Brookfield Renewable just announced its latest acquisition, a French renewable energy company known as Neoen. Many investors believe that this will act as an accelerant for Brookfield, allowing it to quickly scale. But renewable energy has historically been a tough business, and the past wasn’t always rosy for Brookfield. Let’s dig a little deeper to determine what to make of this new acquisition.
Looking Back
Brookfield Renewable has been up and down in recent years. It peaked in January 2021 before entering a downslide that eventually cut share prices by more than half by the end of 2023. There are many reasons for this, but a lot of it comes down to the simple fact that green energy is hard. It takes time to both iron out the kinks and get a skeptical population on board.
However, Brookfield Renewable was already turning things around before this latest acquisition. A series of prior smart acquisitions, coupled with a strong focus on providing the immense power needed for AI data centers, has driven recent growth. The company recently signed a massive deal with Microsoft, and it is investing in groundbreaking new technologies to supplement such traditional green energy options as solar and wind power.
Assessing The Future
The Neoen acquisition appears to be a smart play. There were some lingering questions over how Brookfield would be able to meet its deal with Microsoft, which is eight times larger than the biggest corporate power purchase agreement in history. Brookfield is growing its capacity quickly, but the Neoen deal gives it immediate access to that company’s capacity as well. Together, the two businesses have vast development pipelines that should allow Brookfield to scale quickly to meet the moment.
Nothing is ever guaranteed, especially in the complex new world of sustainability. But with AI data centers demanding unprecedented amounts of power, and rapidly accelerating climate change driving the need for something new, Brookfield looks to be in excellent shape for both immediate and long-term growth.
Neither Lisa Fritscher nor Stocks.News has positions in this company.
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Contributing Writer
Lisa Fritscher has been a contributing writer for App.Stock.News since 2024. Lisa has been interested in investing since winning The Stock Market Game in high school. In more than a decade as a professional writer, she has written consumer-facing financial information and advice articles for a wide variety of publications. She has a Bachelor of Arts in Psychology from the University of South Flori...