Renewable energy stocks have seen significant volatility in recent years, as investor expectations for this sector continue to gyrate.
On the one hand, most investors expect clean energy demand (and energy demand in general) to continue higher. Environmental concerns appear to be less of a concern with various political shifts we’re seeing around the world. But with renewables becoming much more affordable relative to fossil fuels, it’s likely we could see a long-term renaissance build based on market forces alone.
Of course, if government support and policies shift, this sector could come back into favour. Over time, political shifts do take place. So, I’d suggest this is a sector that’s probably more of a long-term investment for those looking to buy on the cheap.
With that in mind, here are two top Canadian renewables stocks I’ve got my eye on right now, and why I think they’re worth a look this year.
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Brookfield Renewable Partners L.P.
Brookfield Renewable Partners L.P. (TSX:BEP.UN) is one of the largest publicly traded renewable energy companies in the world. The company operates a diversified portfolio of hydroelectric, wind, solar, and energy storage assets across North America, South America, Europe, and Asia.
BEP’s operations span multiple regions, reducing its exposure to any single market’s policy or economic risks. With over 25,000 megawatts (MW) of installed capacity and a robust development pipeline, BEP is well-positioned for continued growth. The company has a strong track record of generating consistent cash flows, supporting a stable and growing dividend payout.
BEP is actively investing in new technologies and infrastructure to align with global decarbonization trends. As part of the Brookfield Asset Management family, BEP benefits from significant financial resources and strategic expertise. The combination of scale, strong fundamentals, and sustainable energy solutions of BEP makes it an attractive long-term investment for those seeking exposure to renewables.
Northland Power
Northland Power (TSX:NPI) is another standout renewable energy stock on the TSX. The company specializes in offshore wind, onshore wind, solar, and efficient natural gas projects. It operates in Canada, Europe, Latin America, and Asia, positioning itself as a key player in the global clean energy market.
Northland Power is one of the few Canadian companies with a significant presence in offshore wind energy, a rapidly growing segment within the renewables sector. The company is actively expanding its footprint, particularly in Europe and Asia, where demand for renewables is accelerating.
With multiple new projects underway, Northland Power is poised for significant revenue and earnings growth in the coming years. Similar to BEP, NPI benefits from long-term PPAs, ensuring steady cash flow and financial stability. Importantly, Northland Power has consistently paid dividends, making it an appealing choice for income-focused investors.
