Top Renewable Energy Stocks to Watch in 2025

Renewable energy stocks in brief

The world has a problem. Energy demand continues to rise each year with a growing population — there were one billion humans on Earth in 1804, and over eight billion today — and the vast majority of energy used comes from burning fossil fuels including oil, coal and gas.

The Intergovernmental Panel on Climate Change considers that we can only burn at most between 20% and 30% of the remaining fossil fuel reserves to make sure we don’t hit the ‘catastrophic’ two degree upper limit — and the consensus seems to be that oil will run out by 2052 regardless, with gas following in 2060 and coal lasting perhaps until the end of the century.

Billions of dollars are now being poured into renewable infrastructure and technology — solar, wind, hydro, biomass and geothermal. There’s also significant capital investment into nuclear, though as this requires the use of uranium, it can only be classified as a low carbon energy source as uranium will also eventually run out.

Solar energy uses photovoltaic cells or solar thermal systems to convert sunlight into usable electricity, while wind energy relies on turbines. Hydropower generates electricity from flowing water, while geothermal energy uses heat from beneath the Earth’s surface. Meanwhile, biomass produces energy from organic materials like plants and waste.

The sector is growing rapidly, particularly as costs fall and technology advances — while governments continue to use legislation to bring renewable targets forward and incentivise change. Perhaps cynically, some consider that governments are more interested in the enhanced energy security by diversifying energy sources, and reduced reliance on imported fuel.

Many analysts consider that the majority of the world’s energy supply will come from renewable resources by 2050 — and if nothing else, renewables are a major contributor to economic development, creating millions of jobs worldwide in manufacturing, installation and maintenance.

Of course, there are always going to be detractors. Critics point out that renewables are still less reliable than fossil fuels, and that current infrastructure is nowhere close to being able to replace non-renewable sources today. There are also concerns over the initial environmental costs of building and installing renewable infrastructure, which can create a carbon debt that takes years to pay back.

However, most believe this is the future, and as fossil fuels deplete, current choices may become future mandates — especially as more of the world demands first world living conditions and artificial intelligence energy demand surges.

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