Renewable energy has become an increasingly important part of how clean energy is produced.
From hydroelectricity and natural gas to solar, geothermal and ocean energy, renewable energy is defined by Natural Resources Canada as “energy obtained from natural resources that can be naturally replenished or renewed within a human lifespan.” The organization states that hydroelectricity accounts for nearly 60 percent of Canada’s energy supply. In fact, the country is the second largest producer of hydroelectricity worldwide.
While hydroelectricity remains important, wind and solar are expected to drive the most growth in Canada’s renewable energy production in the coming years. A recent Canadian Renewable Energy Association report shows that the wind, solar and energy storage sector grew by 10.5 percent in 2022 for a total capacity of 19 gigawatts (GW) of utility-scale wind and solar energy. The group expects another 5 GW of wind and 2W of solar will be added between 2023 and 2025.
Renewable energy investment in Canada is also rising. ‘Investment in clean energy has also surpassed fossil fuels, with almost two thirds of total global energy spending estimated to flow into the clean energy sector this year,’ notes Clean Energy Canada.
For investors looking to get exposure to the sector, Canada’s TSX is home to a variety of publicly traded renewable energy stocks. In response to growing investor demand, the S&P/TSX Renewable Energy and Clean Technology Index (INDEXTSI:TXCT) was created with a focus on companies in the sector; it is screened by Sustainalytics, one of the world’s leading providers of environmental, social and governance research and analysis. The list below of renewable energy stocks on the TSX was created using the index’s most heavily weighted constituents as of August 8, 2023.
1. Brookfield Renewable Partners (TSX:BEP.UN)
Market cap: C$6.92 billion; current share price: C$38.85
Brookfield Renewable Partners is one of the world’s largest publicly traded renewable power companies. It sells the bulk of its power production under long-term, fixed-rate power purchase agreements.
Brookfield Renewable’s expansive asset portfolio includes hydroelectric, wind and solar energy generation facilities, as well as energy storage assets. This translates into roughly 21,000 megawatts (MW) of capacity and nearly 6,000 generating facilities across North America, South America, Europe and Asia.
2. Northland Power (TSX:NPI)
Market cap: C$6.2 billion; current share price: C$24.18
This TSX renewable energy stock is one of Canada’s first independent power producers. Northland Power has vast clean and green global power infrastructure assets in Canada, as well as in Asia, Europe and Latin America. These assets include clean-burning natural gas and renewable resources such as wind, solar and efficient natural gas.
Northland Power’s 13 Canadian solar sites are located across Ontario, hosting around 600,000 solar panels and producing nearly 200 gigawatt hours (GWh) per year. The company has more than 200 turbines that operate across four onshore wind farms in Ontario and Saskatchewan and generate 3,787 GWh annually.
3. Boralex (TSX:BLX)
Market cap: C$3.21 billion; current share price: C$31.71
Third on this list of TSX renewable energy stocks is Boralex, which produces renewable wind, solar, hydroelectric and thermal energy in Canada, France and the US. The company is France’s largest independent producer of onshore wind power. In Canada, Boralex has 21 wind projects across Quebec, Alberta, Ontario and BC; nine hydroelectric projects across Quebec, Ontario and BC; one solar project in Ontario; and one thermal project in Quebec.
Boralex’s plan for 2021 to 2025 will see the company invest US$6 billion to roughly double its capacity by adding 4,400 MW.
4. Innergex Renewable Energy (TSX:INE)
Market cap: C$2.52 billion; current share price: C$12.48
TSX renewable energy stock Innergex Renewable Energy develops and operates run-of-river hydroelectric facilities, wind energy operations, solar farms and energy storage facilities in North America, France and Chile.
Some of the company’s most notable Canadian renewable energy assets include the Viger-Denonville community wind farm in Quebec, which consists of 12 wind turbines with a total gross installed capacity of 24.6 MW. Innergex also has the ECOLOGO-certified Upper Lillooet River hydroelectric project in BC, as well as the Umbata Falls run-of-river hydroelectric plant, which is located on the White River tributary of Lake Superior in Ontario.
5. Ballard Power Systems (TSX:BLDP)
Market cap: C$2.52 billion; current share price: C$12.48
Ballard Power Systems, a global leader in hydrogen fuel cell technology, develops and manufactures proton-exchange membrane fuel cell products that create electrical energy from the combination of hydrogen and air. The company’s products are designed for heavy-duty trucks, buses, trains and marine applications, as well as backup power storage.
Ballard is supplying hydrogen fuel cell modules to global carbon-reduction company First Mode for use in hybrid hydrogen and battery ultra-class mining haul trucks.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.