Renewables Surge: Brookfield $BN Poised to Meet 50% Demand by 2030, Key Deal with Google

The renewable energy sector stands at a pivotal moment, with projections suggesting that clean energy sources could meet half of global electricity demand within the next decade. This seismic shift is driven by escalating climate concerns, technological advancements, and substantial capital inflows into sustainable infrastructure. Among the key players capitalising on this trend is Brookfield Renewable Partners (BEP), a subsidiary of Brookfield Asset Management, which has positioned itself as a formidable force in the renewable investment landscape, as noted in passing by some commentators on platforms like X under handles such as @thexcapitalist. This analysis delves into BEP’s recent performance, strategic moves, and the broader market dynamics shaping the renewable energy space in 2025.

Brookfield Renewable Partners: Financial Performance and Strategic Growth

Brookfield Renewable Partners has demonstrated robust growth in recent quarters, underpinned by a diversified portfolio spanning hydroelectric, wind, solar, and distributed energy solutions across five continents. According to the latest available data from their investor relations filings, BEP reported funds from operations (FFO) of approximately $1.1 billion for the full year of 2024, reflecting a year-on-year increase of nearly 10% compared to 2023’s $1.0 billion. For Q1 2025 (January to March), early indicators suggest continued momentum, with preliminary estimates pointing to FFO growth of around 8% over Q1 2024, driven by capacity expansions and favourable power pricing in key markets such as North America and Europe.

A significant development in 2025 is BEP’s framework agreement with Google, announced in July, to deliver up to 3,000 MW of carbon-free hydroelectric capacity in the United States. This deal, one of the largest of its kind, underscores the growing corporate demand for renewable energy, particularly from technology giants with vast data centre operations. Such partnerships not only bolster BEP’s revenue pipeline but also cement its role in facilitating the decarbonisation of energy-intensive industries.

Market Context: Renewable Energy’s Rising Share

Industry forecasts align with optimistic views on renewable energy’s trajectory. The International Energy Agency (IEA) projects that renewables will account for nearly 50% of global electricity generation by 2030, up from 30% in 2024. This growth is propelled by declining costs of solar and wind technologies, alongside policy support in major economies. For instance, solar photovoltaic costs have dropped by over 80% since 2010, making it increasingly competitive with fossil fuels even without subsidies. In 2025, the IEA notes that renewable capacity additions are expected to reach a record 550 GW globally, with significant contributions from China, the EU, and the US.

The surge in electricity demand from data centres, as highlighted by industry analyses, further amplifies the need for renewable solutions. With hyperscalers like Microsoft, Amazon, and Google committing hundreds of billions to AI infrastructure in 2025, the pressure on power grids is intensifying. BEP, with its focus on scalable hydroelectric and other renewable assets, is well-placed to meet this demand, particularly through bespoke agreements tailored to corporate needs.

Competitive Positioning and Risks

While BEP’s outlook appears strong, it operates in a competitive and capital-intensive sector. Peers such as NextEra Energy and Ørsted are also scaling up investments, with NextEra reporting a 12% increase in renewable capacity in 2024 alone. BEP’s advantage lies in its diversified asset base and operational expertise, managing over 33,000 MW of capacity as of the end of 2024. However, risks persist, including regulatory changes in key markets and potential delays in project execution amid supply chain constraints for critical components like wind turbine blades.

Financially, BEP’s balance sheet remains a point of scrutiny. As of Q4 2024 (October to December), the company carried a net debt of approximately $16 billion, though this is offset by strong cash flows and a disciplined approach to capital allocation. Investors will be watching closely to see if the projected 15% annual growth in distributable earnings, as guided by management for the next five years, materialises through 2030.

Investment Implications

For those considering exposure to the renewable energy theme, BEP offers a compelling blend of growth and income, with a dividend yield of around 5% as of mid-2025, significantly above the sector average of 3.5%. The stock (ticker: BEP) has also shown resilience, rallying over 11% in June 2025, reflecting investor confidence in its strategic direction. Comparative tickers in the space include NextEra Energy (NEE) and Enphase Energy (ENPH), both of which cater to different segments of the renewable market—utility-scale projects and residential solar, respectively.

The renewable energy sector’s long-term prospects remain bright, though not without near-term hurdles. BEP’s ability to execute on high-profile contracts and maintain financial discipline will be critical to sustaining its edge. As global electricity demand continues to climb, driven by digitalisation and electrification trends, companies like BEP are not merely riding a wave—they are helping to shape the future energy landscape. A touch of dry humour might note that while the sun and wind are free, harnessing them at scale is anything but cheap. Yet, for investors with a long horizon, the rewards could well justify the outlay.

References

• Brookfield Renewable Partners. (2025). Investor Relations & Financial Reports. Retrieved from https://bep.brookfield.com/
• Fool.com. (2025, July 2). Investing $1,000 Into This Top Dividend Stock in July Could Be a Brilliant Move. The Motley Fool. Retrieved from https://www.fool.com/investing/2025/07/02/investing-1000-into-this-top-dividend-stock-in-jul/
• Fool.com. (2025, July 7). Why Brookfield Renewable Rallied More Than 11% in June. The Motley Fool. Retrieved from https://www.fool.com/investing/2025/07/07/why-brookfield-renewable-rallied-more-than-11-in-j/
• International Energy Agency. (2025). World Energy Outlook 2025. Retrieved from https://www.iea.org/
• MarketScreener. (2025, July 15). Brookfield, Google Sign Hydropower Framework Agreement. Retrieved from https://marketscreener.com/quote/stock/BROOKFIELD-ASSET-MANAGEME-147562477/news/Brookfield-Google-Sign-Hydropower-Framework-Agreement-50511454
• Morningstar. (2025, July 15). Brookfield Asset Management, Brookfield Renewable, Google Announce Hydroelectric Delivery Agreement. Retrieved from https://morningstar.com/news/dow-jones/202507153147
• The Manila Times. (2025, July 15). Brookfield and Google sign hydro framework agreement to deliver up to 3,000 MW of homegrown energy in the United States. Retrieved from https://manilatimes.net/2025/07/15/tmt-newswire/globenewswire/brookfield-and-google-sign-hydro-framework-agreement-to-deliver-up-to-3000-mw-of-homegrown-energy-in-the-united-states/2149450
• The X Capitalist [@thexcapitalist]. (2025). Posts on X. Retrieved from https://x.com/thexcapitalist/
• Yahoo Finance. (2025). Brookfield Renewable Partners L.P. (BEP) Stock Price, News, Quote & History. Retrieved from https://finance.yahoo.com/quote/BEP/