Brookfield Renewable (BEPC) – A Long-Term Winner in Clean Energy
Renewable energy demand is surging, and Brookfield Renewable is positioned to benefit in a big way. From AI-powered data centers to electric vehicle adoption and the growing need for corporate sustainability initiatives, the demand for clean power is rising fast. Despite these tailwinds, Brookfield Renewable’s stock remains undervalued, creating a compelling opportunity for long-term investors.
Brookfield Renewable is one of the world’s largest pure-play renewable energy companies, with a diversified portfolio spanning hydro, wind, solar, and energy storage. The company has 37 gigawatts (GW) of operating capacity, with an additional 200 GW in development. For comparison, Duke Energy, a major U.S. utility, has about 55 GW of total capacity, but only 9 GW comes from renewables. This scale and diversification give Brookfield a strong competitive advantage in a rapidly expanding industry.
One of the biggest drivers for Brookfield’s future growth is corporate demand for clean energy. Major tech giants, including Amazon, Microsoft, and Google, are among the largest buyers of renewable power as they work to decarbonize their operations. AI data centers and cryptocurrency mining operations also require enormous amounts of electricity, and Brookfield is well-positioned to supply the clean power these industries need.
Despite these growth drivers, Brookfield Renewable’s stock is down 6% over the past year, significantly underperforming the S&P 500’s 23% gain. At just 14.5 times funds from operations (FFO), the stock looks like a bargain. Meanwhile, Brookfield continues to generate solid financial results, with full-year sales rising 6% in 2024 and FFO climbing 10%.
With massive clean energy projects in the pipeline and strong corporate demand, Brookfield Renewable offers a rare combination of stability, growth, and value. This is a stock that investors can buy now and hold for decades.
