Renewable energy is transforming how we produce power without emitting greenhouse gases, which trap heat in Earth’s atmosphere and drive climate change. As awareness of climate change grows, countries around the world are investing in renewable energy solutions. The United Nations is encouraging governments to adopt policies that support renewable energy expansion, which has contributed to significant industry growth. Canada has become a leader in renewable energy, with more than 60% of its electricity generated from renewable sources. This trend shows steady growth, particularly in solar, wind, and energy storage, opening strong opportunities for business expansion. Canada’s position as the largest energy exporter to the United States further strengthens its role in North America’s renewable energy landscape.
Brookfield Renewable Partners L.P. is one of the largest publicly traded renewable energy companies globally. Headquartered in Toronto, Brookfield Renewable operates a diverse portfolio of renewable power assets, including hydroelectric, wind, solar, and energy storage facilities. Brookfield’s investment in renewable projects aligns with the global shift toward clean energy, positioning it well for long-term growth, and for people looking to invest. Brookfield Renewable has a major presence in British Columbia, operating several hydroelectric facilities that contribute to the province's renewable energy capacity. In 2022, Canada’s energy exports to the United States reached a record 5.8 billion dollars. British Columbia has stood out as a prime region for renewable energy production, with export values rising from CAD 426 million in 2019 to 1.7 billion CAD in 2022. This growth highlights the importance of strategic locations in renewable energy investments and the benefits for companies like Brookfield Renewable.
Global trends indicate that renewable energy sources, especially solar and wind, will continue expanding as countries seek to reduce greenhouse gas emissions. The United Nations projects that emissions must be cut nearly in half by 2030 to avoid severe climate impacts, with a target of reaching net-zero emissions by 2050. This ambitious timeline suggests a growing demand for renewable energy, making it an ideal time for companies to strengthen their market positions.
Figure 1.0 (World Renewable Energy Distribution) shows how wind and solar energy have rapidly grown over the past decade. By 2050, renewable sources like hydro, solar, and wind are projected to produce approximately 85% of the world’s electricity. Brookfield Renewable is well-positioned to benefit from this growth.
Canada’s strong export position enhances these opportunities. For example, British Columbia’s reliance on hydropower supports steady export revenues to the U.S., a key market for renewable energy imports. However, the hydro industry faces climate-related risks, including altered rainfall patterns and potential droughts, which could impact production. Solar energy, while less common in Canada, may represent a safer bet in the long term as climate patterns shift. While renewable energy investment looks promising, there are risks to consider. The U.S. energy market may experience demand fluctuations due to policy changes, especially with upcoming elections that is happening the date of this publication. Shifts in energy policy, depending on election outcomes, could impact the demand for imported renewable energy from Canada, posing a risk for businesses involved in cross-border energy sales.
Climate change also presents unique risks to certain renewable energy sources. Hydropower, for instance, relies on consistent water flow from rainfall or snowmelt. Rising global temperatures, as shown in Figure 2.0 (Global Temperature Graph), could alter these patterns, leading to more frequent droughts and reduced water availability for hydropower plants. This risk is particularly relevant in British Columbia, where hydropower is a dominant energy source.
Brookfield Renewable Partners stands out as a top choice for investors seeking exposure to renewable energy. With its scale, location, and track record in hydroelectric, wind, and solar projects, Brookfield is well positioned to capitalize on the growing renewable energy market. Its ongoing investments in advanced technologies and energy storage solutions support its long-term growth potential, even with possible demand fluctuations and environmental risks. The global move toward renewables, driven by commitments from major international bodies like the United Nations, suggests the renewable energy industry will continue to grow. For people looking to invest, this renewable energy company would be a smart strategy, with long-term growth prospects aligning with current trends and sustainable development goals. Given the projected demand for renewable energy, particularly in solar and wind, Brookfield Renewable’s portfolio offers a diversified and resilient investment opportunity.
Published by: Rickus de Villiers