Renewable energy – whether harnessed from the sun, wind or water – is becoming the power of choice as the world strives to tackle climate change. Discover which renewable energy stocks are on investors’ radars.

Renewable energy still has plenty of growth opportunity

The International Energy Agency (IEA) predicts that renewable energy will be responsible for powering 12.4% of global demand in 2023. That includes all consumption of renewable energy, whether that be to power and heat a building or to keep transport ticking along.

Capacity of virtually all types of renewable energy will continue to grow over the coming years, but some are forecast to increase at a faster rate than others. A similar amount of new wind and solar PV capacity are expected to be brought online by 2023, but bioenergy will remain the most-consumed renewable energy source.

Generating electricity will remain the main use case for renewables, which is expected to account for almost 30% of global electricity demand by 2023. Hydropower is expected to be the biggest contributor, accounting for 16% of global electricity demand, followed by wind at 6%, solar at 4% and bioenergy at 3%.

The IEA says around 70% of the new power generation capacity to come online in the period up to 2023 will be powered by renewables, led by solar and followed by wind, hydropower and bioenergy.