- It may, or may not, surprise some readers to know that Australia has some of the highest energy prices in the world.
Every stakeholder in the energy world will point fingers about why this situation occurred and how to fix it.
However, it's clear to see that renewable energy isn't going away. In-fact, according to most industry sources the cost of renewable energy, particularly solar energy, is steadily decreasing each year.
There are already several ASX-listed businesses that generate most, if not all, of the energy produced from renewable sources.
Here are two of the bigger options based in New Zealand on the ASX:
Mercury NZ Ltd (ASX: MCY)
Mercury is a New Zealand company that generates 100% of its power from renewable sources. Its main source of energy generation is from hydro but geothermal is also a large portion.
The business had a good year in FY17 thanks to 'wet hydrological conditions' which led to a record earnings result of NZ$523 million. Management rewarded shareholders with a NZ$0.05 cent per share special dividend on top of the normal dividend.
Management have pencilled in a 2% increase to the FY18 dividend. Mercury is currently trading with a trailing dividend yield of 5.87%.
Meridian Energy Ltd (ASX: MEZ)
Meridian is one of New Zealand's largest businesses, the second largest on the New Zealand stock exchange and is majority owned by the New Zealand government. It has hydro power stations and wind farms.
The business produces around 30% of New Zealand's electricity. It retails electricity through its Meridian and Powershop brands in New Zealand and Australia. Management see Australia as a big opportunity because there is demand from consumers for renewable energy.
Meridian has a trailing dividend yield of 6.33%.
Foolish takeaway
Both companies are interesting opportunities to Australian investors and could be worth a look as they both have decent dividend yields and presumably a good growth outlook.
I wouldn't expect much growth as they are effectively utility companies, but could have some decent growth over the next few years.
