Renewable Energy: Strategy

Our partnership represents one of the largest listed pure-play renewable energy platforms globally, as well as Brookfield’s primary vehicle through which it will acquire renewable energy assets on a global basis.

Growth Strategy

We focus primarily on long-life renewable energy assets that provide stable, long-term contracted cash flows, and which are well positioned to appreciate in value over time. Our strategy is to combine our industry, operating and transaction expertise with our ability to commit capital to transactions in order to secure opportunities at attractive returns for our shareholders and institutional partners.

We benefit from a proactive and focused business development strategy in each of our core markets, as well as Brookfield’s global investment platform which may lead to originating attractive opportunities for investment. Our growth strategy is focused on the following:
  • Maintaining our predominantly hydroelectric focus. We intend to maintain our predominantly hydroelectric focus as we believe hydroelectric assets are the longest-life, lowest cost, power generation assets, offering premium value and operating cash flow performance throughout market cycles. We believe hydroelectric assets are the most attractive segment of the power generation infrastructure asset class as they benefit from high barriers to entry and a sustainable competitive cost advantage. In addition, wind power is a proven technology and one of the fastest growing renewable energy segments globally. We plan to grow our wind platform by continuing to focus on high-quality sites that benefit from a proven wind resource and are located in high-value markets where wind has significant scarcity value.
  • Focusing on high-value, growing renewable energy markets. Geographically, we expect to continue our growth in the United States, Canada, Brazil and Europe, where our existing renewable energy operating platforms allow us to integrate operating or development-stage renewable energy assets and capture economies of scale. Within each of these countries, our growth strategy is focused on the higher-value markets with strong power market fundamentals, attractive demographics, and the presence of renewable portfolio standards. With access to Brookfield’s infrastructure investment platforms in Europe and Australasia, we have the ability to identify and act upon transactions globally.
  • Optimizing capital allocation to ‘‘build or buy’’ opportunities. In addition to growing our business through the acquisition of both operating and development-stage assets, we have the experience and the ability to develop and build projects from our own development project portfolio. Market conditions in some cases lead to periods where operating assets can trade at significant premiums or discounts to their replacement cost or long-term fundamental value. Similarly, renewable energy policy may at certain times be particularly conducive to new developments, leading to opportunities to earn superior risk-adjusted returns by developing and building greenfield projects.

Brookfield Asset Management's Renewable Energy Investment Strategy