3 Reasons Brookfield Renewable Is a Long-Term Buy for 2030 and Beyond

Core Viewpoint - Brookfield Renewable operates one of the largest publicly traded renewable energy platforms, positioned to benefit from the increasing demand for clean energy solutions [1] Group 1: Growth Catalysts - The company has three notable catalysts that provide visibility for double-digit earnings growth into the next decade [2] - Inflation-driven power price increases are expected to grow funds from operations (FFO) by 2% to 3% per share annually, adding $150 million to annual FFO by 2029 from a baseline of$1.2 billion [3] - The company anticipates additional FFO growth from signing new contracts at higher market rates as legacy PPAs expire, estimating an additional 100 million over the next five years [4] Group 2: Capacity Expansion - Brookfield Renewable currently operates 37 GW of renewable energy capacity and expects significant increases in capacity to meet rising clean power demand [5] - The company aims to ramp up development to reach 10 GW annually by around 2027, with a pipeline of 65 GW in advanced stages and a total development pipeline of 200 GW [6] Group 3: M&A Strategy - The company plans to continue making accretive acquisitions funded by a capital recycling strategy, having committed to deploy a record 12.5 billion across various transactions [8] - Brookfield is evaluating approximately $100 billion in potential M&A opportunities, which could enhance its growth profile and push FFO-per-share growth above 10% annually [9] Group 4: Total Return Potential - The combination of growth catalysts is expected to deliver double-digit annual FFO per share growth, alongside a high-yielding dividend currently over 5%, potentially resulting in total annualized returns in the mid-teens [10]