I’ve been writing about the best green energy stocks for many years. For this column, I’m taking a new approach. Specifically, I’ve decided to recommend three names with high exposure to Europe

There are three reasons why Europe is a good region to focus on for those seeking lucrative “green rush stocks.” First, unlike the U.S., the EU has officially agreed upon a renewable energy target. Specifically, the bloc has determined “that by 2030” it will obtain “42.5% of its energy from renewable sources.” Secondly, the EU has decided that it will seek to wean itself off of Russian energy and, in order to do so, it will have to produce a great deal of electricity from renewables and become much less reliant on fossil fuels.

Finally, the bloc appears to be undertaking larger renewable energy projects than America. For example, Denmark is launching a $25 billion project “to build systems connecting wind farms in the North Sea to shore.”

Here are three of the best green energy stocks that have a great deal of exposure to Europe.

Orsted (DNNGY)

Denmark-based Orsted (OTC:DNNGY), which focuses on building offshore wind turbines, is starting to branch into other types of green-energy projects and favors the type of huge undertakings that I described in my introduction. I believe that these gigantic projects will be very profitable, particularly in Europe, given the EU’s renewable-energy mandate and the continent’s huge demand for new power sources. Consequently, I view Orsted as one of the best green energy stocks to buy.

One example of the large projects that Orsted is undertaking is a huge e-methanol plant that it has started to produce in Sweden. The e-methanol will be produced using renewable energy and will power ships. Another example is the company’s application to build a huge 15 gigawatts of offshore wind turbines in Sweden by 2032.

Also encouragingly, in 2022, the company’s operating income climbed to $1.6 billion from $1.288 billion in 2021, while its revenue surged to $19 billion from $11.88 billion.

Iberdrola (IBDRY)

Spain-based Iberdrola (OTC:IBDRY) operates electric utilities in Spain, the UK, the U.S. and Brazil, and the company is a major producer of electricity from renewable sources. However, Spain generates 40% of its EBITDA.

As of the end of 2022, IBDRY had 1,258 megawatts of offshore wind energy projects and another “5,500 MW under construction or secured with long-term contracts, which will come into operation before 2027.”

Iberdrola also has ” more than 14,000 MW of installed [hydroelectric] capacity worldwide” and 4,000 megawatts of hydroelectric plants that it uses to store power.  Additionally, the company plans to invest 17 billion euros in developing additional renewable power from 2023 to 2025.

Given the EU’s need for electricity created through renewable energy, the company’s many renewable energy projects in Europe should prove to be quite lucrative. Additionally, as EVs proliferate rapidly in Europe, the demand for Iberdrola’s electricity on the continent should soar, making it one of the best green energy stocks to buy.

Indeed, that phenomenon may already be occurring, as the company’s EBITDA surged almost 40% year-over-year last quarter to 4.06 billion euros.

Volkswagen (VWAGY)

Of course, European automaker Volkswagen (OTC:VWAGY) is not a totally or even mostly green company at this point, as most of the vehicles it makes are still powered by gasoline.

But on the other hand, the automaker wants to produce only electric vehicles in Europe starting in 2033, and the company sold an impressive total of over 325,000 EVs last year, marking a jump of nearly 24% versus 2021. Further, a number of analysts expect the German firm’s EV sales to surpass those of Tesla (NASDAQ:TSLA) “as soon as 2024.”

Perhaps most impressively, the company intends to generate the same profit margins on some of its EVs that it does on its gasoline-powered vehicles “by 2025.”

As a result, the company’s EV business is indeed likely to expand a great deal over the longer time, meaningfully boosting Volkswagen’s shares in the process.

Volkswagen has a very low forward price-earnings ratio of just 4.9.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.