New Energy Returns Beat Old Energy Bets

Just How Good An Investment Is Renewable Energy? New Study Reveals All

David Vetter, May 28, 2020 (Forbes)

“Renewable energy investments are delivering massively better returns than fossil fuels in the U.S., the U.K. and Europe, but despite this the total volume of investment is still nowhere near that required to mitigate climate change…[An Imperial College London and International Energy Agency analysis over a five- and 10-year period] found renewables investments in Germany and France yielded returns of 178.2% over a five year period, compared with -20.7% for fossil fuel investments. In the U.K., also over five years, investments in green energy generated returns of 75.4% compared to just 8.8% for fossil fuels…

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In the U.S., renewables yielded 200.3% returns versus 97.2% for fossil fuels…Green energy stocks were also less volatile across the board than fossil fuels, with such portfolios holding up well during the turmoil caused by the pandemic, while oil and gas collapsed. Yet in the U.S., which provided the largest data set, the average market cap in the green energy portfolio analyzed came to less than a quarter of the average market cap for the fossil fuel portfolio—$9.89 billion for the hydrocarbons versus $2.42 billion for renewables…[But, despite the chaos in the fossil fuel markets in recent years and months, investors are] finding it hard to let go of hydrocarbons…” click here for more

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