The clean energy company believes solar could make up the majority of its production capacity within the next decade -- not because it doesn't see a bright future for wind or hydro, but because it sees greater opportunity in solar. Declining costs are making solar development projects increasingly lucrative. Utility-scale solar energy makes up 50% of its 200 GW global development pipeline, while distributed energy comprises another 25%.
Brookfield has made several acquisitions in recent years to increase its solar energy development capabilities. In 2024, it agreed to buy a majority stake in Neoen. The leading European renewable energy developer had 8 GW of wind, solar, and storage assets in operation or under construction. It had another 20 GW of projects in its advanced-stage development pipeline.
Brookfield's solar-powered development pipeline has it on track to expand its FFO per share at a 3% to 5% annual rate through 2030. Add that to its other organic growth drivers and acquisitions, and Brookfield believes it can grow its FFO per share by more than 10% annually through the next decade. That should support the company's plan to increase its high-yielding dividend by 5% to 9%. Its dividend growth makes it one of the top renewable energy dividend stocks. Meanwhile, its overall combination of growth and income should enable Brookfield Renewable to generate attractive total returns in the coming years.