3 Reasons Brookfield Renewable Is a Long-Term Buy for 2030 and Beyond
Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) operates one of the world's largest publicly traded renewable energy and decarbonization platforms. It has a diversified portfolio of hydroelectric, wind, solar, energy storage, and sustainable solutions across five continents. That puts it in a strong position to benefit from the growing demand for clean energy and other sustainable solutions. The company has three notable catalysts that give it increasing visibility into delivering double-digit earnings growth well into the next decade. That high-powered growth makes it a great stock to buy and hold for the long haul.Brookfield Renewable signs long-term power purchase agreements (PPAs) with utilities and large corporate customers for the bulk of its power production. It has currently contracted about 90% of its capacity for a weighted average remaining term of 13 years. Most of those contracts, accounting for about 70% of its revenue, index power rates to inflation. The company expects that inflation-driven rate increases will grow its funds from operations (FFO) by 2% to 3% per share each year. Brookfield figures that these inflation-linked power price increases will add $150 million to its annual FFO by 2029, from its baseline of $1.2 billion last year. That number should continue rising well into the 2030s, given the length of its PPAs. Continue reading
Brookfield Renewable (NYSE: BEPC)(NYSE: BEP) operates one of the world's largest publicly traded renewable energy and decarbonization platforms. It has a diversified portfolio of hydroelectric, wind, solar, energy storage, and sustainable solutions across five continents. That puts it in a strong position to benefit from the growing demand for clean energy and other sustainable solutions.
The company has three notable catalysts that give it increasing visibility into delivering double-digit earnings growth well into the next decade. That high-powered growth makes it a great stock to buy and hold for the long haul.
Brookfield Renewable signs long-term power purchase agreements (PPAs) with utilities and large corporate customers for the bulk of its power production. It has currently contracted about 90% of its capacity for a weighted average remaining term of 13 years. Most of those contracts, accounting for about 70% of its revenue, index power rates to inflation. The company expects that inflation-driven rate increases will grow its funds from operations (FFO) by 2% to 3% per share each year. Brookfield figures that these inflation-linked power price increases will add $150 million to its annual FFO by 2029, from its baseline of $1.2 billion last year. That number should continue rising well into the 2030s, given the length of its PPAs.
