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This Renewable Energy Stock Is a Sweet Buy Under $15

As the need for sustainable, renewable forms of energy becomes more of a need worldwide, the emerging long-term opportunity to be realized from investing in renewable energy stocks is becoming ever more apparent.

On the one hand, there’s the necessity to provide power to our homes and offices, which has a constant, if not growing demand. Conversely, there’s a colossal shift toward renewable energy facilities approaching the market at a glacial pace.

One such investment that is filled with opportunity for long-term gains is Innergex Renewable Energy (TSX:INE). For those who are unaware, Innergex is a power producer with a portfolio of over 60 operational facilities  located in Canada, the U.S., France, and Chile.

Innergex announced last month that it would be selling its Icelandic-based geothermal sites in order to focus more on the facilities where Innergex does maintain operating control. The deal was priced at US$304.8 million, and the proceeds of the sale will be primary put toward an existing $228 million credit facility.

Why Innergex?

There are many renewable energy stocks on the market at the moment screaming for investors to buy. To that end, here’s why Innergex remains a key option for long-term investors to consider.

First, there’s the diversified mix of facilities and sites that Innergex offers. Of the over 60 sites that Innergex has located across Europe and the Americas, Innergex has a good mix of wind, solar and hydro elements that collectively provide over 2500 MW of power generation.

There’s also the regulated nature of power production, which has at its core long-term contracts known as Power Purchase Agreements, or PPAs. The PPA stipulates how much of the utility is to be sold, at what rate, and how long the contract is going to remain in effect.

Also worth noting is that the contracts will typically span a decade or two in duration, which provides an additional growth opportunity for Innergex at the moment.

Specifically, older PPAs that are winding down with fossil-fuel burning facilities are steadily going to be replaced with renewable energy facilities. A recent example of this comes in the form of three separate initiatives underway in Hawaii, Ohio, and Saskatchewan.

In Hawaii, the state has a goal to be powered completed by renewable energy by 2045, while a solar facility slated for Brown County, Ohio will power thousands of homes with renewable energy.

Saskatchewan has also set a goal of generating half of the province’s energy demands through renewable means by 2030, and Innergex has proposed several wind projects for the province.

In short, there’s plenty of opportunity for growth, and Innergex is jumping on that opportunity wherever it may land.

Finally, let’s take a moment to mention Innergex’ dividend. The company offers a quarterly payout that works out to an attractive 4.97% yield that is both stable and growing, thanks to a series of consecutive annual upticks that have been applied going back several years.

In my opinion, Innergex remains an excellent long-term option for investors looking to diversify their portfolio with a renewable energy investment.

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Fool contributor Demetris Afxentiou has no position in any of the stocks mentioned.

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