3 TSX Stocks to Buy Amid Rising Interest in Green Energy TransAlta Renewables (TSX:RNW) owns or has an economic interest in 44 power-generating facilities, which together generate 2,537 megawatts of power. Meanwhile, the company sells most of the power generated from these facilities through long-term contracts with strong counterparties, thus lowering the risk of price and volume fluctuations. Further, the company has a high weighted average contract life of around 11 years, which is encouraging.
TransAlta Renewables’s management has planned to invest $890 million to $960 million over the next couple of years on high-returning projects, which could boost its financials. Earlier this month, the company acquired three assets from TransAlta Corporation for $359 million, which could increase the company’s power-generating capacity by 303 megawatts. These acquisitions could contribute approximately $45 million to the company’s adjusted EBITDA annually.
Boosted by its strong performance and recent acquisitions, TransAlta Renewables is trading over 40% higher for this year. Despite the surge, its valuation multiple looks attractive, with its forward price-to-earnings multiple standing at 24.7.
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