Best Green Energy Stocks in September 2024 Based on 5Y CAGR

India’s energy demand is projected to rise more rapidly than that of any other country in the coming decades, driven by its vast size and significant growth potential. As of 2023, India ranks 4th globally in wind and solar power capacity and 4th in total green energy installed capacity. The country’s installed power generation capacity has grown swiftly, with a compound annual growth rate (CAGR) of 15.4% from FY16 to FY23.

In FY23, India had 125.15 GW of renewable energy capacity and was the fastest-growing market for renewable electricity. New capacity additions are expected to double by 2026. In addition, the green energy sector is set to see investments of over $250 billion, with solar PV projects expecting $15.5 billion and battery manufacturing $2.7 billion in the future years. In this article, we will look at the best green energy stocks in September 2024 based on 5Y CAGR.

Best Green Energy Stocks in September 2024 – Based on 5Y CAGR

Note: The stocks mentioned above have been selected from the Renewable Energy Sector with a market capitalisation of over ₹8,000 Crore and sorted based on 5Y CAGR

Overview of 5 Green Energy Stocks

1. Adani Green Energy Limited: Incorporated in 2015, Adani Green Energy Limited is a holding company of several subsidiaries that operate renewable power generation businesses within the group. It is primarily involved in renewable power generation and other ancillary activities. During Q1 FY25, Adani Green operationalised a wind power capacity of 250 MW at Khavda. The plant is equipped with India’s largest and one of the world’s most powerful onshore wind turbine generators, with a 5.2 MW rated capacity.

Key Metrics:

• Return on Equity (ROE): 17.1%
• Return on Capital Employed (ROCE): 9.81%

2. Jaiprakash Power Venture Limited: Jaiprakash Power Venture Limited operates in coal mining, sand mining, cement grinding, and production of thermal and hydroelectric electricity. For FY24, the company’s revenue amounted to Rs. 6,762.78 crore as compared to Rs. 5,786.67 crore in FY23

Key Metrics:

• ROE: 12.8%
• ROCE: 14.0%

3. SJVN Ltd: SJVN is engaged in the business of Electricity generation. The company is also engaged in the business of providing consultancy for hydro-power projects. In Aug 2024, the company commissioned a 90 MW Omkareshwar Floating Solar Project in Madhya Pradesh with the capacity to generate 196 million units of energy per annum. In addition, it signed an agreement with REWA Ultra Mega Solar Limited and MP Power Management Company Limited to sell power from the newly commissioned plant.

Key Metrics:

• ROE: 6.09%
• ROCE: 4.98%

4. NHPC Ltd: NHPC is the Government of India’s flagship hydroelectric generation company. The company is primarily involved in generating and selling bulk power to various Power Utilities. Its other business includes providing project management/construction contracts/ consultancy assignment services and trading power. Recently, NHPC has received an LOI (Letter of Intent) for setting up 200 MW Grid Connected Solar Photovoltaic Power Projects located in GSEC’s RE Park (Stage-III) at Khavda, Gujarat

Key Metrics:

• ROE: 9.61%
• ROCE: 7.67%

5. KPI Green Energy Ltd: KPI Green Energy Ltd develops, builds, owns, manages, and maintains renewable power facilities as an Independent Power Producer (IPP) and a service provider to Captive Power Producers (CPPs) under the ‘Solarism’ brand. The company is specialising in developing, transferring, operating, and maintaining grid-connected solar power projects for our valued Captive Power Producer (CPP) customers.

Key Metrics:

• ROE: 29.6%
• ROCE: 21.6%

Government Initiatives for the Green Energy Sector

• The Rajasthan government has signed an MoU with NTPC Green Energy for 28,500 MW of renewable energy-based projects, part of a total of 31,825 MW of power generation projects.
• The Ministry of New and Renewable Energy (MNRE) has proposed the establishment of a 13,000 MW renewable energy (RE) capacity along with a 12,000 MWh Battery Energy Storage System (BESS) in Ladakh.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.