Brookfield Renewable rises on 10% FFO growth, Google power deal
Renewable giant raises distribution 5% and secures 3,000 MW hydro partnership with technology company
Brookfield Renewable Partners reported a 10% increase in Funds From Operations for 2025 and announced a 5% distribution increase, reinforcing its position as a critical energy provider to the artificial intelligence boom.
The Bermuda-based renewable energy company delivered FFO of $2.01 per unit for the full year, up from $1.83 in 2024, as it expanded its portfolio across utility-scale solar, wind, distributed energy and storage. The company raised its quarterly distribution to $0.392 per unit, bringing the annual payout to $1.568.
"We delivered strong operational and financial performance in 2025, underpinned by our global diversification and focus on high-quality assets," the company stated in its earnings announcement.
A centerpiece of Brookfield's growth strategy is its partnership with Google, signed in July 2025, to deliver up to 3,000 megawatts of carbon-free hydroelectric capacity. The technology giant has already committed to two 20-year power purchase agreements covering 670 MW from Pennsylvania facilities, projected to generate more than $3 billion in revenue. The initial contracts under the framework commenced this month.
Analysts view the agreement as a pivotal development for powering AI infrastructure, which requires massive amounts of electricity for data centers. Long-term PPAs of this nature provide stable cash flow and mitigate risk for renewable energy providers.
Brookfield delivered a record 8,000 MW of new capacity globally in 2025, representing 20% growth in commissioned capacity year-over-year. The company committed or deployed $8.8 billion across strategic technologies, with $1.9 billion net to Brookfield Renewable. The portfolio now encompasses approximately 84,000 MW of advanced-stage projects, with management targeting a run-rate of 10,000 MW per year by 2027.
The expansion was fueled partly by significant acquisitions. In March, Brookfield completed the €6.1 billion privatization of French renewable energy company Neoen, marking its largest investment ever in renewable power. The transaction, supported by Brookfield's Global Transition Fund II and co-investors including California Public Employees' Retirement System and Singapore's Temasek, added substantial wind and solar capacity across Europe.
In July, Brookfield announced plans to increase its ownership in Colombian power generator Isagen to approximately 38% through a $1 billion investment. The stake, which Brookfield initially acquired in 2016, provides exposure to stable hydroelectric assets and a pipeline of renewable projects. The transaction is expected to close in the third quarter of 2025 and be immediately accretive to FFO per unit.
Asset recycling generated approximately $900 million in proceeds during the first quarter of 2025, with an additional $1.5 billion early in the second quarter. The company anticipated total asset sales for 2025 would exceed 2024 levels while delivering returns at or above targets.
Analysts maintain a moderate buy consensus on Brookfield Renewable, with an average price target of $34.93, according to recent research. Several firms have raised their targets into the mid-$30s, citing the company's growing role in powering technology infrastructure and its stable cash flow profile from long-term contracts.
The shares were trading at $28.45 on Thursday, giving the company a market capitalization of $18.7 billion. The stock has a 52-week range of $18.47 to $32.29 and offers a dividend yield of 5.14%.
Brookfield's ability to secure large-scale partnerships with technology companies positions it uniquely in the renewable energy sector. As data center demand accelerates alongside AI adoption, the company's diversified hydro portfolio provides baseload power that complements intermittent wind and solar resources, offering reliability that technology companies increasingly demand.