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.
In recent years, the price of Canadian renewable energy stock Brookfield Brookfield Renewable Partners L.P.（TSX:BEP.UN） has fluctuated downward, but has recently surged, with a price increase of around 40% in May. The question now is, what are the driving forces behind the recent surge in the price of this Canadian renewable energy stock? Can the stock price continue to rise?
Firstly, the strong first-quarter report is noteworthy. The financial report for the first quarter up to March 31, 2024, released by BEP on May 3, 2024, showed year-over-year growth in funds from operations (FFO) and revenue. Although the net profit attributable to shareholders was negative, the company’s financial performance has been sufficient to boost investor confidence. The board announced a quarterly dividend of $0.355 per share and targets to maintain a 5%-9% annual dividend growth rate over the next few years.
Additionally, Brookfield Renewable, together with a consortium, has signed a legally binding acquisition agreement with Origin Energy, valued at US$18.7 billion. Origin Energy is a comprehensive energy company in Australia, with core businesses including electricity, natural gas, and LPG, serving approximately 4.2 million customers. Brookfield aims to strengthen its renewable energy assets through this acquisition while supporting Australia’s transition to net-zero emissions.
While these developments are positive, what excites investors and analysts the most is the company’s renewable energy agreement with Microsoft (NASDAQ: MSFT). Brookfield is one of the world’s largest renewable energy developers, with a substantial portfolio of wind and solar projects in North America, Europe, and Asia.
The scale and scope of the Microsoft agreement are unprecedented, making it the largest corporate clean energy procurement agreement to date. As per the agreement, Brookfield Renewable will deliver over 10.5 GW of renewable energy power to Microsoft from 2026 to 2030, nearly eight times the scale of the largest previous corporate power purchase agreement (PPA) signed. This renewable energy will primarily come from wind and solar power plants, as well as other innovative carbon-free energy technologies. Initially, the projects will focus on the United States and Europe, with potential expansion to the Asia-Pacific, India, and Latin America in the future.
As new artificial intelligence data centers are expected to put greater pressure on the grid, there is a significant need to increase capacity as much as possible. According to data from the International Energy Agency, the electricity consumption for artificial intelligence in 2026 will be ten times that of 2023. Microsoft’s goal is for 100% of its electricity to come from zero-carbon sources by 2030.
