// INDUSTRY UNLOCKED //
RENEWABLE ENERGY SECTOR IS DOWN , BUT NOT OUT
The renewable energy sector has taken a hit during the past few years , with high valuations , interest rate hikes and a surge in production and material inflation . This has resulted in lacklustre results from notable energy pioneers . But Jakob Westh Christensen , Market Analyst at eToro , believes this is about to change . He explores how the sector ’ s profitability is set to recover .
HE PAST YEARS have
T presented challenges for renewable energy investors . The iShares Global Clean Energy ETF , which includes around 100 renewable energy stocks , is down approximately 33 % since the start of 2023 .
As recently as August , we got lacklustre results from two renewable energy pioneers , the leading wind turbine manufacturer , Vestas , and the global green energy provider , Orsted . Vestas had a loss for the quarter and had to downgrade its guidance for 2024 , giving more momentum to the stock ’ s 23 % decline this year . Meanwhile , Orsted could announce additional write-downs , including losses on a major 700MW offshore wind power farm on the coast of Connecticut and Rhode Island due to project delays caused by an
//
HOWEVER , RENEWABLE ENERGY IS DOWN , NOT OUT . THINGS ARE ABOUT TO CHANGE , AND THE SECTOR COULD FINALLY START SEEING SOME TAILWIND .
Intelligent SME . tech
37