2 Renewable Energy Stocks to Help Your Portfolio In The Future

The war between Russia and Ukraine sparked a series of cascading events that reverberated loudly around the world. One of the important consequences is a sharp rise in oil prices. A harsh light was cast on Europe’s excessive dependence on Russian fuel and gas, which led to uncertainty about the future of its energy production.

Global governments are already working to stay away from fossil fuels in the coming decades, but these once-in-a-lifetime events have forced faster reflection on the process. Renewable energy companies have seen strong investment as a result.

With that in mind, here are two companies that could benefit from the shift to renewable energy.

NextEnergy Era

NextEra Energy (NYSE: NEE) is currently the world’s largest producer of wind and solar power. It has seen a gain of more than 24% from recent lows in May, massively surpassing the S&P 500 for the same period. The NextEra Foundation is based on its utility arm, with its subsidiary Florida Power & Lights currently the largest regulated electric utility in the United States, serving more than 11 million people.

With this strong revenue stream, the company is rapidly expanding into renewable energy. Currently having 22 gigawatts of renewable energy capacity, the company aims to add up to 30 gigawatts by 2024, more than double the figure already in the industry.

The combination of constant utility and fast-growing new technologies creates high-floor stocks during times of volatility and high ceilings for growth that should leave investors scrambling to add them to their portfolios.

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Power plug

Hydrogen fuel cell manufacturer Plug Power (NASDAQ: PLUG) has seen significant investment in recent months. The surge of more than 11% in the last six months after a year of ups and downs shows the kind of behavior caused by the current geopolitical climate.

Plug Power already has a list of highly reputable organizations within its existing customer base, with Amazon and HomeDepot counted among its customers. The company provides fuel cell solutions to these companies in an effort to reduce their carbon footprint. The company is also making significant efforts to produce green hydrogen, a renewable energy source formed by splitting water.

However, it should be noted that Plug Power has not made a profit. It may be very well positioned to gain benefits and grow as the world moves towards more renewable energy sources, but it is still a highly speculative action that  has a lot to prove.