3 small cap ASX renewable energy shares

Large cap ASX renewable energy stocks come few and far between. However, there may be some interesting developments in small caps.

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Joe Biden's US presidential election victory has brought renewable energy back into the spotlight. Biden has pledged that on his first day in office he will bring the US back into the Paris Climate Agreement and restore a number of environment protections that the Trump administration has revoked. His energy plan proposes an investment of US$1.7 trillion over 10 years to promote a portfolio of clean energy technologies. 

There isn't much of a selection when it comes to large cap ASX renewable energy stocks. The large ASX energy producers like Origin Energy Ltd (ASX: ORG) and AGL Energy Ltd (ASX: AGL) utilise both 'dirty' and renewable sources to produce power. 

However, the smaller end of town contains ASX renewable energy stocks that are much more aligned with creating sustainable, clean energy. 

Hands holding light bulb and seedling plant, both in dirt

Image source: Getty Images

New Energy Solar Ltd (ASX: NEW)

New Energy Solar focuses on solar power generation with a number of assets across Australia and the US. Its shares have slumped 37% year-to-date to just 86 cents with a market capitalisation of $320 million. 

The company intends on selling its Australian assets to provide investors with pure exposure to the strong US growth market. 

The company's website hints at its future intentions, stating it also intends to "invest in other renewable energy assets including wind, geothermal, hydro-electricity, hybrid solutions and associated investments such as battery and other storage, smart metering and other potential future technologies." 

Genex Power Ltd (ASX: GNX

Genex owns two operational solar projects in Queensland with a number of assets under development. The company is currently developing an abandoned Queensland gold mine as a hydro renewable energy generating and storage project. 

The Genex share price currently sits at 18 cents, down more than 17% year-to-date. The company has yet to turn a profit but in FY20 generated $12.3 million revenue. 

ClearVue Technologies Ltd (ASX: CPV)

ClearVue's patented technology allows visible light to pass through a pane of glass, while the invisible wavelengths of light are deflected to the edges of the glass where they are converted into electricity. 

Its technology has broad applications ranging from commercial buildings through to greenhouses. ClearVue has achieved a number of commercial and showcase projects. This includes the construction of a greenhouse Murdoch University in Western Australia and the installation of its glass at a villa for Jinmao Green Building Technology Co Ltd. The company has commenced negotiations with Jinmao Green Building for a formal agreement to be put in place following a letter of intent. 

In a recent investor presentation, the company indicated it anticipates that regulatory support across multiple jurisdictions and the change in government in the US will positively impact its growth. 

Motley Fool contributor Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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