At Riverside Financial Group we have been working to distill our best approach to the renewable energy space. Renewables have become a focus not only because recovering a sustainable environmental footprint is something we personally value, but also because the global energy production tends suggest investment opportunities are available. According to an October 4, 2017 report from the International Energy Agency (IEA), two thirds of the new energy capacity installed worldwide in 2016 were renewable energy installations. and only 9% of US consumed energy will be produced from renewables in 2017. It seems this trend has become mainstream and there is room for the trend to expand.
Our chosen approach to investing in this space is to focus on the supply side of the renewables world. Basically we are avoiding the boom and bust of the consumer side of the area because we feel it is too risky and fickle for our baseline investment tastes.
We break the supply side of the equation down into six areas of opportunity:
- Converters – the devices that convert renewable energy sources to electricity; hydro turbines, wind turbines, geothermal equipment, and photovoltaics
- Storage – batteries and super capacitors
- Engineering – design and build services, and software
- Distribution – grid solutions and charging stations
- Utilities – those that invest in renewables and promote sustainability as a corporate value
- Finance – financial Institutions that specialize in renewables and energy efficiency projects
We view this as a medium to long term opportunity, akin to being in the second or third inning of the ball game. We look forward to talking to you about specific recommendations for your personal portfolio.