Why This Renewable Energy Stock Doubled in 2020

Renewable energy stock TPI Composites (NASDAQ: TPIC) has made a lot of investors happy in 2020. The stock has more than doubled this year, and its move comes down to a lot more than just investor interest in wind energy and/or speculation over a U.S. policy shift with regard to renewable energy. Simply put, there's evidence to suggest a favorable structural shift in the industry for TPI. Here's what happened and why.

First, some background on TPI. The company is the largest independent manufacturer of composite wind blades for the wind energy market. While the blades are the most prominent part of a wind turbine, they only contribute 22% of total installed turbine costs. As such, wind turbine manufacturers can focus on generating margin on the non-blade components like turbines, while still outsourcing blade manufacturing to TPI.

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Source Fool.com