Market Watch: Powerful leadership during political turmoil

General Market Commentary

 The Bank of Canada is currently maintaining an interest rate of 2.75 per cent as Canada faces an impending economic downturn due to the trade war initiated by the U.S. administration.

The Government of Canada is fighting back against the unjustified U.S. tariffs imposed on Canadian goods while supporting Canada’s interests, industries, and workers. Prime Minister Mark Carney has been clear that action measures will include retaliatory tariffs.

Stock markets have plummeted globally. Markets soared momentarily on April 9, after U.S. President Donald Trump said he would pause some of the tariffs. “I think at this point investors are pretty exasperated and realizing, you know, you actually can’t believe a word the man says,” according to Brian Madden, chief investment officer with First Avenue Investment Counsel in a statement to The Canadian Press.

On April 10, the C.D. Howe Institute’s Monetary Policy Council (MPC) called for the Bank of Canada to leave its target for the overnight rate, its benchmark policy interest rate, unchanged at 2.75 percent at its next announcement on April 16th. The MPC further calls for the Bank to leave the target at 2.75 percent at its next meeting in June.

Hot Sector News

This edition we’re circling back to an energy company we’ve featured before: Northland Power Inc. (TSX: NPI), a Canadian-owned global power producer dedicated to accelerating the global energy transition. Founded in 1987, with almost four decades of experience, Northland has a long history of developing, owning and operating a diversified mix of energy infrastructure assets including offshore and onshore wind, solar, battery energy storage, and natural gas. Northland also supplies energy through a regulated utility.

Headquartered in Toronto, Ont., with global offices in seven countries, Northland owns or has an economic interest in 3.2 GW of gross operating generating capacity, 2.4 GW under construction and a significant inventory of early to mid-stage development opportunities encompassing approximately 10 GW of potential capacity.

According to the latest financial results reported, revenue from energy sales of $572 million in the fourth quarter of 2024 decreased from $626 million in 2023. Revenue from energy sales increased on a full-year basis to $2,346 million from $2,233 million in 2023. Net income increased in the fourth quarter of 2024 to $150 million from a net loss of $268 million in 2023 and increased on a full-year basis to $371 million from a net loss of $96 million in 2023. Adjusted EBITDA decreased in the fourth quarter to $312 million from $389 million in 2023 and increased on a full-year basis to $1,262 million from $1,240 million in 2023.

We recently engaged Northland’s new CEO Christine Healy to provide her perspective on growing the company and managing ongoing initiatives during an economically tumultuous time.

Congratulations on your relatively new position as president and CEO of Northland Power. What new leadership perspectives and expertise do you plan to provide?
Thank you. I’m honoured to lead Northland Power at an exciting moment for the global energy industry. My leadership approach is rooted in driving strategic growth, operational excellence, and innovation. I bring a global perspective shaped by experience across mature and emerging markets, and I’m focused on ensuring Northland is an energy transition leader that’s driving value. That means staying agile, building strong partnerships, and empowering our teams. We are all focused on providing reliable, clean, and affordable energy.

What are your thoughts on the evolution of the clean energy market in Canada and the industry’s ability to meet net-zero targets at macro and micro levels?
Like many countries, Canada is seeing growth in energy demand. The difference for Canada is that we have one of the greenest grids in the world, so the solutions we need are different than in parts of the world with an energy mix that is further away from net zero. Renewable energy remains a big part of the solution in Canada, with 42 GW of renewable procurement anticipated through 2035. Canada’s ability to meet our net-zero targets will depend on streamlined permitting processes and strong collaboration between the public and private sectors. We also cannot forget that operating the existing fleet at peak efficiency through diligent operations makes a big impact. I think with the right investment conditions, Canada can continue to be a global leader.

How is the company capitalizing on changing market dynamics, regulations, and policies that support renewable energy development?
There is a significant global demand for energy that is clean, affordable, reliable, and secure. According to the International Energy Agency (IEA), global renewable electricity capacity additions are expected to increase from 666 GW in 2024 to almost 935 GW by 2030. In this environment, Northland is focusing on markets with attractive regulatory frameworks and a commitment to build up renewable infrastructure.

Conversely, how is Northland Power going to manage the impacts of new tariffs from the U.S. administration? 
Our diversified global portfolio helps shield us from localized impacts. Most of our project and operations are in Europe, Asia, and Canada, so we are well-positioned to navigate trade and tariff uncertainty. Additionally, our access to global supply chains provides flexibility in procurement and cost management. This global footprint ensures we can remain agile and competitive regardless of shifting trade policies.

How are you planning to support the company’s key Canadian projects?
Being a Canada-based global company, it’s important to us that we make a strong impact here at home. Our focus right now is on the safe and successful delivery of the Oneida Energy Storage Project, a 250 MW/1,000 MWh battery project that will be the largest in Canada and one of the largest in the world.  I am very proud of our team, who delivered this great project on-time and on-budget, which is no small feat. Just this week, we also reached financial close on the Jurassic Battery Energy Storage System in Alberta—an 80 MW/160 MWh facility, which will be Alberta’s largest battery storage project. In parallel, we’re closely watching several onshore renewables and storage procurement opportunities across Canada that align with our multi-technology growth strategy.

Looking toward the next few years, what are the main goals for your team?
Deliver, deliver, deliver. We build and operate projects the world needs. Reliable, affordable, clean energy. There are few teams in the world who can do what we do every day. We stay focused on finding, executing, and operating the best projects. We do that safely and efficiently, according to plan. Whether with onshore or offshore wind, solar, batteries, or gas-fired power, we deliver. We do that by maintaining strong relationships with communities, governments, and stakeholders. We look forward to sharing more about our strategy at our investor day later this year.

What is the value proposition for NPI investors and prospective investors?
The energy transition is happening now, with global clean energy investment set to exceed US$2 trillion annually by 2030. Northland is well-positioned to capture this growth, offering exposure to high-growth international markets. Our value proposition is rooted in our strong capabilities, proven track record, and ability to capitalize on large-scale power growth opportunities. We offer technological diversification, with the expertise to develop, construct, and operate offshore and onshore wind, solar, battery storage, and natural gas power infrastructure globally.

A key differentiator is our people—experienced professionals who excel at originating, developing, and operating power infrastructure projects around the world. This deep expertise is integral to our success. With the growing demand for power, underpinned by long-term contracted revenues, we offer stable cash flows, growth, resilience, and an attractive dividend, making Northland an ideal choice for investors looking for both growth and income in the thriving energy sector.

Northland Power Inc. has an Energy Storage Facility Agreement (ESFA) with the Independent Electricity System Operator (IESO) for the Oneida Energy Storage Project—Canada’s largest battery energy storage project. Partners in this project include the Canada Infrastructure Bank, NRStor Inc., the Six Nations of the Grand River Development Corporation (SNGRDC), AECON, and Tesla. Northland is a majority owner in the project and is leading its construction, financing, and operation.  Credit: Northland.

Stocks to Watch
Here is a list of Canadian cleantech stocks that we are monitoring for this column. This list of public companies is by no means complete, and we are open to suggestions from our advisors and readers.

*The authors of this column own equity. It is not meant to be an endorsement, but simply a statement of this fact.

James Sbrolla is a veteran of the financial and environmental industries.

Connie Vitello is editor of Environment Journal.