When we started investing in hydropower in the 1980s, little did we know that we were positioning Brookfield in the front row for one of the most significant shifts in the energy business. Even when we began investing in renewable assets in 2010, oil was cheap and readily available to most of the world, and climate change wasn’t a widely held concern. But we saw an opportunity to invest in long-life power assets that could be structured and financed much like our office properties. And our long history of operating electricity assets gave us expertise that enabled us to drive value.
The Renewable Power & Transition Story
High Falls hydroelectric power station, Quebec, Canada
TerraForm wind farm, Valencia, Spain
Our renewable power portfolio grew significantly when, in 2016, SunEdison filed for bankruptcy, and we acquired its TerraForm Global and TerraForm Power subsidiaries. The portfolio comprised 3,700 megawatts of wind and solar assets—enough to power about one million U.S. homes.
We followed the TerraForm deals by acquiring a 2,000-megawatt portfolio in Spain and other solar projects in Portugal, Italy and Japan. In 2021, we also began repowering a 1,000-megawatt wind project in Oregon. By then, the renewable power business had grown to approximately 100 investment professionals and 3,000 employees in nearly 20 countries.
Looking toward the extraordinary opportunities ahead, we turned our focus to the demand for decarbonized energy as the global power grid moves away from fossil fuels. We operate roughly 6,000 hydro, wind and solar installations on four continents, with a capacity of 24,000 megawatts—and have an additional 27,000-megawatt development pipeline. The carbon emissions avoided by our portfolio and development pipeline, once completed, will be equal to removing 13 million vehicles from the world’s roadways annually.
Insider View: Daniel Cheng Renewable Power & Transition, Shanghai
Daniel Cheng didn’t know much about Brookfield before joining the company, but he quickly learned that youth was no barrier to advancement. Cheng was hired in 2015 at the age of 25 as an M&A analyst for the Renewable Power and Transition Group in Toronto.
After spending three years in Toronto, Cheng relocated to China to help manage and expand our business in the region.
“From a career perspective, it was a no-brainer. It was a chance to move into a fast-growing area of the business, create something and be accountable,” Cheng said. “We don’t let hierarchy bog down how employees are treated from a career or performance perspective—and that’s something a lot of us truly appreciate.”
Case Study: TerraForm
We acquired the TerraForm companies for $1.4 billion in 2017, adding 3,700 megawatts of wind and solar assets to our renewables portfolio. The transaction expanded our footprint in our core markets and established operating platforms in new high-growth regions, such as India and China.
The TerraForm transaction reflected our disciplined approach to renewables investments: buying assets on a value basis, leveraging our operating expertise, and taking a prudent approach to capital.
The acquisition was also suited to our strengths, as it required ready access to large-scale, flexible capital, knowledgeable and efficient on-the ground operating experts, and innovative thinking that addressed the needs of a complex group of stakeholders.
