Future Renewable Energy Stocks’ Investment

Renewable energy stocks are taken as utilities and not a segment of the energy sector. Renewable energy stocks have recently gained more momentum since they have zero-emissions. The following are the four stocks which are considered to be interesting picks:

Brookfield Renewable Partners (BEP, BEP.UN.TO)

This is a renewable energy-producing company, and its energy-generating facilities such as wind facilities and conventional hydroelectric facilities are spread all over Latin America, North America, and Europe. The company’s operations are based on the type of energy production like Wind, Hydroelectric, Solar, and Storage. 

Investment Thesis

The future of power solely depends on Wind, Solar, and Hydroelectric energy. 80% of the energy produced by BEP Company comes from hydroelectric energy. It has energy plants all over South America, North America, Asia, and Europe. The company has great expertise and large-scale capital that enables it to manage its projects with ease. In the coming years, the management targets to have an annual distribution increase of 5-9%, which means the projects, would get more money every year. The company provides its shares under Corporation and BEIT structures. As many investors are moving towards the green trend, BEP is not left out.

Boralex (BRLXF, BLX.TO)

This is an electric utility company that deals with construction, development, and operates renewable power facilities. Its main source of renewable energy comes from Wind, Hydroelectric, Solar, and Thermal though its major source is wind and hydroelectric energy. The company has long-term power contracts with its clients in the United States, France, and Canada that earn huge revenues. Over 80% of its total energy generation comes from the company’s facilities in France and Canada. 

Investment Thesis

By 2023, Boralex targets to produce more than 2,800 MW of green power with 535 MW in the company’s pipeline and 167 MW in its secured projects. The company has a future potential growth, and it is funded by FTQ and La Caisse de Depot et Placement du Quebec; hence it cannot strain financially. 

Innergex Renewable Energy (INGXF, INE.TO)

The company was established in 1990, and it operates its wind, hydroelectric, and solar facilities in France, Canada, the United States, and Chile. It has employed over 300 workers in its two geothermal facilities, three solar farms, 25 wind farms, and 34 hydro facilities. The company has a capacity of 2866 MW. 

Investment Thesis

The company is determined to grow and increase its generation capacity. It does not fully own all the facilities and largely depends on partnerships, which has helped the company grow in the last five years. 

Polaris Infrastructure (RAMPF, PIF.TO)

The company engages in the acquisition, operation, and development of renewable power projects. Most of its facilities are in Latin America, such as the San Jacinto Geothermal power plant in Nicaragua. It has a power contract with the government.