Anthropogenic climate change has been building for decades. Despite the warning signs and scientific evidence, many people are still blissfully ignorant of its long-term impacts on the well-being of our species and other species on the planet.

As the root cause, humans need to create the solutions if we're to avoid the worst impacts of climate change. The last decade has seen a wave of solutions that address this issue from different perspectives, and decarbonizing the energy industry through renewable energy is one of the most important options available to us.

The wind power and solar energy industries has become one of the fastest-growing energy generation methods out there with more and more wind farms being built all around the world. Referenced in the Paris Climate Agreement, affordable, clean energy reduces global emissions of greenhouse gases while dismantling socially unjust energy infrastructure.

While fossil fuels are a finite resource, harnessing the power of wind and solar, tidal systems, etc., are not. They are infinite. That's another reason why we should switch to renewables such as solar power and wind energy - they're never going to run out.

So, what can you, as an individual, do to combat global warming while also making a smart financial decision? Many investors have backed wind energy stocks. These investment opportunities are available to everyone in the public sector who wants to help the world switch to renewable sources while earning a healthy return.

In this article, we'll talk about the purpose of the wind power industry, benefits from investing in wind energy stocks, and the process required to invest in wind stocks and specific renewable energy projects.

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The Goal of Renewable Energy Projects

The ultimate goal of clean, renewable energy projects are to generate electricity in a way that isn't harmful to the environment. It's an incredibly difficult goal to achieve thanks to society's dependence on non-renewable such as coal and other fossil fuels.

We also want to make the electricity generated by green energy cheaper than conventional alternatives. Wind energy is one of the least expensive forms of energy production and solar is not too far behind.

To meet our climate goals, scientists have set deadlines by which we must drastically increase our dependence on solar, wind and other renewable energy sources. In fact, it mentions that the energy sector must consist of 50% renewables; a number we are far from despite our best efforts over the last decade.

Don't fret! More and more companies and governments are investing billions of dollars in renewable power. Additionally, huge pension funds and other institutional investors are planning to invest billions more.

The social, environmental and economic incentives to create renewable energy make wind energy an interesting investment opportunity.

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Is Investing in Wind Energy Worthwhile?

Before you decide to invest in wind energy yourself, you'll need to understand the specific risks associated with the industry.

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The Benefits of Investing in Wind Energy

Investing in wind energy has its perks, from profitability to helping the world fight global warming and the decommissioning of fossil fuel-reliant power projects.

There are plenty of opportunities to invest in wind energy, but keep in mind that you aren't going to invest in a project itself. Direct investment and development of wind projects are performed by Independent Power Producers (IPP). This form of investment is extremely capital intensive and is performed by large specialty firms.

For the rest of us, we're left to choose between publicly traded securities. Here are a couple of benefits associated with wind energy:

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• Wind energy is ethical - Investors who have a clear conscience and ethical values will enjoy the ability to make a difference where it counts. Investment in wind energy is a great option for divestment, ESG investing strategies.
• Positive environmental impacts - Wind energy creates zero emissions during its production phase. Of course, there are emissions associated with manufacturing, transporting and completing the turbines, but once in place, wind energy has no negative environmental impacts.
• The wind sector and market are leaders in technology - There has been an exponential increase in speed with which new technological innovations are made to improve our wind energy power generation.
• Worldwide support - Virtually the entire world wants to make the switch to renewables - the wind energy sector especially.
• Global economy improvements - By lowering fuel import and providing a wide range of jobs in rural areas, wind energy can influence and expand the global economy.

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How to Invest in Wind Energy Companies

The most common form of wind energy investment is a direct investment in the form of publicly traded stocks. Here are some things to consider:

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Purchase Renewable Energy Stocks

Purchasing shares of wind energy companies is an easy and fast way to invest into the wind energy sector. Unless you are knowledgeable about the fundamentals of stock analysis, you may want to invest in mutual funds or investment opportunities that provide broad exposure to the industry rather than a specific-company. This will ensure you don't put all your investable cash into a single company, a strategy that has outsized risk.

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Onshore vs Offshore

Offshore wind power is slightly riskier and more expensive due to companies having to build a wind farm over a body of water. Onshore projects are more common and less expensive to build. Offshore power farms have the benefit of producing quite a bit more power than onshore wind projects due to the sheer size of the turbines.

When investing in wind energy companies, know which types of projects your target companies are pursuing.

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Country and Geo-Political Risk

Before you decide to invest in a company, you should take a look at the applicable country's regulations and policies on the matter. Companies headquartered in the US, for example, have different risks than companies headquartered in Brazil or Germany.

The US Federal Government has started granting certain incentives to make the switch to renewables, as well as easing the process of wind energy investment. It's important to be well-versed in all extra incentives as they are a core component of your investment opportunity.

Additionally, you'll want to be wary of the global economic market and supply chain of the investment targets you're considering. Manufacturing wind turbines is a costly procedure that takes quite a bit of raw materials like, particularly metals. Focusing on the export/import risk associated with countries critical to the supply chain will ensure you're not taking on too much risk.

It's a good idea to research changing demand for wind power from developing countries. As local populations grow, and energy infrastructure places less reliance on fossil fuels, the wind power industry is strategically positioned to undertake large-scale energy production. Developing countries are a key growth area for wind energy companies.

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What are some Wind Energy Stocks?

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Iberdrola SA

Iberdrola is a Spanish electric utility company that specializes in energy and power generation, distribution, and electricity trading. Iberdrola utilizes both onshore wind farms and offshore ones. They also have business partners in Siemens Gamesa.

This renewable energy development partnership has enabled more than 1,900MW to be produced by 69 wind farms in Portugal and Spain for a duration between 3 and 5 years. In the coming years, these companies are looking to reshape the way to supply people with energy.

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Vestas Wind Systems A/S

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Vestas Wind Systems is a Danish wind power company whose projects revolve around designing, manufacturing, installing, and servicing wind turbines. These turbines can be expensive to maintain, especially if a wind farm were to be created offshore so Vestas Wind Systems is looking to lower these costs.

One exceptional piece of info about this company is that they service customers all around the globe and across multiple projects related to renewable energy.

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TransAlta Renewables Inc.

TransAlta Renewables is a Canadian energy generation company. In the past year, the company has activated its Windrise wind farm in Alberta. This facility produces more than 200MW of energy and is TransAlta's largest existing wind farm.

The company actually owns multiple different types of renewables facilities, including hydro, wind, and gas. TransAlta's most recent quarter is positive; their subsidiary (Windrise Wind LP) has managed to secure a green bond for some $173 million.

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Bottom Line

Investors are becoming exponentially more interested in the development of renewables and green energy markets around the world. This industry has become fairly profitable on top of being great for the environment.

The average person cannot exactly build a wind farm, but they can invest in the wind power industry and try to expand the supply of renewables.

Overall, there's a lot to be done regarding our switch from fossil fuel to renewables. By investing in renewables, you can make a difference on top of turning a profit.

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