Why Brookfield Renewable (TSX:BEP.UN) Is Up 9.9% After Securing a Major Google Hydroelectric Agreement

• Brookfield Renewable Partners recently reported strong second-quarter results, announcing major capacity additions and a new framework with Google to supply hydroelectric power.
• This agreement with Google highlights growing demand from technology companies for long-term renewable energy contracts, supporting the company's focus on expanding clean power solutions worldwide.
• We'll explore how the Google hydroelectric power agreement could enhance Brookfield Renewable Partners’ long-term revenue visibility and growth outlook.

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Brookfield Renewable Partners Investment Narrative Recap

To invest in Brookfield Renewable Partners, you need to believe that the rising global demand for clean and reliable energy, driven by tech sector growth and corporate decarbonization, can support long-term premium power contracts and predictable cash flows. While the new Google hydro agreement is an encouraging sign for revenue visibility, it does not materially change the key short-term catalyst of accelerating new project commissionings, nor does it eliminate the principal risk of hydrology volatility impacting hydroelectric output.

Among recent announcements, the up to US$3 billion hydro framework with Google stands out as most relevant, as it aligns Brookfield’s expansion strategy with leading technology buyers seeking 24/7 clean power. This deal could reinforce the company’s position in the highly competitive renewable procurement market, supporting its pipeline buildout, but does not address bottlenecks or permitting delays that constrain near-term growth.

However, even with marquee contracts like Google’s, investors should be aware that unpredictable hydrology can still...

Read the full narrative on Brookfield Renewable Partners (it's free!)

Brookfield Renewable Partners' narrative projects $8.4 billion revenue and $919.5 million earnings by 2028. This requires 10.8% yearly revenue growth and a $1.34 billion earnings increase from the current -$425.0 million.

Uncover how Brookfield Renewable Partners' forecasts yield a CA$39.61 fair value, a 10% downside to its current price.

Exploring Other Perspectives

Fair value estimates from 11 Simply Wall St Community members range widely from US$12.64 to US$132.87 per share. While many see strong growth due to new long-term contracts with tech firms, you should remember that hydrology and permitting risks remain key drivers of actual company performance.

Explore 11 other fair value estimates on Brookfield Renewable Partners - why the stock might be worth over 3x more than the current price!

Build Your Own Brookfield Renewable Partners Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Brookfield Renewable Partners research is our analysis highlighting 2 key rewards and 3 important warning signs that could impact your investment decision.
• Our free Brookfield Renewable Partners research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Brookfield Renewable Partners' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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