With the world becoming more sensitive towards the environmental issues, there is a growing disenchantment towards fossil fuel based energy resources such as coal and oil based energy. This has resulted in the growing demand for clean and renewable energy resources based on solar power, wind power or small scale hydro projects. India too has taken a leadership role in bringing renewable energy resources in tradition. Both government of India and private companies are investing heavily in the green energy resources. This gives the institutional and retail investors an opportunity to explore the stock market in India and benefit from the huge demand of green energy.
Here, in this article, we try to bring the Best Green Energy Stocks in India, that can help you grow your own portfolio and let you witness the growth trajectory of green energy in India.
Now comes the big question: what exactly is renewable energy? Let’s take a closer look at this:
What is Renewable Energy:
Renewable energy, often referred to as clean energy produced from natural sources like sun and wind that are almost infinite and do not run out. Renewable energy can be used to generate electricity. In addition, geothermal steam is used for heating and cooking. Renewable energy like – Biomass and solar also used for space and water heating.
Types of Renewable Energy:
1. Bio-Energy: Bioenergy is a form of Renewable energy which can be produced from living organic materials known as biomass. And this energy can be used for transportation fuels, heat, electricity.
2. Geothermal Energy: Geothermal Energy is a clean energy directly generated from the sub-surface of the earth that can be used to produce heat and electricity. Some countries have already been using this type of energy for many years for cooking and heating.
3. Hydrogen: Hydrogen is a clean fuel, and an energy carrier that could serve as a possible substitute to fossil fuels. Due to its ability to power fuel cells in zero-emission electric vehicles, Hydrogen can be considered an alternative fuel.
Based on Hydrogen production, it can be divided into 4 major categories-
- Grey Hydrogen
- Blue Hydrogen
- Turquoise Hydrogen
- Green Hydrogen
According to their production, Green Hydrogen is the cleanest form of Hydrogen with zero-carbon emission. After the Ministry of Power released the first phase of the Green Hydrogen policy, Green Hydrogen can play a crucial role for the Indian Economy.
4. Hydropower: Hydro Power, or Hydroelectric power, it is one of the oldest and largest sources of Renewable energy to produce electricity. Hydropower was derived more than 2,000 years ago by the ancient Greeks to run wheels for grinding grain. It is still a reliable, versatile and low cost source to generate clean electricity.
6. Wind Energy: Wind energy is widely used to generate electricity by using wind turbines. These wind turbines collect and convert the kinetic energy from the wind into electricity. Historically, wind power is used for sails, windmills and wind pumps.
Why Renewable Energy is Important:
We are now paying a high price for our reliance on fossil fuels. This type of fuels have impacted the environment from air and water pollution to global warming. Also, fossil fuels are very limited and very dangerous for the environment. It’s our last chance to move toward renewable energy.
Now, Governments also understand the impact of fossil fuels on the environment and are working on its best substitutes. Also, many large sectors are now focusing on renewable energy and starting investing. This process also opens new opportunities in the energy sector. It is the golden opportunity to invest in these companies. We have included some stocks that are worth including in your watchlist.
Evergreen Stocks For Renewable Energy (2022):
Here is the list of top renewable energy companies in India.
1. Adani Green Energy Ltd:
Adani green Energy Limited (AGEL) is an india-based company famed for its famous fortune oil and FMCG products. company also holds large numbers of renewable companies in india. AGEL is led by Vneet Jaain, and runs several power projects in 11 states across India.
2. Borosil Renewables Ltd:
This Company manufactures patterned glass and low iron solar glass for PV (Photovoltaic) panbels. Including a wide range of glassware, Borosil Renewable is the only company that produces solar glass in India.
3. Tata Power:
Tata Power Company limited is a part of the Tata Group. Company involved in diverse sectors including Materials, Engineering, Information Technology and Communications, Energy, Services, Consumer Products and Chemicals.
4. Suzlon Energy:
Founded in 1995, Suzlon is leading renewable energy solution providers with a presence in 17 countries across 6 continents. Suzlon is one of the leading producers of wind turbines.
5. Gas Authority of India Ltd:
GAIL is one of the largest natural gas processing and distribution companies in India. Company owns over 11000 km of natural gas pipeline across India and over 22000 km of LPG pipeline. GAIL generates major revenue from its natural gas distribution.
This article is solely for informational purposes. It is not a stock recommendation and should not be construed as one.