ASX renewables shares have had a mixed performance in March. The S&P/ASX 200 Index (ASX: XJO) has fallen 24.82% lower this month which inevitably presents some buying opportunities. Here's why now could be the perfect time to invest in the renewables sector on the ASX.
Investors are spooked right now
Concerns about the coronavirus pandemic have hit global markets hard. No one knows how long this will drag on for and what the final economic and human toll will be from it. That's sent ASX 200 share prices tumbling, including the Energy sector.
AGL Energy Limited (ASX: AGL) and Origin Energy Ltd (ASX: ORG) shares have slumped lower in March. They're two of the largest energy players in the market, alongside the unlisted EnergyAustralia.
Both ASX energy shares have been hammered but neither has pure renewables exposure. However, I think their market position puts them in the conversation as ASX renewables shares. If there is a consistent government policy for long-term investment, I'd expect both AGL and Origin to act on that quickly.
But neither of these groups are the ASX renewables shares that I've got my eye on at the moment.
Invest in the future through ASX renewables shares
I've got my eye on a few shares including Mercury NZ Ltd (ASX: MCY), Infratil Energy Ltd (ASX: IFN) and Tilt Renewables Ltd (ASX: TLT).
Tilt is majority-owned by Infratil and a little bit harder to buy. However, Mercury and Infratil shares could be good value today. Infratil reported underlying EBITDAF of $289.4 million in its half-year earnings and continues to spend big on future projects.
Mercury boasts a $5.65 billion market cap but isn't particularly liquid. However, if you're a buy and hold investor, that may not be the biggest worry given the potential upside.
I view the COVID-19 correction as a once in a lifetime buying opportunity. That's true for many shares but particularly the ASX renewables shares.
Share prices have been smashed as we've entered a bear market in March. But the big bonus here is that we can re-evaluate our investments and deploy cash where we see trends for the coming decades.
That could mean buying ASX renewables shares now with the hope of further gains in the coming years. Once COVID-19 passes, these current market prices could seem cheap as chips.
