Wind Energy In India: Investment Opportunities And Strategies

India is at the forefront of the global shift towards sustainable solutions for energy. The country has set ambitious goals to generate 50% of its electricity from non-fossil fuels by 2030 and achieve net-zero emissions by 2070. To meet these targets, India is prioritising clean energy initiatives and has witnessed a significant rise in the renewable energy sector, with over 15 Indian renewable energy stocks surging over 100% in the past year.

The Indian government's long-term plans include reaching a non-fossil energy capacity of 500 GW and meeting 50% of energy requirements from renewable sources by 2030. In the Interim Budget 2024-2025, the government allocated Rs. 10,000 crore for a grid-based solar power scheme and slightly raised wind power funding to Rs. 930 crore.

India's renewable energy sector is experiencing rapid growth, with its renewable electricity capacity expanding faster than any other major economy. The country has already surpassed its COP21 commitment by achieving over 40% of its power capacity from non-fossil sources.

With India's push towards renewable energy, there are numerous investment opportunities in wind energy. India ranks 4th in Wind Power Capacity globally, and wind energy stocks have gained attention due to the increasing importance of renewable energy sources.

Some of the top wind energy companies in India include:

- Suzlon Energy Limited

- Inox Wind Limited

- Orient Green Power Limited

- Enercon India Pvt Limited

- Gamesa Wind Turbines Private Limited

Clean energy stocks

India is at the forefront of the shift to green energy, with ambitious goals to generate 50% of its electricity from non-fossil fuels by 2030 and achieve net-zero emissions by 2070. The country's renewable energy sector has experienced significant growth, with many Indian companies embracing clean energy initiatives.

Adani Green Energy Ltd

Adani Green Energy Ltd is a major player in India's renewable energy sector, focusing on solar and wind energy production. It has become one of the largest renewable energy companies globally. As of October 29, 2024, Adani Green Energy Ltd had a market capitalization of Rs. 259,005.15 crore, with a stock price of Rs. 1,635.10. The company's PE ratio stood at 235.46, and its 5-year average return on investment was 6.64%.

KPI Green Energy Ltd

KPI Green Energy Ltd operates as a solar energy producer, developing and selling solar power to industries. It plays a crucial role in advancing solar energy infrastructure in India. As of October 29, 2024, KPI Green Energy Ltd had a market capitalization of Rs. 9,519.00 crore, with a stock price of Rs. 725.20. The company's PE ratio was 58.88, and its 5-year average return on investment stood at 11.99%.

Premier Energies Ltd

Premier Energies Ltd is a leader in the renewable energy space, specializing in manufacturing solar PV cells and modules. The company is crucial in supporting India's transition to solar power by supplying critical solar components. As of October 29, 2024, Premier Energies Ltd had a market capitalization of Rs. 42,572.07 crore and a stock price of Rs. 952.75. Its PE ratio stood at 184.02, while its 5-year average return on investment was 9.31%.

BF Utilities Ltd

BF Utilities Ltd focuses on generating renewable energy, primarily through wind energy farms. It has been pivotal in harnessing wind power for electricity generation, contributing to India's sustainable energy goals. As of October 29, 2024, BF Utilities Ltd had a market capitalization of Rs. 3,067.65 crore, and a stock price of Rs. 814.40. The company had a PE ratio of 304.03 and delivered a 5-year average return on investment of 14.26%.

K.P. Energy Ltd

K.P. Energy Ltd is engaged in the development, construction, and operation of wind energy projects in India. The company facilitates the nation's shift to renewable energy by establishing wind farms and offering project management services. As of October 29, 2024, K.P. Energy Ltd had a market capitalization of Rs. 3,592.92 crore, with a green energy share price of Rs. 538.75. The company's PE ratio stands at 61.26, and its 5-year average return on investment is 19.94%.

SJVN Ltd

SJVN Ltd is a public sector entity involved in hydroelectric power generation. In recent years, it has diversified into solar and wind energy projects, reinforcing India's renewable energy initiatives. As of October 29, 2024, SJVN Ltd had a market capitalization of Rs. 43,699.32 crore, with a stock price of Rs. 111.20. The company's PE ratio was 47.95, and its 5-year average return on investment was 8.25%.

Orient Green Power Company Ltd

Orient Green Power Company Ltd focuses on generating electricity through renewable sources, such as wind and biomass energy. The company is key to helping India move towards cleaner, renewable energy alternatives. As of October 29, 2024, Orient Green Power Company Ltd had a market capitalization of Rs. 2,165.42 crore and a stock price of Rs. 18.46. Its PE ratio was 56.39, with a 5-year average return on investment of 7.97%.

WAA Solar Ltd

WAA Solar Ltd develops solar power projects in India, focusing on solar photovoltaic projects. As of October 29, 2024, WAA Solar Ltd had a market capitalization of Rs. 161.06 crore and a stock price of Rs. 121.40. The company's PE ratio was 24.29, and its 5-year average return on investment was 6.48%.

Energy Development Company Ltd

Energy Development Company Ltd operates hydroelectric power plants and engages in renewable energy production. The company provides sustainable energy solutions within India's hydropower sector. As of October 29, 2024, Energy Development Company Ltd had a market capitalization of Rs. 106.35 crore and a stock price of Rs. 22.39. Its PE ratio was -49.24, with a 5-year average return on investment of 6.34%.

Northland Power Inc.

Northland Power Inc. is a Canada-based company with wind power facilities worldwide, including in Europe, Asia, and North America. Along with wind power, the company also owns various plants producing energy through solar power and natural gas.

Vestas Wind Systems

Vestas Wind Systems is a Denmark-based windmill manufacturing company that constructs, designs, and installs wind turbines to generate electricity.

TPI Composites, Inc.

TPI Composites Inc is a global company that produces and supplies composite wind turbine blades to the wind power industry. The company has a presence in China, Mexico, India, and the US. In the past year, TPI Composites Inc has experienced a significant increase in operating income and sales.

Solar energy stocks

India has set ambitious targets for renewable energy, aiming to generate half of its electricity from non-fossil fuel sources by 2030 and achieve net-zero emissions by 2070. The country has seen significant growth in its solar energy sector in recent years, and its solar energy industry is expected to reach approximately USD 238 billion by 2030.

• Adani Green Energy Limited: Adani Green Energy is one of the largest solar power companies in India and operates the Kamuthi Solar Power Project, one of the world's largest solar photovoltaic plants. As of September 2024, the company had a market capitalization of Rs. 310,937.66 crore, and its share price closed at Rs. 1962.95.
• NTPC Limited: NTPC is India's largest power-generating company, with an installed capacity of 75,418 MW. It generates electricity from various sources, including coal, gas, liquid fuel, and renewable sources. NTPC aims to become a 130 GW company by 2032.
• National Hydroelectric Power Corporation (NHPC) Limited: NHPC is one of India's largest hydropower-generating companies, with an installed capacity of around 7,097 MW. In addition to hydropower, NHPC also deals with wind and solar energy projects.
• JSW Energy Limited: JSW Energy is an integrated power company involved in generating, transmitting, and trading electricity. It has a capacity of around 6,677 MW, including thermal power, hydropower, wind power, and solar power.
• Waa Solar Company: Waa Solar is engaged in solar power generation by setting up solar power projects and investing in special purpose vehicles.
• WEBSOL ENERGY SYSTEM LTD: Websol is a leading manufacturer of photovoltaic crystalline solar cells and modules in India.
• Synergy Green Industries Ltd: Synergy Green Industries is another company in the solar energy sector.
• Ujaas Energy Limited: Ujaas Energy was the first company to generate and sell Solar REC in India from its solar power plant. The company has been in the engineering field for more than three decades.
• Surana Solar Limited: Surana Solar manufactures Solar Energy Systems, focusing on Solar Photovoltaic PV Modules.

Other notable solar energy companies in India include:

• Solar Industries India Ltd.
• Gita Renewable Energy Ltd
• Urja Global Ltd
• XL Energy Ltd
• Tata Power Solar Ltd
• Suzlon Energy Ltd
• Indosolar

Wind energy stocks

India's green energy sector is rapidly expanding, with the country aiming to generate half of its electricity from non-fossil fuel sources by 2030 and achieve net-zero emissions by 2070. This has led to a significant growth in the Indian renewable energy market, with many companies embracing clean energy initiatives.

• Inox Wind Limited: A major manufacturer of wind turbine engines, providing complete solutions for wind power projects. Inox Wind has a strong presence in the Indian market and is expanding globally.
• Suzlon Energy Limited: A world leader in the wind energy business, manufacturing wind blades and providing end-to-end solutions for wind farm development and operation. Suzlon has a strong domestic and international presence and invests heavily in R&D.
• Orient Green Power Company Limited: A major green energy company in India, focusing on wind and biomass power generation. Orient Green Power has a significant presence across multiple states and is committed to sustainable practices, adopting new technologies to improve efficiency.
• Adani Green Energy Limited: Part of the Adani Group, Adani Green Energy possesses a diverse portfolio of solar and wind power projects. The company has set ambitious targets for green energy production and is well-positioned to meet the growing demand for clean energy in India.
• Waaree Energies Limited: A leading manufacturer of solar photovoltaic panels, providing solar power solutions. Waaree Energies has a strong domestic market position and is expanding globally through strategic partnerships. The company prioritises R&D to develop cost-effective solar solutions.
• KPI Green Energy Limited: A solar energy producer, developing and selling solar power to industries. KPI Green Energy contributes significantly to India's solar energy infrastructure and aligns with the country's sustainability targets.
• BF Utilities Ltd: A small-cap wind energy company, generating electricity through windmills and also involved in infrastructure projects. BF Utilities has shown positive signs of profitability, with a return on equity (ROE) of 42.55% and a net profit margin of 28.35%.
• KP Energy Ltd: A key provider of balance of plant (BoP) solutions for wind energy projects in Gujarat, offering EPC, operation and maintenance, and asset management services. KP Energy has a successful track record of over 1 GW of wind energy projects.
• SJVN Ltd: A government-owned renewable energy company, initially focused on hydropower but has diversified into wind and solar power generation. SJVN has a growing portfolio in renewable energy sources.
• Premier Energies Ltd: A leader in the renewable energy space, specialising in manufacturing solar PV cells and modules. Premier Energies plays a crucial role in supporting India's transition to solar power by supplying critical components.

These companies offer a range of investment opportunities in the wind energy sector, from manufacturers and operators to supporting technologies. It is important to conduct thorough research and consult a financial advisor before making any investment decisions.

Hydro energy stocks

India's renewable energy sector is rapidly expanding, with the country aiming to generate half of its electricity from non-fossil fuel sources by 2030 and achieve net-zero emissions by 2070. The country has set a target of 500 GW of renewable energy installed capacity by 2030, with 125 GW dedicated to renewable energy and 5 GW to offshore wind energy.

• NHPC
• Tata Power
• SJVN Ltd. (formerly known as Satluj Jal Vidyut Nigam)

These companies are major players in the hydropower sector and have a growing portfolio in renewable energy.

When investing in hydro energy stocks or any renewable energy stocks, it is essential to consider the following:

• Research the company's market position, stock prices, and analytics.
• Evaluate your investment goals and risk tolerance to select the right stock types.
• Analyse the financial health and growth prospects of the company.
• Stay updated with government policies, incentives, and subsidies that can impact the performance of renewable energy stocks.
• Look for companies that invest in innovation and new technologies.
• Consider the environmental, social, and governance (ESG) performance of the company.
• Diversify your portfolio by investing in multiple renewable energy stocks to mitigate risks and maximise returns.
• Keep a long-term perspective, as the industry is evolving, and returns may take time to materialise.

With India's growing focus on renewable energy and the attractive valuations of power sector stocks, investing in hydro energy presents a valuable opportunity for investors.

Geothermal energy stocks

Geothermal energy is an alternative to wind and solar power, offering stability and low emissions. However, it is still an early-stage market, currently accounting for only 0.34% of global electricity generation. As such, there are limited publicly listed geothermal energy stocks. Nevertheless, here are some options for investing in this sector:

• Ormat Technologies (NYSE: ORA): A pure-play geothermal stock with business segments in electricity generation, product manufacturing, and energy storage. Ormat has a global presence and a proven track record in the geothermal industry.
• Berkshire Hathaway Energy (NYSE: BRK.B): The Utilities and Energy Businesses of Warren Buffett’s Berkshire Hathaway. BHE Renewables owns interests in power projects, including geothermal facilities in California.
• Polaris Renewable Energy Inc (TSX: PIF) (OTCMKTS: RAMPF): A Canadian company with geothermal and hydroelectric projects in Nicaragua and Peru. Polaris has a significant interest in a 72 MW geothermal project in Nicaragua.
• Eversource Energy (NYSE: ES): A provider of electric and natural gas services in the US. Eversource is taking initial steps with a networked geothermal pilot program in Massachusetts, providing energy to 140 customers.
• Alphabet (NASDAQ: GOOGL): Google is partnering with private start-up Fervo to develop AI and machine learning for efficient next-generation geothermal plants.
• Climeon (STO: CLIMBE-B): A Swedish company that produces heat power systems, converting waste heat and geothermal heat into electricity. Climeon's customers are primarily in Japan and Iceland.

How to Invest in Wind Energy in India

India is experiencing rapid growth in its renewable energy sector, with a focus on solar and wind power. The country aims to generate half of its electricity from non-fossil fuel sources by 2030 and achieve net-zero emissions by 2070. Here are some ways to invest in wind energy in India:

• Adani Green Energy Ltd: Adani Green Energy Limited (AGEL) is a prominent green energy company in India, operating one of the world's largest solar photovoltaic plants. AGEL has strong revenue growth and an increasing market share.
• KP Energy: A key balance of plant (BoP) solutions provider for wind energy projects in Gujarat, India. KP Energy has successfully completed over 1 GW of wind energy projects and has strong revenue and market share growth.
• BF Utilities Ltd: A small-cap wind energy stock established in India in 2000. BF Utilities generates electricity through windmills and is also involved in infrastructure projects. The company shows positive signs of profitability and has a strong return on equity (ROE).
• KPI Green Energy Ltd: A solar power company in India founded in 2008, generating and supplying electricity through solar projects under its brand, Solarism. KPI Green Energy has impressive revenue and net income growth and is part of the KP Group.
• SJVN Ltd: Formerly known as Satluj Jal Vidyut Nigam, SJVN is a major Indian government-owned renewable energy company, primarily in the hydropower sector. SJVN has diversified into wind and solar power generation and has a growing portfolio.

Frequently asked questions