The ever-growing concern about clean air and pollution arising across the world. These problems are getting wider attention and calling for changes by governments across the world. Most of the Industries started by the use of fossil fuels and that is helping the economy to run. With climate change issues faced across the world, the shift towards more sustainability is in the focus.
There is a push to reform to subsidies the renewable energy sector which might be beneficial for the longer run. This in turn was a huge opportunity for many companies and the value is increasing every year. In this article, we will look at some of the best green energy stocks in India.
Industry Outlook
It is expected that the CAGR from 2024 to 2029 will be 4.94% yearly. As of 2024, India had the world’s fourth-largest installed solar, wind, and renewable energy capacity. Because of economic growth, the power demand is anticipated to exceed 400GW by 2030.
According to the Prime Minister’s COP26 declaration, the Ministry of New and Renewable Energy aims to generate 500 GW of non-fossil-based electricity by 2030. With an additional 13.5 GW of renewable energy capacity installed in 2023, representing an investment of around Rs. 74,000 crores (US$ 8.90 billion). Over the next four years, investment in India’s renewable energy sector is expected to total $80 billion.
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Industry gaining prominence in the recent budget
In the Interim Budget for 2024-2025, the fiscal allocation for solar power grid infrastructure construction increased to Rs. 8,500 crore (US$ 1.02 billion), an increase from Rs. 4,970 crore (US$ 0.60 billion) in 2023-24.
The budget allocation for grid-connected solar projects increased from ₹4,970 crore to ₹10,000 crore. This increase is to support PM Surya Ghar’s Muft Bijli Yojna, a project encouraging people to install rooftop solar panels around the country. This gives them 300 units of free electricity.
One of the specialists in The Institute for Energy Economics and Financial Analysis said on the Budget 2024-25 that, while the Interim Budget allocated Rs 600 crore for green hydrogen programs, the intended use of these funds is unknown.
Why is a transition from fossil fuels to clean energy required?
The Transition is critical in combating the ever-growing challenge of climate change. Reduce and safeguard our environment. When fossil fuels such as coal, oil, and gas are used, they emit toxic gases contributing to global warming and air pollution.
Clean energy sources, such as solar, wind, and hydroelectric power, produce electricity without harmful emissions, making them beneficial for the environment. By transitioning to clean energy, we can cut greenhouse gas emissions, enhance air quality, and develop long-term energy solutions. This transformation is required to protect our planet’s health and create a cleaner, safer environment for everyone.
List and Future Plans Of Green Energy Stocks
K.P Energy
K.P Energy is expanding its Independent Power Producer (IPP) segment, recently commissioning a 1.5 MW solar power project. They are planning to sell green energy to commercial and industrial customers.
They’ve also secured a large new EPC order for 368.55 MW of wind capacity as part of wind-solar hybrid projects in Gujarat, demonstrating their increasing focus on hybrid renewable energy solutions.
KP Energy is expanding its Engineering, Procurement, Construction, and Commissioning (EPCC) business, concentrating on wind and hybrid projects. As they execute more EPCC projects, their O&M services business is expected to grow as well.
With 1,012.65 MW of projects currently in hand, it shows the company’s growth in renewable energy capacity development.
While the company has not mentioned its plans they are getting orders which benefit the company. Their focus looks to be on expanding EPCC services, and growing O&M operations.
KPI Green Energy
KPI Green Energy plans to expand its renewable energy portfolio. It has a secured cumulative capacity of approximately 1.68 GW, which includes its current capacity plus a substantial order book of around 1.23 GW.
The company aims to pursue portfolio growth and build a strong position in solar projects, with a specific focus on large-scale projects. They are also working on geographical diversification to work on renewable energy projects.
KPI Green Energy plans to continue its strategy of maintaining a mix of Independent Power Producer (IPP) and Captive Power Producer (CPP) projects. The company is also focusing on capturing MSME and smaller power projects through its subsidiaries.
To enhance efficiency and performance, KPI Green Energy is investing in technological advancements. They are using bifacial solar panels, single-axis sun trackers, and robotic cleaning systems. They are also introducing SAP for better-centralized project management.
The company emphasizes the timely execution of projects and the strategic acquisition of land within the vicinity of power evacuation substations. Overall, KPI Green Energy’s plans indicate a strong commitment to expanding its renewable energy capacity.
Borosil Renewables
Borosil Renewables is continuing to invest in capex and expand its solar glass manufacturing capabilities, despite current challenges. The company plans to spend over INR 100 crores in capex this year, including INR 20 crores for a solar-wind hybrid project to generate captive power. Borosil plans to invest around Rs. 20 crores for processing equipment upgrades, and Rs. 50-55 crores for rebuilding two furnaces.
While large capacity expansion plans are currently on hold pending improved market conditions, the company is ready to quickly ramp up production when the time is right. They already have infrastructure like land and a batch house in place to support future expansion.
On the product side, Borosil is focusing on innovation and meeting evolving customer needs. They are increasing production of 2mm thin glass, which is expected to comprise 60-65% of their portfolio from 20-25% currently by year-end. They’ve also introduced large-format glass for bigger solar modules, now making up 90% of customer demand. Other innovative products include anti-glare glass for use near airports.
The company is exploring the possibility of backward integration into solar module manufacturing, though this is still in the early discussion stages. They are also petitioning the government to include solar glass in domestic content requirements for solar projects. Overall, Borosil aims to strengthen its position in solar glass manufacturing.
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Waaree Renewables Technologies
Waaree Renewables Technologies plans to execute between 1.8 to 2 gigawatts of solar projects. The plan is over the next 12-18 months from its current unexecuted order book of 2.3 gigawatts.
Waaree is actively pursuing new opportunities, with a current pipeline of 13 gigawatts of potential projects. It is chasing across 26-27 customers. The company typically has a 25-30% strike rate in converting pipeline opportunities to firm orders.
In terms of market segments, Waaree plans to focus on both utility-scale independent power producers as well as public sector undertakings (PSUs). The company sees opportunities emerging in green hydrogen production.
For rooftop solar, Waaree is putting structures in place to capitalize on opportunities in projects below 5 megawatts. The company also has around 900 megawatts of potential operations and maintenance (O&M) contracts from its existing EPC projects.
Overall, Waaree is looking to position itself to participate in India’s ambitious renewable energy targets, which include reaching 500 gigawatts of renewable capacity by 2030.
Suzlon Energy
Suzlon Energy is actively working to enhance its operational processes and governance structures to keep pace with increasing business demands. This includes improving transparency, strengthening board-level processes, and upgrading IT systems for greater data accuracy.
Looking ahead, Suzlon has outlined a business plan for fiscal year 2025, suggesting a clear roadmap for future developments. While specific renewable energy projects or targets were not disclosed, the overall tone of management comments indicates optimism about the company’s prospects in the sector.
Recent corporate actions, such as the merger of a wholly-owned subsidiary with the parent company, point to ongoing efforts to streamline operations and improve efficiency.
Management also emphasized their availability and commitment to addressing investor concerns, highlighting an open communication approach. While immediate plans for dividends were not confirmed, the possibility was not ruled out for the future, pending the achievement of business objectives.
List of some of the Green Stocks in India
Here is a list of some of the list of green energy stocks.
Conclusion
As we near the conclusion of the article, we looked into some of the stocks of Green energy stocks in India. We looked into some of the plans of green energy stocks, there is a trend of growth and optimism around the Industry. Going carbon neutral is of the utmost importance. In a way, India which is more dependent on Fossil Fuel imports like Oil, Coal, and Natural gas, increasing renewable energy can keep the pressure off the imports.
This can save a lot of funds for imports and thus can improve the current account deficit for the country in the long run. There should be a monumental shift in the renewable space to offset climate change and a way to self-sustainability. What do you think about the Industry’s outlook? Can more companies join this opportunity to create competition? Let us know your views in the comments section below.
Written by Santhosh
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