Miscellaneous asset manager Brookfield Renewable Corporation (NYSE: BEPC) received positive momentum in March as its portfolio value rose on higher fossil fuel prices. BEPC stock rose 19.3% to $41.79 in trading for the quarter on April 6.
Brookfield Renewable Corporation (BEPC) did not publish significant news, but the quotes dynamics confirm the reputation of the company’s stock as a direction for long-term investments.
The March chart clearly shows the share price growth after the WTI oil price rose from $95 at the end of February to $123 at the March 8 session. Any significant event that accelerates the transition from fossil fuels to renewable energy will also drive BEPC quotes higher.
Currently, BEP’s main competitors in key markets (the Americas and Europe) are natural gas, oil, nuclear and, to a lesser extent, coal. They set the energy price, with which solar and wind energy is still difficult to compete. However, the price factor has become less relevant in the current environment, especially in the European market. BEPC does not have much capacity in Europe.
So, in 2021, the total capacity (batteries, generation from solar and wind) was 3.6 GW, while in North America this figure was more than 10 GW (together with hydroelectric power plants), and in South America – 5.4 GW.
But at the same time, PERC has about 9 GW of projects in European countries, which is approximately equal to the capacity of PERC projects in the US. While the European market is not the largest for BEPC, but may become the fastest growing.
Previously, the company increased its power generation at single digit rates (+8% to 57 GWh in 2021). It is likely that solid growth will continue and may accelerate in the coming years.