Big deal for Brookfield

Article Excerpt

BROOKFIELD RENEWABLE PARTNERS L.P., $38.25, is a buy. The partnership (Toronto symbol BEP.UN; Units outstanding: 646.0 million; Market cap: $25.5 billion; TSINetwork Rating: Extra Risk; Dividend yield: 4.8%; www.bep.brookfield.com) has now agreed to provide Microsoft Corp. with more than 10.5 gigawatts of new renewable energy capacity in the U.S. and Europe, starting in 2026. The deal is almost eight times larger than any other single corporate power-purchase agreement, and it may later be expanded to include new renewables capacity in Asia and Latin America. The huge demand for power from Microsoft reflects surging demand for electricity to power the datacentres needed for burgeoning artificial intelligence applications. The cost to build the new capacity could be as much as $11.5 billion. But Brookfield will be able to draw on its 60% owner, and leading investment firm, Brookfield Asset Management for construction funds and expertise. Brookfield Renewable is a buy. buy…