QUICK NEWS, September 3: Green Bonds And The Climate Crisis; Guidance On New Energy Investing
Green Bonds And The Climate Crisis Green Bonds Can Solve Our Climate Crisis
Miriam Tuork, August 28, 2019 (Forbes)
“…[T]he financial services industry still has a lot of work to do to assist in the global effort against climate change…[R]atings firm Moody’s announced that green bond issuance reached an all-time high in the second quarter of 2019. Investors are clearly aware of the challenges that we face from climate change, and green bonds have the power to finance our transition…Investment in renewable energy has increased by 55 percent in the last decade, but has stalled in recent years, even as energy demand has grown…[The first wave of renewable energy was easier to finance because it was in] large projects connected to large utility grids…[Today’s wave of renewable energy is] more distributed across sectors, geographies and industries…[N]ew business models and players are less easy for financial service companies…[Global demand for energy] is expected to grow by 25 percent by 2040.
By midcentury, most of that growth will be driven by developing countries including Africa and South America, but predominantly in Asia…This shift in demand will have a significant impact on our climate…[But] low-carbon investment would need to grow two-and-a-half times by 2030…[Legacy carbon stocks in fixed income in 401(k) and other portfolios must be replaced by] the green bond and investment industry… Globally, utility companies were among the largest issuers of green bonds in 2017 and 2018…[but U.S. utilities with easier access to conventional debt] tend not to be very active issuers…There is significant ‘untapped potential’ in the utility market…[Connecticut Green Bank, Duke Energy, and Dominion Energy have stepped up but] U.S. utilities have the potential to issue at least $250 to $500 billion in green bonds…” click here for more
Guidance On New Energy Investing 3 Top Renewable Energy Stocks to Buy Right Now; These wind and solar power companies seem poised to outperform.
John Bromels, Rich Smith, And Travis Hoium, August 30, 2019 (The Motley Fool)
“…[Since many New Energy] companies are based on emerging technologies or are dependent on economic conditions and public policies that can change rapidly, it can be hard to pick top renewable energy stocks...[As starters, Motley Fool contributors recommended] SunPower (NASDAQ:SPWR), TPI Composites (NASDAQ:TPIC), and TerraForm Power (NASDAQ:TERP)…SunPower's high-efficiency solar panels are perfect for space-constrained home roofs, and that's really the company's bread-and-butter business. Residential solar systems were just 11% of the megawatts of solar panels deployed in the second quarter, but 36% of revenue…Over the next few years, SunPower will be upgrading to a manufacturing process that will make larger solar cells, which will cut its costs to be more in line with commodity-level competition. That should help push gross margins from the 8% last quarter to over 20%...SunPower isn't profitable, but it's heading in that direction, and if current trends continue, it could start turning profits by the end of 2019…
… [Shares of windmill blade-maker TPI Composites crashed hard after its August earnings report, and its stock is] down 30% since the earnings report…[While it expands and retools its manufacturing capacity, it is] trading at an enterprise value of just 0.7 times its $1.2 billion in trailing sales…[But Aaccording to data from S&P Global Market Intelligence, the company has never closed out a quarter with a valuation this low…[While currently unprofitable, analysts predict that by 2022] the company will more than triple its annual EBITDA to nearly $300 million…[and] grow to earn more than $4 a share in just three short years…[TerraForm Power is one of the best yeildcos, currently yielding an annual return of] about 4.6%...[After parent Sun Edison went bankrupt, the well-managed Brookfield Asset Management took over] as TerraForm's majority shareholder and sponsor, and the company has experienced a dramatic turnaround… Management has targeted an annual dividend increase of 5% to 8% a year through 2022, and looks on track to achieve that goal…” click here for more