Change Winds Blow for Renewable Energy Income Trusts

I just published anoter article for, where I talk about the current shakeup in the Canadian Income Trust world, and how it is effecting the ones that have renewable energy generation assets in particular. It begins,

Renewable energy is still very much in its infancy, which means that companies in the space are either profitless or high-multiple startups, or divisions of much larger companies (GE Wind (NYSE:GE), or utilities such as FPL Group (NYSE:FPL) and Xcel (NYSE:XEL) which get much of their power from conventional generation.) This presents a dilemma for investors who understand the compelling drivers for the sector, but whose risk tolerance or financial needs indicate an income-based investing strategy.

A few Canadian Income Trusts have historically gone some way towards filling this niche. These include the Boralex Power income trust (BPT-UN.TO / BLXJF.PK), Algonquin Power (APF-UN.TO/AGQNF.PK), and the Clean Power Income Fund (CLE-UN.TO/CEANF.PK).

Click here to read the whole article.


  1. While this is no doubt true, I think that the picture will change quite rapidly in Canada, if our experience in Europe is any guide.

    Everyone in the UK for example has access to purchase renewable energy for their homes, and usually this is at a small price premium. This is available from all the providers due to regulations from our power regulator which several years ago placed a duty on the generators to source renewable source generated electricity, and offer it.

    Now it is rapidly becoming main-stream for the power generation companies to offer their own renewable power, not just buying it in from anther specialist supplier, and investment is I think likely to continue rising.

    The most mature sector is the wind power industry in Europe which has seen massive growth and I believe that the leading companies are now into profit.

  2. Tom said

    Steve, I think you are referring to my statement that most RE companies are profitless or have high multiples. I agree that this will change rapidly, but not only because some of these companies will be able to invrease their profits to a healthy, sustainable level. Others, will never become profitable and go out of business, to the chagrin of investors, which is why startups should not be for everyone. But there are ways to invest in renewable energy with less risk… I outline one in my Blue Chip Alternative Energy Portfolio article.

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