Brookfield Renewable (BEP -0.32%) (BEPC -1.56%) continues to showcase its leadership in the energy transition to cleaner alternatives. That was on full display during the third quarter as the renewable energy producer delivered strong financial results and made excellent progress on its strategic expansion plan.

Here's a closer look at the quarter and what Brookfield sees ahead.

Two people walking near solar energy panels.

Image source: Getty Images.

Brookfield delivers powerful third-quarter results

Brookfield Renewable generated $210 million, or $0.33 per share, of funds from operations (FFO) during the third quarter. That's up 32% year over year. High performance levels from its legacy assets and a boost from recent additions to the portfolio helped power its strong results. 

Brookfield's existing portfolio benefited from several catalysts during the quarter. It realized higher power prices across most of its markets because of inflation-linked contracts, higher rates on new contracts, and higher global power prices on uncontracted assets. Meanwhile, the company's cost reduction initiatives helped further boost margins. On top of that, Brookfield benefited from strong hydroelectric power generation in the U.S. and Colombia because of more favorable resource conditions.

The company also benefited from several new additions to its portfolio over the past year. Brookfield has completed over 670 megawatts (MW) of development assets that are now generating cash flow. In addition, Brookfield acquired an 845 MW wind farm in Oregon and a 360 MW portfolio of distributed generation assets in the U.S. (i.e., energy produced close to end-users like rooftop solar).

Brookfield's future is getting brighter by the day

Brookfield also continued executing its strategic growth plan during the quarter. The company signed 19 power purchase agreements for roughly 1,300 gigawatt-hours of renewable power generation with corporate customers across major industries. Brookfield is increasingly becoming the partner of choice for companies looking to decarbonize their operations.

The company also progressed the construction and advanced stage permitting process on 8 gigawatts (GW) of development projects. In addition, it added another 5 GW of development projects to its global development backlog, which now sits at 36 GW. For perspective, Brookfield's entire existing portfolio is around 20 GW.

Brookfield has also signed deals to acquire $2.4 billion of assets this year. Notable recent transactions include agreeing to purchase three late-stage U.S. solar energy development projects where it would invest $135 million to build 475 MW of solar. Brookfield also agreed to buy interests in portfolios holding 785 MW of distributed generation projects in Europe and Latin America for $250 million.

Meanwhile, Brookfield noted that it's working on expanding into emerging clean energy technologies that have lots of growth potential, including green hydrogen. While not yet economical, green hydrogen uses renewable energy to produce hydrogen from water, making it a potential emissions-free fuel for transportation and industrial uses.

Brookfield noted that it's advancing nearly 1 GW of green hydrogen opportunities, positioning it as a first mover in the sector. It has already agreed to energize Plug Power's (PLUG -5.25%) planned hydrogen production plant in Pennsylvania. The hydrogen fuel cell company is building one of the first industrial-scale facilities in the country. Meanwhile, it's working with Enbridge (ENB -0.03%) on one of Canada's largest green hydrogen projects. The facility will provide the pipeline company with hydrogen to inject into its natural gas distribution network in Quebec. Brookfield's early leadership in green hydrogen could pay big dividends down the road as costs come down, making the emissions-free fuel commercially viable. 

A powerful platform for the energy transition

Brookfield Renewable is a clear leader in renewable energy. Therefore, "as decarbonization of the global economy continues to move to the forefront, we are well-positioned to capture the growing opportunity while earning strong returns for our investors," according to CEO Connor Teskey. That makes Brookfield stand out as a great investment opportunity for the energy transition, especially for those seeking a renewable-powered dividend.