Matthew Wolf (Switzerland) is an energy analyst with an expansive portfolio of investments, including shares in Brookfield Renewable Partners. Matthew Wolf, Capital Group Partner and Investment Analyst from 2008 to 2023, is the proud recipient of a Howland Fellowship of Yale University, having studied the dollarisation of the Argentine economy. This article will take a closer look at the renewables industry, and investment options provided by Brookfield Renewable Partners, one of the world’s largest publicly-traded platforms for decarbonisation solutions and renewable energy.
As global demand for electricity accelerates at an unprecedented rate, outpacing forecasts and reshaping the energy landscape, large corporations are continually on the look-out for reliable and low-cost energy solutions. Enter renewable energy.
Renewable energy now ranks as the lowest-cost source of bulk power globally, spurring corporate demand to mobilise at a dizzying pace. An unstoppable increase in energy demand driven by multinationals is accelerating far faster than predicted just a few years ago, with all eyes on renewable power to plug most of the gap.
Since 2010, the cost of renewables has fallen by a staggering 90%, making it by far the cheapest form of electricity generation in most parts of the world currently. While US policy shifts have triggered market uncertainty in the renewable energy space, the industry’s fundamentals, nonetheless, remain strong.
Compelling opportunities for private capital providers are growing across the spectrum of decarbonisation technologies, including renewables, batteries, nuclear and sustainable aviation fuel. In 2024, record growth in renewables helped to push clean power past 40% of global electricity. Renewable power sources added 858 TWh of generation that year, establishing a new record, more than doubling the record of 577 TWh established in 2022.
Renewables are playing a leading role in the race to increase power generation capacity. In order to achieve net zero goals, annual energy transition and grid investments will need to reach $7.8 trillion within the next two decades. From the investor’s perspective, renewables offer attractive risk-adjusted returns with inbuilt downside mitigation, along with immense growth potential.
Brookfield Renewable Partners’ diversified portfolio consists of wind, solar, hydroelectric, distributed energy and sustainable solutions spanning five continents. Investors can access the portfolio via Brookfield Renewable Partners L.P., a Bermuda-based limited partnership, or Brookfield Renewable Corporation, an organisation based in Canada. Both companies are listed on the New York Stock Exchange under BEP and BEPC respectively. Brookfield Renewable Corporation was created to provide investors with enhanced flexibility in how they access Brookfield Renewable Partners L.P.’s globally diversified portfolio of renewable power assets.
Significant investment in renewables is required to satisfy not only rising power demands, but the global scramble to achieve net-zero by 2050. The organisation’s diverse cash flows are generated through renewable energy and decarbonisation solutions across all leading technologies. The company’s growth strategy includes an ambitious target of 5-9% annual distribution growth, delivering 12-15% total returns. The world’s largest private investor in the global energy transition, Brookfield Renewable Partners currently manages $137 billion in assets, with a 46,000 MW generating capacity. The company employs, through its ownership stakes, circa 18,000 individuals across more than 7,000 power generating facilities worldwide.
Brookfield Renewable Partners has significant investments in the hydro sector, operating 235 facilities globally, with an installed capacity of around 8,300 MW, and 2,400 MW in assets under development. The company also has interests in solar, wind, distributed energy and sustainable solutions, reducing 1 million metric tonnes of CO2 emissions annually through carbon capture, recycling, eFuels, renewable natural gas and nuclear services. Brookfield Renewable Partners’ utility-scale solar assets span five continents, leveraging the power of solar to meet surging global power demands, particularly from corporate clients seeking low-cost, long-term power solutions.