According to BDO Global, by 2024, nearly one-third of the world's electricity is expected to come from renewable sources. Solar power will account for almost 60% of this growth, or at least 697 gigawatts. Onshore wind (309 GW), hydropower (121 GW), offshore wind (43 GW), and bioenergy (41 GW) will follow.
Plummeting production costs, mounting concern over climate change, evolving global energy policies, and heightened investor pressure on companies to adopt environmental, social, and governance (ESG) policies are propelling renewable energy into the mainstream. Consequently, the industry has had to develop innovative solutions to combat the growing change.
Innovative Solutions in Renewable Energy
The future of renewable and green energy is rapidly evolving, especially with the advent of virtual power plants (VPP). Next Kraftwerke, a German energy company, describes that a VPP uses intelligent controls to aggregate and flexibly distribute electricity from its members, mimicking a centralized power plant.
Simply put, it is the energy equivalent of drawing processing power from a network of interconnected individual computers rather than a central mainframe computer.
Many top energy companies are now embracing this innovative solution. For example, Tesla Inc. (NASDAQ:TSLA), in 2023, launched a backup power pilot program in Texas, which allows residents to participate in a virtual power plant and earn money for providing excess electricity to the state's electrical grid.
Tesla Inc. (NASDAQ:TSLA) received approval from the Public Utility Commission of Texas in September 2023 to launch two pilot programs for its VPP initiative. This approval allows Tesla Powerwall owners to sell excess solar-generated electricity back to the Electric Reliability Council of Texas (ERCOT) grid, creating a giant distributed battery that can help to meet peak demand and prevent blackouts.
Tesla Inc. (NASDAQ:TSLA) is expected to receive approval for six more VPPs in Texas. This is because the state has a market in ERCOT conducive to innovation, allowing the company to learn through real-time experimentation with real-world impact.
The Growing Renewable Energy Industry
According to the International Renewable Energy Agency (IRENA), limiting global warming to 1.5°C requires reducing carbon dioxide (CO2) emissions by around 37 gigatonnes (Gt) from 2022 levels and achieving net-zero emissions in the energy sector by 2050.
Despite some progress, there is still a significant gap between the current deployment of energy transition technologies and the levels needed to achieve the Paris Agreement goal of limiting global temperature rise to within 1.5°C of pre-industrial levels by the end of this century.
A 1.5°C compatible pathway fundamentally transforms how societies consume and produce energy. On this note, numerous energy companies across the globe are striving to contribute responsibly by exploring renewable energy options.
In September 2023, Spanish energy company Iberdrola completed construction on what it says is the first hybrid wind-solar plant in Spain and is currently commissioning the facility.
The solar plant, with a capacity of 74 MW, is spread across the municipalities of Revilla Vallejera, Villamedianilla, and Vallejer, near Burgos, in the central Spanish province of Castilla y León. The wind plant, with a capacity of 69 MW, is located near the municipalities of Ballestas and Casetona and has been operational for several years.
Iberdrola is currently developing and building several hybrid wind-solar projects in Spain and worldwide. Last year, it commissioned two hybrid plants in Australia and Brazil. It also secured approval to build a 50 MW project in Salamanca, northern Spain.
Meanwhile, Canadian asset management company, Brookfield Asset Management Inc. (NYSE:BAM) has partnered with Axis Energy Ventures for a second time to establish a renewable energy development platform focused on expanding in India.
Axis Energy Ventures, a North Carolina-based Axis Energy subsidiary, will contribute its existing wind and solar power project pipeline to the joint venture (JV). Through the JV, formed during surging demand for clean energy, Brookfield Asset Management Inc. (NYSE:BAM) aims to provide energy solutions to government agencies, corporate clients, and emerging industries such as green hydrogen.
Moreover, Brookfield Asset Management Inc. (NYSE:BAM) entered into this joint venture because it anticipates robust growth in India, driven by the government's target of 500 GW of renewable energy by 2030 and its stated goal of energy security. As of 2023, the company has more than 16 GW of wind and solar assets in operation or development across India.
Top 20 Renewable Energy Companies in the World
A vast array of wind turbines on a hillside, showcasing the company's takeover of renewable energy. Editorial photo for a financial news article. 8k. --ar 16:9
Methodology
We compiled a list of the world's top 20 renewable energy companies. To determine the top renewable energy companies we have included information regarding market capitalization, generating capacity, and number of employees for each company.
The generating capacity of a renewable energy source is the maximum amount of electricity that it can produce at any given time. It has been measured in gigawatts (GW).
We have ranked the companies based on their market capitalization.
Below is our complete list of the top 20 renewable energy companies in the world.
Specializing in the design and manufacturing of solar photovoltaic modules, Canadian Solar offers comprehensive energy solutions. The company manages solar power projects and provides operation and maintenance services. Canadian Solar serves customers in over 160 countries.
Jinko Solar boasts customers throughout the US, Europe, Asia, Africa, and Latin America. The Chinese solar energy company manufactures and sells solar products such as silicon ingots, wafers, cells, and modules and provides solar system integration services.
Plug Power, a crucial player in the hydrogen fuel cell sector, is one of the best renewable energy companies in the world. It was founded in 1997 and headquartered in Latham, New York. Over the course of its operation, the company has partnered with major corporations such as Amazon, Walmart, and Home Depot to deploy its fuel cell technology in over 40,000 vehicles worldwide.
One of India's top renewable energy companies, Suzlon Energy, develops, manufactures, sells, and installs wind turbines and solar panels. The company has over 20 years of experience in the renewable energy industry and has a global presence, with operations in over 30 countries.
Moreover, the company is a global leader in the wind turbine market and a growing player in the solar energy market. It is committed to helping its customers transition to a clean energy future, and its products and services are helping to make renewable energy more accessible and affordable.
16. Siemens Gamesa Renewable Energy SA (NASDAQ:GCTAF)
Siemens Gamesa is a global leader in renewable energy and offers a diverse range of equipment and services for onshore and offshore wind turbines, turbine gearboxes, and off-grid systems. The company's innovative products and technologies have been successfully implemented worldwide, demonstrating its vision of a future powered by clean energy with improved air quality.
Based in Canada but operating global projects, Brookfield Renewable owns and operates a diversified portfolio of renewable power assets. These include hydroelectric, wind, solar, distributed generation, and storage facilities.
Being a leader in the renewable energy sector, Brookfield also operates one of the largest publicly traded platforms dedicated exclusively to renewable power.
With expertise in designing and manufacturing solar micro-inverters, battery energy storage, and EV charging stations for residential customers, Enphase Energy, Inc. has made a name for itself in the American renewable energy sector.
Moreover, it was the first company to successfully commercialize the solar micro-inverter, which converts the direct current (DC) power generated by a solar panel into a grid-compatible alternating current (AC).
First Solar is an American solar technology company and global provider of responsibly produced, eco-efficient solar modules advancing the fight against climate change. The company is committed to responsible manufacturing and sustainability.
Adani Green Energy Limited is an Indian renewable energy company, which develops, builds, owns, operates, and maintains utility-scale grid-connected solar and wind farm projects, with a current project portfolio of 20,434 MW. AGEL was formed to fulfill the Adani Group's vision of a better, cleaner, and greener future for India, and it supplies electricity to central and state government entities and government-backed corporations.
Orsted A/S, a global leader in offshore wind, has established wind farms in multiple countries, including the UK, the US, Germany, and Taiwan. The company is deeply committed to sustainability and has set ambitious goals to reduce its carbon footprint. The company aims to achieve carbon neutrality by 2025 and demonstrates its unwavering commitment to environmental stewardship.
The Danish wind energy company has made substantial contributions to the field of renewable energy, which is why it is one of the top renewable energy companies globally. Vestas Wind Systems specializes in designing, manufacturing, and installing wind turbines.
With 29,000 employees worldwide, the company has successfully deployed wind turbines in numerous countries, harnessing sustainable energy solutions to prevent the release of 1.5 billion tonnes of CO2 into the atmosphere and facilitate the establishment of a more sustainable energy system, with over 145 GW of wind turbines installed across 85 countries.
Constellation Energy is an energy company based in Baltimore but has offices located across the United States. The company strives to provide a diverse range of energy services, including electricity, nuclear, and natural gas, to businesses, residents, and public sector customers.
With a focus on clean energy, Exelon Corporation is a leading American energy company. The company has a portfolio of renewable energy assets that includes wind, solar, and nuclear power. Exelon is also a significant investor in energy efficiency programs.
Known for its generation, transmission, distribution, supply, trading and provision of energy services, Electricite de France SA (EDF) is a comprehensive energy company. It produces electricity from various sources, including nuclear, hydroelectric, gas, fuel oil, coal, and renewable energy.
EDF also explores and produces hydrocarbons, recovers waste, supplies gas, provides energy and environmental services, manages heating and cooling networks, and produces renewable energy and industrial utilities.
Enbridge Inc., headquartered in Calgary, Alberta, Canada, owns and operates a vast network of pipelines across North America, transporting crude oil, natural gas, and natural gas liquids. The company also generates renewable energy, demonstrating its commitment to a sustainable energy future.
