• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Home
  • Clean Energy Stocks
  • Near Future
  • Oil and Gas
  • Solar
  • Wind

Clean Energy Sector

Profiting from the Global Energy Transformation

  • Home
  • Clean Energy Stocks
  • Near Future
  • Oil and Gas
  • Solar
  • Wind

sustainability

My Top Renewable Energy Stock to Buy Right Now

April 16, 2021 By admin Leave a Comment

This company is in position to benefit from the growing global movement toward sustainability and infrastructure improvement.

The recent proposal from President Joe Biden for a $2 trillion infrastructure package highlights the growing focus on renewable energy and sustainability in the United States. But it doesn't stop with the U.S., as sustainability initiatives grow globally from both corporations and governments. Even if Biden's proposed bill fails to pass, there is an unmistakable movement that will continue in the private sector.

One way to take advantage of the trend is to invest in companies that own and operate renewable energy projects. There are several that fit the bill, but Atlantica Sustainable Infrastructure (NASDAQ:AY) looks to be the best value for investors right now. 

The right assets

Atlantica's business is spread among North America; South America; Europe, the Middle East, and Africa (EMEA) region. The company owns renewable energy installed generation capacity, efficient natural-gas-fired generation capacity, electric transmission lines, and water desalination plants. With North America as one of its core geographies, any support in the U.S. for clean energy infrastructure, public or private, will be a potential growth opportunity for Atlantica.

[Alert: New “Tesla Killer” is The Real Deal and Underlying Stock Only Costs a Few Bucks]

Almost 75% of Atlantica's revenue came from its renewables sector in 2020. And 2021 is starting out strong. The company made just over $300 million in equity investments in 2020, but in the first quarter of 2021, it already had agreed to $280 million in new investments, including the third largest geothermal plant in the U.S. 

In 2020, the company grew its cash available for distribution (CAFD) by 5.5%, but it told investors it expects 2021 growth to be 14.5%, based on the midpoint of its guidance range. Looking out to the medium term, management thinks it will grow distributable cash by 5% to 8%, giving investors good reason to expect past dividend growth to continue. 

AY Dividend Chart

AY DIVIDEND DATA BY YCHARTS.

Cheaper than peers

Atlantica has no plans to slow down its growth investments. Looking beyond this year, the company estimates it will make $300 million in new equity investments at least through 2023. A growing percentage is expected to come from a pipeline of new projects in renewables.

[Don't Wait: Bloomberg Projects New “Tesla Killer” to Crack the Sky “1,000 Times Over”]

But the current and future growth hasn't caused the valuation to exceed that of its peers. Based on both price-to-free-cash-flow, and enterprise-value-to-EBITDA, Atlantica is currently a better value than either Brookfield Renewable Partners (NYSE:BEP) or NextEra Energy Partners (NYSE:NEP). Enterprise value (EV) is a better way to look at these companies than market capitalization since EV includes the debt that's used to finance many of their growth investments.

AY Price to Free Cash Flow Chart

AY PRICE-TO-FREE-CASH-FLOW DATA BY YCHARTS.

A solid income play

Atlantica's dividend also yields more than those peers. With a 4.6% dividend yield, investors are locking in a solid source of income, with the chance that a rising stock price could close the gap versus the approximate 3% yield from Brookfield and NextEra Energy Partners. 

Several factors are coming together at once to make Atlantica Sustainable Infrastructure my top renewable energy stock right now. It has the safety of meaningful dividend income, it's sporting a good valuation relative to peers, and it has plans laid out for further growth.

With the United States already growing clean energy infrastructure, and potentially getting support with federal government investments, there's an added catalyst that could support the company's growth for years to come. Taken together, now is a good time for investors to get in.

Howard Smith (TMFBuilt2Last)

[Learn More: Brand New “Tesla Killer” Charges in Minutes Instead of Hours, Silences Doubters]

Read more by Howard Smith at MotleyFool.com

Filed Under: Clean Energy Stocks Tagged With: AY, BEP, infrastructure development, NEP, renewable energy, sustainability

[Revealed]: The Secret Tech That Makes Elon Musk’s Smart City a Reality

April 8, 2021 By admin Leave a Comment

Earlier this year, for the first time ever, New York City’s beloved Empire State Building became a smart-energy skyscraper that is now 100% powered by wind.

Last summer in Chattanooga, city officials completed the installation of its Ultra Smart Streetlight system, created by Global Green Lighting. The system uses a technology called the FlexNet lighting control system to monitor and control 350 energy-efficient LED fixtures along a 35-mile grid. The new system promises to provide a safer environment for residents walking at night while also reducing the city's carbon footprint.

As reported by Mashable, Don Lepard, the president of Global Green Lighting, states:

The lights are programmed to operate at 50% during park hours, then turned up to 100% when the park is closed at 11:00 p.m. Then they are dimmed back down to 50% and turned off after 12:00 p.m..

In Denver, Panasonic is teaming up with city planners to build Peña Station NEXT — “a 400-acre, transit-oriented development destined to become America’s next great smart, sustainable mixed-use community,” according to the project press release.

The press release continues:

Smart city solutions being deployed at Peña Station NEXT will include an innovative solar-plus-storage microgrid, smart LED streetlights with video analytics… community Wi-Fi, electric vehicle charging stations, and autonomous electric shuttles.

In short, the goal is seamless mobility and sustainability.

And the U.S. isn’t the only place where cities and towns are changing. Europe and Asia are making impressive strides in smart-city design as well.

A Global Phenomenon

Amsterdam, the Netherlands' capital city, was one of the earliest adopters of smart-city initiatives. In 2016, the city won the European Capital of Innovation Award. In 2017, the Netherlands ranked third in the Global Innovation Index.

Moreover, London, Milan, Lisbon, Bordeaux, Burgas, and Warsaw are also helping lead the way in smart-city development. The joint Sharing Cities program is a major international smart-cities project that addresses some of the most pressing urban challenges cities face today. This includes energy use, carbon emissions, and data management projects. The fellowship brings together 34 partners from across government, industry, and academia to create harmonious solutions.

Not to be outdone, China has over 200 smart-city projects already in various stages of planning and development. Singapore is another nation investing heavily in smart-city technology.

Most recently, Toyota Motor Corporation announced it has started construction on a 175-acre smart city at the base of Japan's Mount Fuji, roughly 60 miles outside Tokyo.

Toyota’s  “Woven City” is expected to function as a testing ground for technologies like robotics, smart homes, and artificial intelligence. A starting population of about 360 inventors, senior citizens, and young families will test and develop new smart-city technologies. 

Toyota describes the city as a “living laboratory.

The eventual plan is for the city to house a population of more than 2,000 Toyota employees and their families, retired couples, entrepreneurs, and scientists. 

Danish architect Bjarke Ingels, designer of Google's headquarters in California, is tasked with planning the layout of the city. In describing its plans, Toyota states streets in Woven City will be designated for three types of use — one for self-driving vehicles, one for personal transporters like bikes, and one for pedestrians only. To minimize the carbon footprint, homes will be built from wood and use sensor-based AI to monitor for emergencies and the occupants’ general well-being. Construction on the city began last month.

[Revolutionary:  New Battery Tech Expected to Create an Energy Market Surge of 20,300%]

Most importantly, there’s a flood of investment capital moving into this industry and the ones making smart cities happen. And these will offer early movers fantastic returns as smart cities move into the mainstream. 

How to Cash in on the Smart City Trend

According to GlobeNewswire, “The global smart-cities market size is expected to grow from  $410.8 billion in 2020 to $820.7 billion by 2025, at a compound annual growth rate (CAGR) of 14.8%.” 

There are numerous factors driving this growth, such as government initiatives for overpopulation and urbanization, resource management, etc. With the emergence of AI, IoT, 5G, and other technologies, we’re now seeing an uptick in smart-city development across the globe. 

At least $3.7 trillion per year in infrastructure investment will be needed from now until 2035 to support the expected growth of these cities, according to McKinsey data. 

That’s a lot of money to spread around and as you would expect, the world’s leading tech investors are already claiming their stakes in this new, highly profitable space.

Arizona’s Belmont project is controlled by the real estate group Belmont Partners, which in turn is controlled by Bill Gates’ Cascade Investment LLC. 

Coincidence? I think not…

Peter Thiel is also a smart-city investor. The well-known tech visionary is a major backer of the Seasteading Institute, a nonprofit looking to build smart cities in French Polynesia.

And, of course, Elon Musk has his hand in the cookie jar too. 

The eccentric billionaire is already developing a smart city outside of Melbourne, Australia. The new city will feature futuristic homes with rooftop solar systems, battery storage units, and electric charging ports for EVs.

Of course, building our own smart cities for the chance at ridiculous profits like Bill Gates, Peter Thiel, and Elon Musk is out of the question for normal folks like us.

[Breakthrough:  Ride Energy Market From a $250 Billion Niche Into a $51 TRILLION Industry]

But that doesn’t mean we can't still be first movers on this trend and pull in huge gains like they will. 

Behind every new smart city that will ever be created is one underlying technology — and it’s this technology that will allow you to score massive returns on disruptive trends like smart cities.

Kevin Kelly, founding editor of WIRED, predicts:

Whoever dominates [this new technology] will become among the wealthiest and most powerful people and companies in history…

The best part is you can invest in the one technology that makes all this possible right now.

To your wealth,

Sean McCloskey
Editor, Energy and Capital

[This Tech Will Mint More New Millionaires than Crypto, Pot Stocks and FAANG… COMBINED!]

Read more from Sean McCloskey at EnergyCapital.com

Filed Under: Future Tech Tagged With: artificial intelligence, elon musk, smart city, sustainability, Toyota, wind power

Primary Sidebar

Popular Posts

Topics

Advertorial Alex Koyfman Alternative Energy amazon artificial intelligence Batteries Battery BEP BP Charging Stations China clean energy climate change Creative electric vehicle Electric Vehicles elon musk energy storage ETFs ev battery global oil demand Graphene Grid Inflation International Jeff Brown lithium natural gas NIO Nomi Prins Nuclear energy oil and gas renewable energy renewables Russia Solar Supply Chain tesla tsla Ukraine Uranium utilities Whitney Tilson wind power xom

Copyright © 2023 · Clean Energy Sector - Profiting from the Global Energy Transformation

 

Nothing on this website should be considered personalized financial advice. Any investments recommended here in should be made only after consulting with your personal investment advisor and only after performing your own research and due diligence, including reviewing the prospectus or financial statements of the issuer of any security.

 

Clean Energy Sector, its managers, its employees, affiliates and assigns (collectively "The Company") do not make any guarantee or warranty about the advice provided on this website or what is otherwise advertised above.

 

The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. The Company is not affiliated with, nor does it receive compensation from, any specific security.

 

To the maximum extent permitted by law, the Company disclaims any and all liability in the event any information, commentary, analysis, opinions, advice and/or recommendations provided herein prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.

 

About Us | How it Works | Privacy Policy | Terms and Conditions | Contact Us