We’re more than a quarter into 2026, and already a few themes for the year are beginning to take shape. One of the clear ones is “energy security.” With the U.S. and Iran at war and the Strait of Hormuz partially closed, countries are beginning to run out of fossil fuels. This fact is driving several trends, including a surge in electric vehicle (EV) sales, driven by people scrambling to secure non-gasoline fuelled transportation. Whether EVs will actually save people or not is up for debate: many countries’ electric grids are fuelled by natural gas, a Strait of Hormuz staple. Nevertheless, the trend we are seeing is a solid one.
Who is positioned to profit off of this trend?
While you might feel inclined to say “EV makers,” it’s not entirely clear that they are the one. EV manufacturing is an extremely competitive industry, with hundreds of players worldwide. A big one-time boost in demand doesn’t suddenly transform that dynamic. It does, however, lead to a rapid spike in demand for power, especially renewable power, which isn’t vulnerable to supply shocks. In this article, I will explore one Canadian company that is positioned for a strong run in 2026 and beyond, especially if current dynamics persist.
Image source: Getty Images
Brookfield Renewable Partners
Brookfield Renewable Parters (TSX:BEPC)(TSX:BEP.UN) is a Canadian renewable power company that is well known for supplying renewable power across Canada and the United States. It is a big energy wholesaler that sells power mainly to utilities and other large corporate buyers. It also builds nuclear power plants through a joint venture with Cameco, Westinghouse.
Rising demand for renewables and electric vehicles
Demand for electric vehicles and renewable energy is rising this year. The main reason for this trend is the fact that oil supplies in the Middle East have been taken offline, leading to lower global supplies and higher prices. The “lower supply” part of this has two aspects. First, the global supply that feeds the international energy market has gotten smaller, with the destruction of Gulf refineries and partial closure of the Strait of Hormuz. Second, the reserves inside “buyer” countries have also been dwindling, as they (especially Asian countries) can no longer get readily available oil and natural gas. The end result of this has been people scrambling to buy EVs, as they are seen as less dependent on fossil fuels than ICE cars. In renewable or nuclear-powered regions, they are in fact less dependent on fossil fuels.
Unfortunately, directly investing in EVs appears risky. The industry is unbelievably competitive, Tesla trades at 200 times earnings and the Chinese EV manufacturers face immense geopolitical risk. The power suppliers, on the other hand, may be good opportunities here.
Two massive power supply deals
Brookfield currently has two major power supply deals in the works. The first, signed in 2024, will see Brookfield supply Microsoft with 10 gigawatts of renewable power. The second, signed last year, will see the company supply Alphabet/Google with three gigawatts. The Google deal alone was valued at $3 billion. It should drive increased revenue and profit for Brookfield. More importantly, the fact that Brookfield Renewable is supplying such vast amounts of power to two of the world’s biggest companies, shows how much power this company is really capable of supplying. Brookfield Renewable has the capacity to single-handedly power entire electric grids. As fossil fuel supply shocks become more and more of a hot button issue, that will likely lead to more business opportunities for Brookfield.
Foolish takeaway
The bottom line on Brookfield Renewable Partners is that it’s the rare renewable energy company that has the goods. It has a vast well of power sources, capabilities in nuclear, and deep relationships with the world’s biggest buyers. If any company will profit off the transition away from fossil fuels, it’s this one. And any regular Canadian can buy a piece of it on the TSX today.
