Renewable energy in Canada: hype or historic opportunity?

Renewable energy is one of the most talked about sectors of the 21st century, alongside generative artificial intelligence and electric vehicles. Renewables promise to increase the world’s energy supply without increasing carbon emissions and point to the possibility of a cleaner future.

The image that renewable energy enjoys is undeniably positive. However, it is not clear whether renewable energy sources have lived up to the hype surrounding them. After decades of being promoted by governments around the world, renewables supply only 30% of the world’s energy. Add nuclear power to the mix and the figure rises to 40%, leaving more than half of the world’s energy coming from “dirty,” hydrocarbon-rich sources.

The question of whether renewable energy is legitimate or just hype is a particularly pressing question for Canada. Canada’s economy was powered by fossil fuels for decades. Today, Canada is a leader in renewable energy development. The fate of renewables will have a huge impact on Canada, as well as on individual Canadian investors. In this article, I examine the state of renewable energy in Canada to determine whether this sector is hype or a historic opportunity.

Renewable energy in Canada: the big picture

Looking at the “big picture,” it appears that renewable energy is a big deal in Canada. The country is mature in terms of sustainable development: 66% of electricity comes from renewable sources. Here are some insightful facts about renewable energy in Canada:

• Canada was the seventh largest producer of renewable energy in the world in 2022.
• Hydropower is the most prominent form of renewable energy in Canada, producing 393,868 gigawatt hours of power per year, accounting for approximately 20% of the country’s electricity supply.
• Solar energy is a major growth area in Canada, growing from 27 megawatts (MW) in 2007 to 6,452 MW in 2022.
• The wind, solar and storage sector grew by a total of 10.5% in 2025.

Collectively, these facts indicate that renewable energy is an important part of the Canadian business. The question is: can investors benefit from this?

Government support

One thing that bodes well for renewable energy investments in Canada is the fact that renewable energy enjoys significant support from the federal government. The federal government offers $60 billion in input tax credits that save companies money; $4.5 billion in direct financing for smart renewables and electrification pathways; and up to $200 million in direct financing for emerging renewables (e.g., geothermal). These government tax credits and subsidies tend to support margins, positively contributing to renewable energy investment opportunities in Canada.

A company that is doing big things in the field of renewable energy

One Canadian company doing big things in renewable energy is Brookfield Renewable Partners (TSX:BEP.UN).

Brookfield Renewable Partners is a partially owned subsidiary of Brookfield Corp that supplies power to institutional-scale users in Canada, the US and beyond. Customers include utilities, governments and technology companies. The company owns 8,300 MW of hydropower assets, 17,400 MW of wind power, 14,700 MW of solar power and a 50% stake in Westinghuisthe world’s largest builder of nuclear power plants.

Brookfield Renewable Partners is probably doing more major clean energy deals today than any other company in the world. It has the following deals/projects in the pipeline:

• An ongoing commitment to build $80 billion worth of nuclear power plants in the United States (through the 50% owned Westinghouse subsidiary).
• A deal of 10.5 Gigawatts of clean energy Microsoft.
• A 3,000 megawatt deal Alphabet/Google.

These are some prestigious deals. And all three are valued in the billions of dollars.

Does sustainable energy pay off for Brookfield Renewable?

All signs point to yes. The company is profitable, growing and signing new deals that will save it more profitable in the future. Its 10-year total return (capital gains + dividends combined) is higher than the S&P 500. And finally, the company has a prestigious global brand that helps it get future deals in the pipeline. All in all, things are looking bright for Brookfield Renewable Partners, and for Canadian renewable energy more broadly.