Brookfield Renewable Energy Inventory Analysis – A Leading Investment in Clean Energy
When it comes to clean energy investments, Brookfield Renewable stock (NYSE: BEP) tops investor lists. This after another solid financial performance in the second quarter. Brookfield Renewable Partners is a leader in the fight for a cleaner, more sustainable environment.
Renewable energy stocks are all the rage on Wall Street again. New policies and incentives continue to encourage clean energy initiatives.
The US Bureau of Land Management recently announced that it will update its renewable energy licensing regulations. The department focuses on reducing costs related to solar and wind power. This is an example of how the United States makes it easier for companies to start wind and solar projects… Part of a much larger plan.
These developments are great news for Brookfield Renewable investors. Brookfield continues to take advantage of these incentives. And during this time, it is expanding its operations. Let’s take an in-depth look at what investors can expect from Brookfield Renewable Shares.
Brookfield Renewable Stock: Business Developments
Brookfield Renewable currently occupies a privileged position. It is ready to take advantage of the expanding renewable energy sector. However, BEP has underperformed this year. It is currently at -6% since the beginning of the year. However, investors have a lot to look forward to.
The company is able to generate over 20,000 MW of clean energy from sources including:
- And the distributed generation
The company operates approximately 6,000 facilities on four continents in North America, South America, Europe and Asia. In addition, with the influx of new investments, Brookfield Renewable shares are optimally positioned.
In the meantime, here are some of the business developments that Brookfield Renewables has underway:
Shepherds Flat Wind Farm
The Shepherds Flat Wind Farm in northern Oregon is one of the largest onshore wind projects in the United States. As a result, Brookfield Renewable Partners has agreed to buy it back for $ 700 million in December 2020. In addition, Southern California Edison has agreed to purchase power from the wind farm for the next 20 years.
The reopening should increase the energy production of the 845 MW wind farm by around 25%. For example, projects like Shepherds Flat will help Brookfield’s portfolio. And for a fraction of the price.
Amazon strategic partnership
At this point, any partnership with Amazon (NASDAQ: AMZN) looks like good news for investors. Amazon is the the world’s largest business buyer renewable energy. So Brookfield is poised again for another great return on investment.
The partnership aims to develop new renewable energy projects. Locations include Brazil, Asia, North America, and Europe. This puts Brookfield in an excellent position to continue selling power to Amazon.
Investment in the Chinese wind portfolio
Brookfield continues to make smart decisions that have produced great results. The investment joins Apples China Renewable Energy Fund supports country’s transition to net zero.
The joint investment takes a 55% stake in China’s wind portfolio. And this is capable of producing 213 MW of energy.
Trane Technologies Partnership
Trane Technologies (NYSE: TT) is an innovative manufacturing company focused on building a better tomorrow. Brookfield and Trane recently joined forces. The partnership aims to help customers achieve their energy goals through decarbonization as a service.
The service is able to create a new source of income as the product opens up a new market that could be worth $ 600 billion in the future.
Brookfield Renewable Stock: Financial Performance
Brookfield second quarter results show that the investments are starting to pay off. As the demand for renewable energy increases, Brookfield has made smart investment and partnership decisions. These choices have placed Brookfield in a superior position to support its financial growth. Here are some highlights from the report:
- Solid balance sheet – Fitch initiated a hedge on Brookfield with a BBB + credit rating. The company also has $ 3.3 billion in cash on hand.
- Continuous expansion – 28 new agreements signed for nearly 800 GWh of renewable energy. Also signed a new contract worth around 1.5 GW of offshore wind power in the Polish renewable energy company.
Financial growth – Normalized operating funds increased 23% year-on-year. Growth can Be awarded to the company’s new asset, the Shepherds Flat wind farm. Also Brookfield increased participation in TerraForm Power (NASDAQ: TERP).
- High dividend – Distributions increased 5% year-over-year to $ 0.30 or $ 1.215 per year. The cumulative payout ratio for the year is currently 72% of total funds from operations (target rate = 70%).
Globally, Brookfield had another strong quarter showing the company is growing quickly.
The future of BEP
Looking ahead, it looks like Brookfield Renewable Partners is doing a lot of good. With new partnerships and projects underway, growth seems inevitable for Brookfield Renewable Stock.
BEP stock is down more than 5% in 2021, currently sitting at around $ 40 per share. But that shouldn’t deter investors. Shares of Brookfield’s renewable partner have returned more than 200% in the past two years.
In short, the demand for renewable energies continues to increase. And Brookfield has the right technology and the right strategy for this opportunity. The key to Brookfield’s growth will be to push back the tide of incoming competition in the renewable energy sector.
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About Pete Johnson
Pete Johnson is a seasoned financial writer and content creator specializing in equity and derivatives research. He has over ten years of personal investment experience. Rummaging through 10-K forms and finding hidden treasures is his favorite pastime. When Pete isn’t doing stock research or writing, you may find him enjoying the outdoors or sweating while exercising.