Renewable energy stocks jump up to 500% in 1 year; what's fuelling this rise? What should you buy from the sector?
KPI Green Energy, have surged 450-500 per cent over the last year. Some others, such as SRM Energy, SJVN, JP Power Ventures and Adani Power have jumped 200-350 per cent in the same period. There are over 15 stocks in the renewable energy space that have jumped more than 100 per cent in the last one year.
Renewable energy as a sector is witnessing strong tailwinds. As the world is moving full throttle towards the goal of zero carbon emissions, so is India. India has set an ambitious goal of having 50 per cent of its electricity generation from non-fossil fuels by 2030.
By 2070, India wants to achieve the goal of 'net zero' and for that, it has drawn up plans to aggressively focus on clean energy. Strong government support for decarbonisation strategy goals is an important factor that has raised investors' interest in the sector. Sehul Bhatt, Director– Research, CRISIL Market Intelligence and Analytics, pointed out that the government has provided direct capital subsidies (especially for solar rooftop, storage and hydro), created dedicated nodal agencies (such as Solar Energy Corporation of India, Indian Renewable Energy Development Agency, Power Finance Corporation, REC and International Solar Alliance) and added solar supply chain to Production Linked Incentive (PLI) scheme.
The government has also taken proactive measures to solve the challenges the sector is facing. The government’s continuous monitoring of the sector and measures taken to establish the required infrastructure (40 GW solar park initiative, 500 GW RE integration, Green Energy Corridor) indicate the criticality of the sector, Bhatt said. Experts are positive about the renewable energy space for the long term.
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