The best renewable energy stock to buy

The current energy price crisis has only strengthened the case of renewable energy. Prices of gas, oil and coal around the world have exploded in the last few months as countries have tried to outpace each other in order to gain access to a limited supply of these resources.

The UK is not as suffering as China and India, which rely heavily on coal-fired power plants to produce electricity. Both of these countries must have distribution rights to control the situation.

Here in the UK, large investments in renewable energies such as wind help isolate the market from the worst.

As a result, governments and businesses around the world may seek to accelerate investment in renewable energy over the next few years in order to increase energy independence. With that in mind, the following organizations I believe are the best renewable energy stocks to buy now to take advantage of this trend:

Renewable energy stock for growth

We want to buy companies at every stage of the green energy value chain, not just focusing on the wind and solar businesses.

For this XP Power, Manufactures transformers and power converters. As the world moves away from hydrocarbon energy, trillions of dollars need to be invested in the development of the world’s power grid. Companies like XP play an integral role in this.

The group has already reported an increase in demand from Renewable energy customers, And I think this trend will continue. However, we do not have the exclusive right to manufacture all transformers in the world. Therefore, competition is an important issue.

Growing power grids need copper, and with that in mind, I buy Antofagasta.. As one of the largest copper mine workers in the world, this organization is one of the best ways to bet on rising copper prices.

However, companies are not suitable for all investors. Commodity prices can fluctuate significantly, and mining groups tend to have inadequate ESG certification.

Green energy

In addition to the company profile above, I also buy renewable energy stocks SSE When Green coat style For my portfolio. These are renewable energy producers and are some of the largest green energy producers listed on the London market.

Both have significant growth plans, with SSE investing billions of dollars over the next few years. Renewable energy generation.. Meanwhile, Greencoat is constantly looking for new wind farms to add to its broad portfolio. As the renewable energy sector is flooded with cash, the group will continue to find deals.

Challenges that these companies may face include competing for renewable energy assets as more money flows into the sector. This can push up buyers’ prices and reduce returns. It will ultimately affect investor returns.

Rupert Hargreaves does not have a position in any of the listed shares. Motley Fool UK recommends Greencoat UK Wind and XP Power. The views expressed about the companies mentioned in this article are those of the author and may differ from the official recommendations made by subscription services such as Share Advisor, Hidden Winners, and Pro. Here at The Motley Fool, by exploring different insights, Better investors than us.