Globe & Mail Extract Still, many observers are willing to tolerate lofty valuations in favour of the bright long-term growth opportunities ahead in clean energy. The cost to produce wind and solar power continues to decline, reinforcing the economic viability of renewables, as coal is fazed out. And new leadership in Washington under president-elect Joe Biden could add a U.S. political push to decarbonization, which has been lacking over the past four years under President Donald Trump.
Companies that have recently updated their growth plans point to an encouraging outlook.
Northland Power’s current assets have a total operating capacity of 2.6 gigawatts, but the company has additional capacity of more than 1.4 GW under construction or advanced development, mostly in offshore wind. That’s an increase of more than 50 per cent.
Algonquin Power, a renewable energy and regulated utility company, has a 3.4 GW pipeline of opportunities in renewables and plans to invest US$3.1-billion in wind and solar projects through 2025.
“Looking forward, we don’t foresee risk that growth will slow for the renewable energy stocks. Rather, the strong policy support around the globe could enhance or extend the growth prospects,” Mark Jarvi, an analyst at CIBC World Markets, said in a note.