Increasing spending on green infrastructure development worldwide to address climate change concerns should keep driving the renewable energy industry’s growth. However, some players in this space are not well-positioned to capitalize on the tailwinds due to their unstable financials and increasing competition. As such, we believe investors are better off avoiding Brookfield Renewable (BEP), Sunnova Energy (NOVA), and VivoPower (VVPR), which all have bleak growth prospects. Read on.As countries around the globe increasingly pursue decarbonization plans and facilitate the deployment of electric vehicles (EVs), the renewable energy industry is expected to witness unprecedented demand. According to the Global Energy Review 2021, renewable electricity generation is expected to expand by more than 8% to 8300 TWh this year, representing the sector’s fastest year-over-year growth since the 1970s.
Favorable government policies and the declining costs of renewable technologies are expected to drive the renewable energy market further. The global renewable energy market is expected to reach $1.9 trillion by 2026, achieving an 8.3% CAGR from 2021. However, while many renewable energy players are capitalizing on the industry tailwinds, some are struggling due to intense competition for market share.
So, we think It could be wise to avoid renewable energy stocks Brookfield Renewable Partners L.P. (NYSE:BEP), Sunnova Energy International Inc . (NYSE:NOVA), and VivoPower International PLC (VVPR) because of their weak financials and bleak growth prospects.