Clean Energy has a Bright Future

While oil prices drag the energy sector down, clean energy appears to have the wind in its sails as it navigates the market. Alternative energy ETFs gained 2% for the week, bringing year-to-date performance to -1.53%.

This outperformance compared to fossil energies is mainly due to the growth of power generation sourced from clean energy. The EIA announced that it expected the largest increase in U.S. electricity generation to come from renewable energy and natural gas and that renewable energy will account for 35% of global power generation by 2025. Against this backdrop, the Invesco WilderHill Clean Energy ETF (PBW) gained 5.54% this week resulting in a 7.11% year-to-date performance.

The future of clean energy looks bright as the shift from fossil fuels to renewable energy is accelerating to face environmental emergencies as well as the increasing number of pollution-induced diseases. Specifically, the hydrogen economy theme topped the clean energy-related themes with an astonishing performance of 5.98% this week, followed by solar energy and wind energy, up 3.36% and 1.34% respectively. Nuclear energy, a more controversial form of alternative energy, was also up 3.29% and saw inflows of almost $31 million over the week.

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