$1 Trillion Invested? 2 Top TSX Stocks That Can Win Huge From Canada’s Energy Strategy

Canada’s new $1 trillion grid buildout could supercharge demand for renewables and storage, putting Brookfield Renewable and Northland Power in focus.

Key Points
  • Brookfield Renewable is already growing globally, with record Q1 2026 FFO and a 4.3% yield.
  • Northland Power is seeing stronger cash flow and EBITDA, helped by offshore wind and the Oneida storage project.
  • Both can benefit from a bigger grid, but high debt and project execution risk still matter.

One trillion dollars. It’ll make any investor sit up in their chair. Prime Minister Mark Carney recently launched Canada’s National Electricity Strategy, and the $1 trillion attached to it aims to double the country’s electricity grid by 2050. That isn’t a small policy tweak. It’s a generational push tied to power demand from artificial intelligence (AI), industrial growth, electrification, and energy security.

For investors, the message looks simple. Canada’s energy strength no longer means only oil, gas, and pipelines. It also means clean power, storage, transmission, and the companies that can help keep the lights on as demand climbs. So, if you’re an investor looking for companies that stand out, Brookfield Renewable Partners (TSX: BEP.UN) and Northland Power (TSX: NPI) deserve attention.

Offshore wind turbine farm at sunset

Source: Getty Images

BEP

Brookfield Renewable owns hydro, wind, solar, storage, and sustainable solutions assets around the world. That gives it a broad base, rather than a bet on one technology or one region. Its latest quarter also showed real momentum. In the first quarter of 2026, Brookfield Renewable reported record funds from operations (FFO) of US$375 million, or US$0.55 per unit. That was up 19% overall and 15% per unit from last year. The company benefited from its global fleet, acquisitions, development activity, and asset sales.

That helps because Brookfield Renewable doesn’t need to wait for Canada’s grid plan to become a winner. It already owns operating assets and a large development pipeline. Still, Canada’s push to double the grid could make assets like hydro, wind, solar, and storage more valuable over time.

The stock also offers income with a 4.3% yield at writing, which helps in a choppy market. Brookfield Renewable has long attracted investors looking for both growth and distributions. The risk, of course, comes from debt, interest rates, and project execution. Renewable power projects cost a lot upfront. If rates stay higher for longer, or if large projects face delays, returns can take a hit. Still, overall it’s a strong, diversified option for investors looking to gain an edge on energy.

NPI

Northland Power offers a different angle on the same theme. It gives investors exposure to offshore wind, onshore renewables, natural gas, utilities, and battery storage. That mix looks useful because Carney’s strategy doesn’t lean on one perfect energy source. It calls for more clean power, but it also accepts that reliability will require a wider mix, including natural gas.

NPI stock’s first-quarter results came in stronger than last year. Revenue from energy sales rose to $775 million from $665 million. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) climbed 18% to $427 million. Free cash flow per share improved to $0.70 from $0.60. Higher offshore wind production helped, while the Oneida Energy Storage Facility added a growth driver.

That storage piece could become more important. A larger grid not only needs generation, but also flexibility. Wind and solar can produce plenty of power, and storage helps manage it when that power reaches customers. NPI stock’s Oneida project gives it a foothold in that market, and its offshore wind projects in Taiwan and Poland could add more scale as they move ahead.

That said, NPI stock still carries construction risk, project risk, and exposure to weather. It also recently trimmed parts of its development pipeline, including a New York wind project and a South Korean offshore permit. That may show discipline, but it reminds investors that renewables growth rarely moves in a straight line.

Bottom line

Despite the risks, these stocks fit the bigger picture. Canada’s electricity demand could double by 2050. Ottawa wants more generation, transmission, storage, and domestic energy strength. Brookfield Renewable brings global scale and a proven platform, while NPI stock brings focused power exposure with storage and offshore wind upside. All while collecting income even with only $7,000 in each.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
BEP.UN$51.71135$2.16$291.60Quarterly$6,980.85
NPI$23.23301$0.72$216.72Monthly$6,992.23

If Canada starts building around a $1 trillion electricity opportunity, these two TSX stocks could win from the shift. They won’t avoid volatility, but for patient investors, they offer a direct way to invest in Canada’s next energy chapter before the market fully prices it in for years.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Renewable Partners. The Motley Fool has a disclosure policy.

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