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Brookfield Renewable Continues to Drive High Growth


Brookfield Renewable Power (NYSE: BEP)(NYSE: BEPC) continues to show its leadership in the energy transition towards cleaner alternatives. This was fully displayed during the third trimester as the renewable energy producer recorded strong financial results and made excellent progress in its strategic expansion plan.

Here’s a closer look at the quarter and what Brookfield plans for the future.

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Brookfield Delivers Strong Third Quarter Results

Brookfield Renewable generated $ 210 million, or $ 0.33 per share, in funds from operations (FFOs) during the third quarter. This is up 32% year over year. The high performance levels of its legacy assets and the increase in recent additions to the portfolio have helped propel its strong results.

Brookfield’s existing portfolio benefited from several catalysts during the quarter. It has achieved higher electricity prices in most of its markets due to inflation-indexed contracts, higher tariffs on new contracts and higher global electricity prices on non-contractual assets. . At the same time, the company’s cost reduction initiatives have further increased margins. In addition to this, Brookfield has benefited from strong hydroelectric power generation in the United States and Colombia due to more favorable resource conditions.

The company has also benefited from several new additions to its portfolio over the past year. Brookfield has achieved over 670 megawatts (MW) of development assets which are now generating cash flow. In addition, Brookfield acquired an 845 MW wind farm in Oregon and a 360 MW portfolio of distributed generation assets in the United States (i.e. power produced close to end users). , such as solar power on rooftops).

Brookfield’s future is brightening day by day

Brookfield also continued to execute its strategic growth plan during the quarter. The company has signed 19 power purchase contracts for approximately 1,300 gigawatt hours of renewable energy production with corporate customers in major industries. Brookfield is increasingly becoming the partner of choice for companies looking to decarbonize their operations.

The company also advanced the process of building and obtaining advanced stage permits on 8 gigawatts (GW) of development projects. In addition, it added an additional 5 GW of development projects to its global development order book, which now stands at 36 GW. As a perspective, the entire existing Brookfield portfolio is approximately 20 GW.

Brookfield also signed deals to acquire $ 2.4 billion in assets this year. Notable recent deals include acceptance to buy three late-stage United States solar energy development projects where it would invest $ 135 million to build 475 MW of solar power. Brookfield has also agreed to purchase stakes in portfolios holding 785 MW of distributed generation projects in Europe and Latin America for $ 250 million.

Meanwhile, Brookfield noted that he was working on expansion into emerging clean energy technologies that have a lot of growth potential, including green hydrogen. Although not yet economical, green hydrogen uses renewable energy to produce hydrogen from water, making it a potential emission-free fuel for transportation and industrial uses.

Brookfield noted that it was advancing nearly 1 GW of green hydrogen opportunities, positioning it as a pioneer in the sector. He has already agreed to energize Connect the power‘s (NASDAQ: PLUG) planned hydrogen production plant in Pennsylvania. The hydrogen fuel cell company is building one of the country’s first industrial-scale facilities. Meanwhile, he works with Enbridge (NYSE: ENB) on one of the largest green hydrogen projects in Canada. The installation will provide the pipeline company with hydrogen to inject into its natural gas distribution network in Quebec. Brookfield’s early leadership in green hydrogen could pay off as costs come down, making emission-free fuel commercially viable.

A powerful platform for the energy transition

Brookfield Renewable is an undisputed leader in renewable energy. Therefore, “as the decarbonization of the global economy continues to take center stage, we are well positioned to seize the growing opportunity while delivering strong returns for our investors,” said CEO Connor Teskey. This makes Brookfield a great investment opportunity for the energy transition, especially for those looking for a renewable dividend.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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