Is Now the Time to Invest in Renewable Energy Stocks?

The energy industry had a tumultuous year in 2020. The pandemic led to lower global energy demand as policies to stem the spread of COVID-19 restricted travel and throttled economies. But it also highlighted the growing role renewable energy will play in the future.

Relative to 2019, energy demand in 2020 declined for all forms of generating capacity except renewables. Coal, gas, nuclear, and oil demand decreased between 3% and 9%, while demand for renewables actually ticked up by almost 1%, according to the International Energy Agency (IEA). Investors can benefit by looking into owners and operators of renewable generation capacity like Brookfield Renewable Partners (NYSE: BEP), NextEra Energy Partners (NYSE: NEP), or Atlantica Sustainable Infrastructure (NASDAQ: AY). There should also be significant growth in solar and hydrogen power, where companies including Enphase Energy (NASDAQ: ENPH) and Plug Power (NASDAQ: PLUG) participate.