SPECIAL REPORT The Top 7 Stocks for 2024

3 Energy Stocks That Are Leading the Way in Renewable Energy Innovation


  • Renewable energy innovations house a lot of interesting stocks and companies. 
  • TPI Composites (TPIC): The wind turbine blade manufacturer is an interesting investment. 
  • Ocean Power Technologies (OPTT): PowerBuoy brand buoys capture the power of waves and serve as communication beacons.
  • NextEra Energy (NEE): NEE stock is innovative in the way the business is set up among other things. 
energy stocks that are leading in renewable energy innovation - 3 Energy Stocks That Are Leading the Way in Renewable Energy Innovation

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The push toward renewable energy and away from fossil fuel energy continues over concerns about the environment. Companies with and without stocks are creating innovations to address that transition. So, we’re looking at three hot energy stocks that are leading in renewable energy innovation today.

Electricity from renewable sources surpassed coal in 2022 for the first time ever. It passed nuclear energy in 2021. That growth provides fertile ground for innovation to flourish moving forward. Companies developing novel methods of renewable energy generation can rest assured that demand will be strong. Investment in fuel sources including the sun, wind, moving water, and the earth’s heat has a bright future thus renewable stocks are set to remain viable as investments.

TPIC TPI Composites $8.72
OPTT Ocean Power Technologies $0.50
NEE NextEra Energy $76.10

TPI Composites (TPIC) 

A wind turbine appears in silhouette against a bright orange and blue sky.
Source: Khanthachai C / Shutterstock.com

One of the energy stocks that are leading in renewable energy innovation is TPI Composites (NASDAQ:TPIC), which manufactures and sells the massive blades that make up a wind turbine. And TPI Composites sells a lot of those blades. 38% of all onshore blades globally in 2022 excluding China to be exact. 

The company recently announced first-quarter results with strong growth overall. TPI Composites made $404 million in revenues, up 17.6% on a year-over-year basis. That said, losses deepened as costs increased amounting to $37.3 million. That was up from the $29.9 million loss a year ago. 

Readers might be interested to understand what that looks like in terms of raw production. In the first quarter, the company manufactured 655 3-blade sets compared to 547 a year earlier. That required 37 dedicated manufacturing lines. 

That equates to 17 blade sets per factory over a quarter. That’s roughly a single blade set per factory every 5 days. That’s almost 3,000 megawatts of energy production which could power at least 1.2 million homes for a year

Ocean Power Technologies (OPTT) 

A photograph of the ocean.
Source: Manu Galdamez/ShutterStock.com

Ocean Power Technologies (NYSEAMERICAN:OPTT) is a stock related to tidal power or the power harnessed from the kinetic energy in waves. It sells buoys that are designed to capture and store that energy under its PowerBuoy brand. 

The PowerBuoy platform also serves to provide real-time data communications for remote maritime and subsea applications. It is one of the very few publicly-traded firms engaged in tidal energy production. Fortunately, it’s also performing pretty well. Revenues increased by 51% in the first quarter, reaching $734,000. Sales increased by 75% in the 9 months that ended Jan. 31, totaling $1.752 million. Still, OPTT stock may be one to avoid for the simple fact that losses far exceed revenues. 

The PowerBuoy system is an uninterruptible power supply that harvests wave energy thereby recharging itself constantly. It is moored at the point of use and works in water between 20 meters to 3 km. Ocean Power Technologies sells into multiple industries including defense, energy, offshore wind, and research. 

NextEra Energy (NEE) 

Person holding the glowing world in their hands with icons with different types of energy. Energy stocks; energy storage
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NextEra Energy (NYSE:NEE) is leading the way in renewable energy innovation in ways that are slightly different from the firms listed above. NEE stock offers a unique blend of attributes that make it a powerful investment. That is the innovation we’ll be discussing. 

What I mean is simple. NextEra Energy comprises Florida Power & Light and NextEra Energy Resources. FPL is the largest utility firm in the U.S. while NEER is the largest generator of energy from solar and wind sources. That unique blend of scale across both of its business lines and diversity makes NEE stock something of an innovator. It’s simultaneously a steady, reliable firm due to its utility business while also rife with growth potential due to its renewables business. The shares also include a dividend that hasn’t been reduced since 1995 which is a common feature among utilities stocks. It is innovative in both the scale of its renewable operations and the uniqueness it offers as an investment. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/3-energy-stocks-that-are-leading-the-way-in-renewable-energy-innovation/.

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