Renewable Energy refers to energy derived from natural resources that replenish themselves over relatively short periods of time. This includes solar, wind (onshore and offshore), hydroelectric, geothermal, and biomass. It is the cornerstone of the global transition toward a low-carbon economy.

The global energy mix is undergoing a structural shift driven by climate policy, energy security concerns, and the improving cost-competitiveness of renewables. Large-scale deployment is supported by government mandates, carbon pricing, and corporate sustainability targets.

• Pure Plays: Iberdrola S.A. (leader in wind/solar), NextEra Energy, Orsted.
• Significant Exposure: Enel, EDP Renovaveis.
• Adjacent Exposure: Battery manufacturers (BYD Company Limited), wind turbine OEMs (Vestas, Siemens Gamesa), solar inverter makers (Enphase).
• NextEra Energy, Inc.

• Grid Constraints: Bottlenecks in transmission capacity and interconnection delays.
• Policy Uncertainty: Changes in subsidies (ITC/PTC) or trade tariffs on components (solar panels).
• Commodity Costs: Price volatility of raw materials like steel, copper, and rare earths.
• Intermittency: Variability in weather conditions impacting generation consistency.

• 2026-04: Iberdrola S.A. reported a 42% Y/Y increase in offshore wind production in Q1 2026, reaching a total renewable capacity of nearly 47 GW.
• 2026-04: Continued focus on integrating renewables with "smart grids" to manage decentralized generation.

• Electrification
• New Energy Vehicles
• AI Infrastructure (Demand driver for green energy)