Business & Investment

Value Investor: This Renewable Energy Giant Can Enrich You

TransAlta Renewables (TSX: RNW) Is one of The largest generator of wind power In Canada, it is one of the largest listed renewable energy power companies in Canada. The company’s asset platform is diversified in terms of geography, generation, and counterparties. It consists of the economic benefits of 23 wind facilities, 13 hydropower facilities, 7 natural gas power generation facilities, 1 solar power generation facility, 1 natural gas pipeline, and 1 battery storage facility, approximately 2,537. Represents ownership of megawatt (MW) net power generation. capacity.

Various operations

The company’s business spans three countries, including Canada, the United States and Australia. In the United States, the company owns the economic benefits of 140 MW Wyoming Wind Facility, 50 MW Lakes Wind Wind Facility, 21 MW Mass Solar Facility, 90 MW Big Level Wind Facility, and 29 MW Antrim Wind Facility. .. The company’s Australian operations are located in Western Australia and include economic benefits to six operating gas production facilities with an installed capacity of 450 MW and a gas pipeline of 270 kilometers.

Overall, TransAlta’s assets have been operating on a weighted average of 15 years by capacity. The company was founded to own a portfolio of power generation equipment. TransAlta is stable, Consistent return It provides investors through the ownership of highly contracted renewable and natural gas power generation and other infrastructure assets, primarily providing stable cash flow through long-term contracts with strong counterparties.

Long-term contract

The power output from TransAlta’s assets is sold under long-term contracts with strong counterparties such as utilities, load service utilities and industrial customers. Under these agreements, TransAlta is obliged to purchase all electricity produced from such facilities at a fixed price. In addition to power contracts, we have long-term and short-term contracts to sell environmental attributes from some of the company’s wind and hydropower facilities.

TransAlta owns a net hydropower capacity of approximately 112 MW across 10 different river systems in British Columbia, Alberta and Ontario. All hydropower facilities are run-of-the-line hydropower plants that are generated and sold by these assets.

Profitable project

All wind projects managed by TransAlta are on land owned by unrelated parties and are subject to long-term leases. All facilities also have long-term service contracts with independent third parties, which expire at different times. Upon expiration, we expect these existing contracts to be renewed or to enter into alternative contracts with other independent third parties.

TransAlta enters into long-term and short-term contracts to sell environmental attributes from the company’s wind facilities while contracting for electricity. Under long-term contracts, a company’s facilities typically include a supply commitment to both the power supply and its environmental attributes.

Strong growth opportunities

In summary, the company seeks and leverages strategic growth opportunities in the renewable and natural gas power generation and other infrastructure sectors. We maintain diversity of regions, generations and trading partners and pay 80-85% of the cash that can be distributed to the shareholders of the company each year. Shareholders are well serviced by TransAlta’s strategy.

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Stupid contributor Nikhill Kumar There are no positions in any of the listed stocks.

Value Investor: This Renewable Energy Giant Can Enrich You

https://www.fool.ca/2021/06/13/value-investors-this-renewable-energy-giant-could-make-you-rich/ Value Investor: This Renewable Energy Giant Can Enrich You

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