The Motley Fool

3 green energy shares I’d buy with £1k

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Windmills for electric power production.
Image source: Getty Images

The world spent a total of $500bn on green energy initiatives last year. Moreover, this spending is only expected to accelerate in the years ahead. Indeed, BP alone is planning $60bn of spending on renewable energy generation projects over the next nine years.

And with that in mind, I’ve been looking for green energy shares to add to my portfolio as a way to ride the renewable energy boom. 

One Killer Stock For The Cybersecurity Surge

Cybersecurity is surging, with experts predicting that the cybersecurity market will reach US$366 billion by 2028more than double what it is today!

And with that kind of growth, this North American company stands to be the biggest winner.

Because their patented “self-repairing” technology is changing the cybersecurity landscape as we know it…

We think it has the potential to become the next famous tech success story. In fact, we think it could become as big… or even BIGGER than Shopify.

Click here to see how you can uncover the name of this North American stock that’s taking over Silicon Valley, one device at a time…

Green energy shares to buy

The number of companies on the market with exposure to renewable energy has increased dramatically in recent years. Amid all the new businesses sits old hand Drax (LSE: DRX).

This company owns and operates the UK’s largest power station. In recent years it’s been positioning itself as a green energy company by converting its power stations to burn biomass and installing carbon capture technology. 

It recently became the world’s leading sustainable biomass generation and supply business after acquiring Pinnacle Renewable Energy, a major producer and supplier of good-quality, compressed bioenergy pellets.

This is all part of the company’s ambition to become a carbon negative by 2030. It looks as if it’s on track to hit this target.

The company’s principal risks and challenges are regulation and costs, both of which could hold back its transition to becoming a carbon negative business. Still, despite these risks, I’d buy the stock for my portfolio of green energy shares. 

Fuel cells 

Another company I’d consider buying is Ceres Power (LSE: CWR), a world-leading developer of low-cost, next-generation fuel cell technology

Unlike Drax, which is already a well-established business, Ceres is still in its development stages. As such, the company may not be suitable for all investors. Moreover, as long as it remains unprofitable, there’s always going to be a risk the company could run out of money. 

Nevertheless, the group is moving forward with its green energy ambitions. Turnover for the 12 months ended 31 December 2020 increased 15% to £21.9m. At the beginning of March, the company also completed a £181m fundraising to invest in developing its fuel cell technology and manufacturing capabilities. 

I’m encouraged by Ceres Power’s recent progress. So, despite the company’s speculative nature, I’d buy the stock for my portfolio as a way to invest in a niche but growing sector of the green energy revolution. 

Solar energy

The final company I’d buy for my portfolio of green energy stocks is Bluefield Solar Income (LSE: BSIF). This enterprise does what it says on the (recyclable) tin. It is seeking to produce income for investors by investing in solar assets.

So far, management has achieved this aim. It’s targeting an 8p per share dividend for the year, which could provide a dividend yield of 6.5% on the current share price. 

The company is also looking to expand its universe of investable assets. Management is expanding beyond its core market into unsubsidised solar, onshore wind and battery storage assets. If it’s successful, this could help it become a green energy champion. 

That said, at present most of the company’s income streams are attached to government subsidies. So its dividend could be at risk if those subsidies are cut. This is the main risk the green energy group faces right now.

Our 5 Top Shares for the New “Green Industrial Revolution"

It was released in November 2020, and make no mistake:

It’s happening.

The UK Government’s 10-point plan for a new “Green Industrial Revolution.”

PriceWaterhouse Coopers believes this trend will cost £400billion…

…That’s just here in Britain over the next 10 years.

Worldwide, the Green Industrial Revolution could be worth TRILLIONS.

It’s why I’m urging all investors to read this special presentation carefully, and learn how you can uncover the 5 companies that we believe are poised to profit from this gargantuan trend ahead!

Access this special "Green Industrial Revolution" presentation now

Rupert Hargreaves has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

Our 6 'Best Buys Now' Shares

Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.

So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we're offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our 'no quibbles' 30-day subscription fee refund guarantee.

Simply click below to discover how you can take advantage of this.