Can the Renewable Energy sector be a good choice for investment?

2 mins read
by Angel One

India’s energy consumption has more than doubled since 2000 and will continue to rise in the coming years, propelled by a growing population and growing economy. The energy demand cannot be met by fossil fuels as they cannot be exploited after the exhaustion of availability. Also, the rising concerns of global warming and climate change have made the world turn towards exploration of clean energy. All these factors have made renewable energy an inevitable choice for the future. Let us take a look into how the renewable energy sector is performing now, what are the future prospects so that you can decide if it makes a good investment choice.

What is renewable energy?

As the name suggests, renewable energy is energy that is collected from renewable resources that are naturally replenished on a human timescale.

The five major renewable energy resources are,

Investments so far in Renewable Energy in India


source: Reports of EY, BNEF, REN21, DPIIT, Govt. Of India

India’s Renewable Energy Goals

source: Invest India

RE Growth Drivers


source: Invest India

Budget-2022 Renewable Energy Announcements

source: Invest India

India’s Key Players in Renewable Energy Sector

  • Tata Power
  • Adani Green Energy Limited
  • JSW Energy
  • Sterling & Wilson
  • InoxWind
  • L&T
  • Reliance Industries
  • Borosil Renewables
  • Websol Energy Systems
  • ReNew Powers
  • Suzlon Energy, etc.

Renewable energy is visibly rising and the financials are flowing into the sector. The limitation around fossil fuels and the global demand for mitigation of global warming is pushing governments around the world to opt for clean energy resources. The financial inflows towards clean energy supported by technological advancements coil make the sector one of the hottest regions in the stock market in the next decade.

Along with green energy, the other sector that is witnessing an advancement due to the same reasons around fossil fuel is Electric Vehicles. To know if EVs make a good investment choice, read here.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.