Stocks in the Canadian renewable energy sector failed to outperform in 2024 compared with traditional oil and gas energy sector. However, Trump’s announcement of a 10 per cent tariff on Canadian oil exports has had a negative impact on many oil and gas producers.
Meanwhile, volatility in renewable energy stocks is increasing as investor expectations for the sector continue to evolve.
With a variety of new policies on the horizon around the globe, coupled with the fact that renewable energy is much less expensive than fossil fuels, the long-term renaissance of clean energy is largely certain.
Considering the long-term investment opportunity in renewable energy sector is clear, the following two top renewable energy stocks are great buys.
Brookfield Renewable Partners L.P. (TSX:BEP.UN) is one of the world’s largest publicly traded renewable energy companies, operating a diversified portfolio of hydroelectric, wind, solar, and energy storage assets in North and South America, Europe, and Asia. Because the company operates across multiple geographies, it is less exposed to policy or economic risks in any single market.
Now with more than 25,000 megawatts (MW) of installed capacity and a strong development pipeline, Brookfield Renewable is well positioned for continued growth. The company has a strong track record of generating consistent cash flow, which supports a stable and growing dividend distribution.
Management is actively investing in new technologies and infrastructure in response to the global trend towards decarbonisation. As a member of the Brookfield Asset Management family, the company benefits from significant financial resources and strategic expertise.
Brookfield Renewable stock currently combines scale, strong fundamentals and sustainable energy solutions, making it an attractive long-term investment for those looking to pursue opportunities in the renewable energy sector.
Specialising in offshore wind, onshore wind, solar and high-efficiency natural gas projects, with operations in Canada, Europe, Latin America and Asia, Northland Power (TSX:NPI) is a key player in the global clean energy market.
In fact, the company is one of the few Canadian companies with a significant presence in offshore wind, one of the fastest growing segments of the renewable energy sector.Northland Power is aggressively expanding its presence, particularly in Europe and Asia, where demand for renewable energy is accelerating.
With a number of new projects in the pipeline, the company is poised to deliver significant revenue and earnings growth over the next few years, while ensuring stable cash flow and financial stability. Northland Power stock has also been paying dividends for years, making it an attractive option for income investors.
