Renewable energy

The global energy transition to cleaner power sources is a massive market opportunity. Renewable energy leader Brookfield Renewable (NYSE: BEP) (NYSE: BEPC) estimates that it will cost more than $100 trillion over the next 30 years to advance a lower-carbon future. That megatrend should power steady growth for Brookfield for years to come.

Within this megatrend are many smaller yet still sizable opportunities. One emerging high-return investment opportunity for Brookfield is wind repowering, which involves replacing turbine hardware with longer rotors and more efficient equipment. CEO Connor Teskey has noted, “With an estimated 200 gigawatts of global wind capacity reaching 15 years of age within the next five years, the global market for repowerings is large ... and is only one segment where we continue to grow our business at attractive returns.”

Meanwhile, nearly 130 governments have established net-zero carbon emission targets. Close to 3,100 businesses have committed to halving their carbon emissions by 2030. This presents a huge opportunity for Brookfield Renewable, which stands out as one of the world’s leading providers of renewable energy.

Brookfield Renewable expects to generate total returns of between 12% and 15% “on a per-unit basis over the long term.” With the demand for renewable energy expanding, and a massive development pipeline poised to provide significantly more capacity, the company should be in a strong position to achieve that goal, creating value for shareholders along the way.