The world economy is slowly shifting to clean energy. It will take decades and trillions of dollars to make the switch. The size and scope of the power transition makes it a megagram that investors don’t want to miss.
Although there are many companies that can help you move towards renewable energy, Brookfield Renewal (NYSE: BEP) (NYSE: BEPC) He stands out as a clear industry leader. The company recently Special reported second quarter results, Which is why it is listed at the top of my list as Best renewable energy storage to buy This August.
One of the highlights of Brookfield’s second quarter results was its partnership with other companies to help them achieve their decarbonation plan. For example, the company signed a strategic partnership agreement with e-commerce giant Amazon.com (NASDAQ: AMZN) To support new renewable energy projects. Renewable Energy Amazon, the world’s largest corporation, has agreed to buy more electricity from Brockfield. That supports the construction of 31-gigabyte (GW) international pipeline construction projects from Brookfield. Meanwhile, the deal will help Amazon achieve its climate goals and turn the global grid into green energy sources.
Brookfield has also signed a memorandum of understanding Trainee Technologies (NYSE: TT). The companies jointly pursue generational distribution in North America (e.g., roof solar and energy storage) and energy efficiency opportunities. They plan to provide decarbonation as a service to companies and other institutions to decontaminate their operations by adding renewable energy and more energy efficient systems to buildings.
Eventually, Brookfield agreed to invest side by side Appleis it (NASDAQ: AAPL) China Renewable Energy Fund to get 55% interest in the 213 MW portfolio of high-quality wind assets in China. That investment will help Apple and its suppliers to eliminate carbon from their operations in the country.
These agreements continue to work as a selective partner for companies looking to improve their carbon footprint. For example, last year he helped Brookfield Bank Huge JPMorgan Chase (NYSE: JPM) 90% of the banking business in New York State is renewable. In addition, he cooperated with the partnership Plug power (NASDAQ: PLUG) To supply renewable energy to one of North America’s first green hydrogen production plants.
From time to time a clear future
These partnerships will enable Brookfield to protect existing facilities and the energy procurement agreements it is developing. Those contracts provide stable cash flow, which increases the transparency of long-term growth.
The company believes that the money can grow from operations (FFO) By 2025, 6% to 11% per share per year, b
- Increasing inflation On existing contracts, this should add 1% to 2% per year.
- Edge improvement New energy procurement agreements, including the signing of larger contracts than the expiration of contracts, could increase by 2% to 4% of annual FFA.
- Investments in it Development pipeline, which one It can raise the FFO from 3% to 5% per year.
In addition, the company sees up to 9% more FFO per share when making new purchases. Add that, and Brookfield could increase its share in the FFO between 2025 and 2025, which will double its growth over the past decade.
The company’s success in securing cooperative agreements in the second quarter is likely to increase. The Amazon deal will support a number of development projects, and investing with China in the acquisition of China will put one step closer to delivering M&A growth. Meanwhile, the Trane deal will help improve the edges as they can work with more existing generations of customers to make their work more decentralized.
One of the brightest prospects in the sector
Brookfield Renewal is becoming a partner for companies that want to quickly disrupt their business. It operates one of the world’s largest renewable energy platforms at 21 GW and is one of the largest development pipelines in the sector at 31 GW. It has the resources and skills to help companies achieve their goals, which will enable them to grow faster in the coming years. That inverted potential will make it look like a huge renewable energy reserve to buy this August.
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