by 2020 in Europe alone, this is one of the best options.

Solar power and hydroelectric are two other popular options, yet wind energy holds many benefits. Before you begin putting all your money behind a company that manufacturers wind turbines, there are many important factors to consider.

Cheaper, Economical Energy

From 2016 until 2019 the Global Wind Energy Council expects worldwide wind generation to increase by around 40%, which is a massive amount. This is largely down to the reduced cost involved with generating wind power, from the price of manufacturing wind turbines to harvesting the energy.

There is also a much higher demand for wind energy nowadays as well, with more and more governments realising the need to invest in renewable energy. For example, the UK has a target for producing 15% of its total energy from renewable sources by 2020. Initiatives such as this have led to increased amounts of investment in wind power, and as with any market, a higher demand will be matched by a higher supply and lower price.

Top Stocks

When it comes to making investments in wind energy, there are many different options available on the stock market. These are some of the top ones:

  • General Electric Company: One of the world’s largest industrial manufacturers, GE sold more than 2,800 wind turbines in 2015. That may only make up a small part of its business, but it is a major global player in the wind turbine sector.
  • Siemens Wind Power: The German manufacturing powerhouse created its own area dedicated to wind power in 1980. Along with GE they are another of the largest competitors manufacturing wind turbines.
  • Hathaway: One of the largest producers of wind energy in the USA, Hathaway has recently added to its stock with MidAmerican Energy. Nearly half of its power sold last year was from energy and it looks set to rise.

Investment Schemes

Aside from investing in stocks and shares there are a number of different schemes which offer the opportunity to invest in wind power. Abundance Generation is a scheme where people lend money and receive decent returns later, with the money going towards projects such as schools’ renewable initiatives or a wind turbine erection. There are various crowdfunding platforms available to invest in too.

The Risks

As with any investment, there are many risks involved with wind energy. There is a big risk that any investments you make could disappear, if green schemes or the manufacturing companies go bust. Plus, a lot of caution needs to be held, as many green schemes are known as underperformers.

For wind power itself there are a number of threats that can affect it. From a lack of wind to power any of the turbines, resulting in a lack of business, to increasing material costs for the production of turbines, the market is not 100% stable.

Still, the use of wind power is expected to rise and costs come down, making it easier to invest in. Consider the pros and cons before placing your money behind any of the available wind power schemes or investments.

About the author: Ben Barlow is a freelance finance writer focusing on stocks and shares, forex and ISAs but also topics such as technology, green issues and tourism. After studying business at Lancaster University, Ben worked at a number of financial institutions in London and New York and is now following his passion for writing. You can contact the writer at .



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