Investing in Wind Energy Stocks

Roberto Rivero

In order to reach net-zero carbon emissions by 2050, the world needs to see an increasing amount of energy produced by renewable energy sources, such as solar and wind energy. That being the case, does it make sense to invest in wind energy companies in 2024?

In this article, we will explore the prospect of investing in wind energy and highlight 2 of the best wind energy stocks to watch in 2024!

Why Invest in Wind Energy?

As we wrote in the introduction, in order to meet net-zero carbon emissions by 2050, countries across the world are going to have to invest heavily in renewable energy over the next few decades. This transition is likely to take a lot of time and a lot of money.

Consequently, the proportion of global energy produced from renewables, including wind, is likely to increase over the coming years. Indeed, according to the International Energy Agency (IEA), renewables will become the largest source of global electricity generation by 2025. In particular, electricity from wind power is forecast to double by 2027.

Wind energy companies, therefore, stand to potentially benefit from this forecast increase in investment. However, slowing global economic growth and the possibility of changing government policy are just two factors which could potentially harm the industry.

Furthermore, just because the industry stands to benefit in the long run, that does not mean that every wind energy company will be successful. Therefore, it is important for those considering investing in wind energy stocks to conduct their own research.

The Best Wind Energy Stocks to Watch

Although it still accounts for a relatively small amount of global energy supply, there are a number of wind energy companies which operate in this industry, but which are the best wind energy stocks to buy?

When looking for the best wind energy companies, it is important to bear in mind that what stock is the “best” is subjective and will depend on your investing style and goals. However, in the following sections, we will look at 2 top wind energy stocks for investors to watch in 2024.

Top Wind Energy Stocks to Watch
Vestas Wind Systems
NextEra Energy

Vestas Wind Systems

In terms of pure play wind energy stocks, there is actually not a vast amount of choice for those considering investing in wind power. Danish company Vestas Wind Systems is one of the few and is one of the world’s leading companies in wind energy.

Vestas develops, builds, installs and services wind turbines. It has installed turbines in 88 countries around the world, with a combined capacity of more than 169 GW. To put that number into context, at the end of 2022, total worldwide wind capacity was 906 GW. As these figures demonstrate, Vestas is one of the most important and largest wind energy companies in the world.

Vestas does not solely rely on revenue generated from installing wind turbines, but also generates revenue from servicing its turbines post-installation on a contractual basis. Of the 169 GW wind capacity that the company has installed, it currently services around 149 GW. In the full year 2022, these servicing contracts accounted for almost 22% of the company’s total revenue.

 

NextEra Energy

As mentioned in the previous section, there are not many wind energy companies which focus solely on wind power.

Therefore, those wanting to invest in wind energy may have to consider more diversified wind energy stocks which operate on multiple fronts. In fact, although this may mean compromising on your level of exposure to the wind power industry, the diversification it offers can help with risk management.

NextEra Energy is not only one of the top US wind energy companies, but also a leader in solar energy and battery storage. It owns more than 9,800 wind turbines across 119 wind farms throughout the US and Canada, operating a total generating capacity of around 23 GW.

Investing in NextEra not only provide exposure to additional sources of renewable energy, but, as it is a dividend stock, it can also provide investors with an additional source of income. At the time of writing, this wind energy dividend stock has a yield of 3.4%.

What might not sit well with investors is that NextEra Energy still produces much of its electricity from fossil fuels. However, the company has set out plans for “real zero” by no later than 2045.

Under these plans, the company’s energy production would come solely from non-carbon emitting sources by 2045. Nevertheless, until this date, NextEra plans to continue to use fossil fuels which, understandably, may deter investors seeking exposure exclusively to renewable energy stocks.

Depicted: Admirals MetaTrader 5NextEra Energy Weekly Chart. Date Range: 2 April 2017 - 17 October 2023. Date Captured: 17 October 2023. Past performance is not a reliable indicator of future results.

How to Invest in Wind Energy Stocks

For those looking to invest in wind energy, with an Invest.MT5 account from Admirals, the process is simple! Follow these 4 steps to learn how to invest in wind energy stocks:

  • Open an Invest.MT5 account with Admirals and log in to the Dashboard
  • Find your account in the Dashboard and click ‘Invest’ to open the MetaTrader Web Trading Platform
  • Search for the desired wind energy stock and click the symbol to open a price chart
  • Click ‘Create New Order’, enter the number of wind energy shares you want to buy and press ‘Buy’ to send your order to the market!
Depicted: Admirals MetaTrader WebTrader – Vestas Wind Energy H1 Chart. Date Captured: 18 October 2023. Past performance is not a reliable indicator of future results.

Investing in Wind Energy with Admirals

With an Invest.MT5 account from Admirals, you can buy shares in both the wind energy stocks highlighted in this article, over 4,500 other stocks and more than 200 Exchange-Traded Funds (ETFs)! Click the banner below to open an account today:

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Investing in Wind Energy – FAQ

Can You Invest in Wind Energy?

Yes, it is possible to gain exposure to the wind energy industry by buying shares in wind energy companies or wind energy ETFs.

Who Is the Largest Producer of Wind Energy in the US?

Texas is the state which produces the most wind energy in the US.

Who Is the Largest Supplier of Wind Turbines?

Vestas Wind is the largest producer, installer and servicer of wind turbines in the world.

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INFORMATION ABOUT ANALYTICAL MATERIALS:  

The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the websites of Admirals investment firms operating under the Admirals trademark (hereinafter “Admirals”) Before making any investment decisions please pay close attention to the following:  

  • This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
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  • With view to protecting the interests of our clients and the objectivity of the Analysis, Admirals has established relevant internal procedures for prevention and management of conflicts of interest.
  • The Analysis is prepared by an independent analyst Roberto Rivero, Freelance Contributor (hereinafter "Author") based on personal estimations.
  • Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admirals does not guarantee the accuracy or completeness of any information contained within the Analysis.
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