Hillcrest Energy Technologies. (CSE: HEAT)
From concept to commercialization, Hillcrest is investing in the development of energy solutions that will power a more sustainable and electrified future.
Microsoft (MSFT) has agreed to sign the largest single corporate purchase power agreement in history. The company has signed its first-ever global framework agreement to accelerate the expansion of renewable energy capacity. This five-year agreement will help in supporting the development of over 10.5 gigawatts (GW) of new renewable energy, surpassing the largest corporate power purchase agreement (PPA) ever signed by eight times.
Microsoft has signed this agreement with Brookfield Asset Management and its affiliate Brookfield Renewable (BEPC). This deal will support over $10 billion worth of future developments, significantly enhancing and expanding Brookfield Renewable’s long-term growth prospects.
This deal will provide Microsoft with new renewable energy capacity to support the increasing demand from Microsoft’s growing cloud services. In addition to wind and solar power, the agreement will also focus on impactful new carbon-free energy generation technologies. Microsoft needs more power to support power-hungry data centers that are required for growing digital and artificial intelligence (AI) applications. AI applications demand strong computational power, which, in turn, requires more electricity.
Brookfield Renewable is the perfect partner for Microsoft. Few companies can match Brookfield Renewable’s global scale and development capabilities. Brookfield Renewable also has a sustainable solutions portfolio, including nuclear services, renewable natural gas, and carbon capture and storage.
This agreement will enhance Brookfield Renewable’s ability to increase dividends in the future. The company anticipates that its already attractive dividend (currently yielding over 6%) will increase by 5%-9% annually in the long term. Over the past two decades, the company’s dividend compound annual growth rate has been 6%.
The large-scale renewable energy purchase agreement signed by Microsoft and Brookfield Renewable will help Microsoft power its fast-growing cloud computing business with clean energy. This will accelerate the transition to clean energy, making a significant positive environmental impact.
Furthermore, the agreement will also accelerate Brookfield Renewable’s growth and bring lucrative dividends to shareholders in the coming years. The combination of revenue and growth from Brookfield Renewable will provide investors with substantial overall returns, making it one of the most attractive renewable energy stocks to purchase.
