Companies that produce wind energy for the industry

Companies that produce wind energy for the industry

Wind energy plays a vital role in reducing the carbon emissions and the long-term impact of climate change. Because of that, the wind capacity additions should continue to rise in the coming years, which should benefit the wind sector.

However, it is unlikely to be a smooth ride. Rising steel, the prices, slowing economic growth, and changing the government incentives are all headwinds that could hurt wind sector in the coming years. That's why the investors should consider taking a basket approach and investing in more than one wind energy stock. For example, they can buy an ETF for broader sector exposure or purchase shares in several stores focusing on the wind. This strategy will help reduce risks and put investors in a better position to take advantage of the uptrend in the wind sector.

Here are the companies that produce wind energy for the industry

NextEra Energy

• The NextEra Energy is the major renewable energy company. It operates an largest electric utility in Florida and works in the energy resources business on a large scale. The NextEra Energy Resources is one of the world's largest wind energy producers. As of early 2022, it operated 120 wind farm projects in the United States and Canada with a combined generation capacity of 18 gigawatts?enough for 13.5 million homes. Overall, 69% of its subsidiary's generating capacity is wind power.
  
  The company is an active developer of the new wind energy projects. It expects to build up to 9.0 GW of new wind capacity by 2024. In addition, it has more than the 1.4 GW of wind power regeneration projects in its pipeline. These investments are replacing older wind turbines with newer and larger ones capable of generating more electricity. The NextEra Energy is also a leader in using battery storage to help reduce disruption to wind and solar assets. Although NextEra is not just a game on wind power, it is a leader in sector, making it a solid option to consider.
  
  

General Electric

• The General Electric is a leading industrial company focused on the aviation, healthcare, and energy sectors. The group is in process of the splitting up into three separate companies concentrated on those industries. It plans to distribute its healthcare business in early 2023 and renewable energy, energy, and digital business in the early 2024, allowing the remaining entity to focus on aviation.
  
  The General Electric Renewable Energy Company is one of the world's leading manufacturers and installers and maintains wind turbines. It has installed more than 49,000 units worldwide. They installed base generates recurring service revenue. In addition, the GE has a large and growing number of onshore and offshore wind energy development projects that should produce consistent growth in the coming years. Although GE isn't just a game on wind power, it does allow investors to get exposure to the sector in near term, with a more focused option when it goes down.
  
  

Vestas Wind Systems

• The Danish company Vestas is a global leader in the wind energy sector. It designs, manufactures, installs, develops, and service wind power and hybrid projects worldwide. It has installed more than a 145 GW of wind turbines in 85 countries.
  
  Like GE, Vestas not only sells and installs wind turbines; It generates some recurring income from their service after installation. The company has the service contracts covering at least 124 gigawatts of wind capacity with an average of 10 years. These contracts help offset some of the variances in wind turbine sales. In addition, its focus on wind turbines makes Vestas one of the few large-scale pure plays in wind power.
  
  

Siemens Gamesa Renewable Energy

• The Siemens Gamesa is a leading wind energy company based in Spain. It manufactures, installs, and the services onshore and offshore wind turbines, with a capacity of over 99 GW installed worldwide. In addition, the company works with Siemens Energy (OTC: SMEG.F), its most prominent owner, on green hydrogen developments using wind energy.
  
  Despite the growth in wind power, Siemens Gamesa has struggled in recent years over a patent dispute with GE, rising steel costs (a significant input into wind turbines), and issues with its onshore wind platform. However, better days can wait for a wind turbine manufacturer. The International Trade Commission dismissed nearly all of GE's allegations against the company in early 2022. If some other headwinds fade, the stock could take off. Siemens Gamesa's upside potential makes its wind energy stock attractive.
  
  

NextEra Energy Partners

• NextEra Energy Partners is a limited partnership established by NextEra Energy to own clean energy infrastructure assets secured by long-term contracts. As early as 2022, it had approximately 7 gigawatts of renewable energy assets and 4.3 billion cubic feet of natural gas pipeline capacity. Wind energy assets accounted for more than 80% of its renewable energy generation capacity, and solar energy and energy storage constitute the balance.
  
  NextEra Energy Partners' assets provide a relatively stable cash flow, which the company uses to pay out high-yield dividends. At the same time, it increases cash flow and those payments by acquiring additional clean energy assets from the NextEra Energy and third parties. This strategy makes it's ideal stock for investors looking for a wind-powered passive income stream.
  

Global X Wind Energy ETF

• Global X Wind Energy ETF is an exchange traded fund (ETF) focused on wind energy stocks. The ETF includes the companies involved in the production of wind energy technology, the integration of wind into power systems, and the development of wind power turbines. The ETF also integrates environmental, social, and governance (ESG) screens and follows ESG proxy voting guidelines to help encourage positive change.
  
  The ETF was launched in late 2021 and held approximately 30 shares of wind energy stock as of early 2022. More than half of its holdings are the utilities with large wind operations, about 40% are industrial companies that make wind turbines, and 7% are materials manufacturers essential. This ETF also has a large concentration of stocks listed in China - approximately 43% of the total. Overall, they provide broad exposure to the global wind energy sector.