Brookfield Renewable Stands to Benefit from Biden’s Green Push
Disclaimer: This post does not constitute financial advice. Author has no position in any stocks/sectors mentioned. Do your own due diligence before making an investment.
Many investors were hopeful for a Keystone Pipeline go ahead by newly elected President Joe Biden.
At least in terms of the economy. Not the environment. Even my colleague, Derek, was hopeful there would be some type of compromise. TC Energy (TRP) still has the ability and resources to get through this. They have other potential pipelines as well as renewable energy sources. However, some strictly renewable energy companies have the potential to grow now.
One in particular is Brookfield Renewable Partners LP (BEP) who have focused on green energy.
They are one of the largest publicly-traded renewable energy companies in the world. They have facilities spanning from America to Europe to Asia. Their revenue was $867 million in their latest quarter posted in 2020. It was down $27 million from last year, but this was from subpar hydrology conditions in North America.
This is a long game stock, so you will need to have great patience for it. As shown in the graph below, the value has steadily increased over the past year.
Google Finance
The growth potential on this stock is now even better post-Biden. He’s made his stance clear on at least one large pipeline. They will not fly in his America. He wants to rejoin the efforts of the Paris Climate Agreement the United States were involved in before Trump left. If Biden is getting serious on climate issues, there is no hope for any other pipelines hoping to get built.
In the long game, green energy investment is most likely a good call. There will be push back from non-renewable energy source companies, obviously, but it is clearly the future the world is headed in. These resources like coal, petroleum and natural gas will not last forever. We cannot create them and have a finite amount of these resources on our planet. Since these fossil fuels were created from the decayed remains of dinosaurs, they can’t be recreated unless we create a Jurassic Park. But we all know how that turned out. Therefore, the world is eventually going to shift to renewable resources, as it’s our only way to survive with our planet intact.
Brookfield is a great choice because it’s already established as a successful company, and will most likely only continue to be so. It’s renewable energy production has increased in the past year, despite the pandemic threatening to hurt their production. Their production is mainly wind and solar, which are among the most cost-effective ways to produce renewable energy for large populations. Brookfield is not a company looking in the past, but a company looking to build a new world in a sustainable fashion.
Brookfield recently bought 360 MW of already operational solar plants, and 700 MW of those set to be constructed from Exelon. They are setting themselves up to be a big player in the renewable energy race.
While there’s still lots of money in the fossil fuel business right now, the long-term play is probably renewable energy. Moving backwards is not an option. So, if you’re invested in non-renewable resources, consider diversifying with Brookfield (BEP).
