The energy sector has been one of the hardest hit by the Covid-19 pandemic, mostly due to widespread lockdowns and the resultant collapse in fuel demand. However, one corner of the energy market has actually been thriving: Clean energy. The sector’s favorite benchmark, iShares Global Clean Energy ETF (ICLN), has returned 124% YTD vs. 24% by the S&P 500. Those impressive returns appear well-deserved, though.
The International Energy Agency’s (IEA) 2020 Outlook points to the highest-ever share of newly built generation capacity for renewables. According to the energy watchdog, 200 gigawatts of renewable power have been added in the current year, with renewables expected to account for 95% of the net increase in global power capacity through 2025. The agency has projected that installed wind and solar capacity will surpass natural gas and coal in 2023 and 2024, respectively.
That said, one renewable energy entity has been on a winning streak that stretches back long before Covid-19 reared its ugly head: NextEra Energy Inc. (NYSE:NEE).
Click here to read the full article.
Source: Oil Price
