Stocks of clean-energy companies are proving to be better investments than those of companies that produce conventional power.
The evidence is found in the New York Stock Exchange Bloomberg Americas Clean Energy Index. Its 141 companies, all based in North and South America, returned 32.62 percent in the past two years. In contrast, the 40 conventional-energy companies in the Standard and Poor's 500 Energy Index returned 1.02 percent over the same period, according to data compiled by Bloomberg.
The trend is the opposite for traditional energy continues to rise as cheaper sources of energy such as oil and gas have mostly been tapped. And extracting from deep sea resources continues to be cost prohibitive.
The flip side, conventional models of energy producers are blurring, with most conventional power producers having a portfolio of renewable generating assets.
Nicely summed up by Francesco Starace, the chief executive officer and general manager of Italy's biggest energy company, Enel;
"Traditional energy and clean energy are converging. A power generator without a clean energy portfolio won't be possible."