Cover
Cover | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Information [Line Items] | |
Document Type | 20-F |
Document Registration Statement | false |
Document Annual Report | true |
Document Period End Date | Dec. 31, 2022 |
Current Fiscal Year End Date | --12-31 |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-39355 |
Entity Registrant Name | BROOKFIELD RENEWABLE CORPORATION |
Entity Incorporation, State or Country Code | A1 |
Entity Address, Country | CA |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281-1023 |
Title of 12(b) Security | Class A Exchangeable Subordinate Voting Shares |
Trading Symbol | BEPC |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 172,218,098 |
Entity Well Known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | International Financial Reporting Standards |
Entity Shell Company | false |
Entity Central Index Key | 0001791863 |
Amendment Flag | false |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Business Contact | |
Entity Information [Line Items] | |
Entity Address, Address Line One | 250 Vesey Street |
Entity Address, Address Line Two | 15th Floor |
Entity Address, City or Town | New York |
Entity Address, State or Province | NY |
Entity Address, Postal Zip Code | 10281-1023 |
Contact Personnel Name | Jennifer Mazin |
City Area Code | 212 |
Local Phone Number | 417-7000 |
Contact Personnel Email Address | enquiries@brookfieldrenewable.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Firm ID | 1263 |
Auditor Location | Toronto, Canada |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Cash and cash equivalents | $ 642 | $ 525 |
Restricted cash | 44 | 59 |
Trade receivables and other current assets | 1,321 | 1,146 |
Financial instrument assets | 106 | 58 |
Due from related parties | 615 | 548 |
Assets held for sale | 698 | 0 |
Total current assets | 3,426 | 2,336 |
Financial instrument assets | 481 | 58 |
Equity-accounted investments | 451 | 455 |
Property, plant and equipment, at fair value | 37,828 | 37,915 |
Intangible assets | 208 | 218 |
Goodwill | 723 | 849 |
Deferred income tax assets | 70 | 86 |
Other long-term assets | 101 | 69 |
Total Assets | 43,288 | 41,986 |
Current liabilities | ||
Accounts payable and accrued liabilities | 621 | 452 |
Financial instrument liabilities | 270 | 247 |
Due to related parties | 464 | 649 |
Non-recourse borrowings | 1,299 | 1,452 |
Provisions | 16 | 12 |
Liabilities directly associated with assets held for sale | 217 | 0 |
BEPC exchangeable and class B shares | 4,364 | 6,163 |
Total current liabilities | 7,251 | 8,975 |
Financial instrument liabilities | 578 | 523 |
Non-recourse borrowings | 12,416 | 12,060 |
Deferred income tax liabilities | 5,263 | 5,020 |
Provisions | 341 | 547 |
Other long-term liabilities | 615 | 636 |
Equity | ||
The partnership | 5,873 | 3,667 |
Total Equity | 16,824 | 14,225 |
Total Liabilities and Equity | 43,288 | 41,986 |
Non-controlling interests | ||
Current assets | ||
Cash and cash equivalents | 452 | 348 |
Property, plant and equipment, at fair value | 20,882 | 20,647 |
Equity | ||
Non-controlling interests | 10,951 | 10,558 |
Participating non-controlling interests – in operating subsidiaries | ||
Equity | ||
Non-controlling interests | 10,680 | 10,297 |
Total Equity | 10,680 | 10,297 |
Participating non-controlling interests – in a holding subsidiary held by the partnership | ||
Equity | ||
Non-controlling interests | 271 | 261 |
Total Equity | $ 271 | $ 261 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Revenues | $ 3,778 | $ 3,367 | $ 3,087 | |
Other income | 93 | 60 | 99 | |
Direct operating costs | [1] | (1,174) | (1,185) | (1,061) |
Management service costs | (169) | (175) | (152) | |
Interest expense | (1,032) | (900) | (816) | |
Share of earnings (loss) from equity-accounted investments | 6 | 2 | (4) | |
Foreign exchange and financial instruments (loss) gain | (69) | (27) | 74 | |
Depreciation | (1,179) | (1,115) | (1,065) | |
Other | (86) | (277) | (493) | |
Remeasurement of BEPC exchangeable and class B shares | 1,800 | 1,267 | (2,561) | |
Income tax (expense) recovery | ||||
Current | (133) | (31) | (61) | |
Deferred | 15 | (56) | 134 | |
Total income tax recovery (expense) | (118) | (87) | 73 | |
Net income (loss) | 1,850 | 930 | (2,819) | |
Net income (loss) attributable to: | ||||
The partnership | 1,503 | 946 | (2,738) | |
Net income (loss) | 1,850 | 930 | (2,819) | |
Non-controlling interests | ||||
Revenues | 2,249 | 1,924 | 1,989 | |
Other income | (7) | (40) | 43 | |
Direct operating costs | (610) | (626) | (637) | |
Management service costs | (6) | 0 | (26) | |
Foreign exchange and financial instruments (loss) gain | 97 | 37 | 59 | |
Depreciation | (676) | (653) | (715) | |
Other | (3) | (122) | (305) | |
Remeasurement of BEPC exchangeable and class B shares | 1 | 0 | ||
Income tax (expense) recovery | ||||
Current | (96) | (18) | (42) | |
Participating non-controlling interests – in operating subsidiaries | ||||
Income tax (expense) recovery | ||||
Net income (loss) | 336 | (23) | (92) | |
Net income (loss) attributable to: | ||||
Net income attributable to non-controlling interests | 336 | (23) | (92) | |
Net income (loss) | 336 | (23) | (92) | |
Participating non-controlling interests – in a holding subsidiary held by the partnership | ||||
Income tax (expense) recovery | ||||
Net income (loss) | 11 | 7 | 11 | |
Net income (loss) attributable to: | ||||
Net income attributable to non-controlling interests | 11 | 7 | 11 | |
Net income (loss) | $ 11 | $ 7 | $ 11 | |
[1]Direct operating costs exclude depreciation expense disclosed below. |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Net income (loss) | $ 1,850 | $ 930 | $ (2,819) |
Other comprehensive income that will not be reclassified to net income | |||
Revaluations of property, plant and equipment | 2,588 | 3,949 | 3,674 |
Actuarial gain (loss) on defined benefit plans | 15 | 10 | (1) |
Deferred income taxes on above items | (649) | (1,047) | (828) |
Unrealized gain on investments in equity securities | 1 | 0 | 0 |
Equity-accounted investments | (59) | 87 | 26 |
Total items that will not be reclassified to net income | 1,896 | 2,999 | 2,871 |
Other comprehensive income (loss) that may be reclassified to net income | |||
Foreign currency translation | (558) | (829) | (690) |
Gains (losses) arising during the year on financial instruments designated as cash-flow hedges | 105 | (56) | (22) |
Unrealized gain on foreign exchange swaps – net investment hedge | 4 | 84 | 6 |
Reclassification adjustments for amounts recognized in net income | 148 | (16) | (44) |
Deferred income taxes on above items | (70) | 3 | 10 |
Equity-accounted investments | 1 | 0 | (2) |
Total items that may be reclassified subsequently to net income | (370) | (814) | (742) |
Other comprehensive income | 1,526 | 2,185 | 2,129 |
Comprehensive income (loss) | 3,376 | 3,115 | (690) |
Comprehensive income (loss) attributable to: | |||
The partnership | 2,231 | 2,514 | (1,969) |
Comprehensive income (loss) | 3,376 | 3,115 | (690) |
Non-controlling interests | |||
Other comprehensive income (loss) that may be reclassified to net income | |||
Comprehensive income (loss) | 3,376 | 3,115 | (690) |
Comprehensive income (loss) attributable to: | |||
Comprehensive income (loss) | 3,376 | 3,115 | (690) |
Participating non-controlling interests – in operating subsidiaries | |||
Net income (loss) | 336 | (23) | (92) |
Other comprehensive income (loss) that may be reclassified to net income | |||
Other comprehensive income | 782 | 601 | 1,382 |
Comprehensive income (loss) attributable to: | |||
Non-controlling interests | 1,118 | 578 | 1,290 |
Participating non-controlling interests – in a holding subsidiary held by the partnership | |||
Net income (loss) | 11 | 7 | 11 |
Other comprehensive income (loss) that may be reclassified to net income | |||
Other comprehensive income | 16 | 16 | (22) |
Comprehensive income (loss) attributable to: | |||
Non-controlling interests | $ 27 | $ 23 | $ (11) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Millions | Total | Total | The partnership | Foreign currency translation | Revaluation surplus | Other | Participating non-controlling interests – in a holding subsidiary held by the partnership | Participating non-controlling interests – in operating subsidiaries |
Beginning balance at Dec. 31, 2019 | $ 17,874 | $ 7,348 | $ 1,452 | $ (956) | $ 6,853 | $ (1) | $ 268 | $ 10,258 |
Net income (loss) | (2,819) | (2,738) | (2,738) | 11 | (92) | |||
Other comprehensive income (loss) | 2,129 | 769 | (410) | 1,185 | (6) | (22) | 1,382 | |
Capital contributions (Note 15) | 438 | 102 | 102 | 336 | ||||
Return of Capital | 82 | 82 | ||||||
Dividends declared | (789) | (276) | (276) | (513) | ||||
Acquisition | (5,006) | (3,980) | (4,371) | 20 | 392 | (21) | (1,026) | |
Other | (20) | (48) | 5 | (4) | (49) | 1 | 27 | |
Change in year | (6,149) | (6,171) | (7,278) | (394) | 1,528 | (27) | (10) | 32 |
Ending balance at Dec. 31, 2020 | 11,725 | 1,177 | (5,826) | (1,350) | 8,381 | (28) | 258 | 10,290 |
Net income (loss) | 930 | 946 | 946 | 7 | (23) | |||
Other comprehensive income (loss) | 2,185 | 1,568 | (216) | 1,812 | (28) | 16 | 601 | |
Capital contributions (Note 15) | 65 | 65 | ||||||
Disposal | (181) | 60 | (60) | (181) | ||||
Dividends declared | (675) | (20) | (655) | |||||
Other | 176 | (24) | (14) | (2) | (8) | 0 | 200 | |
Change in year | 2,500 | 2,490 | 992 | (218) | 1,744 | (28) | 3 | 7 |
Ending balance at Dec. 31, 2021 | 14,225 | 3,667 | (4,834) | (1,568) | 10,125 | (56) | 261 | 10,297 |
Net income (loss) | 1,850 | 1,503 | 1,503 | 11 | 336 | |||
Other comprehensive income (loss) | 1,526 | 728 | (37) | 676 | 89 | 16 | 782 | |
Capital contributions (Note 15) | 569 | 569 | ||||||
Disposal | (56) | 27 | (27) | (2) | (54) | |||
Dividends declared | (1,364) | (78) | (78) | (18) | (1,268) | |||
Other | 74 | 53 | 196 | 23 | (159) | (7) | 3 | 18 |
Change in year | 2,599 | 2,206 | 1,648 | (14) | 490 | 82 | 10 | 383 |
Ending balance at Dec. 31, 2022 | $ 16,824 | $ 5,873 | $ (3,186) | $ (1,582) | $ 10,615 | $ 26 | $ 271 | $ 10,680 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities | |||
Net income (loss) | $ 1,850 | $ 930 | $ (2,819) |
Adjustments for the following non-cash items: | |||
Depreciation | 1,179 | 1,115 | 1,065 |
Unrealized financial instrument (gain) loss | 191 | 102 | (78) |
Share of loss (earnings) from equity-accounted investments | (6) | (2) | 4 |
Deferred income tax (recovery) expense | (15) | 56 | (134) |
Other non-cash items | 2 | 109 | 409 |
Remeasurement of BEPC exchangeable and class B shares | (1,800) | (1,267) | 2,561 |
Dividends received from equity-accounted investments | 4 | 3 | 3 |
Cash flows from (used in) operations before changes in related parties and working capital balances | 1,405 | 1,046 | 1,011 |
Changes in due to or from related parties | (18) | (24) | (9) |
Net change in working capital balances | (103) | (627) | (10) |
Cash flows from (used in) operating activities | 1,284 | 395 | 992 |
Financing activities | |||
Proceeds from non-recourse borrowings | 3,460 | 4,133 | 2,927 |
Repayment of non-recourse borrowings | (2,571) | (2,641) | (2,914) |
Capital contributions from non-controlling interests | 369 | 65 | 329 |
Capital contributions from the partnership | 0 | 0 | 102 |
Capital repaid to non-controlling interests | (54) | (181) | (82) |
Payments to acquire or redeem entity's shares | 0 | 0 | (44) |
Distributions paid: | |||
To participating non-controlling interests | (1,286) | (675) | (513) |
To the partnership | (78) | 0 | (235) |
Related party borrowings, net | (242) | (23) | (45) |
Net cash flows from (used in) financing activities | (402) | 678 | (475) |
Investing activities | |||
Acquisitions net of cash and cash equivalents in acquired entity | (48) | (12) | (105) |
Investment in property, plant and equipment | (847) | (1,354) | (373) |
Proceeds from disposal of assets | 92 | 376 | 17 |
Restricted cash and other | 65 | (37) | 24 |
Cash flows from (used in) investing activities | (738) | (1,027) | (437) |
Foreign exchange gain (loss) on cash | (19) | (33) | 12 |
Increase | 125 | 13 | 92 |
Net change in cash classified within assets held for sale | (8) | 0 | 0 |
Balance, beginning of year | 525 | 512 | 420 |
Balance, end of year | 642 | 525 | 512 |
Supplemental cash flow information: | |||
Interest paid | 960 | 827 | 737 |
Interest received | 32 | 20 | 19 |
Income taxes paid | $ 90 | $ 49 | $ 49 |
BASIS OF PREPARATION AND SIGNIF
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Preparation And Significant Accounting Policies Abstract [Abstract] | |
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES | (a) Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies used in the consolidated financial statements are based on the IFRS applicable as at December 31, 2022, which encompass individual IFRS, International Accounting Standards (“IAS”), and interpretations made by the International Financial Reporting Interpretations Committee (“IFRIC”) and the Standard Interpretations Committee (“SIC”). The policies set out below are consistently applied to all periods presented, unless otherwise noted. These consolidated financial statements have been authorized for issuance by the Board of Directors of the company on February 28, 2023. Certain comparative figures have been reclassified to conform to the current year’s presentation. References to $, €, R$, and COP are to United States (“U.S.”) dollars, euros, Brazilian reais and Colombian pesos, respectively. All figures are presented in millions of U.S. dollars unless otherwise noted. (b) Basis of presentation The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets. (c) Consolidation These consolidated financial statements include the accounts of the company and its subsidiaries, which are the entities over which the company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of the company’s subsidiaries are shown separately in equity in the consolidated statements of financial position. The company has entered into voting agreements with Brookfield, whereby the company gained control of the entities that own certain renewable power generating operations. The company has also entered into a voting agreement with its consortium partners in respect of its Colombian operations. These voting agreements provide the company the authority to direct the election of the Boards of Directors of the relevant entities, among other things, and therefore provide the company with control. Accordingly, the company consolidates the accounts of these entities. Refer to Note 28 – Related party transactions for further information. For entities previously controlled by Brookfield Asset Management, the voting agreements entered into do not represent business combinations in accordance with IFRS 3, Business Combinations (“IFRS 3”), as all combining businesses are ultimately controlled by Brookfield Asset Management both before and after the transactions were completed. the company accounts for these transactions involving entities under common control in a manner similar to a pooling of interest, which requires the presentation of pre-voting agreement financial information as if the transactions had always been in place. Refer to Note 1(s)(ii) – Critical judgments in applying accounting policies – Common control transactions for the company’s policy on accounting for transactions under common control. Equity-accounted investments Equity-accounted investments are entities over which the company has significant influence or joint arrangements representing joint ventures. Significant influence is the ability to participate in the financial and operating policy decisions of the investee, but without controlling or jointly controlling those investees. Such investments are accounted for using the equity method. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. the company accounts for its interests in joint ventures using the equity method. Under the equity method, the carrying value of an interest in an investee is initially recognized at cost and adjusted for the company’s share of net income, other comprehensive income (“OCI”), distributions by the equity-accounted investment and other adjustments to the company’s proportionate interest in the investee. (d) Foreign currency translation All figures reported in the consolidated financial statements and tabular disclosures to the consolidated financial statements are reflected in millions of U.S. dollars, which is the functional currency of the company. Each of the foreign operations included in these consolidated financial statements determines its own functional currency, and items included in the financial statements of each subsidiary are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at the rate of exchange prevailing at the dates of the transactions during the period. Gains or losses on translation of foreign subsidiaries are included in OCI. Gains or losses on foreign currency denominated balances are reported in the same manner In preparing the consolidated financial statements of the company, foreign currency denominated monetary assets and liabilities are translated into the functional currency using the closing rate at the applicable consolidated statement of financial position dates. Non-monetary assets and liabilities, denominated in a foreign currency and measured at fair value, are translated at the rate of exchange prevailing at the date when the fair value was determined and non-monetary assets measured at historical cost are translated at the historical rate. Revenues and expenses are measured in the functional currency at the rates of exchange prevailing at the dates of the transactions with gains or losses included in income. (e) Cash and cash equivalents Cash and cash equivalents include cash, term deposits and money market instruments with original maturities of less than 90 days. (f) Restricted cash Restricted cash includes cash and cash equivalents, where the availability of funds is restricted primarily by credit and construction agreements. (g) Property, plant and equipment and revaluation method Power generating assets are classified as property, plant and equipment and are accounted for using the revaluation method under IAS 16, Property, Plant and Equipment (“IAS 16”). Property, plant and equipment are initially measured at cost and subsequently carried at their revalued amount, being the fair value at the date of the revaluation, less any subsequent accumulated depreciation and any subsequent accumulated impairment losses. The company generally determines the fair value of its property, plant and equipment by using a 20-year discounted cash flow model for the majority of its assets. This model incorporates future cash flows from long-term power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. The model also includes estimates of future electricity prices, anticipated long-term average generation, estimated operating and capital expenditures, and assumptions about future inflation rates and discount rates by geographical location. Construction work-in-progress (“CWIP”) is revalued when sufficient information exists to determine fair value using the discounted cash flow method. Revaluations are made on an annual basis as at December 31 to ensure that the carrying amount does not differ significantly from fair value. For power generating assets acquired through business combinations, the company initially measures the assets at fair value consistent with the policy described in Note 1(o) – Business combinations, with no revaluations at year-end in the year of acquisition unless there is external evidence specific to those assets that would indicate the carrying value of the asset has either increased or decreased materially. Where the carrying amount of an asset increased as a result of a revaluation, the increase is recognized in income to the extent the increase reverses a previously recognized decrease recorded through income, with the remainder of the increase recognized in OCI and accumulated in equity under revaluation surplus and non-controlling interest. When the carrying amount of an asset decreases, the decrease is recognized in OCI to the extent that a balance exists in revaluation surplus with respect to the asset, with the remainder of the decrease recognized in income. Depreciation on power generating assets is calculated on a straight-line basis over the estimated service lives of the assets, which are as follows: Estimated service lives Dams Up to 115 years Penstocks Up to 60 years Powerhouses Up to 115 years Hydroelectric generating units Up to 115 years Wind generating units Up to 30 years Solar generating units Up to 35 years Gas-fired cogenerating (“Cogeneration”) units Up to 40 years Other assets Up to 60 years Costs are allocated to significant components of property, plant and equipment. When items of property, plant and equipment have different useful lives, they are accounted for as separate items (significant components) and depreciated separately. To ensure the accuracy of useful lives and residual values, a review is conducted annually. Depreciation is calculated based on the fair value of the asset less its residual value. Depreciation commences when the asset is in the location and conditions necessary for it to be capable of operating in the manner intended by management. It ceases at the earlier of the date the asset is classified as held-for-sale and the date the asset is derecognized. An item of property, plant and equipment and any significant component is derecognized upon disposal or when no future economic benefits are expected from its use. Other assets include equipment, buildings and leasehold improvements. Buildings, furniture and fixtures, leasehold improvements and office equipment are recorded at historical cost, less accumulated depreciation. Land and CWIP are not subject to depreciation. The depreciation of property, plant and equipment in Brazil is based on the duration of the authorization or the useful life of a concession asset. The weighted-average remaining duration at December 31, 2022 is 35 years (2021: 31 years). Since land rights are part of the concession or authorization, this cost is also subject to depreciation. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is applied to the revalued amount of the asset. Gains and losses on disposal of an item of property, plant and equipment are recognized in Other income and Other in the consolidated statements of income (loss), respectively. The revaluation surplus is reclassified within the respective components of equity and not reclassified to net income when the assets are disposed. (h) Leases At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: • the contract specified explicitly or implicitly the use of an identified asset, and that is physically distinct or represents substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • The company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the company has the right to direct the use of the asset. The company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisions about how and for what purpose the asset is used are predetermined, the company has the right to direct the use of the asset if either: ◦ The company has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the period of use, without the supplier having the right to change those operating instructions; or ◦ The company designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the company has elected not to separate non-lease components and, therefore, accounts for the lease and non-lease components as a single lease component. The company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful lives of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: • Fixed payments, including in-substance fixed payments; • Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • Amounts expected to be payable under a residual value guarantee; and • The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewable period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company’s estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made either to the carrying amount of the right-of-use asset or, when the adjustment is a reduction to the right-of-use asset, is recorded in the consolidated statements of income (loss) if the carrying amount of the right-of-use asset has been reduced to nil. The company presents right-of-use assets in property, plant and equipment and lease liabilities in other long-term liabilities in the consolidated statements of financial position. (i) Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units (“CGU”) to which it relates. the Company identifies CGU as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a CGU, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a CGU are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the CGU. Any goodwill impairment is charged to profit or loss in the period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. In the year of a business acquisition, the recoverability of the acquired goodwill is assessed by revisiting the assumptions of the related underwriting model. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal of the operation. (j) Asset impairment At each statement of financial position date, the company assesses whether for non-financial assets there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or CGU is less than its carrying value. For non-financial assets (including equity-accounted investments), an impairment is recognized if the recoverable amount, determined as the greater of the estimated fair value, less costs of disposal, and the discounted future cash flows generated from use and eventual disposal of an asset or CGU, is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously. (k) Trade receivables and other current assets Trade receivables and other current assets are recognized initially at fair value, and subsequently measured at amortized cost using the effective interest method, less any provision for expected credit losses. (l) Financial instruments Initial recognition Under IFRS 9 – Financial Instruments (“IFRS 9”), regular purchases and sales of financial assets are recognized on the trade date, being the date on which the company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership. At initial recognition, the company measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit and loss (“FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included at initial recognition. Transaction costs of financial assets carried at FVPL are expensed in income. Classification and measurement Subsequent measurement of financial assets depends on the company’s business objective for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the company classifies its financial assets: Amortized cost – Financial assets held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized cost. Interest income is recognized as other income in the financial statements, and gains/losses are recognized in income when the asset is derecognized or impaired. FVOCI – Financial assets held to achieve a particular business objective other than short-term trading are designated at fair value through other comprehensive income (“FVOCI”). For equity instruments designated at FVOCI, there is no recycling of gains or losses through income. Upon derecognition of the asset, accumulated gains or losses are transferred from OCI directly to retained earnings. FVPL – Financial assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. Gains or losses on these types of assets are recognized in income. The company assesses on a forward-looking basis the expected credit losses (“ECL”) associated with its assets carried at amortized cost and FVOCI. For trade receivables and contract assets, the company applied the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the asset. The simplified approach to the recognition of ECL does not require entities to track the changes in credit risk; rather, entities recognize a loss allowance at each reporting date based on the lifetime ECL since the date of initial recognition of the asset. Evidence of impairment may include: • Indications that a debtor or group of debtors is experiencing significant financial difficulty; • A default or delinquency in interest or principal payments; • Probability that a debtor or a group of debtors will enter into bankruptcy or other financial reorganization; • Changes in arrears or economic conditions that correlate with defaults, where observable data indicates that there is a measurable decrease in the estimated future cash flows. Trade receivables are reviewed qualitatively on a case-by-case basis to determine if they need to be written off. ECL are measured as the difference in the present value of the contractual cash flows that are due under contract and the cash flows expected to be received. ECL is measured by considering the risk of default over the contract period and incorporates forward looking information into its measurement. Financial liabilities are classified as financial liabilities at fair value through profit and loss, amortized cost, or derivatives designated as hedging instruments in an effective hedge. The company determines the classification of its financial liabilities at initial recognition. The company’s financial liabilities include accounts payable and accrued liabilities, corporate borrowings, non-recourse borrowings, derivative liabilities, due to related party balances, and tax equity. Financial liabilities are initially measured at fair value, with subsequent measurement determined based on their classification as follows: FVPL – Financial liabilities held for trading, such as those acquired for the purpose of selling in the near term, derivative financial instruments entered into by the company that do not meet hedge accounting criteria, and tax equity are classified as fair value through profit and loss. Gains or losses on these types of liabilities are recognized in income. The company owns and operates certain projects in the U.S. under tax equity structures to finance the construction of solar and wind projects. Such structures are designed to allocate renewable tax incentives, such as investment tax credits (“ITCs”), production tax credits (“PTCs”) and accelerated tax depreciation, to tax equity investors. Generally, tax equity structures grant the tax equity investors the majority of the project's U.S. taxable earnings and renewable tax incentives, along with a smaller portion of the projects’ cash flows, until a contractually determined point at which the allocations are adjusted (the “Flip Point”). Subsequent to the Flip Point the majority of the project’s U.S. taxable earnings, renewable tax incentives and cash flows are allocated to the sponsor. The Flip Point dates are generally dependent on the underlying projects’ reaching an agreed upon after tax investment return, however, from time to time, the Flip Point dates may be dates specified within the contract. At all times, both before and after the projects’ Flip Point, the company retains control over the projects financed with a tax equity structure. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position and at each reporting date are remeasured to their fair value in accordance with IFRS 9. The fair value of the tax equity financing is generally comprised of the following elements: Elements affecting the fair value of the tax equity financing Description Production tax credits (PTCs) Allocation of PTCs to the tax equity investor are derived from the power generated during the period. The PTCs are recognized in foreign exchange and financial instrument gain (loss) with a corresponding reduction to the tax equity liability. Taxable loss, including tax attributes such as accelerated tax depreciation Under the terms of the tax equity agreements, the company is required to allocate specified percentages of taxable losses to the tax equity investor. As amounts are allocated, the obligation to deliver them is satisfied and a reduction to the tax equity liability is recorded with a corresponding amount recorded within foreign exchange and financial instrument gain (loss) on the consolidated statements of income (loss). Pay-go contributions Certain of the contracts contain annual production thresholds. When the thresholds are exceeded, the tax equity investor is required to contribute additional cash amounts. The cash amounts paid increase the value of the tax equity liability. Cash distributions Certain of the contracts also require cash distributions to the tax equity investor. Upon payment, the tax equity liability is reduced in the amount of the cash distribution. Amortized cost – All other financial liabilities are classified as amortized cost using the effective interest rate method. Gains and losses are recognized in income when the liabilities are derecognized as well as through the amortization process. Remeasurement gains and losses on financial liabilities classified as amortized cost are presented in the consolidated statements of income (loss). Amortized cost is computed using the effective interest method less any principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. This category includes trade and other payables, dividends payable, interest-bearing loans and borrowings, and corporate credit facilities. Derivatives and hedge accounting Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. The company designates its derivatives as hedges of: • Foreign exchange risk associated with the cash flows of highly probable forecast transactions (cash flow hedges); • Foreign exchange risk associated with net investment in foreign operations (net investment hedges); • Commodity price risk associated with cash flows of highly probable forecast transactions (cash flow hedges); and • Floating interest rate risk associated with floating rate debts (cash flow hedges). At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is an ‘economic relationship’ between the hedged item and the hedging instrument; • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; and • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the company actually hedges and the quantity of the hedging instrument that the company actually uses to hedge that quantity of hedged item. The fair values of various derivative financial instruments used for hedging purposes and movements in the hedge reserve within equity are shown in Note 6 – Risk management and financial instruments. When a hedging instrument expires, is sold, is terminated, or no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remain in equity until the forecasted transaction occurs. When the forecasted transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging are immediately reclassified to income. If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in income at the time of the hedge relationship rebalancing. (i) Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognized immediately in income, within foreign exchange and financial instruments gain (loss). Gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedge reserve within equity. Amounts accumulated in equity are reclassified in the period when the hedged item affects income. (ii) Net investment hedges that qualify for hedge accounting Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in OCI and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in profit and loss within Foreign exchange and financial instruments gain (loss). Gains and losses accumulated in equity will be reclassified to income when the foreign operation is partially disposed of or sold. (iii) Hedge ineffectiveness The company’s hedging policy only allows for the use of derivative instruments that form effective hedge relationships. Sources of hedge effectiveness are determined at the inception of the hedge relationship and measured through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. Where the critical terms of the hedging instrument match exactly with the terms of the hedged item, a qualitative assessment of effectiveness is performed. For other hedge relationships, the hypothetical derivative method to assess effectiveness is used. (m) Revenue and expense recogniti |
PRINCIPAL SUBSIDIARIES
PRINCIPAL SUBSIDIARIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
PRINCIPAL SUBSIDIARIES | PRINCIPAL SUBSIDIARIES The following table lists the subsidiaries of the company which significantly affect its financial position and results of operations as at December 31, 2022: Jurisdiction of Incorporation or Organization Percentage of voting securities owned or controlled (%) BP Brazil US Subco LLC Delaware 100 Brookfield Power US Holding America Co. Delaware 100 Isagen S.A. E.S.P. (1) Colombia 99.70 TerraForm Power Parent, LLC (1) New York 100.00 (1) Voting control held, in whole or in part, through voting agreements with Brookfield. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
ACQUISITIONS | ACQUISITIONS Completed in 2022 The following investments were accounted for using the acquisition method, and the results of operations have been included in the audited annual consolidated financial statements since the date of acquisition. California Resources Corporation On August 3, 2022, the company, together with its institutional partners, formed a joint venture with California Resources Corporation (“CRC”) to establish a Carbon Management Business that will develop carbon capture and storage in California. The company, together with its institutional partners, has committed to invest up to $500 million to fund the development of identified carbon capture and storage projects in California. This includes an initial investment of approximately $137 million, of which $48 million was deployed during the year, which includes a put option that offers strong downside protection at a pre-determined rate of return. The company holds an approximate 10% economic interest. Completed in 2020 The following investments were accounted for using the acquisition method, and the results of operations have been included in the audited annual consolidated financial statements since the date of acquisition. Spanish CSP Portfolio On February 11, 2020, the company, through its investment in TerraForm Power, completed the acquisition of 100% of a portfolio of two concentrated solar power facilities (together, “Spanish CSP Portfolio”) located in Spain with a combined nameplate capacity of approximately 100 MW. The purchase price of this acquisition, including working capital adjustments, was €111 million ($121 million). The total acquisition costs of $1 million were expensed as incurred and have been classified under Other in the consolidated statement of income (loss). This investment was accounted for using the acquisition method, and the results of operations have been included in the audited annual consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the Spanish CSP Portfolio would have been $99 million for the year ended December 31, 2020. The purchase price allocation, at fair value, with respect to the acquisition is as follows: (MILLIONS) Spanish CSP Portfolio Cash and cash equivalents $ 22 Restricted cash 27 Trade receivables and other current assets 33 Property, plant and equipment, at fair value 661 Deferred tax assets 14 Other non-current assets 8 Current liabilities (17) Financial instruments (148) Non-recourse borrowings (475) Decommissioning liabilities (23) Other long-term liabilities (22) Fair value of identifiable net assets acquired 80 Goodwill 41 Purchase price $ 121 |
DISPOSAL OF ASSETS
DISPOSAL OF ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
DISPOSAL OF ASSETS | DISPOSAL OF ASSETS In June 2022, the company, together with its institutional partners, completed the sale of its 100% interest in a 36 MW operating hydroelectric portfolio in Brazil ("Brazil Hydroelectric Portfolio") for proceeds of R$461 million (approximately $90 million and $23 million net to the company). The company holds an approximately 23% economic interest in each of the project entities within the Brazil Hydroelectric Portfolio and a 100% voting interest. As a result of the disposition, the company's post-tax portion of the accumulated revaluation surplus of $27 million was reclassified from accumulated other comprehensive income directly to equity and noted as a Disposal item in the consolidated statements of changes in equity. Summarized financial information relating to the disposal of the Brazil Hydroelectric Portfolio is shown below: (MILLIONS) Total Proceeds, net of transaction costs $ 90 Carrying value of net assets held for sale Assets 90 Liabilities — 90 Loss on disposal, net of transaction costs $ — As at December 31, 2022, assets held for sale within the company’s operating segments include a 378 MW operating hydroelectric portfolio in the U.S. following out institutional partners’ agreement to sell their 50% interest. The company will continue to retain its 22% interest in the investment and accordingly, will not receive proceeds from the sale. The portfolio has been reclassified as held for sale, as subsequent to our institutional partners’ 50% interest completing this sale, the company will no longer consolidate this investment and will recognize its interest as an equity-accounted investment. The following is a summary of the major items of assets and liabilities classified as held for sale as at December 31: (MILLIONS) 2022 Assets Cash and cash equivalents $ 8 Trade receivables and other current assets 2 Financial instrument assets 3 Property, plant and equipment, at fair value 685 Other long-term assets — Assets held for sale $ 698 Liabilities Current liabilities $ 7 Non-recourse borrowings 171 Financial instrument liabilities 37 Other long-term liabilities 2 Liabilities directly associated with assets held for sale $ 217 The company continues to consolidate and recognize the revenues, expenses and cash flows associated with assets held for sale in the consolidated statements of income (loss), consolidated statements of comprehensive income (loss), and the consolidated statements of cash flows, respectively. Non-current assets classified as held for sale are not depreciated. |
ASSETS HELD FOR SALE
ASSETS HELD FOR SALE | 12 Months Ended |
Dec. 31, 2022 | |
ASSETS HELD FOR SALE [Abstract] | |
DISPOSAL OF ASSETS | DISPOSAL OF ASSETS In June 2022, the company, together with its institutional partners, completed the sale of its 100% interest in a 36 MW operating hydroelectric portfolio in Brazil ("Brazil Hydroelectric Portfolio") for proceeds of R$461 million (approximately $90 million and $23 million net to the company). The company holds an approximately 23% economic interest in each of the project entities within the Brazil Hydroelectric Portfolio and a 100% voting interest. As a result of the disposition, the company's post-tax portion of the accumulated revaluation surplus of $27 million was reclassified from accumulated other comprehensive income directly to equity and noted as a Disposal item in the consolidated statements of changes in equity. Summarized financial information relating to the disposal of the Brazil Hydroelectric Portfolio is shown below: (MILLIONS) Total Proceeds, net of transaction costs $ 90 Carrying value of net assets held for sale Assets 90 Liabilities — 90 Loss on disposal, net of transaction costs $ — As at December 31, 2022, assets held for sale within the company’s operating segments include a 378 MW operating hydroelectric portfolio in the U.S. following out institutional partners’ agreement to sell their 50% interest. The company will continue to retain its 22% interest in the investment and accordingly, will not receive proceeds from the sale. The portfolio has been reclassified as held for sale, as subsequent to our institutional partners’ 50% interest completing this sale, the company will no longer consolidate this investment and will recognize its interest as an equity-accounted investment. The following is a summary of the major items of assets and liabilities classified as held for sale as at December 31: (MILLIONS) 2022 Assets Cash and cash equivalents $ 8 Trade receivables and other current assets 2 Financial instrument assets 3 Property, plant and equipment, at fair value 685 Other long-term assets — Assets held for sale $ 698 Liabilities Current liabilities $ 7 Non-recourse borrowings 171 Financial instrument liabilities 37 Other long-term liabilities 2 Liabilities directly associated with assets held for sale $ 217 The company continues to consolidate and recognize the revenues, expenses and cash flows associated with assets held for sale in the consolidated statements of income (loss), consolidated statements of comprehensive income (loss), and the consolidated statements of cash flows, respectively. Non-current assets classified as held for sale are not depreciated. |
RISK MANAGEMENT AND FINANCIAL I
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS [Abstract] | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | RISK MANAGEMENT AND FINANCIAL INSTRUMENTS RISK MANAGEMENT The company’s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. The company uses financial instruments primarily to manage these risks. The sensitivity analysis discussed below reflects the risks associated with instruments that the company considers are market sensitive and the potential loss resulting from one or more selected hypothetical changes. Therefore, the discussion below is not intended to fully reflect the company’s risk exposure. (a) Market risk Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate because of changes in market prices. The company faces market risk from foreign currency assets and liabilities, the impact of changes in interest rates, and floating rate liabilities. Market risk is managed by funding assets with financial liabilities in the same currency and with similar interest rate characteristics and holding financial contracts, such as interest rate swaps and foreign exchange contracts, to minimize residual exposures. Financial instruments held by the company that are subject to market risk include borrowings and financial instruments, such as interest rate, currency and commodity contracts. The categories of financial instruments that can give rise to significant variability are described below: (i) Electricity price risk The company aims to sell electricity under long-term contracts to secure stable prices and mitigate its exposure to wholesale markets. Electricity price risk arises from the sale of the company’s uncontracted generation and is mitigated by entering into short-term energy derivative contracts. Electricity price risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate because of changes in electricity prices. The table below summarizes the impact of changes in the market price of electricity as at December 31. The impact is expressed in terms of the effect on net income and OCI. The sensitivities are based on the assumption that the market price changes by 5% with all other variables held constant. Impact of a 5% change in the market price of electricity, on outstanding energy derivative contracts and IFRS 9 PPAs, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ (30) $ (34) $ (9) $ (34) $ (20) $ (11) 5% decrease 30 34 9 34 20 11 (1) Amounts represent the potential annual net pretax impact. (ii) Foreign currency risk Foreign currency risk is defined for these purposes as the risk that the fair value of a financial instrument held by the company will fluctuate because of changes in foreign currency rates. The company has exposure to the Canadian dollar, euro, Brazilian real, and Colombian peso through its investments in foreign operations. Consequently, fluctuations in the U.S. dollar exchange rate against these currencies increase the volatility of net income and other comprehensive income. The company holds foreign currency contracts primarily to mitigate this exposure. The table below summarizes the impact to the company’s financial instruments of changes in the exchange rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the currency exchange rate changes by five percent with all other variables held constant. Impact of a 5% change in U.S. dollar exchange rates, on outstanding foreign exchange swaps, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ 18 $ 21 $ 56 $ 44 $ 29 $ 26 5% decrease (18) (21) (54) (44) (29) (26) (1) Amounts represent the potential annual net pretax impact. (iii) Interest rate risk Interest rate risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate, because of changes in interest rates. The company’s assets largely consist of long duration physical assets. The company’s financial liabilities consist primarily of long-term fixed-rate debt or variable-rate debt that has been swapped to fixed rates with interest rate financial instruments. All non-derivative financial liabilities are recorded at their amortized cost. The company also holds interest rate contracts to lock-in fixed rates on certain anticipated future debt issuances. The company will enter into interest rate swaps designed to minimize the exposure to interest rate fluctuations on its variable-rate debt. Fluctuations in interest rates could impact the company’s cash flows, primarily with respect to the interest payable against the company’s variable rate debt, which is limited to certain non-recourse borrowings with a total principal value of $5,979 million (2021: $5,165 million). Of this principal value, $2,561 million (2021: $3,493 million) has been fixed through the use of interest rate contracts. The fair values of the recognized asset and liability for the interest rate swaps were calculated using a valuation model with observable interest rates. The table below summarizes the impact of changes in the interest rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the interest rate changes by 1% with all other variables held constant. Impact of a 1% change in interest rates, on outstanding interest rate swaps, variable rate debt and tax equity, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 1% increase $ (10) $ 11 $ 2 $ 90 $ 111 $ 119 1% decrease 10 (11) (3) (95) (121) (126) (1) Amounts represent the potential annual net pretax impact. (b) Credit risk Credit risk is the risk of loss due to the failure of a borrower or counterparty to fulfill its contractual obligations. The company’s exposure to credit risk in respect of financial instruments relates primarily to counterparty obligations regarding energy contracts, interest rate swaps, forward foreign exchange contracts and physical electricity transactions. The company minimizes credit risk with counterparties through the selection, monitoring and diversification of counterparties, and the use of standard trading contracts, and other credit risk mitigation techniques. In addition, the company’s power purchase agreements are reviewed regularly and the majority are with customers having long standing credit histories or investment grade ratings, which limit the risk of non-collection. See Note 22 – Trade receivables and other current assets, for additional details regarding the company’s trade receivables balance. The maximum credit exposure at December 31 was as follows: (MILLIONS) 2022 2021 Trade receivables and other short-term receivables $ 647 $ 609 Financial instrument assets (1) 292 116 Due from related parties (1) 624 558 Long-term receivables $ 38 $ 30 $ 1,601 $ 1,313 (1) Includes both the current and long-term amounts. (c) Liquidity risk Liquidity risk is the risk that the company cannot meet a demand for cash or fund an obligation when due. Liquidity risk is mitigated by the company’s cash and cash equivalent balances and its access to undrawn credit facilities. Details of the available portion of credit facilities are included in Note 14 – Borrowings. The company also ensures that it has access to public capital markets and maintains a strong investment grade credit rating. The company is also subject to the risk associated with debt financing. This risk is mitigated by the long-term duration of debt instruments and the staggered maturity dates over an extended period of time. CASH OBLIGATIONS The table below classifies the cash obligations related to the company’s liabilities into relevant maturity groupings based on the remaining period from the statement of financial position dates to the contractual maturity date. As the amounts are the contractual undiscounted cash flows (gross of unamortized financing fees and accumulated amortization, where applicable), they may not agree with the amounts disclosed in the consolidated statements of financial position. AS AT DECEMBER 31, 2022 < 1 year 2-5 years > 5 years Total Accounts payable and accrued liabilities $ 621 $ — $ — $ 621 Financial instrument liabilities (1)(2) 270 403 175 848 Due to related parties (1) 464 — — 464 Other long-term liabilities – concession payments 1 6 20 27 Lease liabilities (1) 26 60 278 364 Non-recourse borrowings (1) 1,299 4,122 8,359 13,780 Interest payable on borrowings (3) 813 2,711 2,361 5,885 Total $ 3,494 $ 7,302 $ 11,193 $ 21,989 AS AT DECEMBER 31, 2021 < 1 year 2-5 years > 5 years Total Accounts payable, accrued liabilities, and provisions $ 452 $ — $ — $ 452 Financial instrument liabilities (1)(2) 247 355 168 770 Due to related parties (1) 649 — — 649 Other long-term liabilities – concession payments 1 6 13 20 Lease liabilities (1) 25 94 252 371 Non-recourse borrowings (1) 1,452 4,395 7,699 13,546 Interest payable on borrowings (3) 587 1,888 1,774 4,249 Total $ 3,413 $ 6,738 $ 9,906 $ 20,057 (1) Includes both the current and long-term amounts. (2) Includes tax equity liabilities that will be partially settled by the delivery of non-cash tax attributes. (3) Represents aggregate interest payable expected to be paid over the entire term of the obligations, if held to maturity. Variable rate interest payments have been calculations based on estimated interest rates. Fair value disclosures Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads. A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset. Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities. Level 1 – inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 – inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs for the asset or liability that are not based on observable market data. The following table presents the company’s assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy as at December 31: (MILLIONS) Level 1 Level 2 Level 3 2022 2021 Assets measured at fair value: Cash and cash equivalents $ 642 $ — $ — $ 642 $ 525 Restricted cash (1) 68 — — 68 81 Financial instrument assets (1) Energy derivative contracts — 33 1 34 45 Interest rate swaps — 261 — 261 40 Foreign exchange swaps — — — — 31 Investments in equity securities — — 292 292 — Property, plant and equipment — — 37,828 37,828 37,915 Liabilities measured at fair value: Financial instrument liabilities (1) Energy derivative contracts — (231) (189) (420) (206) Interest rate swaps — (14) — (14) (103) Foreign exchange swaps — (61) — (61) (6) Tax equity — — (353) (353) (455) Liabilities for which fair value is disclosed: BEPC exchangeable and class B shares (2) (4,364) — — (4,364) (6,163) Non-recourse borrowings (1) (1,739) (11,108) — (12,847) (14,397) Total $ (5,393) $ (11,120) $ 37,579 $ 21,066 $ 17,307 (1) Includes both the current amount and long-term amount. (2) BEPC class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 16 – BEPC exchangeable shares, BEPC class B shares and BEPC class C shares, the BEPC class C shares meet certain qualifying criteria and are presented as equity. There were no transfers between levels during the year ended December 31, 2022. The company owns and operates certain projects in the United States under tax equity structures to finance the construction of solar and wind projects. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position. Gain or loss on the tax equity liabilities are recognized within foreign exchange and financial instruments (loss) gain in the consolidated statements of income (loss). (b) Energy derivative contracts and IFRS 9 PPAs The company has entered into long-term energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in the company’s consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts. There is an economic relationship between the hedged items and the hedging instruments as the terms of the energy derivative contracts match the terms of the expected highly probable forecast transactions (i.e. notional amount and expected payment date). The company has established a hedge ratio of 1:1 for the hedging relationship. To measure the hedge effectiveness, the company uses the hypothetical derivative method and compares changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. The hedge ineffectiveness can arise from different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments. Certain subsidiaries that the company controls, through a voting agreement, have entered into agreements appointing the partnership as their agent in entering into certain derivative transactions with external counterparties. Pursuant to each Agreement, the partnership was entitled to be reimbursed for any third party costs incurred in connection with these derivative transactions. Substantially all of the company’s energy contract derivatives are entered into pursuant to these agreements. Upon the closing of the Energy Marketing Internalization on April 1, 2021, all power agency agreements were transferred by the partnership to the company. Refer to Note 28 - Related party transactions for more details. For the year ended December 31, 2022 , loss of $146 million relating to energy derivative contracts were realized and reclassified from OCI to the consolidated statements of income (loss) (2021: $32 million loss and 2020: $53 million gains). Based on market prices as of December 31, 2022, unrealized losses of $37 million (2021: $72 million loss and 2020: $13 million gains) recorded in accumulated other comprehensive income (“AOCI”) on energy derivative contracts are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market prices. The following table summarizes the energy derivative contracts designated as hedging instruments: Energy derivative contracts and IFRS 9 PPAs December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (118) (83) Notional amount – GWh 13,674 10,022 Weighted average hedged rate for the year ($/MWh) 58 35 Maturity dates 2023-2033 2022 - 2027 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments (90) (124) Change in value of hedged item used to determine hedge effectiveness 64 117 There is $18 million of hedge ineffectiveness losses recognized in foreign exchange and financial instruments gain (loss) in the consolidated statements of income (loss) related to energy derivative contracts (cash flow hedges) for the year ended December 31, 2022 (2021: $7 million gains and 2020: $2 million gains). (c) Interest rate hedges The company has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the consolidated financial statements at fair value. There is an economic relationship between the hedged items and the hedging instruments as the terms of the interest rate hedges match the terms of the respective fixed rate loans (i.e., notional amount, maturity, payment and reset dates). The company established a hedge ratio of 1:1 for the hedging relationship. To measure the hedge effectiveness, the company uses the hypothetical derivative method and compares the changes in the fair value of the hedging instrument against the changes in fair value of the hedged items attributable to the hedged risk. The hedge ineffectiveness can arise from: • Different interest rate curves being applied to discount the hedged item and hedging instrument • Differences in timing of cash flows of the hedged item and hedging instrument • The counterparties’ credit risk having an asymmetrical impact on the fair value movements of the hedging instrument and hedged item At December 31, 2022, agreements with a total notional exposure of $2,569 million were outstanding (2021: $2,815 million) including $325 million (2021: $559 million) associated with agreements that are not formally designated as hedging instruments. The weighted-average fixed interest rate resulting from these agreements is 2.6% (2021: 1.3%). For the year ended December 31, 2022, net movements relating to cash flow hedges realized and reclassified from OCI to interest expense in the consolidated statements of income (loss) were $2 million losses (2021: $11 million losses and 2020: $5 million losses). Based on market prices as of December 31, 2022, unrealized losses of $41 million (2021: $32 million and 2020: $30 million) recorded in AOCI on interest rate swaps are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market rates. The following table summarizes the interest rate hedges designated as hedging instruments: Interest rate hedges December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) 208 (81) Notional amount – $ 640 391 Notional amount – COP (1) 157 141 Notional amount – C$ (1) 132 152 Notional amount – € (1) 1,315 1,572 Maturity dates 2023-2048 2022 - 2039 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments 259 81 Change in value of hedged item used to determine hedge effectiveness (260) (84) (1) Notional amounts of foreign currency denominated interest rate hedges are presented at the U.S. dollar equivalent value based on the December 31, 2022 foreign currency spot rate The hedge ineffectiveness gains recognized within foreign exchange and financial instrument gain (loss) in the consolidated statements of income (loss) related to interest rate contracts (cash flow hedges) for the year ended December 31, 2022 was $1 million (2021: $(3) million and 2020: $2 million). (d) Foreign exchange swaps The company has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies. There is an economic relationship between the hedged item and the hedging instrument as the net investment or anticipated foreign currency transaction creates a translation risk that will match the respective hedging instrument. The company established a hedge ratio of 1:1 as the underlying risk of the hedging instrument is identical to the hedged risk component. Certain Brookfield subsidiaries that the company controls, through a voting agreement, have entered into Master Hedge Agreements appointing Brookfield as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in foreign exchange. Pursuant to each Agreement, Brookfield was entitled to be reimbursed for any third party costs incurred in connection with the these derivative transactions. Substantially all of the company’s foreign exchange swaps are entered into pursuant to a Master Hedge Agreement. At December 31, 2022, agreements with a total notional exposure of $2,536 million were outstanding (2021: $1,679 million) including $1,641 million (2021: $431 million) associated with agreements that are not formally designated as hedging instruments. There are no unrealized gains or losses recorded in AOCI on foreign exchange swaps that are expected to be settled or reclassified into income in the next twelve months (2021: nil and 2020: nil). The actual amount reclassified from AOCI, however, could vary due to future changes in market rates. The following table summarizes the foreign exchange swaps designated as hedging instruments: Foreign exchange swaps December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (51) 27 Notional amount for hedges of the Colombian Peso (1) 302 676 Notional amount for hedges of the Euro (1) 514 497 Notional amount for hedges of the Brazilian real (1) 79 75 Maturity date 2023 - 2024 2022 - 2023 Hedge ratio 1:1 1:1 Weighted average hedged rate for the year: COP/$ foreign exchange forward contracts 5,038 3,925 €/$ foreign exchange forward contracts 1.00 0.87 BRL/$ foreign exchange forward contracts 5.69 5.73 (1) Notional amounts expressed in millions of U.S. dollars |
SEGMENTED INFORMATION
SEGMENTED INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
SEGMENTED INFORMATION | SEGMENTED INFORMATION The company’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the operations, manage the operations, and allocate resources based on the type of technology, in conjunction with other segments of Brookfield Renewable. The operations of the company are segmented by – 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy & sustainable solutions and 5) corporate. This best reflects the way in which the CODM reviews the results of the company. The reporting to the CODM was revised during the year to incorporate the distributed energy & sustainable solutions business of the company. The distributed energy & sustainable solutions business corresponds to a portfolio of multi-technology assets and investments that support the broader strategy of decarbonization of electricity grids around the world through distributed generation and offering of other sustainable services. The financial information of operating segments in the prior period has been restated to present the corresponding results of the distributed energy & sustainable solutions. In accordance with IFRS 8, Operating Segments, the company discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. The accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects the company’s share from facilities which it accounts for using consolidation and the equity method whereby the company either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides shareholders perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to the company’s shareholders. Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed below. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include the company’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by the company apportioned to each of the above-noted items. The company does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its consolidated financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent the company’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish the company’s legal claims or exposures to such items. The company reports its results in accordance with these segments and presents prior period segmented information in a consistent manner. The company analyzes the performance of its operating segments based on Funds From Operations. Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). The company uses Funds From Operations to assess the performance of the company before the effects of certain cash items (e.g., acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g., deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. The company includes realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term within Funds From Operations in order to provide additional insight regarding the performance of investments on a cumulative realized The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2022: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 1,095 $ 176 $ 167 $ 146 $ — $ 1,584 $ (55) $ 2,249 $ 3,778 Other income 44 10 37 8 — 99 1 (7) 93 Direct operating costs (426) (54) (39) (70) (5) (594) 30 (610) (1,174) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 24 — 24 713 132 165 84 (5) 1,089 — 1,632 Management service costs — — — — (163) (163) — (6) (169) Interest expense (1) (175) (29) (50) (20) (3) (277) 4 (539) (812) Current income taxes (34) (2) (1) — — (37) — (96) (133) Share of interest and cash taxes from equity-accounted investments — — — — — — (4) — (4) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (991) (991) Funds From Operations 504 101 114 64 (171) 612 — — Depreciation (515) 12 (676) (1,179) Foreign exchange and financial instrument gain (loss) (166) — 97 (69) Deferred income tax recovery (expense) 79 — (64) 15 Other (85) 2 (3) (86) Dividends on BEPC exchangeable shares (1) (221) — 1 (220) Remeasurement of BEPC exchangeable and BEPC class B shares 1,799 — 1 1,800 Share of loss from equity-accounted investments — (14) — (14) Net income attributable to non-controlling interests — — 644 644 Net income attributable to the partnership $ 1,503 $ — $ — $ 1,503 (1) Share of earnings from equity-accounted investments of $6 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests of $347 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $1,032 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares. The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2021: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 992 $ 199 $ 166 $ 126 $ — $ 1,483 $ (40) $ 1,924 $ 3,367 Other income 55 26 15 2 3 101 (1) (40) 60 Direct operating costs (424) (59) (42) (50) (3) (578) 19 (626) (1,185) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 22 — 22 623 166 139 78 — 1,006 — 1,258 Management service costs — — — — (175) (175) — — (175) Interest expense (1) (140) (35) (53) (20) (16) (264) 6 (433) (691) Current income taxes (11) (2) (1) 1 — (13) — (18) (31) Share of interest and cash taxes from equity-accounted investments — — — — — — (6) — (6) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (807) (807) Funds From Operations 472 129 85 59 (191) 554 — — Depreciation (474) 12 (653) (1,115) Foreign exchange and financial instrument gain (loss) (66) 2 37 (27) Deferred income tax recovery (expense) 29 — (85) (56) Other (155) — (122) (277) Dividends on BEPC exchangeable shares (1) (209) — — (209) Remeasurement of BEPC exchangeable and BEPC class B shares 1,267 — — 1,267 Share of earnings from equity-accounted investments — (14) — (14) Net income attributable to non-controlling interests — — 823 823 Net income (loss) attributable to the partnership $ 946 $ — $ — $ 946 (1) Share of earnings from equity-accounted investments of $2 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $16 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $900 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares. The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2020: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 856 $ 130 $ 71 $ 81 $ — $ 1,138 $ (40) $ 1,989 $ 3,087 Other income 52 2 3 — — 57 (1) 43 99 Direct operating costs (340) (47) (17) (40) — (444) 20 (637) (1,061) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 21 — 21 568 85 57 41 — 751 — 1,395 Management service costs — — — — (126) (126) — (26) (152) Interest expense (135) (34) (24) (11) — (204) 9 (505) (700) Current income taxes (16) (3) — — — (19) — (42) (61) Share of interest and cash taxes from equity-accounted investments — — — — — — (9) — (9) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (822) (822) Funds From Operations 417 48 33 30 (126) 402 — — Depreciation (361) 11 (715) (1,065) Foreign exchange and financial instrument gain (loss) 11 4 59 74 Deferred income tax recovery 76 — 58 134 Other (189) 1 (305) (493) Dividends on class A exchangeable shares (1) (116) (116) Remeasurement of exchangeable and class B shares (2,561) (2,561) Share of loss from equity-accounted investments — (16) — (16) Net income attributable to non-controlling interests — — 903 903 Net loss attributable to the partnership $ (2,738) $ — $ — $ (2,738) (1) Share of loss from equity-accounted investments of $4 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $81 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. The following table presents information on a segmented basis about certain items in the company’s consolidated statements of financial position and reconciles our proportionate balances to the consolidated statements of financial position basis by aggregating the components comprising the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total As at December 31, 2022 Cash and cash equivalents $ 70 $ 49 $ 60 $ 18 $ — $ 197 $ (7) $ 452 $ 642 Property, plant and equipment, at fair value 13,709 1,400 1,310 1,084 — 17,503 (557) 20,882 37,828 Total assets 15,604 1,595 1,447 1,138 307 20,091 (171) 23,368 43,288 Total borrowings 2,894 613 1,025 371 — 4,903 (161) 8,973 13,715 Other liabilities 4,363 342 138 38 4,436 9,317 (10) 3,442 12,749 For the year ended December 31, 2022 Additions to property, plant and equipment 113 67 104 15 — 299 (38) 459 720 As at December 31, 2021 Cash and cash equivalents $ 65 $ 36 $ 60 $ 14 $ 4 $ 179 $ (2) $ 348 $ 525 Property, plant and equipment, at fair value 13,577 1,478 1,585 1,232 — 17,872 (604) 20,647 37,915 Total assets 15,108 1,700 1,731 1,279 17 19,835 (176) 22,327 41,986 Total borrowings 2,720 765 1,377 461 — 5,323 (161) 8,350 13,512 Other liabilities 4,051 379 119 66 6,231 10,846 (15) 3,418 14,249 For the year ended December 31, 2021 Additions to property, plant and equipment (1) 266 68 116 1 — 451 (8) 893 1,336 (1) The company exercised the option to buyout the lease on its 192 MW hydroelectric facility in Louisiana and recognized a $247 million adjustment ($185 million net to the company) to its corresponding right-of-use asset. Geographical Information The following table presents consolidated revenue split by technology for the year ended December 31: (MILLIONS) 2022 2021 2020 Hydroelectric $ 2,307 $ 1,969 $ 1,778 Wind 647 646 581 Utility-scale solar 567 507 476 Distributed energy & sustainable solutions 257 245 252 $ 3,778 $ 3,367 $ 3,087 The following table presents consolidated property, plant and equipment and equity-accounted investments split by geographical region: (MILLIONS) December 31, 2022 December 31, 2021 North America $ 22,478 $ 22,634 Colombia 8,264 8,497 Brazil 4,162 3,299 Europe 3,375 3,940 $ 38,279 $ 38,370 |
DIRECT OPERATING COSTS
DIRECT OPERATING COSTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Direct Operating Costs [Abstract] | |
DIRECT OPERATING COSTS | DIRECT OPERATING COSTS The company’s direct operating costs for the year ended December 31 are comprised of the following: (MILLIONS) Notes 2022 2021 2020 Fuel and power purchases (1)(2) $ (396) $ (450) $ (338) Operations and maintenance (246) (218) (198) Salaries and benefits (224) (206) (198) Water royalties, property taxes and other regulatory fees (159) (163) (176) Insurance (56) (56) (51) Professional fees (24) (26) (36) Energy marketing & other related party services 28 (7) (11) (17) Other (62) (55) (47) $ (1,174) $ (1,185) $ (1,061) (1) Fuel and power purchases are primarily attributable to our portfolio in Colombia. (2) Includes $80 million in 2021 relating to the Texas winter storm event which reflect the cost of acquiring energy to cover our contractual obligations for our wind assets that were not generating during the period due to freezing conditions, net of hedging initiatives. |
OTHER
OTHER | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other [Abstract] | |
OTHER | OTHER The company’s other for the year ended December 31 is comprised of the following: (MILLIONS) Notes 2022 2021 2020 Change in fair value of property, plant and equipment $ (5) $ (73) $ (43) Amortization of service concession assets (10) (15) (8) Share-settlement liability — (65) (158) Legal provisions 27 — (55) (231) Cash flow hedge associated with the disposal of assets 4 — (6) — Transaction costs — — (12) Other (71) (63) (41) $ (86) $ (277) $ (493) |
FOREIGN CURRENCY TRANSLATION
FOREIGN CURRENCY TRANSLATION | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Foreign Currency Translation [Abstract] | |
FOREIGN CURRENCY TRANSLATION | FOREIGN CURRENCY TRANSLATION The company’s foreign currency translation for the year ended December 31 shown in the consolidated statements of comprehensive income (loss) is comprised of the following: (MILLIONS) Notes 2022 2021 2020 Foreign currency translation on: Property, plant and equipment, at fair value 12 $ (1,490) $ (1,527) $ (624) Goodwill 17 (126) (121) (20) Borrowings 14 545 479 (87) Deferred income tax liabilities and assets 11 454 329 60 Other assets and liabilities 59 11 (19) $ (558) $ (829) $ (690) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
INCOME TAXES | INCOME TAXES The major components of income tax recovery (expense) for the year ended December 31 are as follows: (MILLIONS) 2022 2021 2020 Income tax recovery (expense) applicable to: Current taxes Attributed to the current period $ (133) $ (31) $ (61) Deferred taxes Origination and reversal of temporary differences (10) 80 104 Relating to change in tax rates / imposition of new tax laws 10 (142) (7) Relating to unrecognized temporary differences and tax losses 15 6 37 15 (56) 134 Total income tax recovery (expense) $ (118) $ (87) $ 73 The major components of deferred income tax (expense) recovery for the year ended December 31 recorded directly to other comprehensive income are as follows: (MILLIONS) 2022 2021 2020 Deferred income taxes attributed to: Financial instruments designated as cash flow hedges $ (60) $ 7 $ 13 Other (14) (7) (3) Revaluation surplus Origination and reversal of temporary differences (679) (882) (828) Relating to changes in tax rates / imposition of new tax laws 34 (162) — $ (719) $ (1,044) $ (818) The company’s effective income tax recovery (expense) for the year ended December 31 is different from its recovery at its statutory income tax rate due to the differences below: (MILLIONS) 2022 2021 2020 Statutory income tax (expense) recovery (1) $ (575) $ (287) $ 809 Reduction (increase) resulting from: Decrease (increase) in tax assets not recognized (8) (9) 37 Differences between statutory rate and future tax rate and tax rate changes 10 (142) (7) Subsidiaries’ income taxed at different rates 29 81 10 Non-deductible expenses 426 271 (763) Other — (1) (13) Effective income tax recovery (expense) $ (118) $ (87) $ 73 (1) Statutory income tax expense is calculated using domestic rates applicable to the profits in the relevant country. The above reconciliation has been prepared by aggregating the information for all of the company’s subsidiaries using the domestic rate in each tax jurisdiction. The company’s effective income tax rate was 6.0% for the year ended December 31, 2022 (2021: 8.6% and 2020: 2.5%). The effective tax rate is different than the statutory rate primarily due to rate differentials, legislative changes in tax rates during the year, changes in tax assets not recognized, non-deductible expenses, and non-controlling interests’ income not subject to tax. The following table details the expiry date, if applicable, of the unrecognized deferred tax assets as at December 31: (MILLIONS) 2022 2021 2020 Less than four years $ — $ — $ — Thereafter 122 126 139 The deferred tax assets and liabilities of the following temporary differences have been recognized in the consolidated financial statements for the year ended December 31: (MILLIONS) Non-capital Difference Net deferred As at January 1, 2020 $ 638 $ (4,224) $ (3,586) Recognized in net income (loss) 255 (121) 134 Recognized in equity (52) (766) (818) Business combination 30 20 50 Foreign exchange (2) 62 60 As at December 31, 2020 869 (5,029) (4,160) Recognized in net income (loss) 5 (61) (56) Recognized in equity — (1,046) (1,046) Business combination — (1) (1) Foreign exchange 5 324 329 As at December 31, 2021 879 (5,813) (4,934) Recognized in net income (loss) 16 (1) 15 Recognized in equity — (728) (728) Business combination — — — Foreign exchange 2 452 454 As at December 31, 2022 $ 897 $ (6,090) $ (5,193) The deferred income tax liabilities include $5,178 million (2021: $4,556 million and 2020: $3,516 million) of liabilities which relate to property, plant and equipment revaluations included in equity. The unrecognized taxable temporary difference attributable to the company’s interest in its subsidiaries, branches, associates, and joint ventures is $4,952 million (2021: $4,021 million and 2020: $2,633 million). |
PROPERTY, PLANT AND EQUIPMENT,
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE | PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE The following table presents a reconciliation of property, plant and equipment at fair value: (MILLIONS) Notes Hydroelectric Wind Solar Other (1) Total (2) Property, plant and equipment, at fair value As at December 31, 2020 $ 22,663 $ 6,220 $ 6,614 $ 148 $ 35,645 Additions 573 — 73 9 655 Transfer from construction work-in-progress 94 164 210 1 469 Acquisitions through business combinations 3 — — — — — Disposals (2) 3 — (757) — — (757) Items recognized through OCI: Change in fair value 3,795 (153) 90 73 3,805 Foreign exchange 10 (1,176) (96) (218) (9) (1,499) Items recognized through net income: Change in fair value (16) (26) 1 (23) (64) Depreciation (437) (354) (313) (11) (1,115) As at December 31, 2021 25,496 4,998 6,457 188 37,139 Additions, net (3) 9 (137) (78) (7) (213) Transfer from construction work-in-progress 161 86 744 7 998 Transfer to assets held for sale (677) — — — (677) Disposals (2) 4 (97) — — — (97) Items recognized through OCI: Change in fair value 2,017 292 (132) 77 2,254 Foreign exchange 10 (1,267) (73) (160) 6 (1,494) Items recognized through net income: Change in fair value (2) 16 (7) (2) 5 Depreciation (501) (307) (343) (28) (1,179) As at December 31, 2022 $ 25,139 $ 4,875 $ 6,481 $ 241 $ 36,736 Construction work-in-progress, at fair value As at December 31, 2020 $ 183 $ 96 $ 172 $ 1 $ 452 Additions 145 174 356 6 681 Transfer to property, plant and equipment (94) (164) (210) (1) (469) Acquisitions through business combinations 3 — — — — — Disposals 3 — (4) — — (4) Items recognized through OCI: Change in fair value — 17 127 — 144 Foreign exchange 10 (10) (5) (12) (1) (28) As at December 31, 2021 224 114 433 5 776 Additions 150 237 592 5 984 Transfer to property, plant and equipment (161) (86) (744) (7) (998) Transfer to assets held for sale (8) — — — (8) Acquisitions through business combinations 4 — — — — — Items recognized through OCI: Change in fair value — 250 84 — 334 Foreign exchange 10 7 (18) 15 — 4 As at December 31, 2022 $ 212 $ 497 $ 380 $ 3 $ 1,092 Total property, plant and equipment, at fair value As at December 31, 2021 (4) $ 25,720 $ 5,112 $ 6,890 $ 193 $ 37,915 As at December 31, 2022 (4) $ 25,351 $ 5,372 $ 6,861 $ 244 $ 37,828 (1) Includes biomass and cogeneration (2) Includes disposal of significant assets only (3) Includes fair value changes to decommissioning assets of $178 million (4) Includes right-of-use assets not subject to revaluation of $48 million (2021: $52 million) in hydroelectric, $127 million (2021: $130 million) in wind, $151 million (2021: $157 million) in utility-scale solar and nil (2021: $2 million) in other. During the year, Brookfield Renewable, together with its institutional partners, completed the acquisitions of the following investments. They are accounted for as an asset acquisitions as they do not constitute business combination under IFRS 3: • A 248 MW development wind portfolio in Brazil, with $11 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. The company holds a 25% economic interest. • An operating utility-scale solar asset in Colombia for a total capacity of 40 MW, with $37 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. The company holds a 22% economic interest. The fair value of the company's property, plant and equipment is calculated as described in Notes 1(g) – Property, plant and equipment and revaluation method and 1(r)(i) – Critical estimates – Property, plant and equipment. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of the company’s property, plant and equipment. See Note 1(s)(iii) – Critical judgments in applying accounting policies – Property, plant and equipment. The company has classified its property, plant and equipment under level 3 of the fair value hierarchy. Discount rates, terminal capitalization rates and terminal years used in the valuation methodology are provided in the following table: North America Colombia Brazil Europe 2022 2021 2022 2021 2022 2021 2022 2021 Discount rate (1) Contracted 4.8% - 5.4% 3.8% - 4.3% 8.5 % 7.9 % 8.2 % 7.2 % 4.4 % 3.9 % Uncontracted 5.8% - 6.7% 4.8% - 5.6% 9.7 % 9.2 % 9.5 % 8.5 % 4.4 % 3.9 % Terminal capitalization rate (2) 4.9 % 5.1 % 7.7 % 8.0 % N/A N/A N/A N/A Terminal year (3) 2044 2042 2042 2041 2052 2050 2036 2036 (1) Discount rates are not adjusted for asset specific risks. (2) The terminal capitalization rate applies only to hydroelectric assets in the United States and Colombia. (3) For hydroelectric assets, terminal year refers to the valuation date of the terminal value. The following table summarizes the impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment: 2022 (MILLIONS) North America Colombia Brazil Europe Total 25 bps increase in discount rates $ (1,110) $ (310) $ (100) $ (50) $ (1,570) 25 bps decrease in discount rates 1,170 260 110 50 1,590 5% increase in future energy prices 1,010 440 110 — 1,560 5% decrease in future energy prices (1,000) (440) (110) — (1,550) 25 bps increase in terminal capitalization rate (360) (70) — — (430) 25 bps decrease in terminal capitalization rate 390 80 — — 470 2021 (MILLIONS) North America Colombia Brazil Europe Total 25 bps increase in discount rates $ (1,050) $ (240) $ (90) $ (60) $ (1,440) 25 bps decrease in discount rates 1,160 330 90 60 1,640 5% increase in future energy prices 900 410 70 — 1,380 5% decrease in future energy prices (900) (410) (70) — (1,380) 25 bps increase in terminal capitalization rate (280) (70) — — (350) 25 bps decrease in terminal capitalization rate 310 70 — — 380 Terminal values are included in the valuation of hydroelectric assets in the United States and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset plus a one-time 30-year renewal term for the majority of the hydroelectric assets. The weighted-average remaining duration of the authorization or useful life of a concession asset at December 31, 2022, including a one-time 30-year renewal for applicable hydroelectric assets, is 35 years (2021: 31 years). Consequently, there is no terminal value attributed to the hydroelectric assets in Brazil at the end of the authorization term. The following table summarizes the percentage of total generation contracted under power purchase agreements as at December 31, 2022: North America Colombia Brazil Europe 1 - 5 years 71 % 52 % 82 % 100 % 6 - 10 years 60 % 12 % 62 % 81 % 11 - 20 years 27 % 2 % 47 % 65 % The following table summarizes average power prices from long-term power purchase agreements that are linked specifically to the related power generating assets: Per MWh (1) North America Colombia Brazil Europe 1 - 10 years $ 92 COP 293,000 R$ 320 € 72 11 - 20 years 95 352,000 385 66 (1) Assumes nominal prices based on weighted-average generation. The following table summarizes the estimates of future electricity prices: Per MWh (1) North America Colombia Brazil Europe 1 - 10 years $ 99 COP 376,000 R$ 290 € 62 11 - 20 years 126 554,000 390 74 (1) Assumes nominal prices based on weighted-average generation. The company’s long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth between 2026 and 2035. A further one year change would increase or decrease the fair value of property, plant and equipment by approximately $132 million (2021: $158 million). Had the company’s revalued property, plant and equipment been measured on a historical cost basis, the carrying amounts, net of accumulated depreciation would have been as follows at December 31: (MILLIONS) 2022 2021 Hydroelectric $ 8,478 $ 9,758 Wind 3,980 4,225 Solar 5,514 5,396 Other (1) 147 155 $ 18,119 $ 19,534 (1) Includes biomass and cogeneration. |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS The following table provides a reconciliation of intangible assets: (MILLIONS) Total Balance, as at December 31, 2020 $ 233 Amortization (1) (15) Balance, as at December 31, 2021 218 Foreign exchange 6 Amortization (1) (16) Balance, as at December 31, 2022 $ 208 (1) Included in Other within the consolidated statements of income (loss). Intangible assets relate to certain of our power generating facilities that operate under service concession arrangements in South America. We primarily benefit from a government promoted concession agreement and a long-term PPA with UTE - Administracion Nacional de Usinas y Transmisiones Electricas, the Republic of Uruguay’s state-owned electricity company. Under this PPA, we are required to deliver power at a fixed rate for the contract period, in all cases inflation adjusted. The company's service concession assets operate as authorizations that expire between 2035 and 2045. The remaining intangible assets are amortized straight-line over 17 to 20 years. Under these arrangements, the company recognized $36 million of revenue for the year ended December 31, 2022 (2021: $33 million and 2020: $35 million). |
BORROWINGS
BORROWINGS | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM DEBT AND CREDIT FACILITIES [Abstract] | |
BORROWINGS | BORROWINGS Non-recourse borrowings Non-recourse borrowings are typically asset-specific, long-term, and non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in the United States and Europe consist of both fixed and floating interest rate debt indexed to the Secured Overnight Financing Rate (“SOFR”), the Sterling Overnight Index Average (“SONIA”), the London Interbank Offered Rate (“LIBOR”) and the Euro Interbank Offered Rate ("EURIBOR"). The company uses interest rate swap agreements in the United States and Colombia to minimize its exposure to floating interest rates. Non-recourse borrowings in Brazil consist of floating interest rates of Taxa de Juros de Longo Prazo (“TJLP”), the Brazil National Bank for Economic Development’s long-term interest rate, or Interbank Deposit Certificate rate (“CDI”), plus a margin. Non-recourse borrowings in Colombia include floating interest rates of Indicador Bancario de Referencia rate (“IBR”), the Banco Central de Colombia short-term interest rate, or Colombian Consumer Price Index (“IPC”), the Banco Central de Colombia inflation rate, plus a margin. Effective January 1, 2022, SONIA replaced £ LIBOR, and Euro Short-term Rate (“€STR”) replaced € LIBOR. It is also currently expected that SOFR will replace US$ LIBOR prior to June 30, 2023 and the Canadian Overnight Repo Rate Average (“CORRA”) is expected to replace CDOR after June 28, 2024. As at December 31, 2022, the company’s floating rate borrowings have not been materially impacted by SONIA and €STR reforms. The company has a transition plan for the replacement of US$ LIBOR with the Secured Overnight Financing Rate (“SOFR”) benchmark on June 30, 2023. This plan involves certain amendments to the contractual terms of US$ LIBOR referenced floating rate borrowings, interest rate swaps, interest rate caps and updates to hedge designations. These are not expected to have a material impact. The composition of non-recourse borrowings as at December 31 is presented in the following table: December 31, 2022 December 31, 2021 Weighted-average Weighted-average (MILLIONS EXCEPT AS NOTED) Weighted-average interest rate (%) Term (years) (3) Carrying value Estimated fair value Weighted-average interest rate (%) Term (years) Carrying value Estimated fair value Non-recourse borrowings (1) Hydroelectric (2) 8.2 7 $ 6,612 $ 5,945 5.1 7 $ 6,160 $ 6,543 Wind 5.2 8 2,331 2,230 3.7 9 2,416 2,577 Utility-scale solar 5.5 13 4,041 3,926 4.1 13 4,110 4,365 Distributed energy & sustainable solutions 3.0 11 796 746 3.9 12 860 912 Total 6.6 9 $ 13,780 $ 12,847 4.5 9 13,546 $ 14,397 Add: Unamortized premiums and discounts (4) 17 57 Less: Unamortized financing fees (4) (82) (91) Less: Current portion (1,299) (1,452) $ 12,416 $ 12,060 (1) Includes $1 million (2021: $8 million) borrowed under a subscription facility of a Brookfield sponsored private fund. (2) Includes $15 million (2021: nil) outstanding to an associate of Brookfield. Refer to Note 28 - Related party transactions for more details. (3) Excluding non-permanent financings, total weighted-average term is 9 years. (4) Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing. Future repayments of the company’s non-recourse borrowings for each of the next five years and thereafter are as follows: (MILLIONS) 2023 2024 2025 2026 2027 Thereafter Total Non-recourse borrowings Hydroelectric $ 734 $ 671 $ 509 $ 778 $ 477 $ 3,443 $ 6,612 Wind 197 243 149 153 143 1,446 2,331 Utility-scale solar 302 203 209 221 213 2,893 4,041 Distributed energy & sustainable solutions 66 43 39 38 33 577 796 $ 1,299 $ 1,160 $ 906 $ 1,190 $ 866 $ 8,359 $ 13,780 The following table outlines the change in the unamortized financing fees of non-recourse borrowings for the year ended December 31: (MILLIONS) 2022 2021 Non-recourse borrowings Unamortized financing fees and discounts, beginning of year $ (91) $ (93) Additional financing fees and discounts (19) (14) Amortization of financing and discounts fees 14 13 Foreign exchange translation and other 14 3 Unamortized financing fees and discounts, end of year $ (82) $ (91) The following table outlines the financing and refinancing completed for the year ended December 31, 2022: Period Closed Region Technology Average 1 Maturity Carrying Value Q1 2022 Colombia Hydroelectric 8.66% Financing 2032 COP 200 billion ($53 million) Q1 2022 Colombia Hydroelectric IPC Financing 2029-2037 COP 356 billion ($95 million) Q1 2022 Colombia Hydroelectric IBR Financing 2032 COP 200 billion ($53 million) Q1 2022 Brazil Utility-scale solar IPCA Financing 2045 BRL 150 million ($29 million) Q1 2022 U.S. Hydroelectric 3.62% Refinancing 2032 $170 million Q1 2022 U.S. Hydroelectric SOFR Refinancing 2026 $35 million Q2 2022 Brazil Utility-scale solar IPCA Financing 2045 BRL 300 million ($63 million) Q2 2022 Brazil Wind CDI Financing 2024 BRL 500 million ($96 million) Q2 2022 Europe Utility-scale solar 3.36% Refinancing 2039 €66 million ($70 million) Q2 2022 Colombia Hydroelectric IBR Financing 2032 COP 400 billion ($97 million) Q2 2022 Colombia Hydroelectric IBR Financing 2030 COP 100 billion ($24 million) Q2 2022 Colombia Hydroelectric IBR Financing 2030 COP 50 billion ($12 million) Q2 2022 Colombia Hydroelectric IBR Financing 2034 COP 100 billion ($24 million) Q2 2022 Colombia Hydroelectric IBR Financing 2027 COP 219 billion ($53 million) Q2 2022 Colombia Hydroelectric IBR Financing 2029 COP 594 billion ($144 million) Q2 2022 Colombia Hydroelectric IBR Refinancing 2030 COP 237 billion ($57 million) Q3 2022 Colombia Hydroelectric IBR Financing 2030 COP 315 billion ($71 million) Q3 2022 U.S. Distributed generation 6.50% Financing 2032 $14 million Q3 2022 U.S. Hydroelectric SOFR Refinancing 2024 $12 million Q4 2022 Colombia Hydroelectric IBR Financing 2032 COP 252 billion ($53 million) Q4 2022 Chile Various SOFR Financing 2034 $200 million Q4 2022 Brazil Utility-scale solar IPCA Financing 2046 BRL 450 million ($87 million) In the first quarter of 2022, the Company increased its revolving credit facility associated with the distributed generation portfolio in the United States by $50 million to a total of $150 million and agreed to amend its maturity to March 2025. In the second quarter of 2022, the Company increased its revolving credit facility capacity associated with the United States business by $250 million to a total of $750 million. In the fourth quarter of 2022, the Company extended the maturity of its COP 3 trillion facility associated with the Colombia hydroelectric assets to 2047. In the fourth quarter of 2022, Brookfield Renewable extended the maturity of its BRL 350 million ($68 million) facility associated with a portfolio of Brazilian solar assets to 2047. Supplemental Information The following table outlines changes in the company's borrowings for the year ended December 31: (MILLIONS) January 1 Net cash flows from financing activities (1) Non-cash Transfer to Held for sale Disposal Other (2) December 31 2022 Non-recourse borrowings $ 13,512 926 (171) — (552) $ 13,715 2021 Non-recourse borrowings $ 12,822 1,462 — (362) (410) $ 13,512 (1) Excludes $(20) million (2021: $51 million) of net cash flow from financing activities related to tax equity recorded on the consolidated statements of cash flows. (2) Includes foreign exchange and amortization of unamortized premium and financing fees. |
NON-CONTROLLING INTERESTS
NON-CONTROLLING INTERESTS | 12 Months Ended |
Dec. 31, 2022 | |
Non Controlling Interest [Abstract] | |
NON-CONTROLLING INTERESTS | NON-CONTROLLING INTERESTS The company’s non-controlling interests are comprised of the following as at December 31: (MILLIONS) 2022 2021 Participating non-controlling interests – in operating subsidiaries $ 10,680 $ 10,297 Participating non-controlling interests – in a holding subsidiary held by the partnership 271 261 $ 10,951 $ 10,558 Participating non-controlling interests – in operating subsidiaries The net change in participating non-controlling interests – in operating subsidiaries is as follows: (MILLIONS) Brookfield Brookfield Brookfield Brookfield Infrastructure Fund IV Brookfield Global Infrastructure Income Fund Isagen institutional partners Isagen public non-controlling interests The TerraForm Power Other Total As at December 31, 2019 $ 922 $ 1,756 $ 2,834 $ — $ — $ 2,375 $ 13 $ 89 $ 2,129 $ 140 $ 10,258 Net income (loss) (13) (17) (64) 1 — 130 — 16 (142) (3) (92) Other comprehensive income 100 189 528 2 — 325 2 27 176 33 1,382 Capital contributions — 4 — 71 — — — — — 261 336 Return of Capital — — (41) — — — — — (41) — (82) Dividends declared and return of capital (8) (29) (139) — — (180) — (35) (86) (36) (513) Special distribution/TerraForm Power acquisition — — — — — — — — (1,026) — (1,026) Other 1 (1) (36) — — — (1) — (49) 113 27 As at December 31, 2020 1,002 1,902 3,082 74 — 2,650 14 97 961 508 10,290 Net income (loss) 5 (32) (20) (3) — 113 1 16 (67) (36) (23) Other comprehensive income (122) 411 187 137 — (107) — 28 (6) 73 601 Capital contributions — 1 — 64 — — — — — — 65 Disposals (181) — — — — — — — — — (181) Dividends declared (18) (31) (220) (11) — (214) (2) (9) (105) (45) (655) Other — — 157 — — — — — 70 (27) 200 As at December 31, 2021 686 2,251 3,186 261 — 2,442 13 132 853 473 10,297 Net income (loss) 19 (34) 110 1 — 179 1 11 32 17 336 Other comprehensive income (103) 448 156 164 10 67 1 (19) 67 (9) 782 Capital contributions — 4 — 276 200 — — — — 89 569 Disposals (54) — — — — — — — — — (54) Dividends declared (71) (55) (393) — (7) (524) (1) (9) (123) (85) (1,268) Other — 1 2 5 30 (5) (1) — 3 (17) 18 As at December 31, 2022 $ 477 $ 2,615 $ 3,061 $ 707 $ 233 $ 2,159 $ 13 $ 115 $ 832 $ 468 $ 10,680 Interests held by third parties 75% - 78% 43% - 60% 23% - 71% 75 % 1.5% - 6.8% 53 % 0.3 % 25 % 33 % 0.3% - 80% The following tables summarize certain financial information of operating subsidiaries that have non-controlling interests that are material to the company: (MILLIONS) Brookfield Americas Infrastructure Fund Brookfield Brookfield (1) Brookfield Infrastructure Isagen (2) The TerraForm Power (3) Other Total Interests held by third parties 75% - 78% 43% - 60% 71 % 75 % 77 % 25 % 75 % 0.3% - 80% Place of business North America, North America, North America Brazil Colombia North America North America, North America, Year ended December 31, 2020: Revenue $ 137 $ 261 $ 41 $ 5 $ 874 $ 141 $ 1,161 $ 15 $ 2,635 Net income (15) (29) (11) 1 258 65 (360) 4 (87) Total comprehensive income (loss) 109 329 287 4 877 173 238 — 2,017 Net income allocated to non-controlling interests (13) (17) (8) 1 195 16 (268) 2 (92) Year ended December 31, 2021: Revenue $ 137 $ 269 $ 58 $ 25 $ 929 $ 136 $ 1,239 $ 14 $ 2,807 Net income (loss) 7 (60) (3) (4) 214 62 (245) 8 (21) Total comprehensive income (loss) (161) 716 332 178 11 173 (243) 117 1,123 Net income (loss) allocated to non-controlling interests 5 (32) (2) (3) 162 16 (175) 6 (23) As at December 31, 2021: Property, plant and equipment, at fair value $ 1,053 $ 5,578 $ 2,061 $ 713 $ 8,497 $ 1,129 $ 10,867 $ 164 $ 30,062 Total assets 1,087 5,685 2,074 798 9,498 1,140 11,939 202 32,423 Total borrowings 179 1,331 347 391 2,224 507 6,902 39 11,920 Total liabilities 205 1,549 358 450 4,896 511 8,916 61 16,946 Carrying value of non-controlling interests 685 2,251 1,226 261 3,493 132 2,197 52 10,297 Year ended December 31, 2022: Revenue $ 120 $ 324 $ 80 $ 112 $ 1,135 $ 131 $ 1,324 $ 10 $ 3,236 Net income (loss) 25 (71) (4) 2 340 44 94 21 451 Total comprehensive income (loss) (106) 726 71 220 467 (32) 301 23 1,670 Net income allocated to non-controlling interests 19 (34) (3) 1 257 11 63 22 336 As at December 31, 2022: Property, plant and equipment, at fair value $ 131 $ 6,224 $ 2,107 $ 1,529 $ 8,264 $ 1,031 $ 10,012 $ 187 $ 29,485 Total assets 852 6,367 2,126 1,722 9,178 1,053 11,192 260 32,750 Total borrowings 14 1,332 347 675 2,356 476 6,371 — 11,571 Total liabilities 240 1,601 382 780 5,112 491 8,275 74 16,955 Carrying value of non-controlling interests 477 2,615 1,245 707 3,146 115 2,283 92 10,680 (1) Excludes information relating to Isagen and TerraForm Power which is presented separately. (2) The total third parties ownership interest in Isagen as of December 31, 2022 was 77.4% and comprised of Brookfield Infrastructure Fund III: 23.0%,Brookfield Global Infrastructure Income Fund: 1.5%, Isagen institutional partners: 52.6% and other non-controlling interests: 0.3%. The following table summarizes certain financial information regarding Participating non-controlling interests – in a holding subsidiary held by the partnership : (MILLIONS) 2022 2021 2020 For the year ended December 31: Revenue $ 1,407 $ 1,133 $ 1,069 Net income 475 334 472 Comprehensive income 863 473 550 Net income allocated to participating non-controlling interests – in a holding subsidiary held by the partnership 11 7 11 As at December 31: Property, plant and equipment, at fair value $ 11,357 $ 10,785 Total assets 12,887 12,408 Total borrowings 3,228 3,117 Total liabilities 6,320 5,967 Carrying value of participating non-controlling interests – in a holding subsidiary held by the partnership 271 261 |
BEPC EXCHANGEABLE SHARES, BEPC
BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES | BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES The BEPC exchangeable shares and class B shares are classified as liabilities due to their exchange and cash redemption features. The BEPC exchangeable shares and class B shares issued pursuant to the special distribution and the TerraForm Power acquisition were recognized at their fair value of $28.28 per share. Subsequent to initial recognition, the BEPC exchangeable shares and the BEPC class B shares are recognized at amortized cost and remeasured to reflect changes in the contractual cash flows associated with the shares. These contractual cash flows are based on the price of one BEP unit. As at December 31, 2022, the BEPC exchangeable shares and class B shares were remeasured to $25.34 per share to reflect the NYSE closing price of a BEP unit. Remeasurement gains or losses associated with these shares are recorded in the consolidated statements of income (loss). During the year ended December 31, 2022, our shareholders exchanged 12,308 BEPC exchangeable shares for an equal number of BEP units resulting in a decrease of nil to our financial liability ( 2021: 16,071 shares resulting in a $1 million decrease). The company declared and paid dividends of $220 million and $220 million, respectively ( 2021: $209 million and $207 million, respectively) on its BEPC exchangeable shares outstanding during the year ended December 31, 2022. Dividends on BEPC exchangeable shares are presented as interest expense in the statement of operating results. The following table provides a continuity schedule of outstanding BEPC exchangeable shares and class B shares along with the corresponding liability and remeasurement gains and losses. BEPC exchangeable shares outstanding (shares) BEPC class B shares outstanding (shares) BEPC exchangeable shares and BEPC class B shares As at December 31, 2020: 172,180,417 165 $ 7,430 Share issuance 38,996 — 1 Share exchanges (16,071) — (1) Remeasurement of liability — — (1,267) As at December 31, 2021: 172,203,342 165 6,163 Share issuance (1) 27,064 — 1 Share exchanges (12,308) — — Remeasurement of liability — — (1,800) As at December 31, 2022: 172,218,098 165 $ 4,364 (1) Associated with the restricted stock units of TerraForm Power that were assumed by the company as part of the acquisition of TerraForm Power on July 31, 2020, adjusted for the three-for-two share split in December 2020. Similar to BEPC exchangeable shares and class B shares, BEPC class C shares are classified as liabilities due to their cash redemption feature. However, BEPC class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. There are 189.6 million BEPC class C shares issued and outstanding as at December 31, 2022 and 2021 . In December 2022, the company renewed its normal course issuer bid for its outstanding BEPC exchangeable shares. The company is authorized to repurchase up 8.6 million BEPC exchangeable shares, representing 5% of its issued and outstanding BEPC exchangeable shares. The bids will expire on December 15, 2023, or earlier should the company complete its repurchases prior to such date. There were no BEPC exchangeable shares repurchased during the year ended December 31, 2022. |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2022 | |
Changes in goodwill [abstract] | |
GOODWILL | GOODWILL The following table provides a reconciliation of goodwill: (MILLIONS) Notes Total Balance, as at December 31, 2020 $ 970 Foreign exchange (121) Balance, as at December 31, 2021 849 Foreign exchange (126) Balance, as at December 31, 2022 $ 723 As at December 31, 2022, $559 million of goodwill related to the hydroelectric segment was created as a result of recording the deferred tax liabilities assumed in the purchase price allocations of business combinations. The deferred tax liabilities are measured in accordance with IAS 12 in the purchase price allocations rather than at fair value. As a result, the goodwill recorded does not represent ‘core’ goodwill, but rather goodwill created as a result of accounting concepts or ‘non-core’ goodwill. In order to avoid an immediate impairment of this ‘non-core’ goodwill, the company removed from the carrying value any ‘non-core’ goodwill supported by the existence, as of the impairment testing date, of the original deferred tax liability that created the goodwill. As at December 31, 2022, the company performed an impairment test at the level that goodwill is monitored by management. In performing this impairment test, management removed the ‘non-core’ goodwill that continued to be supported by the existence of the original deferred tax liability that gave rise to the goodwill from the carrying value of the applicable assets. The remaining goodwill is not significant to the total balance, and was allocated to the related wind and utility-scale solar assets in Spain ($64 million and $100 million, respectively). |
CAPITAL MANAGEMENT
CAPITAL MANAGEMENT | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
CAPITAL MANAGEMENT | CAPITAL MANAGEMENT The company’s primary capital management objectives are to ensure the sustainability of its capital to support continuing operations, meet its financial obligations, allow for growth opportunities and provide stable distributions. The company’s capital is monitored through the debt-to-total capitalization ratio on a consolidated basis. As at December 31, 2022 this ratio was 34% (2021: 35%). Subsidiaries of the company have provided covenants to certain of their lenders for their non-recourse borrowings. These covenants vary from one credit agreement to another and include ratios that address debt-service coverage. Certain lenders have also put in place requirements that oblige the company and its subsidiaries to maintain debt and capital expenditure reserve accounts. The consequences to the subsidiaries as a result of failure to comply with their covenants could include a limitation of distributions from the subsidiaries to the company, as well as repayment of outstanding debt. The company’s strategy is to maintain the measures set out in the following schedule as at December 31: (MILLIONS) 2022 2021 Non-recourse borrowings (1) $ 13,780 $ 13,546 Deferred income tax liabilities, net (2) 5,193 4,934 BEPC exchangeable and class B shares 4,364 6,163 Equity Participating non-controlling interest – in operating subsidiaries 10,680 10,297 Participating non-controlling interest – in a holding subsidiary held by Brookfield Renewable 271 261 The partnership 5,873 3,667 Total capitalization $ 40,161 $ 38,868 Debt-to-total capitalization 34 % 35 % (1) Excludes $65 million (2021: $34 million) of deferred financing fees, net of unamortized premiums. (2) Deferred income tax liabilities less deferred income tax assets. |
EQUITY-ACCOUNTED INVESTMENTS
EQUITY-ACCOUNTED INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of joint ventures [abstract] | |
EQUITY-ACCOUNTED INVESTMENTS | EQUITY-ACCOUNTED INVESTMENTS The following table outlines the changes in the company’s equity-accounted investments: (MILLIONS) 2022 2021 Balance, beginning of year $ 455 $ 372 Investment 48 — Share of net income 6 2 Share of other comprehensive income (loss) (58) 87 Dividends received (4) (3) Foreign exchange translation and other 4 (3) Balance, end of year $ 451 $ 455 |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS The company’s cash and cash equivalents as at December 31 are as follows: (MILLIONS) 2022 2021 Cash $ 433 $ 405 Cash subject to restriction (1) 207 115 Short-term deposits 2 5 $ 642 $ 525 |
RESTRICTED CASH
RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Restricted Cash [Abstract] | |
RESTRICTED CASH | RESTRICTED CASH The company’s restricted cash as at December 31 is as follows: (MILLIONS) 2022 2021 Operations $ 27 $ 23 Credit obligations 30 52 Capital expenditures and development projects 11 6 Total 68 81 Less: non-current (24) (22) Current $ 44 $ 59 |
TRADE RECEIVABLES AND OTHER CUR
TRADE RECEIVABLES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Trade Receivables and Other Current Assets [Abstract] | |
TRADE RECEIVABLES AND OTHER CURRENT ASSETS | TRADE RECEIVABLES AND OTHER CURRENT ASSETS The company’s trade receivables and other current assets as at December 31 are as follows: (MILLIONS) 2022 2021 Trade receivables $ 506 $ 502 Collateral deposits (1) 603 434 Prepaids and others 53 83 Income tax receivables 66 30 Inventory 18 20 Other short-term receivables 75 77 $ 1,321 $ 1,146 (1) Collateral deposits are related to energy derivative contracts the company enters into in order to mitigate the exposure to wholesale market electricity prices on the future sale of uncontracted generation, as part of the company’s risk management strategy. |
OTHER LONG-TERM ASSETS
OTHER LONG-TERM ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other Long Term Liabilities [Abstract] | |
OTHER LONG-TERM ASSETS | OTHER LONG-TERM ASSETS The company’s other long-term assets as at December 31 are as follows: (MILLIONS) Note 2022 2021 Restricted cash (1) 21 $ 24 $ 22 Long-term receivables 38 30 Due from related parties 28 9 10 Other 30 7 $ 101 $ 69 (1) See Note 1(t) - Recently adopted accounting standards for additional details. At December 31, 2022 and 2021, restricted cash was held primarily to satisfy operations and maintenance reserve requirements, lease payments and credit agreements. |
ACCOUNTS PAYABLE AND ACCRUED LI
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Accounts Payable and Accured Liabilities [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ACCOUNTS PAYABLE AND ACCRUED LIABILITIES The company’s accounts payable and accrued liabilities as at December 31 are as follows: (MILLIONS) 2022 2021 Operating accrued liabilities $ 258 $ 195 Accounts payable 154 118 Interest payable on non-recourse borrowings 85 71 Income tax payable 74 3 Current portion of lease liabilities 26 25 BEPC exchangeable shares distributions payable (1) 14 16 Other 10 24 $ 621 $ 452 (1) Includes amounts payable only to external shareholders. Amounts payable to Brookfield and the partnership are included in due to related parties. |
PROVISIONS
PROVISIONS | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
PROVISIONS | PROVISIONS The following table presents the change in the decommissioning liabilities for the company: (MILLIONS) 2022 2021 Balance, beginning of the year $ 497 $ 567 Additions — — Disposals (1) (12) Accretion 11 9 Changes in estimates (185) (60) Foreign exchange (8) (7) Balance, end of the year $ 314 $ 497 The company has recorded decommissioning retirement obligations associated with certain power generating assets. The decommissioning retirement obligation has been established for hydroelectric, wind and utility-scale solar operation sites that are expected to be restored between the years 2031 to 2055. The estimated cost of decommissioning activities is based on a third-party assessment. For details on other legal provisions, please refer to Note 27 – Commitments, contingencies and guarantees. |
OTHER LONG-TERM LIABILITIES
OTHER LONG-TERM LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other Long Term Liabilities [Abstract] | |
OTHER LONG-TERM LIABILITIES | OTHER LONG-TERM LIABILITIES The company’s other long-term liabilities as at December 31 are comprised of the following: (MILLIONS) Note 2022 2021 Lease liabilities $ 338 $ 346 Regulatory liabilities (1) 149 130 Pension obligations 43 64 Concession payment liability 10 10 Other 75 86 $ 615 $ 636 (1) Regulatory liabilities are related to the regulated pricing mechanism at certain of the company’s Spanish assets. |
COMMITMENTS, CONTINGENCIES AND
COMMITMENTS, CONTINGENCIES AND GUARANTEES | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Commitments Contingencies and Guarantess [Abstract] | |
COMMITMENTS, CONTINGENCIES AND GUARANTEES | COMMITMENTS, CONTINGENCIES AND GUARANTEES Commitments In the course of its operations, the company has entered into agreements for the use of water, land and dams. Payment under those agreements varies with the amount of power generated. The various agreements can be renewed and are extendable up to 2089. In the normal course of business, the company will enter into capital expenditure commitments which primarily relate to contracted project costs for various growth initiatives. As at December 31, 2022, the company had $505 million (2021: $392 million) of capital expenditure commitments outstanding, of which $475 million is payable in less than one year, $26 million in two years to five, and $4 million thereafter. The following table lists the assets and portfolio of assets that the company, together with institutional partners have agreed to acquire which are subject to customary closing conditions as at December 31, 2022 : Region Technology Capacity Consideration The Company’s Economic Interest Expected Close Brazil Wind 137 MW operating BRL 529 million ($98 million) 23% Q1 2023 An integral part of t he company’s strategy is to participate with institutional partners in Brookfield-sponsored private equity funds that target acquisitions that suit the company’s profile. In the normal course of business, the company has made commitments to Brookfield-sponsored private equity funds to participate in these target acquisitions in the future, if and when identified. From time to time, in order to facilitate investment activities in a timely and efficient manner, the company will fund deposits or incur other costs and expenses (including by use of loan facilities to consummate, support, guarantee or issue letters of credit) in respect of an investment that ultimately will be shared with or made entirely by Brookfield sponsored vehicles, consortiums and/or partnerships (including private funds, joint ventures and similar arrangements), the company, or by co-investors. Contingencies The company and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on the company’s consolidated financial position or results of operations. The company’s subsidiaries themselves have provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance. The company, along with institutional partners, has provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance as it relates to interests in the Brookfield Americas Infrastructure Fund, the Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV and Brookfield Global Transition Fund. The company’s subsidiaries have similarly provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance. Letters of credit issued by the company's subsidiaries as at December 31, 2022 were $994 million (2021: $698 million). Guarantees In the normal course of operations, the company executes agreements that provide for indemnification and guarantees to third-parties of transactions such as business dispositions, capital project purchases, business acquisitions, sales and purchases of assets and services, and the transfer of tax credits or renewable energy grants from tax equity partnerships. The company has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings and guarantee agreements prevents the company from making a reasonable estimate of the maximum potential amount that the company could be required to pay third parties as the agreements do not always specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Two subsidiaries of the company fully and unconditionally guaranteed (i) the medium term notes issued and payable by Brookfield Renewable Partners ULC, a finance subsidiary of Brookfield Renewable, (ii) the senior preferred shares of Brookfield Renewable Power Preferred Equity Inc., (iii) certain preferred units of Brookfield Renewable, (iv) the obligations of Brookfield Renewable under its bilateral credit facilities and (v) notes issued by Brookfield BRP Holdings (Canada) Inc. under its U.S. commercial paper program. BRP Bermuda Holdings I Limited (“BBHI”) a subsidiary of the company have guaranteed the perpetual subordinated notes issued by Brookfield BRP Holdings (Canada) Inc. These arrangements do not have or are not reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS The company’s related party transactions are recorded at the exchange amount. The company’s related party transactions are primarily with the partnership and Brookfield. Management Agreements Master Services Agreement Since inception, our parent company has had a management agreement (the “Master Services Agreement”) with certain service providers (the “Service Provider”), which are wholly-owned subsidiaries of Brookfield Asset Management. The Master Services Agreement was amended in connection with the completion of the special distribution to include BEPC as a service recipient. The company’s annual consolidated financial statements include general corporate expenses of the partnership which were not historically allocated to the company’s operations. These expenses relate to management fees payable to Brookfield Asset Management and direct operating costs incurred by a subsidiary of the partnership. These allocated expenses have been included as appropriate in the company’s consolidated statements of income. Key decision makers of the company are employees of the ultimate parent company who provide management services under the company’s Master Services Agreement. However, the financial statements may not include all of the expenses that would have been incurred and may not reflect the company’s annual consolidated results of operations, financial position and cash flows had it been a standalone company during the periods presented. It is not practicable to estimate the actual costs that would have been incurred had the company been a standalone business during the periods presented as this would depend on multiple factors, including organizational structure and infrastructure. Pursuant to the Master Services Agreement, on a quarterly basis, Brookfield Renewable pays a management fee, referred to as the management service costs, to the Service Provider equal to a fixed quarterly component of $5 million per quarter, adjusted for inflation, and a variable component calculated as a percentage of the increase in the total capitalization value of Brookfield Renewable over an initial reference value (subject to an annual escalation by a specified inflation factor beginning on January 1, 2013) (the "Base Management Fee"). For purposes of calculating the management service costs, the market value of Brookfield Renewable is equal to the aggregate value of all the outstanding units and other securities issued by the service recipients, plus all outstanding third-party debt with recourse to a recipient of services under the Master Services Agreement, less all cash held by such entities. The company will be responsible for reimbursing the partnership or its subsidiaries, as the case may be, for BEPC's proportionate share of the Base Management Fee. BEPC's proportionate share of the Base Management Fee will be calculated on the basis of the value of BEPC's business relative to that of the partnership. The Base Management Fee for the year ended December 31, 2022 was $169 million (2021: $175 million and 2020: $129 million) Relationship Agreement Since inception, Brookfield Renewable has had a Relationship Agreement with Brookfield pursuant to which Brookfield has agreed, subject to certain exceptions, that Brookfield Renewable will serve as its primary vehicle through which it will directly or indirectly, acquire renewable power assets on a global basis. The company, being a controlled subsidiary of Brookfield Renewable is entitled to the benefits and subject to certain obligations under the Relationship Agreement. TERP Brookfield Master Services Agreement Since the acquisition of TerraForm Power on October 16, 2017, TerraForm Power had a management agreement (“TERP Brookfield Master Services Agreement”) with Brookfield. Prior to the company's acquisition of TerraForm Power, pursuant to the TerraForm Power Master Services Agreements, TerraForm Power paid management service costs on a quarterly basis calculated as follows: • For each of the first four quarters following October 16, 2017, a fixed component of $2.5 million per quarter (subject to proration for the quarter including October 16, 2017) plus 0.3125% of the market capitalization value increase for such quarter; • For each of the next four quarters, a fixed component of $3.0 million per quarter adjusted annually for inflation plus 0.3125% of the market capitalization value increase for such quarter; and • Thereafter, a fixed component of $3.75 million per quarter adjusted annually for inflation plus 0.3125% of the market capitalization value increase for such quarter. For purposes of calculating its management service costs, the term market capitalization value increase meant, for any quarter, the increase in value of TerraForm Power’s market capitalization for such quarter, calculated by multiplying the number of outstanding shares of TerraForm Power’s common stock as of the last trading day of such quarter by the difference between (x) the volume weighted average trading price of a share of common stock for the trading days in such quarter and (y) $9.52. If the difference between (x) and (y) in the market capitalization value increase calculation for a quarter was a negative number, then the market capitalization value increase was deemed to be zero. TerraForm Power’s management service costs for the year ended December 31, 2022 of nil (2021: nil and 2020: $23 million) have been included in the company’s annual consolidated statement of income based on its historical records. The TERP Brookfield Master Services Agreement was terminated upon the completion of the TerraForm Power acquisition by the company on July 31, 2020. Governance Agreement TerraForm Power entered into a governance agreement, referred to as the Governance Agreement, dated October 16, 2017 with Orion Holdings and any controlled affiliate of Brookfield Asset Management (other than TerraForm Power and its controlled affiliates) that by the terms of the Governance Agreement from time to time becomes a party thereto, collectively referred to as the sponsor group. The Governance Agreement established certain rights and obligations of TerraForm Power and controlled affiliates of Brookfield Asset Management that own voting securities of TerraForm Power relating to the governance of TerraForm Power and the relationship between such affiliates of BAM and TerraForm Power and its controlled affiliates. On June 11, 2018, Orion Holdings, NA HoldCo and TerraForm Power entered into a Joinder Agreement pursuant to which NA HoldCo became a party to the Governance Agreement. On June 29, 2018, a second Joinder Agreement was entered into among Orion Holdings, NA HoldCo, BBHC Orion and TerraForm Power pursuant to which BBHC Orion became a party to the Governance Agreement. The Governance Agreement was terminated after the completion of the TerraForm Power acquisition by the company on July 31, 2020. Power Services Agreements Energy Marketing Internalization In the first quarter of 2021, the company and the partnership entered into an agreement to fully internalize all energy marketing capabilities in North America into the company. The agreement provides for the transfer for the partnership's Power Agency Agreements and related party power purchase agreements relating to certain power facilities in Maine and New Hampshire held by Great Lakes Holding America ("GLHA"), which are further described below. Certain third-party power purchase agreements were also transferred to the company as part of the Energy Marketing Internalization of the partnership’s North American energy marketing business. The agreement became effective on April 1, 2021. Power Agency Agreements Certain subsidiaries of the company entered into Power Agency Agreements appointing the partnership as their exclusive agent in respect of the sale of electricity, including the procurement of transmission and other additional services. In addition, the partnership scheduled, dispatched and arranged for transmission of the power produced and the power supplied to third-parties in accordance with prudent industry practice. Pursuant to each Agreement, the partnership was entitled to be reimbursed for any third party costs incurred, and, in certain cases, received an additional fee for its services in connection with the sale of power and for providing the other services. On closing of the Energy Marketing Internalization, all Power Agency Agreements were transferred by the partnership to the company. Energy Marketing Agreement Brookfield had agreed to provide energy marketing services to the company. Under this Agreement, the company paid an annual energy marketing fee commensurate to the services received. See Note 8 - Direct operating costs. On closing of the Energy Marketing Internalization, the Energy Marketing Agreement was transferred from Brookfield to the partnership. Other Agreements Other Revenue Agreements Pursuant to a 20-year power purchase agreement, the partnership purchased all energy from several power facilities in Maine and New Hampshire held by GLHA at $37 per MWh. The energy rates were subject to an annual adjustment equal to 20% of the increase in the CPI during the previous year. Upon closing of the Energy Marketing Internalization, the power purchase agreement with GLHA was transferred to the company. Sponsor Line Agreement On October 16, 2017, the company entered into the Sponsor Line with Brookfield Asset Management and one of its affiliates (the “Lenders”). The Sponsor Line establishes a $500 million secured revolving credit facility and provides for the Lenders to commit making LIBOR loans to the company during a period not to exceed three years from the effective date of the Sponsor Line (subject to acceleration for certain specified events). The company may only use the revolving Sponsor Line to fund all or a portion of certain funded acquisitions or growth capital expenditures. The Sponsor Line terminates, and all obligations thereunder become payable, no later than October 16, 2022. Borrowings under the Sponsor Line bear interest at a rate per annum equal to a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus 3% per annum. In addition to paying interest on outstanding principal under the Sponsor Line, the company is required to pay a standby fee of 0.5% per annum in respect of the unutilized commitments thereunder, payable quarterly in arrears. The company was permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the Sponsor Line at any time without premium or penalty, other than customary “breakage” costs. Under certain circumstances, the company may be required to prepay amounts outstanding under the Sponsor Line. The sponsor line was terminated upon the completion of the TerraForm Power acquisition by the company on July 31, 2020. TERP Relationship Agreement TerraForm Power entered into a relationship agreement, referred to as the TERP Relationship Agreement, dated October 16, 2017 with BAM, which governed certain aspects of the relationship between BAM and TerraForm Power. Pursuant to the TERP Relationship Agreement, BAM agreed that TerraForm Power will serve as the primary vehicle through which BAM and certain of its affiliates will own operating wind and solar assets in North America and Western Europe and that BAM will provide, subject to certain terms and conditions, TerraForm Power with a right of first offer on certain operating wind and solar assets that are located in such countries and developed by persons sponsored by or under the control of BAM. The rights of TerraForm Power under the TERP Relationship Agreement are subject to certain exceptions and consent rights set out therein. TerraForm Power did not acquire any renewable energy facilities pursuant to the TERP Relationship Agreement from BAM. The TERP Relationship Agreement was terminated upon the completion of the TerraForm Power acquisition by the company on July 31, 2020. TERP Registration Rights Agreement TerraForm Power also entered into a registration rights agreement, referred to as the TERP Registration Rights Agreement, on October 16, 2017 with Orion Holdings. The TERP Registration Rights Agreement governed the rights and obligations of TerraForm Power, on the one hand, and BAM and its affiliates, on the other hand, with respect to the registration for resale of all or a part of TerraForm Power's common stock held by BAM or any of its affiliates that become party to the TERP Registration Rights Agreement. On June 11, 2018, Orion Holdings, NA HoldCo and TerraForm Power entered into a Joinder Agreement pursuant to which NA HoldCo became a party to the TERP Registration Rights Agreement. On June 29, 2018, a second Joinder Agreement was entered into among Orion Holdings, NA HoldCo, BBHC Orion and TerraForm Power pursuant to which BBHC Orion became a party to the TERP Registration Rights Agreement. The TERP Registration Rights Agreement was terminated upon the completion of the TerraForm Power acquisition by the company on July 31, 2020. New Terra LLC Agreement TerraForm Power and BRE Delaware, Inc. entered into an amended and restated limited liability company agreement of TerraForm Power, LLC, referred to as the New Terra LLC Agreement, dated October 16, 2017. The New Terra LLC Agreement, among other things, reset the incentive distribution right, or IDR, thresholds of TerraForm Power, LLC to establish a first distribution threshold of $0.93 per share of TerraForm Power's common stock and a second distribution threshold of $1.05 per share of TerraForm Power's common stock. As a result of the New Terra LLC Agreement, amounts distributed from TerraForm Power, LLC are distributed on a quarterly basis as follows: • first, to TerraForm Power in an amount equal to TerraForm Power’s outlays and expenses for such quarter; • second, to holders of TerraForm Power, LLC Class A units, referred to as Class A units, until an amount has been distributed to such holders of Class A units that would result, after taking account of all taxes payable by TerraForm Power in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of TerraForm Power's common stock of $0.93 per share (subject to further adjustment for distributions, combinations or subdivisions of shares of TerraForm Power's common stock) if such amount were distributed to all holders of shares of TerraForm Power common stock; • third, 15% to the holders of the IDRs pro rata and 85% to the holders of Class A units until a further amount has been distributed to holders of Class A units in such quarter that would result, after taking account of all taxes payable by TerraForm Power in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of TerraForm Power's common stock of an additional $0.12 per share (subject to further adjustment for distributions, combinations or subdivisions of shares of TerraForm Power's common stock) if such amount were distributed to all holders of shares of TerraForm Power's common stock; and • thereafter, 75% to holders of Class A units pro rata and 25% to holders of the IDRs pro rata. TerraForm Power made no IDR payments during the year ended December 31, 2022, 2021 and 2020. The New Terra LLC Agreement was amended upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020 to remove TerraForm Power, LLC’s obligations to make IDR payments. Credit facilities and funds on deposit Brookfield has provided a $400 million committed unsecured revolving credit facility maturing in December 2023 and the draws bear interest at London Interbank Offered Rate plus a margin. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield. Brookfield may from time to time place funds on deposit with the company which are repayable on demand including any interest accrued. There were nil funds placed on deposit with the company as at December 31, 2022 (December 31, 2021: nil). The interest expense on the Brookfield revolving credit facility and deposit for the year ended December 31, 2022 totaled nil (2021: nil). The company participates with institutional partners in Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV, Brookfield Infrastructure Debt Fund, and Brookfield Global Transition Fund (“Private Funds”), each of which is a Brookfield sponsored fund, and in connection therewith, Brookfield Renewable, together with its institutional partners , has access to financing using the Private Funds’ credit facilities. During the year, the partnership transferred its investment in certain subsidiaries, which included certain of its development assets in the United States to the company with a carrying value of approximately $23 million of total assets and liabilities. This transaction was accounted as an asset acquisition. During the fourth quarter of 2022, the company sold a portfolio of investments, which included partial interests in consolidated subsidiaries, with an approximate fair value of $288 million to an affiliate of Brookfield in exchange for securities of equal value. The portfolio of investments represented seed assets in a new product offering that Brookfield will be marketing and selling to third party investors which at that time will provide the company the opportunity to, subject to certain conditions, monetize the securities to generate liquidity. The securities are recorded as financial instrument assets on the consolidated statements of financial position. The reduction in partial interests in consolidated subsidiaries is reflected as an increase in non-controlling interests in operating subsidiaries on the consolidated statements of financial position. The following table reflects the related party agreements and transactions in the consolidated statements of income (loss), for the years ended December 31: (MILLIONS) 2022 2021 2020 Revenues Power purchase and revenue agreements $ 72 $ 163 $ 361 Other income Interest income $ 9 $ 10 $ — Direct operating costs Energy purchases (1) $ (22) $ (62) $ (10) Energy marketing & other services (7) (11) (17) Insurance expense (2) — (20) (21) $ (29) $ (93) $ (48) Interest expense Borrowings $ (17) $ (29) $ (1) Other related party services $ (4) $ (13) $ — Management service costs Management service agreement $ (169) $ (175) $ (152) (1) Certain subsidiaries that the company controls, through a voting agreement, have entered into agreements to appoint the partnership as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in power purchase prices. During the first quarter of 2021, the company recognized a nil gain (2021: $62 million and 2020: nil) associated with agency arrangement which have been excluded from energy purchases. As of April 1, 2021, the agency arrangements were transferred from the partnership to the company upon the closing of Energy Marketing Internalization. (2) Prior to November 2021, insurance services were paid to external insurance service providers through subsidiaries of Brookfield Corporation. The fees paid to the subsidiaries of Brookfield Corporation in 2022 were nil (2021 was nil and 2020: nil). As of November 2021, Brookfield, through a regulated subsidiary, began providing insurance coverage through third-party commercial insurers for the benefits of certain entities in North America. The premiums and claims are not included in the table above. The following table reflects the impact of the related party agreements and transactions on the consolidated statements of financial position as at December 31: (MILLIONS) Related party 2022 2021 Current assets Due from related parties Amounts due from Brookfield $ 41 $ 16 The partnership 563 523 Equity-accounted investments and other 11 9 $ 615 $ 548 Non-current assets Due from related parties Amounts due from Equity-accounted investments and other $ 9 $ 10 Current liabilities Due to related parties Amounts due to Brookfield $ 37 $ 21 The partnership 315 625 Equity-accounted investments and other 12 3 Brookfield Reinsurance and associates 100 $ — $ 464 $ 649 Non-recourse borrowings Brookfield 1 — $ 465 $ 649 Non-current liabilities Non-recourse borrowings Brookfield $ — $ 8 Brookfield Reinsurance and associates 15 — $ 15 $ 8 (1) Refer to Note 27 – Commitments, contingencies and guarantees for additional information on the company’s litigation matters. Current assets Amounts due from Brookfield and the partnership are non-interest bearing, unsecured and due on demand. Current liabilities Amounts due to Brookfield and the partnership are unsecured, payable on demand and relate to recurring transactions. |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Cash flows from (used in) operating activities [abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION The net change in working capital balances for the year ended December 31 shown in the consolidated statements of cash flows is comprised of the following: (MILLIONS) 2022 2021 2020 Trade receivables and other current assets $ (270) $ (467) $ 42 Accounts payable and accrued liabilities 175 (259) 8 Other assets and liabilities (8) 99 (60) $ (103) $ (627) $ (10) |
BASIS OF PREPARATION AND SIGN_2
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Preparation And Significant Accounting Policies Abstract [Abstract] | |
Statement of compliance and Basis of preparation | Statement of compliance The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies used in the consolidated financial statements are based on the IFRS applicable as at December 31, 2022, which encompass individual IFRS, International Accounting Standards (“IAS”), and interpretations made by the International Financial Reporting Interpretations Committee (“IFRIC”) and the Standard Interpretations Committee (“SIC”). The policies set out below are consistently applied to all periods presented, unless otherwise noted. These consolidated financial statements have been authorized for issuance by the Board of Directors of the company on February 28, 2023. Certain comparative figures have been reclassified to conform to the current year’s presentation. References to $, €, R$, and COP are to United States (“U.S.”) dollars, euros, Brazilian reais and Colombian pesos, respectively. All figures are presented in millions of U.S. dollars unless otherwise noted. (b) Basis of presentation The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets. (c) Consolidation These consolidated financial statements include the accounts of the company and its subsidiaries, which are the entities over which the company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of the company’s subsidiaries are shown separately in equity in the consolidated statements of financial position. The company has entered into voting agreements with Brookfield, whereby the company gained control of the entities that own certain renewable power generating operations. The company has also entered into a voting agreement with its consortium partners in respect of its Colombian operations. These voting agreements provide the company the authority to direct the election of the Boards of Directors of the relevant entities, among other things, and therefore provide the company with control. Accordingly, the company consolidates the accounts of these entities. Refer to Note 28 – Related party transactions for further information. For entities previously controlled by Brookfield Asset Management, the voting agreements entered into do not represent business combinations in accordance with IFRS 3, Business Combinations (“IFRS 3”), as all combining businesses are ultimately controlled by Brookfield Asset Management both before and after the transactions were completed. the company accounts for these transactions involving entities under common control in a manner similar to a pooling of interest, which requires the presentation of pre-voting agreement financial information as if the transactions had always been in place. Refer to Note 1(s)(ii) – Critical judgments in applying accounting policies – Common control transactions for the company’s policy on accounting for transactions under common control. Equity-accounted investments Equity-accounted investments are entities over which the company has significant influence or joint arrangements representing joint ventures. Significant influence is the ability to participate in the financial and operating policy decisions of the investee, but without controlling or jointly controlling those investees. Such investments are accounted for using the equity method. A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. the company accounts for its interests in joint ventures using the equity method. |
Foreign currency translation | Foreign currency translation All figures reported in the consolidated financial statements and tabular disclosures to the consolidated financial statements are reflected in millions of U.S. dollars, which is the functional currency of the company. Each of the foreign operations included in these consolidated financial statements determines its own functional currency, and items included in the financial statements of each subsidiary are measured using that functional currency. Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at the rate of exchange prevailing at the dates of the transactions during the period. Gains or losses on translation of foreign subsidiaries are included in OCI. Gains or losses on foreign currency denominated balances are reported in the same manner In preparing the consolidated financial statements of the company, foreign currency denominated monetary assets and liabilities are translated into the functional currency using the closing rate at the applicable consolidated statement of financial position dates. Non-monetary assets and liabilities, denominated in a foreign currency and measured at fair value, are translated at the rate of exchange prevailing at the date when the fair value was determined and non-monetary assets measured at historical cost are translated at the historical rate. Revenues and expenses are measured in the functional currency at the rates of exchange prevailing at the dates of the transactions with gains or losses included in income. |
Cash and cash equivalents | Cash and cash equivalentsCash and cash equivalents include cash, term deposits and money market instruments with original maturities of less than 90 days. |
Restricted cash | Restricted cash Restricted cash includes cash and cash equivalents, where the availability of funds is restricted primarily by credit and construction agreements. |
Property, plant and equipment and revaluation method | Property, plant and equipment and revaluation method Power generating assets are classified as property, plant and equipment and are accounted for using the revaluation method under IAS 16, Property, Plant and Equipment (“IAS 16”). Property, plant and equipment are initially measured at cost and subsequently carried at their revalued amount, being the fair value at the date of the revaluation, less any subsequent accumulated depreciation and any subsequent accumulated impairment losses. The company generally determines the fair value of its property, plant and equipment by using a 20-year discounted cash flow model for the majority of its assets. This model incorporates future cash flows from long-term power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. The model also includes estimates of future electricity prices, anticipated long-term average generation, estimated operating and capital expenditures, and assumptions about future inflation rates and discount rates by geographical location. Construction work-in-progress (“CWIP”) is revalued when sufficient information exists to determine fair value using the discounted cash flow method. Revaluations are made on an annual basis as at December 31 to ensure that the carrying amount does not differ significantly from fair value. For power generating assets acquired through business combinations, the company initially measures the assets at fair value consistent with the policy described in Note 1(o) – Business combinations, with no revaluations at year-end in the year of acquisition unless there is external evidence specific to those assets that would indicate the carrying value of the asset has either increased or decreased materially. Where the carrying amount of an asset increased as a result of a revaluation, the increase is recognized in income to the extent the increase reverses a previously recognized decrease recorded through income, with the remainder of the increase recognized in OCI and accumulated in equity under revaluation surplus and non-controlling interest. When the carrying amount of an asset decreases, the decrease is recognized in OCI to the extent that a balance exists in revaluation surplus with respect to the asset, with the remainder of the decrease recognized in income. |
Property, plant and equipment - Depreciation | Depreciation on power generating assets is calculated on a straight-line basis over the estimated service lives of the assets, which are as follows: Estimated service lives Dams Up to 115 years Penstocks Up to 60 years Powerhouses Up to 115 years Hydroelectric generating units Up to 115 years Wind generating units Up to 30 years Solar generating units Up to 35 years Gas-fired cogenerating (“Cogeneration”) units Up to 40 years Other assets Up to 60 years Costs are allocated to significant components of property, plant and equipment. When items of property, plant and equipment have different useful lives, they are accounted for as separate items (significant components) and depreciated separately. To ensure the accuracy of useful lives and residual values, a review is conducted annually. Depreciation is calculated based on the fair value of the asset less its residual value. Depreciation commences when the asset is in the location and conditions necessary for it to be capable of operating in the manner intended by management. It ceases at the earlier of the date the asset is classified as held-for-sale and the date the asset is derecognized. An item of property, plant and equipment and any significant component is derecognized upon disposal or when no future economic benefits are expected from its use. Other assets include equipment, buildings and leasehold improvements. Buildings, furniture and fixtures, leasehold improvements and office equipment are recorded at historical cost, less accumulated depreciation. Land and CWIP are not subject to depreciation. The depreciation of property, plant and equipment in Brazil is based on the duration of the authorization or the useful life of a concession asset. The weighted-average remaining duration at December 31, 2022 is 35 years (2021: 31 years). Since land rights are part of the concession or authorization, this cost is also subject to depreciation. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is applied to the revalued amount of the asset. Gains and losses on disposal of an item of property, plant and equipment are recognized in Other income and Other in the consolidated statements of income (loss), respectively. The revaluation surplus is reclassified within the respective components of equity and not reclassified to net income when the assets are disposed. |
Leases | Leases At inception of a contract, the company assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the company assesses whether: • the contract specified explicitly or implicitly the use of an identified asset, and that is physically distinct or represents substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified; • The company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and the company has the right to direct the use of the asset. The company has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisions about how and for what purpose the asset is used are predetermined, the company has the right to direct the use of the asset if either: ◦ The company has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the period of use, without the supplier having the right to change those operating instructions; or ◦ The company designed the asset in a way that predetermines how and for what purpose it will be used. At inception or on reassessment of a contract that contains a lease component, the company allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, the company has elected not to separate non-lease components and, therefore, accounts for the lease and non-lease components as a single lease component. The company recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful lives of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the company’s incremental borrowing rate. Generally, the company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: • Fixed payments, including in-substance fixed payments; • Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; • Amounts expected to be payable under a residual value guarantee; and • The exercise price under a purchase option that the company is reasonably certain to exercise, lease payments in an optional renewable period if the company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the company is reasonably certain not to terminate early The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the company’s estimate of the amount expected to be payable under a residual value guarantee, or if the company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made either to the carrying amount of the right-of-use asset or, when the adjustment is a reduction to the right-of-use asset, is recorded in the consolidated statements of income (loss) if the carrying amount of the right-of-use asset has been reduced to nil. The company presents right-of-use assets in property, plant and equipment and lease liabilities in other long-term liabilities in the consolidated statements of financial position. |
Goodwill | Goodwill Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units (“CGU”) to which it relates. the Company identifies CGU as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets. Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a CGU, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a CGU are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the CGU. Any goodwill impairment is charged to profit or loss in the period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. In the year of a business acquisition, the recoverability of the acquired goodwill is assessed by revisiting the assumptions of the related underwriting model. On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal of the operation. |
Asset impairment | Asset impairment At each statement of financial position date, the company assesses whether for non-financial assets there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or CGU is less than its carrying value. For non-financial assets (including equity-accounted investments), an impairment is recognized if the recoverable amount, determined as the greater of the estimated fair value, less costs of disposal, and the discounted future cash flows generated from use and eventual disposal of an asset or CGU, is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously. |
Trade receivables and other current assets | Trade receivables and other current assetsTrade receivables and other current assets are recognized initially at fair value, and subsequently measured at amortized cost using the effective interest method, less any provision for expected credit losses. |
Financial instruments | Financial instruments Initial recognition Under IFRS 9 – Financial Instruments (“IFRS 9”), regular purchases and sales of financial assets are recognized on the trade date, being the date on which the company commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and the company has transferred substantially all the risks and rewards of ownership. At initial recognition, the company measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit and loss (“FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included at initial recognition. Transaction costs of financial assets carried at FVPL are expensed in income. Classification and measurement Subsequent measurement of financial assets depends on the company’s business objective for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which the company classifies its financial assets: Amortized cost – Financial assets held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized cost. Interest income is recognized as other income in the financial statements, and gains/losses are recognized in income when the asset is derecognized or impaired. FVOCI – Financial assets held to achieve a particular business objective other than short-term trading are designated at fair value through other comprehensive income (“FVOCI”). For equity instruments designated at FVOCI, there is no recycling of gains or losses through income. Upon derecognition of the asset, accumulated gains or losses are transferred from OCI directly to retained earnings. FVPL – Financial assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. Gains or losses on these types of assets are recognized in income. The company assesses on a forward-looking basis the expected credit losses (“ECL”) associated with its assets carried at amortized cost and FVOCI. For trade receivables and contract assets, the company applied the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the asset. The simplified approach to the recognition of ECL does not require entities to track the changes in credit risk; rather, entities recognize a loss allowance at each reporting date based on the lifetime ECL since the date of initial recognition of the asset. Evidence of impairment may include: • Indications that a debtor or group of debtors is experiencing significant financial difficulty; • A default or delinquency in interest or principal payments; • Probability that a debtor or a group of debtors will enter into bankruptcy or other financial reorganization; • Changes in arrears or economic conditions that correlate with defaults, where observable data indicates that there is a measurable decrease in the estimated future cash flows. Trade receivables are reviewed qualitatively on a case-by-case basis to determine if they need to be written off. ECL are measured as the difference in the present value of the contractual cash flows that are due under contract and the cash flows expected to be received. ECL is measured by considering the risk of default over the contract period and incorporates forward looking information into its measurement. Financial liabilities are classified as financial liabilities at fair value through profit and loss, amortized cost, or derivatives designated as hedging instruments in an effective hedge. The company determines the classification of its financial liabilities at initial recognition. The company’s financial liabilities include accounts payable and accrued liabilities, corporate borrowings, non-recourse borrowings, derivative liabilities, due to related party balances, and tax equity. Financial liabilities are initially measured at fair value, with subsequent measurement determined based on their classification as follows: FVPL – Financial liabilities held for trading, such as those acquired for the purpose of selling in the near term, derivative financial instruments entered into by the company that do not meet hedge accounting criteria, and tax equity are classified as fair value through profit and loss. Gains or losses on these types of liabilities are recognized in income. The company owns and operates certain projects in the U.S. under tax equity structures to finance the construction of solar and wind projects. Such structures are designed to allocate renewable tax incentives, such as investment tax credits (“ITCs”), production tax credits (“PTCs”) and accelerated tax depreciation, to tax equity investors. Generally, tax equity structures grant the tax equity investors the majority of the project's U.S. taxable earnings and renewable tax incentives, along with a smaller portion of the projects’ cash flows, until a contractually determined point at which the allocations are adjusted (the “Flip Point”). Subsequent to the Flip Point the majority of the project’s U.S. taxable earnings, renewable tax incentives and cash flows are allocated to the sponsor. The Flip Point dates are generally dependent on the underlying projects’ reaching an agreed upon after tax investment return, however, from time to time, the Flip Point dates may be dates specified within the contract. At all times, both before and after the projects’ Flip Point, the company retains control over the projects financed with a tax equity structure. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position and at each reporting date are remeasured to their fair value in accordance with IFRS 9. The fair value of the tax equity financing is generally comprised of the following elements: Elements affecting the fair value of the tax equity financing Description Production tax credits (PTCs) Allocation of PTCs to the tax equity investor are derived from the power generated during the period. The PTCs are recognized in foreign exchange and financial instrument gain (loss) with a corresponding reduction to the tax equity liability. Taxable loss, including tax attributes such as accelerated tax depreciation Under the terms of the tax equity agreements, the company is required to allocate specified percentages of taxable losses to the tax equity investor. As amounts are allocated, the obligation to deliver them is satisfied and a reduction to the tax equity liability is recorded with a corresponding amount recorded within foreign exchange and financial instrument gain (loss) on the consolidated statements of income (loss). Pay-go contributions Certain of the contracts contain annual production thresholds. When the thresholds are exceeded, the tax equity investor is required to contribute additional cash amounts. The cash amounts paid increase the value of the tax equity liability. Cash distributions Certain of the contracts also require cash distributions to the tax equity investor. Upon payment, the tax equity liability is reduced in the amount of the cash distribution. Amortized cost – All other financial liabilities are classified as amortized cost using the effective interest rate method. Gains and losses are recognized in income when the liabilities are derecognized as well as through the amortization process. Remeasurement gains and losses on financial liabilities classified as amortized cost are presented in the consolidated statements of income (loss). Amortized cost is computed using the effective interest method less any principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. This category includes trade and other payables, dividends payable, interest-bearing loans and borrowings, and corporate credit facilities. Derivatives and hedge accounting Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated. The company designates its derivatives as hedges of: • Foreign exchange risk associated with the cash flows of highly probable forecast transactions (cash flow hedges); • Foreign exchange risk associated with net investment in foreign operations (net investment hedges); • Commodity price risk associated with cash flows of highly probable forecast transactions (cash flow hedges); and • Floating interest rate risk associated with floating rate debts (cash flow hedges). At the inception of a hedge relationship, the company formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge. A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements: • There is an ‘economic relationship’ between the hedged item and the hedging instrument; • The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; and • The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that the company actually hedges and the quantity of the hedging instrument that the company actually uses to hedge that quantity of hedged item. The fair values of various derivative financial instruments used for hedging purposes and movements in the hedge reserve within equity are shown in Note 6 – Risk management and financial instruments. When a hedging instrument expires, is sold, is terminated, or no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remain in equity until the forecasted transaction occurs. When the forecasted transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging are immediately reclassified to income. If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in income at the time of the hedge relationship rebalancing. (i) Cash flow hedges that qualify for hedge accounting The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognized immediately in income, within foreign exchange and financial instruments gain (loss). Gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedge reserve within equity. Amounts accumulated in equity are reclassified in the period when the hedged item affects income. (ii) Net investment hedges that qualify for hedge accounting Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in OCI and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in profit and loss within Foreign exchange and financial instruments gain (loss). Gains and losses accumulated in equity will be reclassified to income when the foreign operation is partially disposed of or sold. (iii) Hedge ineffectiveness The company’s hedging policy only allows for the use of derivative instruments that form effective hedge relationships. Sources of hedge effectiveness are determined at the inception of the hedge relationship and measured through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. Where the critical terms of the hedging instrument match exactly with the terms of the hedged item, a qualitative assessment of effectiveness is performed. For other hedge relationships, the hypothetical derivative method to assess effectiveness is used. The accounting policy relating to the company’s financial instruments is described in Note 1(l) – Financial instruments. In applying the policy, judgments are made in applying the criteria set out in IFRS 9 to record financial instruments at fair value through profit and loss, fair value through other comprehensive income and the assessments of the effectiveness of hedging relationships. For power purchase agreements accounted for under IFRS 9 (“IFRS 9 PPAs”) that have unobservable values, Brookfield Renewable determines the fair value of these IFRS 9 PPAs using a discounted cash flow model based on the term of the contract and applies judgements surrounding the inputs used within the valuation model. The valuation model incorporates various inputs and assumptions including future power prices, contractual prices, contractual volumes and discount rates. Future power prices are based on broker quotes from independent sources and for IFRS 9 PPAs with no available broker quotes, future fuel driven merchant prices are incorporated within the model. Contractual prices are stipulated within each individual agreement, contractual volumes are either specified within the agreement or determined using future generation of the power generating assets and discount rate used in the valuation model is the credit adjusted risk free rate. |
Revenue and expense recognition | Revenue and expense recognition The majority of revenue is derived from the sale of power and power related ancillary services both under contract and in the open market, sourced from the company’s power generating facilities. The obligations are satisfied over time as the customer simultaneously receives and consumes benefits as the company delivers electricity and related products. Revenue is recorded based upon the output delivered and capacity provided at rates specified under either contract terms or prevailing market rates. The revenue reflects the consideration the company expects to be entitled to in exchange for those goods or services. Costs related to the purchases of power or fuel are recorded upon delivery. All other costs are recorded as incurred. Details of the revenue recognized per technology are included in Note 7 – Segmented information. Where available, the company has elected the practical expedient available under IFRS 15 – Revenue from contracts with customers (“IFRS 15”) for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity. If the consideration in a contract that does not apply the practical expedient available under IFRS 15 for measuring progress toward complete satisfaction of a performance obligation includes a variable amount, the company estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved. The company also sells power and related products under bundled arrangements. Energy, capacity and renewable credits within power purchase agreements are considered to be distinct performance obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied under IFRS 15. The company views the sale of energy and capacity as a series of distinct goods that is substantially the same and has the same pattern of transfer measured by the output method. The company views renewable credits to be performance obligations satisfied at a point in time. During the year ended December 31, 2022, revenues recognized at a point in time corresponding to the sale of renewable credits were $259 million (2021: $181 million and 2020: $157 million). Measurement of satisfaction and transfer of control to the customer of renewable credits in a bundled arrangement coincides with the pattern of revenue recognition of the underlying energy generation. Revenues recognized that are outside the scope of IFRS 15 include realized gains and losses from derivatives used in the risk management of the company's generation activities related to commodity prices. From time to time, our company also enters into commodity contracts to hedge all or a portion of its estimated revenue stream when selling electricity to an independent system operated market and there is no PPA available. These commodity contracts require periodic settlements in which our company receives a fixed-price based on specified quantities of electricity and pays the counterparty a variable market price based on the same specified quantity of electricity. As these derivatives are accounted for under hedge accounting, the changes in fair value are recorded in operating revenues in the consolidated statements of income (loss). Financial transactions included in revenues for the year ended December 31, 2022 decreased revenues by $146 million (2021: decreased revenues by $30 million and 2020: increased revenues by $53 million). |
Income taxes | Income taxes Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the statement of financial position dates. Current income tax assets and liabilities are included in trade receivables and other current assets and accounts payable and accrued liabilities, respectively. Deferred tax is recognized on taxable temporary differences between the tax basis and the carrying amounts of assets and liabilities. Deferred tax is not recognized if the temporary difference arises from goodwill or from initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither taxable profit nor accounting profit. Deferred income tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent it is no longer probable that the income tax assets will be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the statement of financial position dates. Current and deferred income taxes relating to items recognized directly in OCI are also recognized directly in OCI. |
Business combinations | Business combinationsThe acquisition of a business is accounted for using the acquisition method. The consideration for an acquisition is measured at the aggregate of the fair values, at the date of exchange, of the assets transferred, the liabilities incurred to former owners of the acquired business, and equity instruments issued by the acquirer in exchange for control of the acquired business. The acquired business’ identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 – Business combinations (“IFRS 3”), are recognized at their fair values at the acquisition date, except for income taxes which are measured in accordance with IAS 12 – Income taxes (“IAS 12”), share-based payments which are measured in accordance with IFRS 2 – Share-based payment, liabilities and contingent liabilities which are measured under IAS 37 - Provisions, contingent liabilities and contingent assets or IFRIC 21 - Levies and non-current assets that are classified as held-for-sale which are measured at fair value less costs to sell in accordance with IFRS 5 – Non-current assets held for sale and discontinued operations. The non-controlling interest in the acquiree is initially measured at the non-controlling interest’s proportion of the net fair value of the identifiable assets, liabilities and contingent liabilities recognized or when applicable, at the fair value of the shares outstanding. To the extent that the aggregate of the fair value of consideration paid, the amount of any non-controlling interest and the fair value of any previously held interest in the acquiree exceeds the fair value of the net identifiable tangible and intangible assets acquired, goodwill is recognized. To the extent that this difference is negative, the amount is recognized as a gain in income. Goodwill is not amortized and is not deductible for tax purposes. However, after initial recognition, goodwill will be measured at cost less any accumulated impairment losses. An impairment assessment will be performed at least annually, and whenever circumstances such as significant declines in expected revenues, earnings or cash flows indicate that it is more likely than not that goodwill might be impaired. Goodwill impairment charges are not reversible. When a business combination is achieved in stages, previously held interests in the acquired entity are re-measured to fair value at the acquisition date, which is the date control is obtained, and the resulting gain or loss, if any, is recognized in income. Amounts arising from interests in the acquired business prior to the acquisition date that have previously been recognized in OCI are reclassified to income. Upon disposal or loss of control of a subsidiary, the carrying amount of the net assets of the subsidiary (including any OCI relating to the subsidiary) are derecognized with the difference between any proceeds received and the carrying amount of the net assets recognized as a gain or loss in income. Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the consolidated statements of income (loss), whereas changes in the fair values of contingent consideration classified within equity are not subsequently re-measured. |
Assets held for sale | Assets held for sale Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions. When the company is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether the company will retain a non-controlling interest in its former subsidiary after the sale. Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell. Assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the consolidated statements of financial position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the consolidated statements of financial position and are classified as current. Once classified as held for sale, property, plant and equipment and intangible assets are not depreciated or amortized. |
Capitalized costs | Capitalized costs Capitalized costs related to CWIP include eligible expenditures incurred in connection with acquisition, construction or production of a qualifying asset. A qualifying asset is an asset that takes a substantial period of time to prepare for its intended use. Interest and borrowing costs related to CWIP are capitalized when activities that are necessary to prepare the asset for its intended use or sale are in progress, expenditures for the asset have been incurred and funds have been used or borrowed to fund the construction or development. Capitalization of costs ceases when the asset is ready for its intended use. |
Pension and employees future benefits | Pension and employee future benefits Pension and employee future benefits are recognized in the consolidated financial statements in respect of employees of the operating entities within the company. The costs of retirement benefits for defined benefit plans and post-employment benefits are recognized as the benefits are earned by employees. The projected unit credit method, using the length of service and management’s best estimate assumptions, is used to value pension and other retirement benefits. All actuarial gains and losses are recognized immediately through OCI in order for the net pension asset or liability recognized in the consolidated statements of financial position to reflect the full value of the plan deficit or surplus. Net interest is calculated by applying the discount rate to the net defined benefit asset or liability. Changes in the net defined benefit obligation related to service costs (comprising of current service costs, past services costs, gains and losses on curtailments and non-routine settlements), and net interest expense or income are recognized in the consolidated statements of income (loss). Re-measurements, comprising of actuarial gains or losses, the effect of the asset ceiling, and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to OCI in the period in which they occur. Re-measurements are not reclassified to income in subsequent periods. For defined contribution plans, amounts are expensed based on employee entitlement. |
Decommissioning, restoration and environmental liabilities | Decommissioning, restoration and environmental liabilitiesLegal and constructive obligations associated with the retirement of property, plant and equipment are recorded as liabilities when those obligations are incurred and are measured at the present value of the expected costs to settle the liability, using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The liability is accreted up to the date the liability will be settled with a corresponding charge to operating expenses. The carrying amount of decommissioning, restoration and environmental liabilities is reviewed annually with changes in the estimates of timing or amount of cash flows added to or deducted from the cost of the related asset. |
Provisions | Provisions A provision is a liability of uncertain timing or amount. A provision is recognized if the company has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses. The provision is measured at the present value of the best estimate of the expenditures expected to be required to settle the obligation using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. Provisions are re-measured at each statement of financial position date using the current discount rate. The increase in the provision due to the passage of time is recognized as interest expense. |
Interest income | Interest income Interest income is earned with the passage of time and is recorded on an accrual basis. |
Government grants | Government grants The company becomes eligible for government grants by constructing or purchasing renewable power generating assets, and by bringing those assets to commercial operation, coupled with a successful application to the applicable program or agency. The assessment of whether or not a project has complied with the conditions and that there is reasonable assurance the grants will be received will be undertaken on a case-by-case basis. The company reduces the cost of the asset by the amount of the grant. The grant amounts are recognized in income on a systematic basis as a reduction of depreciation over the periods, and in the proportions, in which depreciation on those assets is charged. With respect to grants related to income, the government assistance (in the form of the difference between market price and guaranteed fixed price) typically becomes payable once electricity is produced and delivered to the relevant grid. It is at this point that the receipt of the grant becomes reasonably assured, and therefore the grant is recognized as revenue in the month that delivery of the electricity occurs. |
Critical estimates and judgements in applying accounting policies | Critical estimates The company makes estimates and assumptions that affect the carrying value of assets and liabilities, disclosure of contingent assets and liabilities and the reported amount of income and other comprehensive income for the year. Actual results could differ from these estimates. The estimates and assumptions that are critical to the determination of the amounts reported in the consolidated financial statements relate to the following: (i) Property, plant and equipment The fair value of the company’s property, plant and equipment is calculated using estimates and assumptions about future electricity prices from renewable sources, anticipated long-term average generation, estimated operating and capital expenditures, future inflation rates and discount rates, as described in Note 12 – Property, plant and equipment, at fair value. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of the company’s property, plant and equipment. See Note 1(s)(iii) – Critical judgments in applying accounting policies – Property, plant and equipment for further details. Estimates of useful lives and residual values are used in determining depreciation and amortization. To ensure the accuracy of useful lives and residual values, these estimates are reviewed on an annual basis. (ii) Financial instruments The company makes estimates and assumptions that affect the carrying value of its financial instruments, including estimates and assumptions about future electricity prices, long-term average generation, capacity prices, discount rates, the timing of energy delivery and the elements affecting fair value of the tax equity financings. The fair value of interest rate swaps is the estimated amount that another party would receive or pay to terminate the swap agreements at the reporting date, taking into account current market interest rates. This valuation technique approximates the net present value of future cash flows. See Note 6 – Risk management and financial instruments for more details. (iii) Deferred income taxes The consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying the temporary differences that relate to each subsidiary. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the consolidated statement of financial position dates. Operating plans and forecasts are used to estimate when the temporary difference will reverse based on future taxable income. (iv) Decommissioning liabilities Decommissioning costs will be incurred at the end of the operating life of some of the company’s assets. These obligations are typically many years in the future and require judgment to estimate. The estimate of decommissioning costs can vary in response to many factors including changes in relevant legal, regulatory, and environmental requirements, the emergence of new restoration techniques or experience at other power generating facilities. Inherent in the calculations of these costs are assumptions and estimates including the ultimate settlement amounts, inflation factors, discount rates, and timing of settlements. (s) Critical judgments in applying accounting policies The following are the critical judgments that have been made in applying the accounting policies used in the consolidated financial statements that have the most significant effect on the amounts in the consolidated financial statements: (i) Preparation of consolidated financial statements These consolidated financial statements present the financial position, results of operations and cash flows of the company. The company exercises judgment in determining whether non-wholly owned subsidiaries are controlled by the company. The company’s judgment included the determination of (i) how the relevant activities of the subsidiary are directed; (ii) whether the rights of shareholdings are substantive or protective in nature; and (iii) the company’s ability to influence the returns of the subsidiary. (ii) Common control transactions Common control business combinations specifically fall outside of scope of IFRS 3 and as such management has used its judgment to determine an appropriate policy to account for these transactions by considering other relevant accounting guidance that is within the framework of principles in IFRS and that reflects the economic reality of the transactions. The company’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the consolidated statements of income (loss), consolidated statements of comprehensive income (loss), consolidated statements of financial position, consolidated statements of changes in equity and consolidated statements of cash flows reflect the results of the combined entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. Differences between the consideration given and the assets and liabilities received are recorded directly to equity. (iii) Property, plant and equipment The accounting policy relating to the company’s property, plant and equipment is described in Note 1(g) – Property, plant and equipment and revaluation method. In applying this policy, judgment is used in determining whether certain costs are additions to the carrying amount of the property, plant and equipment as opposed to repairs and maintenance that are expensed when incurred. If an asset has been developed, judgment is required to identify the point at which the asset is capable of being used as intended and to identify the directly attributable costs to be included in the carrying value of the development asset. The useful lives of property, plant and equipment are determined by independent engineers periodically with an annual review by management. Annually, the company determines the fair value of its property, plant and equipment using a methodology that it has judged to be reasonable. The methodology for hydroelectric assets is generally a twenty-year discounted cash flow model. Twenty years is the period considered reasonable as the company has twenty-year capital plans and it believes a reasonable third party would be indifferent between extending the cash flows further in the model versus using a discounted terminal value. The methodology for wind, solar and other assets is to align the model length with the expected remaining useful life of the subject assets. The valuation model incorporates future cash flows from long-term power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. With respect to estimated future generation that does not incorporate long-term power purchase agreement pricing, the cash flow model uses estimates of future electricity prices using broker quotes from independent sources for the years in which there is a liquid market. The valuation of generation not linked to long-term power purchase agreements also requires the development of a long-term estimate of future electricity prices. In this regard the valuation model uses a discount to the all-in cost of construction with a reasonable return to secure energy from a new renewable resource with a similar generation profile to the asset being valued as the benchmark that will establish the market price for electricity for renewable resources. The company’s long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth by the years 2026 to 2035 in North America, 2029 in Colombia and 2026 in Brazil. The year of new entry is viewed as the point when generators must build additional capacity to maintain system reliability and provide an adequate level of reserve generation with the retirement of older coal-fired plants and rising environmental compliance costs in North America, and overall increasing demand in Colombia and Brazil. For the North American business, the company has estimated a discount to these new-build renewable asset prices to determine renewable electricity prices for hydroelectric, solar and wind facilities. In Brazil and Colombia, the estimate of future electricity prices is based on a similar approach as applied in North America using a forecast of the all-in cost of development. |
Deferred income taxes | Deferred income taxes The accounting policy relating to the company’s income taxes is described in Note 1(n) – Income taxes. In applying this policy, judgments are made in determining the probability of whether deductions, tax credits and tax losses can be utilized. (vi) Earnings per share The company‘s basic and diluted earnings per share have not been presented in the consolidated financial statements. Exchangeable and class B shares are classified as financial liabilities, while class C shares are classified as financial liabilities, but presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. As each share classification represents a financial liability, they do not constitute ordinary shares. Refer to the aforementioned notes for further details. |
Recently adopted accounting standards and Future changes in accounting policies | Recently adopted accounting standards Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising from liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date. The amendments to IFRS 3 apply to annual reporting periods beginning on or after January 1, 2022. The company has completed an assessment and implemented its transition plan that addresses the impact and effect changes as a result of amendments to the recognition principle of IFRS 3. The adoption did not have a significant impact on the company’s financial reporting IFRS Interpretations Committee Agenda Decision - Demand Deposits with Restriction on Use Arising from a Contract with a Third Party (IAS 7 Statement of Cash Flows) In April 2022, the IFRS Interpretations Committee (“IFRS IC”) concluded that restrictions on the use of a demand deposit arising from a contract with a third party do not result in the deposit no longer being cash, unless those restrictions change the nature of the deposit in a way that it would no longer meet the definition of cash in IAS 7 Statement of Cash Flows. In the fact pattern described in the request, the contractual restrictions on the use of the amounts held in the demand deposit did not change the nature of the deposit — the entity can access those amounts on demand. Therefore, the entity should include the demand deposit as a component of “cash and cash equivalents” in its statement of financial position and in its statement of cash flows. The company has completed the assessment and implemented its transition plan that addresses the impact of this IFRS IC agenda decision. The effect of the IFRIC IC agenda decision resulted in an increase to Cash and cash equivalents and a corresponding decrease to Restricted cash of $207 million (2021: $115 million), on the consolidated statements of financial position. The impact on the consolidated statements of cash flows is an increase to Cash and cash equivalents of $207 million (2021: $115 million and 2020: $157 million) and an increase to cash used in investing activities in the prior year (2021: $43 million and 2020: $41 million). Amendments to IAS 1 – Presentation of Financial Statements (“IAS 1”) The amendments clarify how to classify debt and other liabilities as current or non-current. The amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2024. The company is currently assessing the impact of these amendments. There are currently no other future changes to IFRS with potential impact on the company. |
BASIS OF PREPARATION AND SIGN_3
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Basis Of Preparation And Significant Accounting Policies Abstract [Abstract] | |
Summary depreciation on power generating assets | Depreciation on power generating assets is calculated on a straight-line basis over the estimated service lives of the assets, which are as follows: Estimated service lives Dams Up to 115 years Penstocks Up to 60 years Powerhouses Up to 115 years Hydroelectric generating units Up to 115 years Wind generating units Up to 30 years Solar generating units Up to 35 years Gas-fired cogenerating (“Cogeneration”) units Up to 40 years Other assets Up to 60 years |
Disclosure of tax equity financing | The fair value of the tax equity financing is generally comprised of the following elements: Elements affecting the fair value of the tax equity financing Description Production tax credits (PTCs) Allocation of PTCs to the tax equity investor are derived from the power generated during the period. The PTCs are recognized in foreign exchange and financial instrument gain (loss) with a corresponding reduction to the tax equity liability. Taxable loss, including tax attributes such as accelerated tax depreciation Under the terms of the tax equity agreements, the company is required to allocate specified percentages of taxable losses to the tax equity investor. As amounts are allocated, the obligation to deliver them is satisfied and a reduction to the tax equity liability is recorded with a corresponding amount recorded within foreign exchange and financial instrument gain (loss) on the consolidated statements of income (loss). Pay-go contributions Certain of the contracts contain annual production thresholds. When the thresholds are exceeded, the tax equity investor is required to contribute additional cash amounts. The cash amounts paid increase the value of the tax equity liability. Cash distributions Certain of the contracts also require cash distributions to the tax equity investor. Upon payment, the tax equity liability is reduced in the amount of the cash distribution. |
PRINCIPAL SUBSIDIARIES (Tables)
PRINCIPAL SUBSIDIARIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of subsidiaries [abstract] | |
Summary of subsidiaries | The following table lists the subsidiaries of the company which significantly affect its financial position and results of operations as at December 31, 2022: Jurisdiction of Incorporation or Organization Percentage of voting securities owned or controlled (%) BP Brazil US Subco LLC Delaware 100 Brookfield Power US Holding America Co. Delaware 100 Isagen S.A. E.S.P. (1) Colombia 99.70 TerraForm Power Parent, LLC (1) New York 100.00 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about business combination [abstract] | |
Summary of final purchase price allocations, at fair values | The purchase price allocation, at fair value, with respect to the acquisition is as follows: (MILLIONS) Spanish CSP Portfolio Cash and cash equivalents $ 22 Restricted cash 27 Trade receivables and other current assets 33 Property, plant and equipment, at fair value 661 Deferred tax assets 14 Other non-current assets 8 Current liabilities (17) Financial instruments (148) Non-recourse borrowings (475) Decommissioning liabilities (23) Other long-term liabilities (22) Fair value of identifiable net assets acquired 80 Goodwill 41 Purchase price $ 121 |
DISPOSAL OF ASSETS (Tables)
DISPOSAL OF ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of analysis of single amount of discontinued operations [abstract] | |
Summary of financial information related to disposal | Summarized financial information relating to the disposal of the Brazil Hydroelectric Portfolio is shown below: (MILLIONS) Total Proceeds, net of transaction costs $ 90 Carrying value of net assets held for sale Assets 90 Liabilities — 90 Loss on disposal, net of transaction costs $ — |
ASSETS HELD FOR SALE (Tables)
ASSETS HELD FOR SALE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
ASSETS HELD FOR SALE [Abstract] | |
Summary of the major items of assets and liabilities classified as held for sale | The following is a summary of the major items of assets and liabilities classified as held for sale as at December 31: (MILLIONS) 2022 Assets Cash and cash equivalents $ 8 Trade receivables and other current assets 2 Financial instrument assets 3 Property, plant and equipment, at fair value 685 Other long-term assets — Assets held for sale $ 698 Liabilities Current liabilities $ 7 Non-recourse borrowings 171 Financial instrument liabilities 37 Other long-term liabilities 2 Liabilities directly associated with assets held for sale $ 217 |
RISK MANAGEMENT AND FINANCIAL_2
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS [Abstract] | |
Summary of financial instruments | Impact of a 5% change in the market price of electricity, on outstanding energy derivative contracts and IFRS 9 PPAs, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ (30) $ (34) $ (9) $ (34) $ (20) $ (11) 5% decrease 30 34 9 34 20 11 (1) Amounts represent the potential annual net pretax impact. Impact of a 5% change in U.S. dollar exchange rates, on outstanding foreign exchange swaps, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ 18 $ 21 $ 56 $ 44 $ 29 $ 26 5% decrease (18) (21) (54) (44) (29) (26) (1) Amounts represent the potential annual net pretax impact. Impact of a 1% change in interest rates, on outstanding interest rate swaps, variable rate debt and tax equity, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 1% increase $ (10) $ 11 $ 2 $ 90 $ 111 $ 119 1% decrease 10 (11) (3) (95) (121) (126) (1) Amounts represent the potential annual net pretax impact. The maximum credit exposure at December 31 was as follows: (MILLIONS) 2022 2021 Trade receivables and other short-term receivables $ 647 $ 609 Financial instrument assets (1) 292 116 Due from related parties (1) 624 558 Long-term receivables $ 38 $ 30 $ 1,601 $ 1,313 (1) Includes both the current and long-term amounts. |
Summary to classifies the cash obligations | The table below classifies the cash obligations related to the company’s liabilities into relevant maturity groupings based on the remaining period from the statement of financial position dates to the contractual maturity date. As the amounts are the contractual undiscounted cash flows (gross of unamortized financing fees and accumulated amortization, where applicable), they may not agree with the amounts disclosed in the consolidated statements of financial position. AS AT DECEMBER 31, 2022 < 1 year 2-5 years > 5 years Total Accounts payable and accrued liabilities $ 621 $ — $ — $ 621 Financial instrument liabilities (1)(2) 270 403 175 848 Due to related parties (1) 464 — — 464 Other long-term liabilities – concession payments 1 6 20 27 Lease liabilities (1) 26 60 278 364 Non-recourse borrowings (1) 1,299 4,122 8,359 13,780 Interest payable on borrowings (3) 813 2,711 2,361 5,885 Total $ 3,494 $ 7,302 $ 11,193 $ 21,989 AS AT DECEMBER 31, 2021 < 1 year 2-5 years > 5 years Total Accounts payable, accrued liabilities, and provisions $ 452 $ — $ — $ 452 Financial instrument liabilities (1)(2) 247 355 168 770 Due to related parties (1) 649 — — 649 Other long-term liabilities – concession payments 1 6 13 20 Lease liabilities (1) 25 94 252 371 Non-recourse borrowings (1) 1,452 4,395 7,699 13,546 Interest payable on borrowings (3) 587 1,888 1,774 4,249 Total $ 3,413 $ 6,738 $ 9,906 $ 20,057 (1) Includes both the current and long-term amounts. (2) Includes tax equity liabilities that will be partially settled by the delivery of non-cash tax attributes. (3) Represents aggregate interest payable expected to be paid over the entire term of the obligations, if held to maturity. Variable rate interest payments have been calculations based on estimated interest rates. |
Summary of assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy | The following table presents the company’s assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy as at December 31: (MILLIONS) Level 1 Level 2 Level 3 2022 2021 Assets measured at fair value: Cash and cash equivalents $ 642 $ — $ — $ 642 $ 525 Restricted cash (1) 68 — — 68 81 Financial instrument assets (1) Energy derivative contracts — 33 1 34 45 Interest rate swaps — 261 — 261 40 Foreign exchange swaps — — — — 31 Investments in equity securities — — 292 292 — Property, plant and equipment — — 37,828 37,828 37,915 Liabilities measured at fair value: Financial instrument liabilities (1) Energy derivative contracts — (231) (189) (420) (206) Interest rate swaps — (14) — (14) (103) Foreign exchange swaps — (61) — (61) (6) Tax equity — — (353) (353) (455) Liabilities for which fair value is disclosed: BEPC exchangeable and class B shares (2) (4,364) — — (4,364) (6,163) Non-recourse borrowings (1) (1,739) (11,108) — (12,847) (14,397) Total $ (5,393) $ (11,120) $ 37,579 $ 21,066 $ 17,307 (1) Includes both the current amount and long-term amount. (2) BEPC class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 16 – BEPC exchangeable shares, BEPC class B shares and BEPC class C shares, the BEPC class C shares meet certain qualifying criteria and are presented as equity. |
Summary of net financial instrument positions | Financial Instruments Assets Financial Instruments Liabilities Instruments not designated as hedges Instruments not designated as hedges (MILLIONS) Instruments designated as hedges Fair value through profit & loss Fair value through OCI Total Instruments designated as hedges Fair value through profit & loss Fair value through OCI Total Net Assets IFRS 9 PPAs $ 10 $ 3 $ — $ 13 $ (35) $ (7) $ — $ (42) $ (29) Energy derivative contracts 3 29 — 32 (61) (103) — (164) (132) Interest rate swaps 22 18 — 40 (103) — — (103) (63) Foreign exchange swaps 31 — — 31 (4) (2) — (6) 25 Investments in debt and equity securities — — — — — — — — — Tax equity — — — — — (455) — (455) (455) Balance, as at December 31, 2021 $ 66 $ — $ 50 $ — $ — $ 116 $ (203) $ — $ (567) $ — $ — $ (770) $ (654) Less: current portion (58) 247 189 Long-term portion $ 58 $ (523) $ (465) IFRS 9 PPAs $ — $ — $ — $ — $ (94) $ (94) $ — $ (188) $ (188) Energy derivative contracts 12 22 — 34 (37) (195) — (232) (198) Interest rate swaps 222 39 — 261 (14) — — (14) 247 Foreign exchange swaps — — — — (52) (9) — (61) (61) Investments in debt and equity securities — — 292 292 — — — — 292 Tax equity — — — — — (353) — (353) (353) Balance, as at December 31, 2022 $ 234 $ 61 $ 292 $ 587 $ (197) $ (651) $ — $ (848) $ (261) Less: current portion (106) 270 164 Long-term portion $ 481 $ (578) $ (97) (MILLIONS) Balance as at Dec. 31, 2021 asset (liability) Changes in fair value recognized in OCI (1) Changes in fair value (hedge ineffectiveness) (2) Changes in fair value on financial instruments through profit and loss (2) Amounts reclassified from OCI to income Acquisitions, settlements and other Foreign exchange gain (loss) Balance as at Dec. 31, 2022 asset (liability) IFRS 9 PPAs (3) $ (29) $ (75) $ (13) $ (111) $ 22 $ 18 $ — $ (188) Energy derivative contracts (132) (117) 2 (132) 142 39 — (198) Interest rate swaps (63) 260 (1) 38 5 14 (6) 247 Foreign exchange swaps 25 (78) — 87 — (95) — (61) Investments in debt and equity securities — — — — — 292 — 292 Tax equity (455) — — 83 — 19 — (353) $ (654) $ (10) $ (12) $ (35) $ 169 $ 287 $ (6) $ (261) (1) Amounts recognized in Equity-accounted investments, Gains (losses) arising during the year on financial instruments designated as cash-flow hedges and Unrealized gain (loss) on foreign exchange swaps – net investment hedge on the consolidated statements of comprehensive income (loss). (2) Amounts recognized in Foreign exchange and financial instruments gain (loss) on the consolidated statements of income (loss) excluding realized gains and losses recorded on foreign exchange. (3) Level 3 power purchase agreements accounted for as energy derivatives that are either designated as a hedge or not designated as a hedge. (MILLIONS) Balance as at Dec. 31, 2020 asset (liability) Changes in fair value recognized in OCI (1) Changes in fair value (hedge ineffectiveness) (2) Changes in fair value on derivatives not designated in hedge relationships (2) Amounts reclassified from OCI to income Acquisitions, settlements and other Foreign exchange gain (loss) Balance as at Dec. 31, 2021 asset (liability) IFRS 9 PPAs (3) $ 68 $ (151) $ (5) $ (125) $ 90 $ 94 $ — $ (29) Energy derivative contracts 9 (131) — (40) 35 (5) — (132) Interest rate swaps (244) 2 (3) 49 74 66 (7) (63) Foreign exchange swaps (19) 30 — 110 — (96) — 25 Investments in debt and equity securities — — — — — — — — Tax equity (402) — — (21) — (32) — (455) $ (588) $ (250) $ (8) $ (27) $ 199 $ 27 $ (7) $ (654) |
Summary of derivative contracts designated as hedging instruments | The following table summarizes the energy derivative contracts designated as hedging instruments: Energy derivative contracts and IFRS 9 PPAs December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (118) (83) Notional amount – GWh 13,674 10,022 Weighted average hedged rate for the year ($/MWh) 58 35 Maturity dates 2023-2033 2022 - 2027 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments (90) (124) Change in value of hedged item used to determine hedge effectiveness 64 117 The following table summarizes the interest rate hedges designated as hedging instruments: Interest rate hedges December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) 208 (81) Notional amount – $ 640 391 Notional amount – COP (1) 157 141 Notional amount – C$ (1) 132 152 Notional amount – € (1) 1,315 1,572 Maturity dates 2023-2048 2022 - 2039 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments 259 81 Change in value of hedged item used to determine hedge effectiveness (260) (84) (1) Notional amounts of foreign currency denominated interest rate hedges are presented at the U.S. dollar equivalent value based on the December 31, 2022 foreign currency spot rate The following table summarizes the foreign exchange swaps designated as hedging instruments: Foreign exchange swaps December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (51) 27 Notional amount for hedges of the Colombian Peso (1) 302 676 Notional amount for hedges of the Euro (1) 514 497 Notional amount for hedges of the Brazilian real (1) 79 75 Maturity date 2023 - 2024 2022 - 2023 Hedge ratio 1:1 1:1 Weighted average hedged rate for the year: COP/$ foreign exchange forward contracts 5,038 3,925 €/$ foreign exchange forward contracts 1.00 0.87 BRL/$ foreign exchange forward contracts 5.69 5.73 (1) Notional amounts expressed in millions of U.S. dollars |
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS | RISK MANAGEMENT AND FINANCIAL INSTRUMENTS RISK MANAGEMENT The company’s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. The company uses financial instruments primarily to manage these risks. The sensitivity analysis discussed below reflects the risks associated with instruments that the company considers are market sensitive and the potential loss resulting from one or more selected hypothetical changes. Therefore, the discussion below is not intended to fully reflect the company’s risk exposure. (a) Market risk Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate because of changes in market prices. The company faces market risk from foreign currency assets and liabilities, the impact of changes in interest rates, and floating rate liabilities. Market risk is managed by funding assets with financial liabilities in the same currency and with similar interest rate characteristics and holding financial contracts, such as interest rate swaps and foreign exchange contracts, to minimize residual exposures. Financial instruments held by the company that are subject to market risk include borrowings and financial instruments, such as interest rate, currency and commodity contracts. The categories of financial instruments that can give rise to significant variability are described below: (i) Electricity price risk The company aims to sell electricity under long-term contracts to secure stable prices and mitigate its exposure to wholesale markets. Electricity price risk arises from the sale of the company’s uncontracted generation and is mitigated by entering into short-term energy derivative contracts. Electricity price risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate because of changes in electricity prices. The table below summarizes the impact of changes in the market price of electricity as at December 31. The impact is expressed in terms of the effect on net income and OCI. The sensitivities are based on the assumption that the market price changes by 5% with all other variables held constant. Impact of a 5% change in the market price of electricity, on outstanding energy derivative contracts and IFRS 9 PPAs, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ (30) $ (34) $ (9) $ (34) $ (20) $ (11) 5% decrease 30 34 9 34 20 11 (1) Amounts represent the potential annual net pretax impact. (ii) Foreign currency risk Foreign currency risk is defined for these purposes as the risk that the fair value of a financial instrument held by the company will fluctuate because of changes in foreign currency rates. The company has exposure to the Canadian dollar, euro, Brazilian real, and Colombian peso through its investments in foreign operations. Consequently, fluctuations in the U.S. dollar exchange rate against these currencies increase the volatility of net income and other comprehensive income. The company holds foreign currency contracts primarily to mitigate this exposure. The table below summarizes the impact to the company’s financial instruments of changes in the exchange rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the currency exchange rate changes by five percent with all other variables held constant. Impact of a 5% change in U.S. dollar exchange rates, on outstanding foreign exchange swaps, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 5% increase $ 18 $ 21 $ 56 $ 44 $ 29 $ 26 5% decrease (18) (21) (54) (44) (29) (26) (1) Amounts represent the potential annual net pretax impact. (iii) Interest rate risk Interest rate risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by the company will fluctuate, because of changes in interest rates. The company’s assets largely consist of long duration physical assets. The company’s financial liabilities consist primarily of long-term fixed-rate debt or variable-rate debt that has been swapped to fixed rates with interest rate financial instruments. All non-derivative financial liabilities are recorded at their amortized cost. The company also holds interest rate contracts to lock-in fixed rates on certain anticipated future debt issuances. The company will enter into interest rate swaps designed to minimize the exposure to interest rate fluctuations on its variable-rate debt. Fluctuations in interest rates could impact the company’s cash flows, primarily with respect to the interest payable against the company’s variable rate debt, which is limited to certain non-recourse borrowings with a total principal value of $5,979 million (2021: $5,165 million). Of this principal value, $2,561 million (2021: $3,493 million) has been fixed through the use of interest rate contracts. The fair values of the recognized asset and liability for the interest rate swaps were calculated using a valuation model with observable interest rates. The table below summarizes the impact of changes in the interest rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the interest rate changes by 1% with all other variables held constant. Impact of a 1% change in interest rates, on outstanding interest rate swaps, variable rate debt and tax equity, for the year ended December 31: Effect on net income (1) Effect on OCI (1) (MILLIONS) 2022 2021 2020 2022 2021 2020 1% increase $ (10) $ 11 $ 2 $ 90 $ 111 $ 119 1% decrease 10 (11) (3) (95) (121) (126) (1) Amounts represent the potential annual net pretax impact. (b) Credit risk Credit risk is the risk of loss due to the failure of a borrower or counterparty to fulfill its contractual obligations. The company’s exposure to credit risk in respect of financial instruments relates primarily to counterparty obligations regarding energy contracts, interest rate swaps, forward foreign exchange contracts and physical electricity transactions. The company minimizes credit risk with counterparties through the selection, monitoring and diversification of counterparties, and the use of standard trading contracts, and other credit risk mitigation techniques. In addition, the company’s power purchase agreements are reviewed regularly and the majority are with customers having long standing credit histories or investment grade ratings, which limit the risk of non-collection. See Note 22 – Trade receivables and other current assets, for additional details regarding the company’s trade receivables balance. The maximum credit exposure at December 31 was as follows: (MILLIONS) 2022 2021 Trade receivables and other short-term receivables $ 647 $ 609 Financial instrument assets (1) 292 116 Due from related parties (1) 624 558 Long-term receivables $ 38 $ 30 $ 1,601 $ 1,313 (1) Includes both the current and long-term amounts. (c) Liquidity risk Liquidity risk is the risk that the company cannot meet a demand for cash or fund an obligation when due. Liquidity risk is mitigated by the company’s cash and cash equivalent balances and its access to undrawn credit facilities. Details of the available portion of credit facilities are included in Note 14 – Borrowings. The company also ensures that it has access to public capital markets and maintains a strong investment grade credit rating. The company is also subject to the risk associated with debt financing. This risk is mitigated by the long-term duration of debt instruments and the staggered maturity dates over an extended period of time. CASH OBLIGATIONS The table below classifies the cash obligations related to the company’s liabilities into relevant maturity groupings based on the remaining period from the statement of financial position dates to the contractual maturity date. As the amounts are the contractual undiscounted cash flows (gross of unamortized financing fees and accumulated amortization, where applicable), they may not agree with the amounts disclosed in the consolidated statements of financial position. AS AT DECEMBER 31, 2022 < 1 year 2-5 years > 5 years Total Accounts payable and accrued liabilities $ 621 $ — $ — $ 621 Financial instrument liabilities (1)(2) 270 403 175 848 Due to related parties (1) 464 — — 464 Other long-term liabilities – concession payments 1 6 20 27 Lease liabilities (1) 26 60 278 364 Non-recourse borrowings (1) 1,299 4,122 8,359 13,780 Interest payable on borrowings (3) 813 2,711 2,361 5,885 Total $ 3,494 $ 7,302 $ 11,193 $ 21,989 AS AT DECEMBER 31, 2021 < 1 year 2-5 years > 5 years Total Accounts payable, accrued liabilities, and provisions $ 452 $ — $ — $ 452 Financial instrument liabilities (1)(2) 247 355 168 770 Due to related parties (1) 649 — — 649 Other long-term liabilities – concession payments 1 6 13 20 Lease liabilities (1) 25 94 252 371 Non-recourse borrowings (1) 1,452 4,395 7,699 13,546 Interest payable on borrowings (3) 587 1,888 1,774 4,249 Total $ 3,413 $ 6,738 $ 9,906 $ 20,057 (1) Includes both the current and long-term amounts. (2) Includes tax equity liabilities that will be partially settled by the delivery of non-cash tax attributes. (3) Represents aggregate interest payable expected to be paid over the entire term of the obligations, if held to maturity. Variable rate interest payments have been calculations based on estimated interest rates. Fair value disclosures Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads. A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset. Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities. Level 1 – inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities; Level 2 – inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and Level 3 – inputs for the asset or liability that are not based on observable market data. The following table presents the company’s assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy as at December 31: (MILLIONS) Level 1 Level 2 Level 3 2022 2021 Assets measured at fair value: Cash and cash equivalents $ 642 $ — $ — $ 642 $ 525 Restricted cash (1) 68 — — 68 81 Financial instrument assets (1) Energy derivative contracts — 33 1 34 45 Interest rate swaps — 261 — 261 40 Foreign exchange swaps — — — — 31 Investments in equity securities — — 292 292 — Property, plant and equipment — — 37,828 37,828 37,915 Liabilities measured at fair value: Financial instrument liabilities (1) Energy derivative contracts — (231) (189) (420) (206) Interest rate swaps — (14) — (14) (103) Foreign exchange swaps — (61) — (61) (6) Tax equity — — (353) (353) (455) Liabilities for which fair value is disclosed: BEPC exchangeable and class B shares (2) (4,364) — — (4,364) (6,163) Non-recourse borrowings (1) (1,739) (11,108) — (12,847) (14,397) Total $ (5,393) $ (11,120) $ 37,579 $ 21,066 $ 17,307 (1) Includes both the current amount and long-term amount. (2) BEPC class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 16 – BEPC exchangeable shares, BEPC class B shares and BEPC class C shares, the BEPC class C shares meet certain qualifying criteria and are presented as equity. There were no transfers between levels during the year ended December 31, 2022. The company owns and operates certain projects in the United States under tax equity structures to finance the construction of solar and wind projects. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position. Gain or loss on the tax equity liabilities are recognized within foreign exchange and financial instruments (loss) gain in the consolidated statements of income (loss). (b) Energy derivative contracts and IFRS 9 PPAs The company has entered into long-term energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in the company’s consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts. There is an economic relationship between the hedged items and the hedging instruments as the terms of the energy derivative contracts match the terms of the expected highly probable forecast transactions (i.e. notional amount and expected payment date). The company has established a hedge ratio of 1:1 for the hedging relationship. To measure the hedge effectiveness, the company uses the hypothetical derivative method and compares changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. The hedge ineffectiveness can arise from different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments. Certain subsidiaries that the company controls, through a voting agreement, have entered into agreements appointing the partnership as their agent in entering into certain derivative transactions with external counterparties. Pursuant to each Agreement, the partnership was entitled to be reimbursed for any third party costs incurred in connection with these derivative transactions. Substantially all of the company’s energy contract derivatives are entered into pursuant to these agreements. Upon the closing of the Energy Marketing Internalization on April 1, 2021, all power agency agreements were transferred by the partnership to the company. Refer to Note 28 - Related party transactions for more details. For the year ended December 31, 2022 , loss of $146 million relating to energy derivative contracts were realized and reclassified from OCI to the consolidated statements of income (loss) (2021: $32 million loss and 2020: $53 million gains). Based on market prices as of December 31, 2022, unrealized losses of $37 million (2021: $72 million loss and 2020: $13 million gains) recorded in accumulated other comprehensive income (“AOCI”) on energy derivative contracts are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market prices. The following table summarizes the energy derivative contracts designated as hedging instruments: Energy derivative contracts and IFRS 9 PPAs December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (118) (83) Notional amount – GWh 13,674 10,022 Weighted average hedged rate for the year ($/MWh) 58 35 Maturity dates 2023-2033 2022 - 2027 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments (90) (124) Change in value of hedged item used to determine hedge effectiveness 64 117 There is $18 million of hedge ineffectiveness losses recognized in foreign exchange and financial instruments gain (loss) in the consolidated statements of income (loss) related to energy derivative contracts (cash flow hedges) for the year ended December 31, 2022 (2021: $7 million gains and 2020: $2 million gains). (c) Interest rate hedges The company has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the consolidated financial statements at fair value. There is an economic relationship between the hedged items and the hedging instruments as the terms of the interest rate hedges match the terms of the respective fixed rate loans (i.e., notional amount, maturity, payment and reset dates). The company established a hedge ratio of 1:1 for the hedging relationship. To measure the hedge effectiveness, the company uses the hypothetical derivative method and compares the changes in the fair value of the hedging instrument against the changes in fair value of the hedged items attributable to the hedged risk. The hedge ineffectiveness can arise from: • Different interest rate curves being applied to discount the hedged item and hedging instrument • Differences in timing of cash flows of the hedged item and hedging instrument • The counterparties’ credit risk having an asymmetrical impact on the fair value movements of the hedging instrument and hedged item At December 31, 2022, agreements with a total notional exposure of $2,569 million were outstanding (2021: $2,815 million) including $325 million (2021: $559 million) associated with agreements that are not formally designated as hedging instruments. The weighted-average fixed interest rate resulting from these agreements is 2.6% (2021: 1.3%). For the year ended December 31, 2022, net movements relating to cash flow hedges realized and reclassified from OCI to interest expense in the consolidated statements of income (loss) were $2 million losses (2021: $11 million losses and 2020: $5 million losses). Based on market prices as of December 31, 2022, unrealized losses of $41 million (2021: $32 million and 2020: $30 million) recorded in AOCI on interest rate swaps are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market rates. The following table summarizes the interest rate hedges designated as hedging instruments: Interest rate hedges December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) 208 (81) Notional amount – $ 640 391 Notional amount – COP (1) 157 141 Notional amount – C$ (1) 132 152 Notional amount – € (1) 1,315 1,572 Maturity dates 2023-2048 2022 - 2039 Hedge ratio 1:1 1:1 Change in discounted spot value of outstanding hedging instruments 259 81 Change in value of hedged item used to determine hedge effectiveness (260) (84) (1) Notional amounts of foreign currency denominated interest rate hedges are presented at the U.S. dollar equivalent value based on the December 31, 2022 foreign currency spot rate The hedge ineffectiveness gains recognized within foreign exchange and financial instrument gain (loss) in the consolidated statements of income (loss) related to interest rate contracts (cash flow hedges) for the year ended December 31, 2022 was $1 million (2021: $(3) million and 2020: $2 million). (d) Foreign exchange swaps The company has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies. There is an economic relationship between the hedged item and the hedging instrument as the net investment or anticipated foreign currency transaction creates a translation risk that will match the respective hedging instrument. The company established a hedge ratio of 1:1 as the underlying risk of the hedging instrument is identical to the hedged risk component. Certain Brookfield subsidiaries that the company controls, through a voting agreement, have entered into Master Hedge Agreements appointing Brookfield as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in foreign exchange. Pursuant to each Agreement, Brookfield was entitled to be reimbursed for any third party costs incurred in connection with the these derivative transactions. Substantially all of the company’s foreign exchange swaps are entered into pursuant to a Master Hedge Agreement. At December 31, 2022, agreements with a total notional exposure of $2,536 million were outstanding (2021: $1,679 million) including $1,641 million (2021: $431 million) associated with agreements that are not formally designated as hedging instruments. There are no unrealized gains or losses recorded in AOCI on foreign exchange swaps that are expected to be settled or reclassified into income in the next twelve months (2021: nil and 2020: nil). The actual amount reclassified from AOCI, however, could vary due to future changes in market rates. The following table summarizes the foreign exchange swaps designated as hedging instruments: Foreign exchange swaps December 31, 2022 December 31, 2021 Carrying amount (asset/(liability)) (51) 27 Notional amount for hedges of the Colombian Peso (1) 302 676 Notional amount for hedges of the Euro (1) 514 497 Notional amount for hedges of the Brazilian real (1) 79 75 Maturity date 2023 - 2024 2022 - 2023 Hedge ratio 1:1 1:1 Weighted average hedged rate for the year: COP/$ foreign exchange forward contracts 5,038 3,925 €/$ foreign exchange forward contracts 1.00 0.87 BRL/$ foreign exchange forward contracts 5.69 5.73 (1) Notional amounts expressed in millions of U.S. dollars |
SEGMENTED INFORMATION (Tables)
SEGMENTED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of operating segments [abstract] | |
Summary of adjusted EBITDA and funds from operations | The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2022: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 1,095 $ 176 $ 167 $ 146 $ — $ 1,584 $ (55) $ 2,249 $ 3,778 Other income 44 10 37 8 — 99 1 (7) 93 Direct operating costs (426) (54) (39) (70) (5) (594) 30 (610) (1,174) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 24 — 24 713 132 165 84 (5) 1,089 — 1,632 Management service costs — — — — (163) (163) — (6) (169) Interest expense (1) (175) (29) (50) (20) (3) (277) 4 (539) (812) Current income taxes (34) (2) (1) — — (37) — (96) (133) Share of interest and cash taxes from equity-accounted investments — — — — — — (4) — (4) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (991) (991) Funds From Operations 504 101 114 64 (171) 612 — — Depreciation (515) 12 (676) (1,179) Foreign exchange and financial instrument gain (loss) (166) — 97 (69) Deferred income tax recovery (expense) 79 — (64) 15 Other (85) 2 (3) (86) Dividends on BEPC exchangeable shares (1) (221) — 1 (220) Remeasurement of BEPC exchangeable and BEPC class B shares 1,799 — 1 1,800 Share of loss from equity-accounted investments — (14) — (14) Net income attributable to non-controlling interests — — 644 644 Net income attributable to the partnership $ 1,503 $ — $ — $ 1,503 (1) Share of earnings from equity-accounted investments of $6 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests of $347 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $1,032 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares. The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2021: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 992 $ 199 $ 166 $ 126 $ — $ 1,483 $ (40) $ 1,924 $ 3,367 Other income 55 26 15 2 3 101 (1) (40) 60 Direct operating costs (424) (59) (42) (50) (3) (578) 19 (626) (1,185) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 22 — 22 623 166 139 78 — 1,006 — 1,258 Management service costs — — — — (175) (175) — — (175) Interest expense (1) (140) (35) (53) (20) (16) (264) 6 (433) (691) Current income taxes (11) (2) (1) 1 — (13) — (18) (31) Share of interest and cash taxes from equity-accounted investments — — — — — — (6) — (6) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (807) (807) Funds From Operations 472 129 85 59 (191) 554 — — Depreciation (474) 12 (653) (1,115) Foreign exchange and financial instrument gain (loss) (66) 2 37 (27) Deferred income tax recovery (expense) 29 — (85) (56) Other (155) — (122) (277) Dividends on BEPC exchangeable shares (1) (209) — — (209) Remeasurement of BEPC exchangeable and BEPC class B shares 1,267 — — 1,267 Share of earnings from equity-accounted investments — (14) — (14) Net income attributable to non-controlling interests — — 823 823 Net income (loss) attributable to the partnership $ 946 $ — $ — $ 946 (1) Share of earnings from equity-accounted investments of $2 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $16 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $900 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares. The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from the company’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2020: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (1) (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total Revenues $ 856 $ 130 $ 71 $ 81 $ — $ 1,138 $ (40) $ 1,989 $ 3,087 Other income 52 2 3 — — 57 (1) 43 99 Direct operating costs (340) (47) (17) (40) — (444) 20 (637) (1,061) Share of revenue, other income and direct operating costs from equity-accounted investments — — — — — — 21 — 21 568 85 57 41 — 751 — 1,395 Management service costs — — — — (126) (126) — (26) (152) Interest expense (135) (34) (24) (11) — (204) 9 (505) (700) Current income taxes (16) (3) — — — (19) — (42) (61) Share of interest and cash taxes from equity-accounted investments — — — — — — (9) — (9) Share of Funds From Operations attributable to non-controlling interests — — — — — — — (822) (822) Funds From Operations 417 48 33 30 (126) 402 — — Depreciation (361) 11 (715) (1,065) Foreign exchange and financial instrument gain (loss) 11 4 59 74 Deferred income tax recovery 76 — 58 134 Other (189) 1 (305) (493) Dividends on class A exchangeable shares (1) (116) (116) Remeasurement of exchangeable and class B shares (2,561) (2,561) Share of loss from equity-accounted investments — (16) — (16) Net income attributable to non-controlling interests — — 903 903 Net loss attributable to the partnership $ (2,738) $ — $ — $ (2,738) (1) Share of loss from equity-accounted investments of $4 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $81 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. |
Summary of segmented basis about certain items in statement of financial position | The following table presents information on a segmented basis about certain items in the company’s consolidated statements of financial position and reconciles our proportionate balances to the consolidated statements of financial position basis by aggregating the components comprising the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests: Attributable to the partnership Contribution from equity-accounted investments Attributable to non-controlling interests As per IFRS financials (MILLIONS) Hydroelectric Wind Utility-scale solar Distributed energy & sustainable solutions Corporate Total As at December 31, 2022 Cash and cash equivalents $ 70 $ 49 $ 60 $ 18 $ — $ 197 $ (7) $ 452 $ 642 Property, plant and equipment, at fair value 13,709 1,400 1,310 1,084 — 17,503 (557) 20,882 37,828 Total assets 15,604 1,595 1,447 1,138 307 20,091 (171) 23,368 43,288 Total borrowings 2,894 613 1,025 371 — 4,903 (161) 8,973 13,715 Other liabilities 4,363 342 138 38 4,436 9,317 (10) 3,442 12,749 For the year ended December 31, 2022 Additions to property, plant and equipment 113 67 104 15 — 299 (38) 459 720 As at December 31, 2021 Cash and cash equivalents $ 65 $ 36 $ 60 $ 14 $ 4 $ 179 $ (2) $ 348 $ 525 Property, plant and equipment, at fair value 13,577 1,478 1,585 1,232 — 17,872 (604) 20,647 37,915 Total assets 15,108 1,700 1,731 1,279 17 19,835 (176) 22,327 41,986 Total borrowings 2,720 765 1,377 461 — 5,323 (161) 8,350 13,512 Other liabilities 4,051 379 119 66 6,231 10,846 (15) 3,418 14,249 For the year ended December 31, 2021 Additions to property, plant and equipment (1) 266 68 116 1 — 451 (8) 893 1,336 (1) The company exercised the option to buyout the lease on its 192 MW hydroelectric facility in Louisiana and recognized a $247 million adjustment ($185 million net to the company) to its corresponding right-of-use asset. |
Summary of consolidated revenue split by geographical region | The following table presents consolidated revenue split by technology for the year ended December 31: (MILLIONS) 2022 2021 2020 Hydroelectric $ 2,307 $ 1,969 $ 1,778 Wind 647 646 581 Utility-scale solar 567 507 476 Distributed energy & sustainable solutions 257 245 252 $ 3,778 $ 3,367 $ 3,087 |
Summary of consolidated property, plant and equipment and equity-accounted investments split by geographical region | The following table presents consolidated property, plant and equipment and equity-accounted investments split by geographical region: (MILLIONS) December 31, 2022 December 31, 2021 North America $ 22,478 $ 22,634 Colombia 8,264 8,497 Brazil 4,162 3,299 Europe 3,375 3,940 $ 38,279 $ 38,370 |
DIRECT OPERATING COSTS (Tables)
DIRECT OPERATING COSTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Direct Operating Costs [Abstract] | |
Summary of direct operating costs | The company’s direct operating costs for the year ended December 31 are comprised of the following: (MILLIONS) Notes 2022 2021 2020 Fuel and power purchases (1)(2) $ (396) $ (450) $ (338) Operations and maintenance (246) (218) (198) Salaries and benefits (224) (206) (198) Water royalties, property taxes and other regulatory fees (159) (163) (176) Insurance (56) (56) (51) Professional fees (24) (26) (36) Energy marketing & other related party services 28 (7) (11) (17) Other (62) (55) (47) $ (1,174) $ (1,185) $ (1,061) (1) Fuel and power purchases are primarily attributable to our portfolio in Colombia. (2) Includes $80 million in 2021 relating to the Texas winter storm event which reflect the cost of acquiring energy to cover our contractual obligations for our wind assets that were not generating during the period due to freezing conditions, net of hedging initiatives. |
OTHER (Tables)
OTHER (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other [Abstract] | |
Summary of other | The company’s other for the year ended December 31 is comprised of the following: (MILLIONS) Notes 2022 2021 2020 Change in fair value of property, plant and equipment $ (5) $ (73) $ (43) Amortization of service concession assets (10) (15) (8) Share-settlement liability — (65) (158) Legal provisions 27 — (55) (231) Cash flow hedge associated with the disposal of assets 4 — (6) — Transaction costs — — (12) Other (71) (63) (41) $ (86) $ (277) $ (493) |
FOREIGN CURRENCY TRANSLATION (T
FOREIGN CURRENCY TRANSLATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Foreign Currency Translation [Abstract] | |
Summary of foreign currency translation | The company’s foreign currency translation for the year ended December 31 shown in the consolidated statements of comprehensive income (loss) is comprised of the following: (MILLIONS) Notes 2022 2021 2020 Foreign currency translation on: Property, plant and equipment, at fair value 12 $ (1,490) $ (1,527) $ (624) Goodwill 17 (126) (121) (20) Borrowings 14 545 479 (87) Deferred income tax liabilities and assets 11 454 329 60 Other assets and liabilities 59 11 (19) $ (558) $ (829) $ (690) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Major components of tax expense (income) [abstract] | |
Summary of income tax recovery (expense) | The major components of income tax recovery (expense) for the year ended December 31 are as follows: (MILLIONS) 2022 2021 2020 Income tax recovery (expense) applicable to: Current taxes Attributed to the current period $ (133) $ (31) $ (61) Deferred taxes Origination and reversal of temporary differences (10) 80 104 Relating to change in tax rates / imposition of new tax laws 10 (142) (7) Relating to unrecognized temporary differences and tax losses 15 6 37 15 (56) 134 Total income tax recovery (expense) $ (118) $ (87) $ 73 |
Summary of deferred income tax recovery (expense) | The major components of deferred income tax (expense) recovery for the year ended December 31 recorded directly to other comprehensive income are as follows: (MILLIONS) 2022 2021 2020 Deferred income taxes attributed to: Financial instruments designated as cash flow hedges $ (60) $ 7 $ 13 Other (14) (7) (3) Revaluation surplus Origination and reversal of temporary differences (679) (882) (828) Relating to changes in tax rates / imposition of new tax laws 34 (162) — $ (719) $ (1,044) $ (818) |
Summary of effective income tax (expense) recovery | The company’s effective income tax recovery (expense) for the year ended December 31 is different from its recovery at its statutory income tax rate due to the differences below: (MILLIONS) 2022 2021 2020 Statutory income tax (expense) recovery (1) $ (575) $ (287) $ 809 Reduction (increase) resulting from: Decrease (increase) in tax assets not recognized (8) (9) 37 Differences between statutory rate and future tax rate and tax rate changes 10 (142) (7) Subsidiaries’ income taxed at different rates 29 81 10 Non-deductible expenses 426 271 (763) Other — (1) (13) Effective income tax recovery (expense) $ (118) $ (87) $ 73 (1) Statutory income tax expense is calculated using domestic rates applicable to the profits in the relevant country. |
Summary of the expiry date, if applicable, of the unrecognized deferred tax assets | The following table details the expiry date, if applicable, of the unrecognized deferred tax assets as at December 31: (MILLIONS) 2022 2021 2020 Less than four years $ — $ — $ — Thereafter 122 126 139 |
Summary of deferred tax assets and liabilities | The deferred tax assets and liabilities of the following temporary differences have been recognized in the consolidated financial statements for the year ended December 31: (MILLIONS) Non-capital Difference Net deferred As at January 1, 2020 $ 638 $ (4,224) $ (3,586) Recognized in net income (loss) 255 (121) 134 Recognized in equity (52) (766) (818) Business combination 30 20 50 Foreign exchange (2) 62 60 As at December 31, 2020 869 (5,029) (4,160) Recognized in net income (loss) 5 (61) (56) Recognized in equity — (1,046) (1,046) Business combination — (1) (1) Foreign exchange 5 324 329 As at December 31, 2021 879 (5,813) (4,934) Recognized in net income (loss) 16 (1) 15 Recognized in equity — (728) (728) Business combination — — — Foreign exchange 2 452 454 As at December 31, 2022 $ 897 $ (6,090) $ (5,193) |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |
Summary of property, plant and equipment at fair value | The following table presents a reconciliation of property, plant and equipment at fair value: (MILLIONS) Notes Hydroelectric Wind Solar Other (1) Total (2) Property, plant and equipment, at fair value As at December 31, 2020 $ 22,663 $ 6,220 $ 6,614 $ 148 $ 35,645 Additions 573 — 73 9 655 Transfer from construction work-in-progress 94 164 210 1 469 Acquisitions through business combinations 3 — — — — — Disposals (2) 3 — (757) — — (757) Items recognized through OCI: Change in fair value 3,795 (153) 90 73 3,805 Foreign exchange 10 (1,176) (96) (218) (9) (1,499) Items recognized through net income: Change in fair value (16) (26) 1 (23) (64) Depreciation (437) (354) (313) (11) (1,115) As at December 31, 2021 25,496 4,998 6,457 188 37,139 Additions, net (3) 9 (137) (78) (7) (213) Transfer from construction work-in-progress 161 86 744 7 998 Transfer to assets held for sale (677) — — — (677) Disposals (2) 4 (97) — — — (97) Items recognized through OCI: Change in fair value 2,017 292 (132) 77 2,254 Foreign exchange 10 (1,267) (73) (160) 6 (1,494) Items recognized through net income: Change in fair value (2) 16 (7) (2) 5 Depreciation (501) (307) (343) (28) (1,179) As at December 31, 2022 $ 25,139 $ 4,875 $ 6,481 $ 241 $ 36,736 Construction work-in-progress, at fair value As at December 31, 2020 $ 183 $ 96 $ 172 $ 1 $ 452 Additions 145 174 356 6 681 Transfer to property, plant and equipment (94) (164) (210) (1) (469) Acquisitions through business combinations 3 — — — — — Disposals 3 — (4) — — (4) Items recognized through OCI: Change in fair value — 17 127 — 144 Foreign exchange 10 (10) (5) (12) (1) (28) As at December 31, 2021 224 114 433 5 776 Additions 150 237 592 5 984 Transfer to property, plant and equipment (161) (86) (744) (7) (998) Transfer to assets held for sale (8) — — — (8) Acquisitions through business combinations 4 — — — — — Items recognized through OCI: Change in fair value — 250 84 — 334 Foreign exchange 10 7 (18) 15 — 4 As at December 31, 2022 $ 212 $ 497 $ 380 $ 3 $ 1,092 Total property, plant and equipment, at fair value As at December 31, 2021 (4) $ 25,720 $ 5,112 $ 6,890 $ 193 $ 37,915 As at December 31, 2022 (4) $ 25,351 $ 5,372 $ 6,861 $ 244 $ 37,828 (1) Includes biomass and cogeneration (2) Includes disposal of significant assets only (3) Includes fair value changes to decommissioning assets of $178 million (4) Includes right-of-use assets not subject to revaluation of $48 million (2021: $52 million) in hydroelectric, $127 million (2021: $130 million) in wind, $151 million (2021: $157 million) in utility-scale solar and nil (2021: $2 million) in other. |
Summary of discount rates, terminal capitalization rates and exit dates used in the valuation methodology | Discount rates, terminal capitalization rates and terminal years used in the valuation methodology are provided in the following table: North America Colombia Brazil Europe 2022 2021 2022 2021 2022 2021 2022 2021 Discount rate (1) Contracted 4.8% - 5.4% 3.8% - 4.3% 8.5 % 7.9 % 8.2 % 7.2 % 4.4 % 3.9 % Uncontracted 5.8% - 6.7% 4.8% - 5.6% 9.7 % 9.2 % 9.5 % 8.5 % 4.4 % 3.9 % Terminal capitalization rate (2) 4.9 % 5.1 % 7.7 % 8.0 % N/A N/A N/A N/A Terminal year (3) 2044 2042 2042 2041 2052 2050 2036 2036 (1) Discount rates are not adjusted for asset specific risks. (2) The terminal capitalization rate applies only to hydroelectric assets in the United States and Colombia. (3) For hydroelectric assets, terminal year refers to the valuation date of the terminal value. |
Summary in impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment | The following table summarizes the impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment: 2022 (MILLIONS) North America Colombia Brazil Europe Total 25 bps increase in discount rates $ (1,110) $ (310) $ (100) $ (50) $ (1,570) 25 bps decrease in discount rates 1,170 260 110 50 1,590 5% increase in future energy prices 1,010 440 110 — 1,560 5% decrease in future energy prices (1,000) (440) (110) — (1,550) 25 bps increase in terminal capitalization rate (360) (70) — — (430) 25 bps decrease in terminal capitalization rate 390 80 — — 470 2021 (MILLIONS) North America Colombia Brazil Europe Total 25 bps increase in discount rates $ (1,050) $ (240) $ (90) $ (60) $ (1,440) 25 bps decrease in discount rates 1,160 330 90 60 1,640 5% increase in future energy prices 900 410 70 — 1,380 5% decrease in future energy prices (900) (410) (70) — (1,380) 25 bps increase in terminal capitalization rate (280) (70) — — (350) 25 bps decrease in terminal capitalization rate 310 70 — — 380 |
Summary of the percentage of total generation contracted under power purchase agreements | The following table summarizes the percentage of total generation contracted under power purchase agreements as at December 31, 2022: North America Colombia Brazil Europe 1 - 5 years 71 % 52 % 82 % 100 % 6 - 10 years 60 % 12 % 62 % 81 % 11 - 20 years 27 % 2 % 47 % 65 % The following table summarizes average power prices from long-term power purchase agreements that are linked specifically to the related power generating assets: Per MWh (1) North America Colombia Brazil Europe 1 - 10 years $ 92 COP 293,000 R$ 320 € 72 11 - 20 years 95 352,000 385 66 (1) Assumes nominal prices based on weighted-average generation. The following table summarizes the estimates of future electricity prices: Per MWh (1) North America Colombia Brazil Europe 1 - 10 years $ 99 COP 376,000 R$ 290 € 62 11 - 20 years 126 554,000 390 74 (1) Assumes nominal prices based on weighted-average generation. |
Summary of revalued property, plant and equipment | Had the company’s revalued property, plant and equipment been measured on a historical cost basis, the carrying amounts, net of accumulated depreciation would have been as follows at December 31: (MILLIONS) 2022 2021 Hydroelectric $ 8,478 $ 9,758 Wind 3,980 4,225 Solar 5,514 5,396 Other (1) 147 155 $ 18,119 $ 19,534 (1) Includes biomass and cogeneration. |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of detailed information about intangible assets [abstract] | |
Summary of reconciliation of intangible assets | The following table provides a reconciliation of intangible assets: (MILLIONS) Total Balance, as at December 31, 2020 $ 233 Amortization (1) (15) Balance, as at December 31, 2021 218 Foreign exchange 6 Amortization (1) (16) Balance, as at December 31, 2022 $ 208 |
BORROWINGS (Tables)
BORROWINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
LONG-TERM DEBT AND CREDIT FACILITIES [Abstract] | |
Summary of corporate borrowings | The composition of non-recourse borrowings as at December 31 is presented in the following table: December 31, 2022 December 31, 2021 Weighted-average Weighted-average (MILLIONS EXCEPT AS NOTED) Weighted-average interest rate (%) Term (years) (3) Carrying value Estimated fair value Weighted-average interest rate (%) Term (years) Carrying value Estimated fair value Non-recourse borrowings (1) Hydroelectric (2) 8.2 7 $ 6,612 $ 5,945 5.1 7 $ 6,160 $ 6,543 Wind 5.2 8 2,331 2,230 3.7 9 2,416 2,577 Utility-scale solar 5.5 13 4,041 3,926 4.1 13 4,110 4,365 Distributed energy & sustainable solutions 3.0 11 796 746 3.9 12 860 912 Total 6.6 9 $ 13,780 $ 12,847 4.5 9 13,546 $ 14,397 Add: Unamortized premiums and discounts (4) 17 57 Less: Unamortized financing fees (4) (82) (91) Less: Current portion (1,299) (1,452) $ 12,416 $ 12,060 (1) Includes $1 million (2021: $8 million) borrowed under a subscription facility of a Brookfield sponsored private fund. (2) Includes $15 million (2021: nil) outstanding to an associate of Brookfield. Refer to Note 28 - Related party transactions for more details. (3) Excluding non-permanent financings, total weighted-average term is 9 years. (4) Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing. |
Summary of future repayments of debt obligations, for each of the next five years | Future repayments of the company’s non-recourse borrowings for each of the next five years and thereafter are as follows: (MILLIONS) 2023 2024 2025 2026 2027 Thereafter Total Non-recourse borrowings Hydroelectric $ 734 $ 671 $ 509 $ 778 $ 477 $ 3,443 $ 6,612 Wind 197 243 149 153 143 1,446 2,331 Utility-scale solar 302 203 209 221 213 2,893 4,041 Distributed energy & sustainable solutions 66 43 39 38 33 577 796 $ 1,299 $ 1,160 $ 906 $ 1,190 $ 866 $ 8,359 $ 13,780 |
Summary of change in the unamortized financing fees of corporate borrowings | The following table outlines the change in the unamortized financing fees of non-recourse borrowings for the year ended December 31: (MILLIONS) 2022 2021 Non-recourse borrowings Unamortized financing fees and discounts, beginning of year $ (91) $ (93) Additional financing fees and discounts (19) (14) Amortization of financing and discounts fees 14 13 Foreign exchange translation and other 14 3 Unamortized financing fees and discounts, end of year $ (82) $ (91) |
Summary of borrowings | The following table outlines changes in the company's borrowings for the year ended December 31: (MILLIONS) January 1 Net cash flows from financing activities (1) Non-cash Transfer to Held for sale Disposal Other (2) December 31 2022 Non-recourse borrowings $ 13,512 926 (171) — (552) $ 13,715 2021 Non-recourse borrowings $ 12,822 1,462 — (362) (410) $ 13,512 (1) Excludes $(20) million (2021: $51 million) of net cash flow from financing activities related to tax equity recorded on the consolidated statements of cash flows. (2) Includes foreign exchange and amortization of unamortized premium and financing fees. |
NON-CONTROLLING INTERESTS (Tabl
NON-CONTROLLING INTERESTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Non Controlling Interest [Abstract] | |
Summary of non-controlling interests | The company’s non-controlling interests are comprised of the following as at December 31: (MILLIONS) 2022 2021 Participating non-controlling interests – in operating subsidiaries $ 10,680 $ 10,297 Participating non-controlling interests – in a holding subsidiary held by the partnership 271 261 $ 10,951 $ 10,558 |
Disclosure of significant investments non-controlling interest in subsidiaries | The net change in participating non-controlling interests – in operating subsidiaries is as follows: (MILLIONS) Brookfield Brookfield Brookfield Brookfield Infrastructure Fund IV Brookfield Global Infrastructure Income Fund Isagen institutional partners Isagen public non-controlling interests The TerraForm Power Other Total As at December 31, 2019 $ 922 $ 1,756 $ 2,834 $ — $ — $ 2,375 $ 13 $ 89 $ 2,129 $ 140 $ 10,258 Net income (loss) (13) (17) (64) 1 — 130 — 16 (142) (3) (92) Other comprehensive income 100 189 528 2 — 325 2 27 176 33 1,382 Capital contributions — 4 — 71 — — — — — 261 336 Return of Capital — — (41) — — — — — (41) — (82) Dividends declared and return of capital (8) (29) (139) — — (180) — (35) (86) (36) (513) Special distribution/TerraForm Power acquisition — — — — — — — — (1,026) — (1,026) Other 1 (1) (36) — — — (1) — (49) 113 27 As at December 31, 2020 1,002 1,902 3,082 74 — 2,650 14 97 961 508 10,290 Net income (loss) 5 (32) (20) (3) — 113 1 16 (67) (36) (23) Other comprehensive income (122) 411 187 137 — (107) — 28 (6) 73 601 Capital contributions — 1 — 64 — — — — — — 65 Disposals (181) — — — — — — — — — (181) Dividends declared (18) (31) (220) (11) — (214) (2) (9) (105) (45) (655) Other — — 157 — — — — — 70 (27) 200 As at December 31, 2021 686 2,251 3,186 261 — 2,442 13 132 853 473 10,297 Net income (loss) 19 (34) 110 1 — 179 1 11 32 17 336 Other comprehensive income (103) 448 156 164 10 67 1 (19) 67 (9) 782 Capital contributions — 4 — 276 200 — — — — 89 569 Disposals (54) — — — — — — — — — (54) Dividends declared (71) (55) (393) — (7) (524) (1) (9) (123) (85) (1,268) Other — 1 2 5 30 (5) (1) — 3 (17) 18 As at December 31, 2022 $ 477 $ 2,615 $ 3,061 $ 707 $ 233 $ 2,159 $ 13 $ 115 $ 832 $ 468 $ 10,680 Interests held by third parties 75% - 78% 43% - 60% 23% - 71% 75 % 1.5% - 6.8% 53 % 0.3 % 25 % 33 % 0.3% - 80% |
Disclosure of financial information of significant investments non-controlling interest in subsidiaries | The following tables summarize certain financial information of operating subsidiaries that have non-controlling interests that are material to the company: (MILLIONS) Brookfield Americas Infrastructure Fund Brookfield Brookfield (1) Brookfield Infrastructure Isagen (2) The TerraForm Power (3) Other Total Interests held by third parties 75% - 78% 43% - 60% 71 % 75 % 77 % 25 % 75 % 0.3% - 80% Place of business North America, North America, North America Brazil Colombia North America North America, North America, Year ended December 31, 2020: Revenue $ 137 $ 261 $ 41 $ 5 $ 874 $ 141 $ 1,161 $ 15 $ 2,635 Net income (15) (29) (11) 1 258 65 (360) 4 (87) Total comprehensive income (loss) 109 329 287 4 877 173 238 — 2,017 Net income allocated to non-controlling interests (13) (17) (8) 1 195 16 (268) 2 (92) Year ended December 31, 2021: Revenue $ 137 $ 269 $ 58 $ 25 $ 929 $ 136 $ 1,239 $ 14 $ 2,807 Net income (loss) 7 (60) (3) (4) 214 62 (245) 8 (21) Total comprehensive income (loss) (161) 716 332 178 11 173 (243) 117 1,123 Net income (loss) allocated to non-controlling interests 5 (32) (2) (3) 162 16 (175) 6 (23) As at December 31, 2021: Property, plant and equipment, at fair value $ 1,053 $ 5,578 $ 2,061 $ 713 $ 8,497 $ 1,129 $ 10,867 $ 164 $ 30,062 Total assets 1,087 5,685 2,074 798 9,498 1,140 11,939 202 32,423 Total borrowings 179 1,331 347 391 2,224 507 6,902 39 11,920 Total liabilities 205 1,549 358 450 4,896 511 8,916 61 16,946 Carrying value of non-controlling interests 685 2,251 1,226 261 3,493 132 2,197 52 10,297 Year ended December 31, 2022: Revenue $ 120 $ 324 $ 80 $ 112 $ 1,135 $ 131 $ 1,324 $ 10 $ 3,236 Net income (loss) 25 (71) (4) 2 340 44 94 21 451 Total comprehensive income (loss) (106) 726 71 220 467 (32) 301 23 1,670 Net income allocated to non-controlling interests 19 (34) (3) 1 257 11 63 22 336 As at December 31, 2022: Property, plant and equipment, at fair value $ 131 $ 6,224 $ 2,107 $ 1,529 $ 8,264 $ 1,031 $ 10,012 $ 187 $ 29,485 Total assets 852 6,367 2,126 1,722 9,178 1,053 11,192 260 32,750 Total borrowings 14 1,332 347 675 2,356 476 6,371 — 11,571 Total liabilities 240 1,601 382 780 5,112 491 8,275 74 16,955 Carrying value of non-controlling interests 477 2,615 1,245 707 3,146 115 2,283 92 10,680 (1) Excludes information relating to Isagen and TerraForm Power which is presented separately. (2) The total third parties ownership interest in Isagen as of December 31, 2022 was 77.4% and comprised of Brookfield Infrastructure Fund III: 23.0%,Brookfield Global Infrastructure Income Fund: 1.5%, Isagen institutional partners: 52.6% and other non-controlling interests: 0.3%. |
Disclosure of summary financial information | The following table summarizes certain financial information regarding Participating non-controlling interests – in a holding subsidiary held by the partnership : (MILLIONS) 2022 2021 2020 For the year ended December 31: Revenue $ 1,407 $ 1,133 $ 1,069 Net income 475 334 472 Comprehensive income 863 473 550 Net income allocated to participating non-controlling interests – in a holding subsidiary held by the partnership 11 7 11 As at December 31: Property, plant and equipment, at fair value $ 11,357 $ 10,785 Total assets 12,887 12,408 Total borrowings 3,228 3,117 Total liabilities 6,320 5,967 Carrying value of participating non-controlling interests – in a holding subsidiary held by the partnership 271 261 |
BEPC EXCHANGEABLE SHARES, BEP_2
BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Of Share Capital, Reserves And Other Equity Interest [Abstract] | |
Schedule of outstanding shares | The following table provides a continuity schedule of outstanding BEPC exchangeable shares and class B shares along with the corresponding liability and remeasurement gains and losses. BEPC exchangeable shares outstanding (shares) BEPC class B shares outstanding (shares) BEPC exchangeable shares and BEPC class B shares As at December 31, 2020: 172,180,417 165 $ 7,430 Share issuance 38,996 — 1 Share exchanges (16,071) — (1) Remeasurement of liability — — (1,267) As at December 31, 2021: 172,203,342 165 6,163 Share issuance (1) 27,064 — 1 Share exchanges (12,308) — — Remeasurement of liability — — (1,800) As at December 31, 2022: 172,218,098 165 $ 4,364 (1) Associated with the restricted stock units of TerraForm Power that were assumed by the company as part of the acquisition of TerraForm Power on July 31, 2020, adjusted for the three-for-two share split in December 2020. |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Changes in goodwill [abstract] | |
Summary of reconciliation of goodwill | The following table provides a reconciliation of goodwill: (MILLIONS) Notes Total Balance, as at December 31, 2020 $ 970 Foreign exchange (121) Balance, as at December 31, 2021 849 Foreign exchange (126) Balance, as at December 31, 2022 $ 723 |
CAPITAL MANAGEMENT (Tables)
CAPITAL MANAGEMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of objectives, policies and processes for managing capital [abstract] | |
Summary of strategy | The company’s strategy is to maintain the measures set out in the following schedule as at December 31: (MILLIONS) 2022 2021 Non-recourse borrowings (1) $ 13,780 $ 13,546 Deferred income tax liabilities, net (2) 5,193 4,934 BEPC exchangeable and class B shares 4,364 6,163 Equity Participating non-controlling interest – in operating subsidiaries 10,680 10,297 Participating non-controlling interest – in a holding subsidiary held by Brookfield Renewable 271 261 The partnership 5,873 3,667 Total capitalization $ 40,161 $ 38,868 Debt-to-total capitalization 34 % 35 % (1) Excludes $65 million (2021: $34 million) of deferred financing fees, net of unamortized premiums. (2) Deferred income tax liabilities less deferred income tax assets. |
EQUITY-ACCOUNTED INVESTMENTS (T
EQUITY-ACCOUNTED INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of joint ventures [abstract] | |
Summary of equity-accounted investments | The following table outlines the changes in the company’s equity-accounted investments: (MILLIONS) 2022 2021 Balance, beginning of year $ 455 $ 372 Investment 48 — Share of net income 6 2 Share of other comprehensive income (loss) (58) 87 Dividends received (4) (3) Foreign exchange translation and other 4 (3) Balance, end of year $ 451 $ 455 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and cash equivalents [abstract] | |
Summary of cash and cash equivalents | The company’s cash and cash equivalents as at December 31 are as follows: (MILLIONS) 2022 2021 Cash $ 433 $ 405 Cash subject to restriction (1) 207 115 Short-term deposits 2 5 $ 642 $ 525 |
RESTRICTED CASH (Tables)
RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Restricted Cash [Abstract] | |
Summary of restricted cash | The company’s restricted cash as at December 31 is as follows: (MILLIONS) 2022 2021 Operations $ 27 $ 23 Credit obligations 30 52 Capital expenditures and development projects 11 6 Total 68 81 Less: non-current (24) (22) Current $ 44 $ 59 |
TRADE RECEIVABLES AND OTHER C_2
TRADE RECEIVABLES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Trade Receivables and Other Current Assets [Abstract] | |
Summary of trade receivables and other current assets | The company’s trade receivables and other current assets as at December 31 are as follows: (MILLIONS) 2022 2021 Trade receivables $ 506 $ 502 Collateral deposits (1) 603 434 Prepaids and others 53 83 Income tax receivables 66 30 Inventory 18 20 Other short-term receivables 75 77 $ 1,321 $ 1,146 (1) Collateral deposits are related to energy derivative contracts the company enters into in order to mitigate the exposure to wholesale market electricity prices on the future sale of uncontracted generation, as part of the company’s risk management strategy. |
OTHER LONG-TERM ASSETS (Tables)
OTHER LONG-TERM ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other Long Term Liabilities [Abstract] | |
Summary of other long-term assets | The company’s other long-term assets as at December 31 are as follows: (MILLIONS) Note 2022 2021 Restricted cash (1) 21 $ 24 $ 22 Long-term receivables 38 30 Due from related parties 28 9 10 Other 30 7 $ 101 $ 69 (1) See Note 1(t) - Recently adopted accounting standards for additional details. |
ACCOUNTS PAYABLE AND ACCRUED _2
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Accounts Payable and Accured Liabilities [Abstract] | |
Summary of accounts payable and accrued liabilities | The company’s accounts payable and accrued liabilities as at December 31 are as follows: (MILLIONS) 2022 2021 Operating accrued liabilities $ 258 $ 195 Accounts payable 154 118 Interest payable on non-recourse borrowings 85 71 Income tax payable 74 3 Current portion of lease liabilities 26 25 BEPC exchangeable shares distributions payable (1) 14 16 Other 10 24 $ 621 $ 452 (1) Includes amounts payable only to external shareholders. Amounts payable to Brookfield and the partnership are included in due to related parties. |
PROVISIONS (Tables)
PROVISIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Provisions, Contingent Liabilities And Contingent Assets [Abstract] | |
Disclosure of change in decommissioning liabilities | The following table presents the change in the decommissioning liabilities for the company: (MILLIONS) 2022 2021 Balance, beginning of the year $ 497 $ 567 Additions — — Disposals (1) (12) Accretion 11 9 Changes in estimates (185) (60) Foreign exchange (8) (7) Balance, end of the year $ 314 $ 497 |
OTHER LONG-TERM LIABILITIES (Ta
OTHER LONG-TERM LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Other Long Term Liabilities [Abstract] | |
Summary of other long-term liabilities | The company’s other long-term liabilities as at December 31 are comprised of the following: (MILLIONS) Note 2022 2021 Lease liabilities $ 338 $ 346 Regulatory liabilities (1) 149 130 Pension obligations 43 64 Concession payment liability 10 10 Other 75 86 $ 615 $ 636 (1) Regulatory liabilities are related to the regulated pricing mechanism at certain of the company’s Spanish assets. |
COMMITMENTS, CONTINGENCIES AN_2
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Commitments Contingencies and Guarantess [Abstract] | |
Schedule of Commitments | The following table lists the assets and portfolio of assets that the company, together with institutional partners have agreed to acquire which are subject to customary closing conditions as at December 31, 2022 : Region Technology Capacity Consideration The Company’s Economic Interest Expected Close Brazil Wind 137 MW operating BRL 529 million ($98 million) 23% Q1 2023 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure of transactions between related parties [abstract] | |
Summary of related party agreements and transactions in the consolidated statements of income | The following table reflects the related party agreements and transactions in the consolidated statements of income (loss), for the years ended December 31: (MILLIONS) 2022 2021 2020 Revenues Power purchase and revenue agreements $ 72 $ 163 $ 361 Other income Interest income $ 9 $ 10 $ — Direct operating costs Energy purchases (1) $ (22) $ (62) $ (10) Energy marketing & other services (7) (11) (17) Insurance expense (2) — (20) (21) $ (29) $ (93) $ (48) Interest expense Borrowings $ (17) $ (29) $ (1) Other related party services $ (4) $ (13) $ — Management service costs Management service agreement $ (169) $ (175) $ (152) (1) Certain subsidiaries that the company controls, through a voting agreement, have entered into agreements to appoint the partnership as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in power purchase prices. During the first quarter of 2021, the company recognized a nil gain (2021: $62 million and 2020: nil) associated with agency arrangement which have been excluded from energy purchases. As of April 1, 2021, the agency arrangements were transferred from the partnership to the company upon the closing of Energy Marketing Internalization. (2) Prior to November 2021, insurance services were paid to external insurance service providers through subsidiaries of Brookfield Corporation. The fees paid to the subsidiaries of Brookfield Corporation in 2022 were nil (2021 was nil and 2020: nil). As of November 2021, Brookfield, through a regulated subsidiary, began providing insurance coverage through third-party commercial insurers for the benefits of certain entities in North America. The premiums and claims are not included in the table above. |
Summary of related party agreements and transactions on the consolidated statements of financial position | The following table reflects the impact of the related party agreements and transactions on the consolidated statements of financial position as at December 31: (MILLIONS) Related party 2022 2021 Current assets Due from related parties Amounts due from Brookfield $ 41 $ 16 The partnership 563 523 Equity-accounted investments and other 11 9 $ 615 $ 548 Non-current assets Due from related parties Amounts due from Equity-accounted investments and other $ 9 $ 10 Current liabilities Due to related parties Amounts due to Brookfield $ 37 $ 21 The partnership 315 625 Equity-accounted investments and other 12 3 Brookfield Reinsurance and associates 100 $ — $ 464 $ 649 Non-recourse borrowings Brookfield 1 — $ 465 $ 649 Non-current liabilities Non-recourse borrowings Brookfield $ — $ 8 Brookfield Reinsurance and associates 15 — $ 15 $ 8 (1) Refer to Note 27 – Commitments, contingencies and guarantees for additional information on the company’s litigation matters. |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash flows from (used in) operating activities [abstract] | |
Summary of net change in working capital | The net change in working capital balances for the year ended December 31 shown in the consolidated statements of cash flows is comprised of the following: (MILLIONS) 2022 2021 2020 Trade receivables and other current assets $ (270) $ (467) $ 42 Accounts payable and accrued liabilities 175 (259) 8 Other assets and liabilities (8) 99 (60) $ (103) $ (627) $ (10) |
BASIS OF PREPARATION AND SIGN_4
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Depreciation on power generating assets (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Concession asset | Brazil | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 35 years | 31 years |
Top of range | Dams | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 115 years | |
Top of range | Penstocks | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 60 years | |
Top of range | Powerhouses | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 115 years | |
Top of range | Hydroelectric generating units | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 115 years | |
Top of range | Wind generating units | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 30 years | |
Top of range | Solar generating units | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 35 years | |
Top of range | Gas-fired cogenerating (“Cogeneration”) units | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 40 years | |
Top of range | Other assets | ||
Disclosure of detailed information about property, plant and equipment [line items] | ||
Estimated service lives | 60 years |
BASIS OF PREPARATION AND SIGN_5
BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disclosure of classes of share capital [line items] | ||||
Increase (decrease) in revenues from reclassification from OCI | $ 148 | $ (16) | $ (44) | |
Increase in cash and cash equivalents | 642 | 525 | 512 | $ 420 |
Decrease in restricted cash | (44) | (59) | ||
Increase in cash used in investing activities | 738 | 1,027 | 437 | |
Revision of Prior Period, Accounting Standards Update, Adjustment | ||||
Disclosure of classes of share capital [line items] | ||||
Increase in cash and cash equivalents | 207 | 115 | 157 | |
Decrease in restricted cash | 207 | 115 | ||
Increase in cash used in investing activities | 43 | 41 | ||
Renewable Credits | Goods or services transferred at point in time | ||||
Disclosure of classes of share capital [line items] | ||||
Revenue from contracts with customers | 259 | 181 | 157 | |
Energy derivative contracts | ||||
Disclosure of classes of share capital [line items] | ||||
Increase (decrease) in revenues from reclassification from OCI | $ (146) | $ (30) | $ 53 |
PRINCIPAL SUBSIDIARIES (Details
PRINCIPAL SUBSIDIARIES (Details) | 12 Months Ended |
Dec. 31, 2022 | |
BP Brazil US Subco LLC | |
Disclosure of subsidiaries [line items] | |
Percentage of voting securities owned or controlled (%) | 100% |
Brookfield Power US Holding America Co. | |
Disclosure of subsidiaries [line items] | |
Percentage of voting securities owned or controlled (%) | 100% |
Isagen S.A. E.S.P. | |
Disclosure of subsidiaries [line items] | |
Percentage of voting securities owned or controlled (%) | 99.70% |
TerraForm Power Parent, LLC | |
Disclosure of subsidiaries [line items] | |
Percentage of voting securities owned or controlled (%) | 100% |
ACQUISITIONS - California Resou
ACQUISITIONS - California Resources Corporation (Details) - California Resources Corporation $ in Millions | Aug. 03, 2022 USD ($) |
Disclosure of detailed information about business combination [line items] | |
Purchase of Isagen shares | $ 500 |
Initial investment | 137 |
Other cash payments to acquire interests in joint ventures, classified as investing activities | $ 48 |
Proportion of economic interest | 10% |
ACQUISITIONS - Spanish CSP Port
ACQUISITIONS - Spanish CSP Portfolio (Details) - Spanish CSP Portfolio € in Millions, $ in Millions | 12 Months Ended | |||
Feb. 11, 2020 USD ($) | Dec. 31, 2021 USD ($) | Feb. 11, 2020 EUR (€) solarPowerFacility MW | Feb. 11, 2020 USD ($) solarPowerFacility MW | |
Disclosure of detailed information about business combination [line items] | ||||
Percentage of voting equity interests acquired | 100% | 100% | ||
Number of concentrated solar power facilities | solarPowerFacility | 2 | 2 | ||
Solar power capacity | MW | 100 | 100 | ||
Consideration transferred, acquisition-date fair value | € 111 | $ 121 | ||
Acquisition costs (less than) | $ 1 | |||
Revenue of combined entity as if combination occurred at beginning of period | $ 99 |
ACQUISITIONS - Schedule of Purc
ACQUISITIONS - Schedule of Purchase Price Allocations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Feb. 11, 2020 |
Disclosure of detailed information about business combination [line items] | |||
Non-recourse borrowings | $ (12,847) | $ (14,397) | |
Spanish CSP Portfolio | |||
Disclosure of detailed information about business combination [line items] | |||
Cash and cash equivalents | $ 22 | ||
Restricted cash | 27 | ||
Trade receivables and other current assets | 33 | ||
Property, plant and equipment, at fair value | 661 | ||
Deferred tax assets | 14 | ||
Other non-current assets | 8 | ||
Current liabilities | (17) | ||
Financial instruments | (148) | ||
Non-recourse borrowings | (475) | ||
Decommissioning liabilities | (23) | ||
Other long-term liabilities | (22) | ||
Fair value of identifiable net assets acquired | 80 | ||
Goodwill | 41 | ||
Purchase price | $ 121 |
DISPOSAL OF ASSETS - Narrative
DISPOSAL OF ASSETS - Narrative (Details) - 1 months ended Jun. 30, 2022 - 36 MW Brazil Hydroelectric Portfolio R$ in Millions, $ in Millions | BRL (R$) MW | USD ($) MW |
Disclosure of detailed information about investment property [line items] | ||
Proportion of ownership interest in joint venture | 100% | 100% |
Hydroelectric power capacity | MW | 36 | 36 |
Proceeds | $ 23 | |
Proportion of economic interest | 23% | 23% |
Increase (decrease) through transfer between revaluation surplus and retained earnings, equity | $ 27 | |
Brookfield Renewable And Institutional Partners | ||
Disclosure of detailed information about investment property [line items] | ||
Proceeds | R$ 461 | $ 90 |
DISPOSAL OF ASSETS - Summary of
DISPOSAL OF ASSETS - Summary of disposals (Details) - Brazil - Hydroelectric $ in Millions | 1 Months Ended |
Jun. 30, 2022 USD ($) | |
Carrying value of net assets held for sale | |
Carrying value of net assets held for sale | $ 90 |
Loss on disposal, net of transaction costs | $ 0 |
ASSETS HELD FOR SALE - Narrativ
ASSETS HELD FOR SALE - Narrative (Details) - 378 MW U.S. Hydroelectric Portfolio | Dec. 31, 2022 MW |
Statement [Line Items] | |
Hydro power capacity (in MW) | 378 |
Proportion of ownership interest in joint venture | 50% |
Proportion of economic interest | 22% |
ASSETS HELD FOR SALE - Assets a
ASSETS HELD FOR SALE - Assets and liabilities classified as held for sale (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Statement [Line Items] | ||||
Cash and cash equivalents | $ 642 | $ 525 | $ 512 | $ 420 |
Trade receivables and other current assets | 1,321 | 1,146 | ||
Property, plant and equipment, at fair value | 37,828 | 37,915 | ||
Other long-term assets | 101 | 69 | ||
Total Assets | 43,288 | 41,986 | ||
Current liabilities | 7,251 | 8,975 | ||
Less: Current portion | 1,299 | 1,452 | ||
Other long-term liabilities | 615 | $ 636 | ||
Assets and liabilities classified as held for sale | ||||
Statement [Line Items] | ||||
Cash and cash equivalents | 8 | |||
Trade receivables and other current assets | 2 | |||
Financial instrument assets | 3 | |||
Property, plant and equipment, at fair value | 685 | |||
Other long-term assets | 0 | |||
Total Assets | 698 | |||
Current liabilities | 7 | |||
Less: Current portion | 171 | |||
Financial instrument liabilities | 37 | |||
Other long-term liabilities | 2 | |||
Liabilities | $ 217 |
RISK MANAGEMENT AND FINANCIAL_3
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Market risk (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Interest rate risk | Floating interest rate | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Carrying value | $ 5,979 | $ 5,165 | |
Hedged item, liabilities | 2,561 | 3,493 | |
5% increase in future energy prices | Energy derivative contracts | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | (30) | (34) | $ (9) |
Effect on OCI | (34) | (20) | (11) |
5% increase in future energy prices | Currency risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | 18 | 21 | 56 |
Effect on OCI | 44 | 29 | 26 |
5% decrease in future energy prices | Energy derivative contracts | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | 30 | 34 | 9 |
Effect on OCI | 34 | 20 | 11 |
5% decrease in future energy prices | Currency risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | (18) | (21) | (54) |
Effect on OCI | (44) | (29) | (26) |
Impact of 1% increase | Interest rate risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | (10) | 11 | 2 |
Effect on OCI | 90 | 111 | 119 |
Impact of 1% decrease | Interest rate risk | |||
Disclosure of risk management strategy related to hedge accounting [line items] | |||
Effect on net income | 10 | (11) | (3) |
Effect on OCI | $ (95) | $ (121) | $ (126) |
RISK MANAGEMENT AND FINANCIAL_4
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Credit risk (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of credit risk exposure [line items] | ||
Due from related parties | $ 615 | $ 548 |
Credit Risk | ||
Disclosure of credit risk exposure [line items] | ||
Trade receivables and other short-term receivables | 647 | 609 |
Financial instrument assets | 292 | 116 |
Due from related parties | 624 | 558 |
Long-term receivables | 38 | 30 |
Total | $ 1,601 | $ 1,313 |
RISK MANAGEMENT AND FINANCIAL_5
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Cash obligations (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | $ 621 | $ 452 |
Due to related parties | 464 | 649 |
Other long-term liabilities – concession payments | 615 | 636 |
Lease liabilities | 338 | 346 |
Non-recourse borrowings | 12,847 | 14,397 |
Gross of Unamortized Financing Fees and Accumulated Amortization | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 621 | 452 |
Financial instrument liabilities | 848 | 770 |
Due to related parties | 464 | 649 |
Lease liabilities | 364 | 371 |
Non-recourse borrowings | 13,780 | 13,546 |
Interest payable | 5,885 | 4,249 |
Total | 21,989 | 20,057 |
Gross of Unamortized Financing Fees and Accumulated Amortization | Concession Payments | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other long-term liabilities – concession payments | 27 | 20 |
Gross of Unamortized Financing Fees and Accumulated Amortization | Less than 1 year | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 621 | 452 |
Financial instrument liabilities | 270 | 247 |
Due to related parties | 464 | 649 |
Lease liabilities | 26 | 25 |
Non-recourse borrowings | 1,299 | 1,452 |
Interest payable | 813 | 587 |
Total | 3,494 | 3,413 |
Gross of Unamortized Financing Fees and Accumulated Amortization | Less than 1 year | Concession Payments | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other long-term liabilities – concession payments | 1 | 1 |
Gross of Unamortized Financing Fees and Accumulated Amortization | 2-5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Financial instrument liabilities | 403 | 355 |
Due to related parties | 0 | 0 |
Lease liabilities | 60 | 94 |
Non-recourse borrowings | 4,122 | 4,395 |
Interest payable | 2,711 | 1,888 |
Total | 7,302 | 6,738 |
Gross of Unamortized Financing Fees and Accumulated Amortization | 2-5 years | Concession Payments | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other long-term liabilities – concession payments | 6 | 6 |
Gross of Unamortized Financing Fees and Accumulated Amortization | > 5 years | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Accounts payable and accrued liabilities | 0 | 0 |
Financial instrument liabilities | 175 | 168 |
Due to related parties | 0 | 0 |
Lease liabilities | 278 | 252 |
Non-recourse borrowings | 8,359 | 7,699 |
Interest payable | 2,361 | 1,774 |
Total | 11,193 | 9,906 |
Gross of Unamortized Financing Fees and Accumulated Amortization | > 5 years | Concession Payments | ||
Disclosure of maturity analysis for non-derivative financial liabilities [line items] | ||
Other long-term liabilities – concession payments | $ 20 | $ 13 |
RISK MANAGEMENT AND FINANCIAL_6
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Fair value hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets measured at fair value: | ||||
Cash and cash equivalents | $ 642 | $ 525 | $ 512 | $ 420 |
Restricted cash | 68 | 81 | ||
Investments in equity securities | 292 | 0 | ||
Property, plant and equipment, at fair value | 37,828 | 37,915 | ||
Liabilities for which fair value is disclosed: | ||||
BEPC exchangeable and class B shares | (4,364) | (6,163) | ||
Non-recourse borrowings | (12,847) | (14,397) | ||
Total | 21,066 | 17,307 | ||
Level 1 | ||||
Assets measured at fair value: | ||||
Cash and cash equivalents | 642 | |||
Restricted cash | 68 | |||
Investments in equity securities | 0 | |||
Property, plant and equipment, at fair value | 0 | |||
Liabilities for which fair value is disclosed: | ||||
BEPC exchangeable and class B shares | (4,364) | |||
Non-recourse borrowings | (1,739) | |||
Total | (5,393) | |||
Level 2 | ||||
Assets measured at fair value: | ||||
Cash and cash equivalents | 0 | |||
Restricted cash | 0 | |||
Investments in equity securities | 0 | |||
Property, plant and equipment, at fair value | 0 | |||
Liabilities for which fair value is disclosed: | ||||
BEPC exchangeable and class B shares | 0 | |||
Non-recourse borrowings | (11,108) | |||
Total | (11,120) | |||
Level 3 | ||||
Assets measured at fair value: | ||||
Cash and cash equivalents | 0 | |||
Restricted cash | 0 | |||
Investments in equity securities | 292 | |||
Property, plant and equipment, at fair value | 37,828 | |||
Liabilities for which fair value is disclosed: | ||||
BEPC exchangeable and class B shares | 0 | |||
Non-recourse borrowings | 0 | |||
Total | 37,579 | |||
Energy derivative contracts | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 34 | 45 | ||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (420) | (206) | ||
Energy derivative contracts | Level 1 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Energy derivative contracts | Level 2 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 33 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (231) | |||
Energy derivative contracts | Level 3 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 1 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (189) | |||
Interest rate swaps | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 261 | 40 | ||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (14) | (103) | ||
Interest rate swaps | Level 1 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Interest rate swaps | Level 2 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 261 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (14) | |||
Interest rate swaps | Level 3 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Foreign exchange swaps | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | 31 | ||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (61) | (6) | ||
Foreign exchange swaps | Level 1 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Foreign exchange swaps | Level 2 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (61) | |||
Foreign exchange swaps | Level 3 | ||||
Assets measured at fair value: | ||||
Financial instrument assets | 0 | |||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Tax equity | ||||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | (353) | $ (455) | ||
Tax equity | Level 1 | ||||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Tax equity | Level 2 | ||||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | 0 | |||
Tax equity | Level 3 | ||||
Liabilities measured at fair value: | ||||
Derivative financial liabilities | $ (353) |
RISK MANAGEMENT AND FINANCIAL_7
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Financial Instrument Asset & Liabilities Designated as Hedging and Non-hedging (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | $ (261) | $ (654) | $ (588) |
Less: current portion | 164 | 189 | |
Long-term portion | (97) | (465) | |
Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (198) | (132) | 9 |
Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 247 | (63) | (244) |
Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (61) | 25 | (19) |
Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 292 | 0 | 0 |
Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (353) | (455) | (402) |
IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (188) | (29) | $ 68 |
Financial Instruments Assets | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 587 | 116 | |
Less: current portion | (106) | (58) | |
Long-term portion | 481 | 58 | |
Financial Instruments Assets | Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 34 | 32 | |
Financial Instruments Assets | Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 261 | 40 | |
Financial Instruments Assets | Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 31 | |
Financial Instruments Assets | Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 292 | 0 | |
Financial Instruments Assets | Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Financial Instruments Assets | IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 13 | |
Financial Instruments Liabilities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (848) | (770) | |
Less: current portion | 270 | 247 | |
Long-term portion | (578) | (523) | |
Financial Instruments Liabilities | Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (232) | (164) | |
Financial Instruments Liabilities | Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (14) | (103) | |
Financial Instruments Liabilities | Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (61) | (6) | |
Financial Instruments Liabilities | Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Financial Instruments Liabilities | Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (353) | (455) | |
Financial Instruments Liabilities | IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (188) | (42) | |
Designated and not Designated as Hedging Instruments | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (261) | (654) | |
Designated and not Designated as Hedging Instruments | Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (198) | (132) | |
Designated and not Designated as Hedging Instruments | Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 247 | (63) | |
Designated and not Designated as Hedging Instruments | Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (61) | 25 | |
Designated and not Designated as Hedging Instruments | Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 292 | 0 | |
Designated and not Designated as Hedging Instruments | Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (353) | (455) | |
Designated and not Designated as Hedging Instruments | IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (188) | (29) | |
Designated Hedging Instrument | Financial Instruments Assets | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 234 | 66 | |
Designated Hedging Instrument | Financial Instruments Assets | Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 12 | 3 | |
Designated Hedging Instrument | Financial Instruments Assets | Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 222 | 22 | |
Designated Hedging Instrument | Financial Instruments Assets | Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 31 | |
Designated Hedging Instrument | Financial Instruments Assets | Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Designated Hedging Instrument | Financial Instruments Assets | Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Designated Hedging Instrument | Financial Instruments Assets | IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 10 | |
Designated Hedging Instrument | Financial Instruments Liabilities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (197) | (203) | |
Designated Hedging Instrument | Financial Instruments Liabilities | Energy derivative contracts | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (37) | (61) | |
Designated Hedging Instrument | Financial Instruments Liabilities | Interest rate swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (14) | (103) | |
Designated Hedging Instrument | Financial Instruments Liabilities | Foreign exchange swaps | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (52) | (4) | |
Designated Hedging Instrument | Financial Instruments Liabilities | Investments in debt and equity securities | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Designated Hedging Instrument | Financial Instruments Liabilities | Tax equity | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Designated Hedging Instrument | Financial Instruments Liabilities | IFRS 9 PPAs(3) | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (94) | (35) | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 61 | 50 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 292 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Energy derivative contracts | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 22 | 29 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Energy derivative contracts | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Interest rate swaps | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 39 | 18 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Interest rate swaps | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Foreign exchange swaps | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Foreign exchange swaps | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Investments in debt and equity securities | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Investments in debt and equity securities | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 292 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Tax equity | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | Tax equity | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | IFRS 9 PPAs(3) | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 3 | |
Not Designated as Hedging Instrument | Financial Instruments Assets | IFRS 9 PPAs(3) | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (651) | (567) | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Energy derivative contracts | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (195) | (103) | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Energy derivative contracts | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Interest rate swaps | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Interest rate swaps | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Foreign exchange swaps | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (9) | (2) | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Foreign exchange swaps | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Investments in debt and equity securities | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Investments in debt and equity securities | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Tax equity | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (353) | (455) | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | Tax equity | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | 0 | 0 | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | IFRS 9 PPAs(3) | Fair value through profit & loss | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | (94) | (7) | |
Not Designated as Hedging Instrument | Financial Instruments Liabilities | IFRS 9 PPAs(3) | Fair value through OCI | |||
Disclosure of financial assets and liabilities [line items] | |||
Net Assets (Liabilities) | $ 0 | $ 0 |
RISK MANAGEMENT AND FINANCIAL_8
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Net financial instrument asset position (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | $ (654) | $ (588) | |
Changes in fair value recognized in OCI | (69) | (27) | $ 74 |
Amounts reclassified from OCI to income | (370) | (814) | (742) |
Balance, end of year | (261) | (654) | (588) |
Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | (10) | (250) | |
Changes in fair value (hedge ineffectiveness) | (12) | (8) | |
Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | (35) | (27) | |
Amounts reclassified from OCI to income | 169 | 199 | |
Acquisitions, settlements and other | 287 | 27 | |
Foreign exchange gain (loss) | (6) | (7) | |
Energy derivative contracts | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | (132) | 9 | |
Balance, end of year | (198) | (132) | 9 |
Energy derivative contracts | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | (117) | (131) | |
Changes in fair value (hedge ineffectiveness) | 2 | 0 | |
Energy derivative contracts | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | (132) | (40) | |
Amounts reclassified from OCI to income | 142 | 35 | |
Acquisitions, settlements and other | 39 | (5) | |
Foreign exchange gain (loss) | 0 | 0 | |
Interest rate swaps | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | (63) | (244) | |
Balance, end of year | 247 | (63) | (244) |
Interest rate swaps | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | 260 | 2 | |
Changes in fair value (hedge ineffectiveness) | (1) | (3) | |
Interest rate swaps | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | 38 | 49 | |
Amounts reclassified from OCI to income | 5 | 74 | |
Acquisitions, settlements and other | 14 | 66 | |
Foreign exchange gain (loss) | (6) | (7) | |
Foreign exchange swaps | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | 25 | (19) | |
Balance, end of year | (61) | 25 | (19) |
Foreign exchange swaps | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | (78) | 30 | |
Changes in fair value (hedge ineffectiveness) | 0 | 0 | |
Foreign exchange swaps | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | 87 | 110 | |
Amounts reclassified from OCI to income | 0 | 0 | |
Acquisitions, settlements and other | (95) | (96) | |
Foreign exchange gain (loss) | 0 | 0 | |
Investments in debt and equity securities | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | 0 | 0 | |
Balance, end of year | 292 | 0 | 0 |
Investments in debt and equity securities | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | 0 | 0 | |
Changes in fair value (hedge ineffectiveness) | 0 | 0 | |
Investments in debt and equity securities | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | 0 | 0 | |
Amounts reclassified from OCI to income | 0 | 0 | |
Acquisitions, settlements and other | 292 | 0 | |
Foreign exchange gain (loss) | 0 | 0 | |
Tax equity | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | (455) | (402) | |
Balance, end of year | (353) | (455) | (402) |
Tax equity | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | 0 | 0 | |
Changes in fair value (hedge ineffectiveness) | 0 | 0 | |
Tax equity | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | 83 | (21) | |
Amounts reclassified from OCI to income | 0 | 0 | |
Acquisitions, settlements and other | 19 | (32) | |
Foreign exchange gain (loss) | 0 | 0 | |
IFRS 9 PPAs(3) | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Balance, beginning of year | (29) | 68 | |
Balance, end of year | (188) | (29) | $ 68 |
IFRS 9 PPAs(3) | Derivative Financial Assets (Liabilities) Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value recognized in OCI | (75) | (151) | |
Changes in fair value (hedge ineffectiveness) | (13) | (5) | |
IFRS 9 PPAs(3) | Derivative Financial Assets (Liabilities) Not Designated As Hedging Instruments | |||
Disclosure of derivative assets liabilities net position [Line Items] | |||
Changes in fair value (hedge ineffectiveness) | (111) | (125) | |
Amounts reclassified from OCI to income | 22 | 90 | |
Acquisitions, settlements and other | 18 | 94 | |
Foreign exchange gain (loss) | $ 0 | $ 0 |
RISK MANAGEMENT AND FINANCIAL_9
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Financial instruments disclosures narrative (Details) € in Millions, $ in Millions, $ in Millions | 12 Months Ended | ||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 COP ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2021 COP ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 EUR (€) | |
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Reclassification adjustments for amounts recognized in net income | $ 148,000,000 | $ (16,000,000) | $ (44,000,000) | ||||||
Energy derivative contracts | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Gains (losses) related to derivative contracts reclassified from OCI to revenues | 146,000,000 | 32,000,000 | 53,000,000 | ||||||
Reclassification adjustments for amounts recognized in net income | (146,000,000) | (30,000,000) | 53,000,000 | ||||||
Gain (loss) recorded in AOCI expected to be reclassed in the next twelve months in net income | (37,000,000) | (72,000,000) | 13,000,000 | ||||||
Hedge ineffectiveness gain (loss) | 18,000,000 | 7,000,000 | (2,000,000) | ||||||
Interest rate swaps | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Reclassification adjustments for amounts recognized in net income | (2,000,000) | (11,000,000) | (5,000,000) | ||||||
Gain (loss) recorded in AOCI expected to be reclassed in the next twelve months in net income | 41,000,000 | (32,000,000) | (30,000,000) | ||||||
Carrying value | 640,000,000 | 391,000,000 | $ 157 | $ 132 | € 1,315 | $ 141 | $ 152 | € 1,572 | |
Change in hedge ineffectiveness gain | $ 1,000,000 | $ (3,000,000) | 2,000,000 | ||||||
Derivative, average fixed interest rates | 2.60% | 1.30% | 2.60% | 2.60% | 2.60% | 1.30% | 1.30% | 1.30% | |
Interest rate swaps | Designated Hedging Instrument | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Carrying value | $ 2,569,000,000 | $ 2,815,000,000 | |||||||
Interest rate swaps | Not Designated as Hedging Instrument | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Carrying value | 325,000,000 | 559,000,000 | |||||||
Foreign exchange swaps | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Gain (loss) recorded in AOCI expected to be reclassed in the next twelve months in net income | 0 | 0 | $ 0 | ||||||
Foreign exchange swaps | Designated Hedging Instrument | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Carrying value | 2,536,000,000 | 1,679,000,000 | |||||||
Foreign exchange swaps | Not Designated as Hedging Instrument | |||||||||
Disclosure of financial instruments by type of interest rate [line items] | |||||||||
Carrying value | $ 1,641,000,000 | $ 431,000,000 |
RISK MANAGEMENT AND FINANCIA_10
RISK MANAGEMENT AND FINANCIAL INSTRUMENTS - Designated as hedging instruments (Details) € in Millions, $ in Millions, $ in Millions, $ in Millions | 12 Months Ended | |||||||||||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 GW | Dec. 31, 2022 $ / MWh | Dec. 31, 2022 COP ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2022 EUR (€) | Dec. 31, 2022 $ / $ | Dec. 31, 2022 € / $ | Dec. 31, 2022 R$ / $ | Dec. 31, 2021 GW | Dec. 31, 2021 $ / MWh | Dec. 31, 2021 COP ($) | Dec. 31, 2021 CAD ($) | Dec. 31, 2021 EUR (€) | Dec. 31, 2021 $ / $ | Dec. 31, 2021 € / $ | Dec. 31, 2021 R$ / $ | |
Energy derivative contracts | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying amount (asset/(liability)) | $ (118) | $ (83) | ||||||||||||||||
Notional amount – GWh (in gigawatts) | GW | 13,674,000,000 | 10,022,000,000 | ||||||||||||||||
Maturity date | 2023-2033 | 2022 - 2027 | ||||||||||||||||
Hedge ratio | 1:1 | 1:1 | ||||||||||||||||
Change In Discounted Spot Value Of Outstanding Hedging Instruments | $ (90) | $ (124) | ||||||||||||||||
Gain (loss) on change in fair value of hedged item used as basis for recognising hedge ineffectiveness | 64 | 117 | ||||||||||||||||
Weighted average hedged rate for the year (in currency per dollar) | $ / MWh | 58 | 35 | ||||||||||||||||
Interest rate swaps | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying amount (asset/(liability)) | 208 | (81) | ||||||||||||||||
Carrying value | $ 640 | $ 391 | $ 157 | $ 132 | € 1,315 | $ 141 | $ 152 | € 1,572 | ||||||||||
Maturity date | 2023-2048 | 2022 - 2039 | ||||||||||||||||
Hedge ratio | 1:1 | 1:1 | ||||||||||||||||
Change In Discounted Spot Value Of Outstanding Hedging Instruments | $ 259 | $ 81 | ||||||||||||||||
Gain (loss) on change in fair value of hedged item used as basis for recognising hedge ineffectiveness | (260) | (84) | ||||||||||||||||
Foreign exchange swaps | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying amount (asset/(liability)) | $ (51) | $ 27 | ||||||||||||||||
Maturity date | 2023 - 2024 | 2022 - 2023 | ||||||||||||||||
Hedge ratio | 1:1 | 1:1 | ||||||||||||||||
Weighted average hedged rate for the year (in currency per dollar) | 5,038 | 1 | 5.69 | 3,925 | 0.87 | 5.73 | ||||||||||||
Foreign exchange swaps | Colombian peso | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying value | $ 302 | $ 676 | ||||||||||||||||
Foreign exchange swaps | Euro | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying value | 514 | 497 | ||||||||||||||||
Foreign exchange swaps | Brazilian real | ||||||||||||||||||
Disclosure of financial instruments by type of interest rate [line items] | ||||||||||||||||||
Carrying value | $ 79 | $ 75 |
SEGMENTED INFORMATION - FFO rec
SEGMENTED INFORMATION - FFO reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure of operating segments [line items] | ||||
Revenues | $ 3,778 | $ 3,367 | $ 3,087 | |
Other income | 93 | 60 | 99 | |
Direct operating costs | [1] | (1,174) | (1,185) | (1,061) |
Share of revenue, other income and direct operating costs from equity-accounted investments | 24 | 22 | 21 | |
Management service costs | (169) | (175) | (152) | |
Interest expense | (812) | (691) | (700) | |
Current | (133) | (31) | (61) | |
Share of interest and cash taxes from equity-accounted investments | (4) | (6) | (9) | |
Share of Funds From Operations attributable to non-controlling interests | (991) | (807) | (822) | |
Depreciation | (1,179) | (1,115) | (1,065) | |
Foreign exchange and financial instruments (loss) gain | (69) | (27) | 74 | |
Deferred income tax (recovery) expense | 15 | (56) | 134 | |
Other | (86) | (277) | (493) | |
Dividends on class A exchangeable share | (220) | (209) | (116) | |
Remeasurement of BEPC exchangeable and class B shares | 1,800 | 1,267 | (2,561) | |
Share of earnings from equity-accounted investments | (14) | (14) | (16) | |
Net income attributable to non-controlling interests | 644 | 823 | 903 | |
Net income (loss) attributable to the partnership | 1,503 | 946 | (2,738) | |
Share of earnings (loss) from equity-accounted investments | 6 | 2 | (4) | |
Net loss attributable to participating non-controlling interests | 347 | (16) | (81) | |
Interest expense | 1,032 | 900 | 816 | |
Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 1,584 | 1,483 | 1,138 | |
Other income | 99 | 101 | 57 | |
Direct operating costs | (594) | (578) | (444) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 1,089 | 1,006 | 751 | |
Management service costs | (163) | (175) | (126) | |
Interest expense | (277) | (264) | (204) | |
Current | (37) | (13) | (19) | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 612 | 554 | 402 | |
Depreciation | (515) | (474) | (361) | |
Foreign exchange and financial instruments (loss) gain | (166) | (66) | 11 | |
Deferred income tax (recovery) expense | 79 | 29 | 76 | |
Other | (85) | (155) | (189) | |
Dividends on class A exchangeable share | (221) | (209) | (116) | |
Remeasurement of BEPC exchangeable and class B shares | 1,799 | 1,267 | (2,561) | |
Share of earnings from equity-accounted investments | 0 | 0 | 0 | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | |
Net income (loss) attributable to the partnership | 1,503 | 946 | (2,738) | |
Contribution from equity-accounted investments | ||||
Disclosure of operating segments [line items] | ||||
Revenues | (55) | (40) | (40) | |
Other income | 1 | (1) | (1) | |
Direct operating costs | 30 | 19 | 20 | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 24 | 22 | 21 | |
Adjusted EBITDA | 0 | 0 | 0 | |
Management service costs | 0 | 0 | 0 | |
Interest expense | 4 | 6 | 9 | |
Current | 0 | 0 | 0 | |
Share of interest and cash taxes from equity-accounted investments | (4) | (6) | (9) | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 0 | 0 | 0 | |
Depreciation | 12 | 12 | 11 | |
Foreign exchange and financial instruments (loss) gain | 0 | 2 | 4 | |
Deferred income tax (recovery) expense | 0 | 0 | 0 | |
Other | 2 | 0 | 1 | |
Dividends on class A exchangeable share | 0 | 0 | ||
Remeasurement of BEPC exchangeable and class B shares | 0 | 0 | ||
Share of earnings from equity-accounted investments | (14) | (14) | (16) | |
Net income attributable to non-controlling interests | 0 | 0 | 0 | |
Net income (loss) attributable to the partnership | 0 | 0 | 0 | |
Non-controlling interests | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 2,249 | 1,924 | 1,989 | |
Other income | (7) | (40) | 43 | |
Direct operating costs | (610) | (626) | (637) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 1,632 | 1,258 | 1,395 | |
Management service costs | (6) | 0 | (26) | |
Interest expense | (539) | (433) | (505) | |
Current | (96) | (18) | (42) | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | (991) | (807) | (822) | |
Funds From Operations | 0 | 0 | 0 | |
Depreciation | (676) | (653) | (715) | |
Foreign exchange and financial instruments (loss) gain | 97 | 37 | 59 | |
Deferred income tax (recovery) expense | (64) | (85) | 58 | |
Other | (3) | (122) | (305) | |
Dividends on class A exchangeable share | 1 | 0 | ||
Remeasurement of BEPC exchangeable and class B shares | 1 | 0 | ||
Share of earnings from equity-accounted investments | 0 | 0 | 0 | |
Net income attributable to non-controlling interests | 644 | 823 | 903 | |
Net income (loss) attributable to the partnership | 0 | 0 | 0 | |
Hydroelectric | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 2,307 | 1,969 | 1,778 | |
Hydroelectric | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 1,095 | 992 | 856 | |
Other income | 44 | 55 | 52 | |
Direct operating costs | (426) | (424) | (340) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 713 | 623 | 568 | |
Management service costs | 0 | 0 | 0 | |
Interest expense | (175) | (140) | (135) | |
Current | (34) | (11) | (16) | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 504 | 472 | 417 | |
Wind | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 647 | 646 | 581 | |
Wind | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 176 | 199 | 130 | |
Other income | 10 | 26 | 2 | |
Direct operating costs | (54) | (59) | (47) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 132 | 166 | 85 | |
Management service costs | 0 | 0 | 0 | |
Interest expense | (29) | (35) | (34) | |
Current | (2) | (2) | (3) | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 101 | 129 | 48 | |
Utility-scale solar | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 567 | 507 | 476 | |
Utility-scale solar | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 167 | 166 | 71 | |
Other income | 37 | 15 | 3 | |
Direct operating costs | (39) | (42) | (17) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 165 | 139 | 57 | |
Management service costs | 0 | 0 | 0 | |
Interest expense | (50) | (53) | (24) | |
Current | (1) | (1) | 0 | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 114 | 85 | 33 | |
distributed energy & sustainable solutions | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 257 | 245 | 252 | |
distributed energy & sustainable solutions | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 146 | 126 | 81 | |
Other income | 8 | 2 | 0 | |
Direct operating costs | (70) | (50) | (40) | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | 84 | 78 | 41 | |
Management service costs | 0 | 0 | 0 | |
Interest expense | (20) | (20) | (11) | |
Current | 0 | 1 | 0 | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | 64 | 59 | 30 | |
Corporate | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Revenues | 0 | 0 | 0 | |
Other income | 0 | 3 | 0 | |
Direct operating costs | (5) | (3) | 0 | |
Share of revenue, other income and direct operating costs from equity-accounted investments | 0 | 0 | 0 | |
Adjusted EBITDA | (5) | 0 | 0 | |
Management service costs | (163) | (175) | (126) | |
Interest expense | (3) | (16) | 0 | |
Current | 0 | 0 | 0 | |
Share of interest and cash taxes from equity-accounted investments | 0 | 0 | 0 | |
Share of Funds From Operations attributable to non-controlling interests | 0 | 0 | 0 | |
Funds From Operations | $ (171) | $ (191) | $ (126) | |
[1]Direct operating costs exclude depreciation expense disclosed below. |
SEGMENTED INFORMATION - Balance
SEGMENTED INFORMATION - Balance sheet (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2019 USD ($) | |
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | $ 642 | $ 525 | $ 512 | $ 420 |
Property, plant and equipment, at fair value | 37,828 | 37,915 | ||
Total assets | 43,288 | 41,986 | ||
Total borrowings | 13,715 | 13,512 | ||
Other liabilities | 12,749 | 14,249 | ||
Additions to property, plant and equipment | $ 720 | 1,336 | ||
192 MW Hydro Portfolio | ||||
Disclosure of operating segments [line items] | ||||
Hydro power capacity (in MW) | MW | 192 | |||
Adjustment | $ 185 | |||
192 MW Hydro Portfolio | Brookfield Renewable And Institutional Partners | ||||
Disclosure of operating segments [line items] | ||||
Adjustment | 247 | |||
Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 197 | 179 | ||
Property, plant and equipment, at fair value | 17,503 | 17,872 | ||
Total assets | 20,091 | 19,835 | ||
Total borrowings | 4,903 | 5,323 | ||
Other liabilities | 9,317 | 10,846 | ||
Additions to property, plant and equipment | 299 | 451 | ||
Contribution from equity-accounted investments | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | (7) | (2) | ||
Property, plant and equipment, at fair value | (557) | (604) | ||
Total assets | (171) | (176) | ||
Total borrowings | (161) | (161) | ||
Other liabilities | (10) | (15) | ||
Additions to property, plant and equipment | (38) | (8) | ||
Non-controlling interests | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 452 | 348 | ||
Property, plant and equipment, at fair value | 20,882 | 20,647 | ||
Total assets | 23,368 | 22,327 | ||
Total borrowings | 8,973 | 8,350 | ||
Other liabilities | 3,442 | 3,418 | ||
Additions to property, plant and equipment | 459 | 893 | ||
Hydroelectric | ||||
Disclosure of operating segments [line items] | ||||
Property, plant and equipment, at fair value | 25,351 | 25,720 | ||
Hydroelectric | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 70 | 65 | ||
Property, plant and equipment, at fair value | 13,709 | 13,577 | ||
Total assets | 15,604 | 15,108 | ||
Total borrowings | 2,894 | 2,720 | ||
Other liabilities | 4,363 | 4,051 | ||
Additions to property, plant and equipment | 113 | 266 | ||
Wind | ||||
Disclosure of operating segments [line items] | ||||
Property, plant and equipment, at fair value | 5,372 | 5,112 | ||
Wind | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 49 | 36 | ||
Property, plant and equipment, at fair value | 1,400 | 1,478 | ||
Total assets | 1,595 | 1,700 | ||
Total borrowings | 613 | 765 | ||
Other liabilities | 342 | 379 | ||
Additions to property, plant and equipment | 67 | 68 | ||
Utility-scale solar | ||||
Disclosure of operating segments [line items] | ||||
Property, plant and equipment, at fair value | 6,861 | 6,890 | ||
Utility-scale solar | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 60 | 60 | ||
Property, plant and equipment, at fair value | 1,310 | 1,585 | ||
Total assets | 1,447 | 1,731 | ||
Total borrowings | 1,025 | 1,377 | ||
Other liabilities | 138 | 119 | ||
Additions to property, plant and equipment | 104 | 116 | ||
distributed energy & sustainable solutions | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 18 | 14 | ||
Property, plant and equipment, at fair value | 1,084 | 1,232 | ||
Total assets | 1,138 | 1,279 | ||
Total borrowings | 371 | 461 | ||
Other liabilities | 38 | 66 | ||
Additions to property, plant and equipment | 15 | 1 | ||
Corporate | Attributable to the partnership | ||||
Disclosure of operating segments [line items] | ||||
Cash and cash equivalents | 0 | 4 | ||
Property, plant and equipment, at fair value | 0 | 0 | ||
Total assets | 307 | 17 | ||
Total borrowings | 0 | 0 | ||
Other liabilities | 4,436 | 6,231 | ||
Additions to property, plant and equipment | $ 0 | $ 0 |
SEGMENTED INFORMATION - Geograp
SEGMENTED INFORMATION - Geographic information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of operating segments [line items] | |||
Revenues | $ 3,778 | $ 3,367 | $ 3,087 |
Property, plant and equipment | 38,279 | 38,370 | |
North America | |||
Disclosure of operating segments [line items] | |||
Property, plant and equipment | 22,478 | 22,634 | |
Colombia | |||
Disclosure of operating segments [line items] | |||
Property, plant and equipment | 8,264 | 8,497 | |
Brazil | |||
Disclosure of operating segments [line items] | |||
Property, plant and equipment | 4,162 | 3,299 | |
Europe | |||
Disclosure of operating segments [line items] | |||
Property, plant and equipment | 3,375 | 3,940 | |
Hydroelectric | |||
Disclosure of operating segments [line items] | |||
Revenues | 2,307 | 1,969 | 1,778 |
Wind | |||
Disclosure of operating segments [line items] | |||
Revenues | 647 | 646 | 581 |
Utility-scale solar | |||
Disclosure of operating segments [line items] | |||
Revenues | 567 | 507 | 476 |
distributed energy & sustainable solutions | |||
Disclosure of operating segments [line items] | |||
Revenues | $ 257 | $ 245 | $ 252 |
DIRECT OPERATING COSTS (Details
DIRECT OPERATING COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Disclosure Direct Operating Costs [Abstract] | ||||
Fuel and power purchases | $ (396) | $ (450) | $ (338) | |
Operations and maintenance | (246) | (218) | (198) | |
Salaries and benefits | (224) | (206) | (198) | |
Water royalties, property taxes and other regulatory fees | (159) | (163) | (176) | |
Insurance | (56) | (56) | (51) | |
Professional fees | (24) | (26) | (36) | |
Energy marketing & other related party services | (7) | (11) | (17) | |
Other | (62) | (55) | (47) | |
Direct operating costs, net | [1] | (1,174) | (1,185) | (1,061) |
Cost to acquire energy to cover contractual obligations | 80 | |||
Depreciation | $ 1,179 | $ 1,115 | $ 1,065 | |
[1]Direct operating costs exclude depreciation expense disclosed below. |
OTHER (Details)
OTHER (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure Other [Abstract] | |||
Change in fair value of property, plant and equipment | $ (5) | $ (73) | $ (43) |
Share-settlement liability | 0 | (65) | (158) |
Legal provisions | 0 | (55) | (231) |
Amortization of service concession assets | (10) | (15) | (8) |
Cash flow hedge associated with the disposal of assets | 0 | (6) | 0 |
Transaction costs | 0 | 0 | (12) |
Other | (71) | (63) | (41) |
Other expenses, net | $ (86) | $ (277) | $ (493) |
FOREIGN CURRENCY TRANSLATION (D
FOREIGN CURRENCY TRANSLATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign currency translation on: | |||
Property, plant and equipment, at fair value | $ (1,490) | $ (1,527) | $ (624) |
Goodwill | (126) | (121) | (20) |
Borrowings | 545 | 479 | (87) |
Deferred income tax liabilities and assets | 454 | 329 | 60 |
Other assets and liabilities | 59 | 11 | (19) |
Foreign currency translation, net | $ (558) | $ (829) | $ (690) |
INCOME TAXES - Components of ta
INCOME TAXES - Components of tax PL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Current taxes | |||
Attributed to the current period | $ (133) | $ (31) | $ (61) |
Deferred taxes | |||
Origination and reversal of temporary differences | (10) | 80 | 104 |
Relating to change in tax rates / imposition of new tax laws | 10 | (142) | (7) |
Relating to unrecognized temporary differences and tax losses | 15 | 6 | 37 |
Deferred taxes, net | 15 | (56) | 134 |
Total income tax recovery (expense) | $ (118) | $ (87) | $ 73 |
INCOME TAXES - Components of _2
INCOME TAXES - Components of tax OCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred income taxes attributed to: | |||
Financial instruments designated as cash flow hedges | $ (60) | $ 7 | $ 13 |
Other | (14) | (7) | (3) |
Revaluation surplus | |||
Origination and reversal of temporary differences | (679) | (882) | (828) |
Relating to changes in tax rates / imposition of new tax laws | 34 | (162) | 0 |
Total deferred income taxes | $ (719) | $ (1,044) | $ (818) |
INCOME TAXES - Expense reconcil
INCOME TAXES - Expense reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Effective income tax [abstract] | |||
Statutory income tax (expense) recovery | $ (575) | $ (287) | $ 809 |
Reduction (increase) resulting from: | |||
Decrease (increase) in tax assets not recognized | (8) | (9) | 37 |
Differences between statutory rate and future tax rate and tax rate changes | 10 | (142) | (7) |
Subsidiaries’ income taxed at different rates | 29 | 81 | 10 |
Non-deductible expenses | 426 | 271 | (763) |
Other | 0 | (1) | (13) |
Total income tax recovery (expense) | $ (118) | $ (87) | $ 73 |
Effective income tax rate | 6% | 8.60% | 2.50% |
INCOME TAXES - Unrecognized def
INCOME TAXES - Unrecognized deferred tax (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Less than four years | |||
Disclosure of deductible temporary differences for which no deferred tax asset is recognised [line items] | |||
Unrecognized deferred tax assets | $ 0 | $ 0 | $ 0 |
Thereafter | |||
Disclosure of deductible temporary differences for which no deferred tax asset is recognised [line items] | |||
Unrecognized deferred tax assets | $ 122 | $ 126 | $ 139 |
INCOME TAXES - Reconciliation n
INCOME TAXES - Reconciliation net liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Recognized in net income (loss) | $ (15) | $ 56 | $ (134) |
Foreign exchange | 454 | 329 | 60 |
Deferred tax liability related to property, plant and equipment revaluations | 5,178 | 4,556 | 3,516 |
The taxable temporary difference attributable to Brookfield Renewables interest in its subsidiaries | 4,952 | 4,021 | 2,633 |
Non-capital losses | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Balance, beginning of year | 879 | 869 | 638 |
Recognized in net income (loss) | 16 | 5 | 255 |
Recognized in equity | 0 | 0 | (52) |
Business combination | 0 | 0 | 30 |
Foreign exchange | 2 | 5 | (2) |
Balance, end of year | 897 | 879 | 869 |
Difference between tax and carrying value | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Balance, beginning of year | (5,813) | (5,029) | (4,224) |
Recognized in net income (loss) | (1) | (61) | (121) |
Recognized in equity | (728) | (1,046) | (766) |
Business combination | 0 | (1) | 20 |
Foreign exchange | 452 | 324 | 62 |
Balance, end of year | (6,090) | (5,813) | (5,029) |
Net deferred tax (liabilities) assets | |||
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Balance, beginning of year | (4,934) | (4,160) | (3,586) |
Recognized in net income (loss) | 15 | (56) | 134 |
Recognized in equity | (728) | (1,046) | (818) |
Business combination | 0 | (1) | 50 |
Foreign exchange | 454 | 329 | 60 |
Balance, end of year | $ (5,193) | $ (4,934) | $ (4,160) |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Continuity (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | $ 37,139 | $ 35,645 |
Additions | 655 | |
Additions, net | (213) | |
Transfer from construction work-in-progress | 998 | 469 |
Transfer to assets held for sale | (677) | |
Disposals | (97) | (757) |
Acquisitions through business combinations | 0 | |
Items recognized through OCI: | ||
Change in fair value | 2,254 | 3,805 |
Foreign exchange | (1,494) | (1,499) |
Items recognized through net income: | ||
Change in fair value | 5 | (64) |
Depreciation | (1,179) | (1,115) |
Ending balance | 36,736 | 37,139 |
Reconciliation of changes in construction in progress [Abstract] | ||
Construction in progress, beginning balance | 776 | 452 |
Additions | 984 | 681 |
Transfer to property, plant and equipment | (998) | (469) |
Transfer to assets held for sale | (8) | |
Acquisitions through business combinations | 0 | 0 |
Disposals | (4) | |
Items recognized through OCI: | ||
Change in fair value | 334 | 144 |
Foreign exchange | 4 | (28) |
Construction in progress, ending balance | 1,092 | 776 |
Total property, plant and equipment, at fair value | 37,828 | 37,915 |
Fair value changes in decommissioning assets | 178 | |
Hydroelectric | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 25,496 | 22,663 |
Additions | 573 | |
Additions, net | 9 | |
Transfer from construction work-in-progress | 161 | 94 |
Transfer to assets held for sale | (677) | |
Disposals | (97) | 0 |
Acquisitions through business combinations | 0 | |
Items recognized through OCI: | ||
Change in fair value | 2,017 | 3,795 |
Foreign exchange | (1,267) | (1,176) |
Items recognized through net income: | ||
Change in fair value | (2) | (16) |
Depreciation | (501) | (437) |
Ending balance | 25,139 | 25,496 |
Reconciliation of changes in construction in progress [Abstract] | ||
Construction in progress, beginning balance | 224 | 183 |
Additions | 150 | 145 |
Transfer to property, plant and equipment | (161) | (94) |
Transfer to assets held for sale | (8) | |
Acquisitions through business combinations | 0 | 0 |
Disposals | 0 | |
Items recognized through OCI: | ||
Change in fair value | 0 | 0 |
Foreign exchange | 7 | (10) |
Construction in progress, ending balance | 212 | 224 |
Total property, plant and equipment, at fair value | 25,351 | 25,720 |
Right-of-use assets, not subject to revaluation | 48 | 52 |
Wind | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 4,998 | 6,220 |
Additions | 0 | |
Additions, net | (137) | |
Transfer from construction work-in-progress | 86 | 164 |
Transfer to assets held for sale | 0 | |
Disposals | 0 | (757) |
Acquisitions through business combinations | 0 | |
Items recognized through OCI: | ||
Change in fair value | 292 | (153) |
Foreign exchange | (73) | (96) |
Items recognized through net income: | ||
Change in fair value | 16 | (26) |
Depreciation | (307) | (354) |
Ending balance | 4,875 | 4,998 |
Reconciliation of changes in construction in progress [Abstract] | ||
Construction in progress, beginning balance | 114 | 96 |
Additions | 237 | 174 |
Transfer to property, plant and equipment | (86) | (164) |
Transfer to assets held for sale | 0 | |
Acquisitions through business combinations | 0 | 0 |
Disposals | (4) | |
Items recognized through OCI: | ||
Change in fair value | 250 | 17 |
Foreign exchange | (18) | (5) |
Construction in progress, ending balance | 497 | 114 |
Total property, plant and equipment, at fair value | 5,372 | 5,112 |
Right-of-use assets, not subject to revaluation | 127 | 130 |
Utility-scale solar | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 6,457 | 6,614 |
Additions | 73 | |
Additions, net | (78) | |
Transfer from construction work-in-progress | 744 | 210 |
Transfer to assets held for sale | 0 | |
Disposals | 0 | 0 |
Acquisitions through business combinations | 0 | |
Items recognized through OCI: | ||
Change in fair value | (132) | 90 |
Foreign exchange | (160) | (218) |
Items recognized through net income: | ||
Change in fair value | (7) | 1 |
Depreciation | (343) | (313) |
Ending balance | 6,481 | 6,457 |
Reconciliation of changes in construction in progress [Abstract] | ||
Construction in progress, beginning balance | 433 | 172 |
Additions | 592 | 356 |
Transfer to property, plant and equipment | (744) | (210) |
Transfer to assets held for sale | 0 | |
Acquisitions through business combinations | 0 | 0 |
Disposals | 0 | |
Items recognized through OCI: | ||
Change in fair value | 84 | 127 |
Foreign exchange | 15 | (12) |
Construction in progress, ending balance | 380 | 433 |
Total property, plant and equipment, at fair value | 6,861 | 6,890 |
Right-of-use assets, not subject to revaluation | 151 | 157 |
Other | ||
Reconciliation of changes in property, plant and equipment [abstract] | ||
Beginning balance | 188 | 148 |
Additions | 9 | |
Additions, net | (7) | |
Transfer from construction work-in-progress | 7 | 1 |
Transfer to assets held for sale | 0 | |
Disposals | 0 | 0 |
Acquisitions through business combinations | 0 | |
Items recognized through OCI: | ||
Change in fair value | 77 | 73 |
Foreign exchange | 6 | (9) |
Items recognized through net income: | ||
Change in fair value | (2) | (23) |
Depreciation | (28) | (11) |
Ending balance | 241 | 188 |
Reconciliation of changes in construction in progress [Abstract] | ||
Construction in progress, beginning balance | 5 | 1 |
Additions | 5 | 6 |
Transfer to property, plant and equipment | (7) | (1) |
Transfer to assets held for sale | 0 | |
Acquisitions through business combinations | 0 | 0 |
Disposals | 0 | |
Items recognized through OCI: | ||
Change in fair value | 0 | 0 |
Foreign exchange | 0 | (1) |
Construction in progress, ending balance | 3 | 5 |
Total property, plant and equipment, at fair value | 244 | 193 |
Right-of-use assets, not subject to revaluation | $ 0 | $ 2 |
PROPERTY, PLANT AND EQUIPMENT_4
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Narrative (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) MW | Dec. 31, 2021 USD ($) | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Change in fair value | $ 2,254 | $ 3,805 |
Brazil | Concession asset | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
One time lease renewal term | 30 years | |
Useful Lives, Property, Plant And Equipment | 35 years | 31 years |
Brookfield Renewable And Institutional Partners | 248 MW Development Wind Portfolio In Brazil | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Wind power capacity, generation facilities (in MW) | MW | 248 | |
Acquisitions through asset acquisitions | $ 11 | |
Proportion of economic interest | 25% | |
Brookfield Renewable And Institutional Partners | 40 MW Operating Utility-Scale Solar Asset In Colombia | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Wind power capacity, generation facilities (in MW) | MW | 40 | |
Acquisitions through asset acquisitions | $ 37 | |
Proportion of economic interest | 22% | |
Brookfield Renewable | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Change in fair value | $ (132) | $ 158 |
PROPERTY, PLANT AND EQUIPMENT_5
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Rates (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
North America | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Terminal capitalization rate | 4.90% | |
North America | Top of range | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Terminal capitalization rate | 5.10% | |
North America | Contracted | Bottom of range | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 4.80% | 3.80% |
North America | Contracted | Top of range | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 5.40% | 4.30% |
North America | Uncontracted | Bottom of range | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 5.80% | 4.80% |
North America | Uncontracted | Top of range | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 6.70% | 5.60% |
Colombia | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Terminal capitalization rate | 7.70% | 8% |
Colombia | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 8.50% | 7.90% |
Colombia | Uncontracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 9.70% | 9.20% |
Brazil | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 8.20% | 7.20% |
Brazil | Uncontracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 9.50% | 8.50% |
Europe | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 4.40% | 3.90% |
Europe | Uncontracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Discount rate | 4.40% | 3.90% |
PROPERTY, PLANT AND EQUIPMENT_6
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Sensitivity (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | $ 2,254 | $ 3,805 |
25 bps increase in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (1,570) | (1,440) |
25 bps increase in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (430) | (350) |
25 bps decrease in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 1,590 | 1,640 |
25 bps decrease in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 470 | 380 |
5% increase in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 1,560 | 1,380 |
5% decrease in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (1,550) | (1,380) |
North America | 25 bps increase in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (1,110) | (1,050) |
North America | 25 bps increase in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (360) | (280) |
North America | 25 bps decrease in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 1,170 | 1,160 |
North America | 25 bps decrease in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 390 | 310 |
North America | 5% increase in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 1,010 | 900 |
North America | 5% decrease in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (1,000) | (900) |
Colombia | 25 bps increase in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (310) | (240) |
Colombia | 25 bps increase in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (70) | (70) |
Colombia | 25 bps decrease in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 260 | 330 |
Colombia | 25 bps decrease in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 80 | 70 |
Colombia | 5% increase in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 440 | 410 |
Colombia | 5% decrease in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | $ (440) | $ (410) |
Brazil | Concession asset | ||
Changes in Property Plant And Equipment [Line Items] | ||
One time lease renewal term | 30 years | |
Estimated service lives | 35 years | 31 years |
Brazil | 25 bps increase in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | $ (100) | $ (90) |
Brazil | 25 bps increase in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 0 | 0 |
Brazil | 25 bps decrease in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 110 | 90 |
Brazil | 25 bps decrease in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 0 | 0 |
Brazil | 5% increase in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 110 | 70 |
Brazil | 5% decrease in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (110) | (70) |
Europe | 25 bps increase in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | (50) | (60) |
Europe | 25 bps increase in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 0 | 0 |
Europe | 25 bps decrease in discount rates | Discount rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 50 | 60 |
Europe | 25 bps decrease in discount rates | Terminal capitalization rate | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 0 | 0 |
Europe | 5% increase in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | 0 | 0 |
Europe | 5% decrease in future energy prices | Future electricity prices | ||
Changes in Property Plant And Equipment [Line Items] | ||
Change in fair value | $ 0 | $ 0 |
PROPERTY, PLANT AND EQUIPMENT_7
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Prices and Generation (Details) $ / MWh in Thousands, $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / MWh $ / MWh R$ / MWh € / MWh | Dec. 31, 2021 USD ($) R$ / MWh € / MWh $ / MWh $ / MWh | |
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Change in fair value | $ | $ 2,254 | $ 3,805 |
Brookfield Renewable | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Change in fair value | $ | $ (132) | $ 158 |
North America | 1 - 5 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 71% | |
North America | 6 - 10 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 60% | |
North America | 11 - 20 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | 95 | |
Estimates of future electricity prices | 126 | |
North America | 11 - 20 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 27% | |
North America | 1 - 10 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | 92 | |
Estimates of future electricity prices | 99 | |
Colombia | 1 - 5 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 52% | |
Colombia | 6 - 10 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 12% | |
Colombia | 11 - 20 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | 352 | |
Estimates of future electricity prices | 554 | |
Colombia | 11 - 20 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 2% | |
Colombia | 1 - 10 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | 293 | |
Estimates of future electricity prices | 376 | |
Brazil | 1 - 5 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 82% | |
Brazil | 6 - 10 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 62% | |
Brazil | 11 - 20 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | R$ / MWh | 385 | |
Estimates of future electricity prices | R$ / MWh | 390 | |
Brazil | 11 - 20 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 47% | |
Brazil | 1 - 10 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | R$ / MWh | 320 | |
Estimates of future electricity prices | R$ / MWh | 290 | |
Europe | 1 - 5 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 100% | |
Europe | 6 - 10 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 81% | |
Europe | 11 - 20 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | € / MWh | 66 | |
Estimates of future electricity prices | € / MWh | 74 | |
Europe | 11 - 20 years | Contracted | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Percentage of total generation contracted | 65% | |
Europe | 1 - 10 years | ||
Disclosure of significant unobservable inputs used in fair value measurement of assets [line items] | ||
Power prices from long-term power purchase agreements | € / MWh | 72 | |
Estimates of future electricity prices | € / MWh | 62 |
PROPERTY, PLANT AND EQUIPMENT_8
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE - Historical costs (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant and Equipment carrying amount at cost of revalued assets [Line Items] | ||
Property, plant and equipment, revalued assets, at cost | $ 18,119 | $ 19,534 |
Hydroelectric | ||
Property Plant and Equipment carrying amount at cost of revalued assets [Line Items] | ||
Property, plant and equipment, revalued assets, at cost | 8,478 | 9,758 |
Wind | ||
Property Plant and Equipment carrying amount at cost of revalued assets [Line Items] | ||
Property, plant and equipment, revalued assets, at cost | 3,980 | 4,225 |
Utility-scale solar | ||
Property Plant and Equipment carrying amount at cost of revalued assets [Line Items] | ||
Property, plant and equipment, revalued assets, at cost | 5,514 | 5,396 |
Other | ||
Property Plant and Equipment carrying amount at cost of revalued assets [Line Items] | ||
Property, plant and equipment, revalued assets, at cost | $ 147 | $ 155 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of reconciliation of intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in intangible assets other than goodwill [abstract] | ||
Beginning balance | $ 218 | $ 233 |
Foreign exchange | 6 | |
Amortization | (16) | (15) |
Ending balance | $ 208 | $ 218 |
INTANGIBLE ASSETS - Additional
INTANGIBLE ASSETS - Additional information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of detailed information about intangible assets [line items] | |||
Revenue recognised on intangible assets | $ 36 | $ 33 | $ 35 |
Bottom of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining intangible assets are amortized straight-line over years | 17 years | ||
Top of range | |||
Disclosure of detailed information about intangible assets [line items] | |||
Remaining intangible assets are amortized straight-line over years | 20 years |
BORROWINGS - Composition of non
BORROWINGS - Composition of non-recourse borrowings (Details) $ in Millions | Dec. 31, 2022 USD ($) year | Dec. 31, 2021 USD ($) year |
Disclosure of detailed information about borrowings [line items] | ||
Less: Unamortized financing fees | $ (65) | $ (34) |
Less: Current portion | (1,299) | (1,452) |
Non-recourse borrowings | $ 12,847 | $ 14,397 |
Non-recourse borrowings | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted-average interest rate (%) | 6.60% | 4.50% |
Term (years) | year | 9 | 9 |
Carrying value | $ 13,780 | $ 13,546 |
Estimated fair value | 12,847 | 14,397 |
Add: Unamortized premiums | 17 | 57 |
Less: Unamortized financing fees | (82) | (91) |
Less: Current portion | (1,299) | (1,452) |
Non-recourse borrowings | 12,416 | $ 12,060 |
Total borrowings | 13,780 | |
Non-recourse borrowings | 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 1,299 | |
Non-recourse borrowings | 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 1,160 | |
Non-recourse borrowings | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 906 | |
Non-recourse borrowings | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 1,190 | |
Non-recourse borrowings | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 866 | |
Non-recourse borrowings | Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | $ 8,359 | |
Non-recourse borrowings | Hydroelectric | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted-average interest rate (%) | 8.20% | 5.10% |
Term (years) | year | 7 | 7 |
Carrying value | $ 6,612 | $ 6,160 |
Estimated fair value | 5,945 | $ 6,543 |
Total borrowings | 6,612 | |
Non-recourse borrowings | Hydroelectric | 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 734 | |
Non-recourse borrowings | Hydroelectric | 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 671 | |
Non-recourse borrowings | Hydroelectric | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 509 | |
Non-recourse borrowings | Hydroelectric | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 778 | |
Non-recourse borrowings | Hydroelectric | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 477 | |
Non-recourse borrowings | Hydroelectric | Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | $ 3,443 | |
Non-recourse borrowings | Wind | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted-average interest rate (%) | 5.20% | 3.70% |
Term (years) | year | 8 | 9 |
Carrying value | $ 2,331 | $ 2,416 |
Estimated fair value | 2,230 | $ 2,577 |
Total borrowings | 2,331 | |
Non-recourse borrowings | Wind | 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 197 | |
Non-recourse borrowings | Wind | 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 243 | |
Non-recourse borrowings | Wind | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 149 | |
Non-recourse borrowings | Wind | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 153 | |
Non-recourse borrowings | Wind | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 143 | |
Non-recourse borrowings | Wind | Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | $ 1,446 | |
Non-recourse borrowings | Utility-scale solar | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted-average interest rate (%) | 5.50% | 4.10% |
Term (years) | year | 13 | 13 |
Carrying value | $ 4,041 | $ 4,110 |
Estimated fair value | 3,926 | $ 4,365 |
Total borrowings | 4,041 | |
Non-recourse borrowings | Utility-scale solar | 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 302 | |
Non-recourse borrowings | Utility-scale solar | 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 203 | |
Non-recourse borrowings | Utility-scale solar | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 209 | |
Non-recourse borrowings | Utility-scale solar | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 221 | |
Non-recourse borrowings | Utility-scale solar | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 213 | |
Non-recourse borrowings | Utility-scale solar | Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | $ 2,893 | |
Non-recourse borrowings | distributed energy & sustainable solutions | ||
Disclosure of detailed information about borrowings [line items] | ||
Weighted-average interest rate (%) | 3% | 3.90% |
Term (years) | year | 11 | 12 |
Carrying value | $ 796 | $ 860 |
Estimated fair value | 746 | 912 |
Total borrowings | 796 | |
Non-recourse borrowings | distributed energy & sustainable solutions | 2022 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 66 | |
Non-recourse borrowings | distributed energy & sustainable solutions | 2024 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 43 | |
Non-recourse borrowings | distributed energy & sustainable solutions | 2025 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 39 | |
Non-recourse borrowings | distributed energy & sustainable solutions | 2026 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 38 | |
Non-recourse borrowings | distributed energy & sustainable solutions | 2027 | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 33 | |
Non-recourse borrowings | distributed energy & sustainable solutions | Thereafter | ||
Disclosure of detailed information about borrowings [line items] | ||
Total borrowings | 577 | |
Subscription facility | ||
Disclosure of detailed information about borrowings [line items] | ||
Carrying value | $ 1 | $ 8 |
Non-permanent financings | ||
Disclosure of detailed information about borrowings [line items] | ||
Term (years) | year | 9 |
BORROWINGS - Non-recourse borro
BORROWINGS - Non-recourse borrowings change in the unamortized financing fees of corporate borrowings (Details) - Non-recourse borrowings - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disclosure of detailed information about borrowings [line items] | ||
Unamortized financing fees and discounts, beginning of year | $ (91) | $ (93) |
Additional financing fees and discounts | (19) | (14) |
Amortization of financing and discounts fees | 14 | 13 |
Foreign exchange translation and other | 14 | 3 |
Unamortized financing fees and discounts, end of year | $ (82) | $ (91) |
BORROWINGS - Non-recourse bor_2
BORROWINGS - Non-recourse borrowings (Details) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 COP ($) | Dec. 31, 2022 BRL (R$) | Sep. 30, 2022 USD ($) | Sep. 30, 2022 COP ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 COP ($) | Jun. 30, 2022 EUR (€) | Jun. 30, 2022 BRL (R$) | Mar. 31, 2022 USD ($) | Mar. 31, 2022 COP ($) | Mar. 31, 2022 BRL (R$) |
Q1 2021 Financing Maturing In 2032, 8.66% Interest | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 53,000,000 | $ 200,000,000,000 | ||||||||||
Borrowings, interest rate | 8.66% | 8.66% | 8.66% | |||||||||
Q1 2022, Financing, Maturing In 2029-2037 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 95,000,000 | $ 356,000,000,000 | ||||||||||
Q1 2022, Financing, Maturing In 2032 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 53,000,000 | $ 200,000,000,000 | ||||||||||
Q1 2022, Financing, Maturing In 2045 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 29,000,000 | R$ 150000000 | ||||||||||
Q1 2022, Refinancing, Maturing In 2032, 3.62% Interest | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 170,000,000 | |||||||||||
Borrowings, interest rate | 3.62% | 3.62% | 3.62% | |||||||||
Q1 2022, Refinancing, Maturing In 2032 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 35,000,000 | |||||||||||
Q2 2022, Financing, Maturing In 2045 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 63,000,000 | R$ 300000000 | ||||||||||
Q2 2022, Financing, Maturing In 2024 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 96,000,000 | R$ 500000000 | ||||||||||
Q2 2022, Refinancing, Maturing In 2039 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 70,000,000 | € 66,000,000 | ||||||||||
Borrowings, interest rate | 3.36% | 3.36% | 3.36% | 3.36% | ||||||||
Q2 2022, Financing, Maturing In 2032 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 97,000,000 | $ 400,000,000,000 | ||||||||||
Q2 2022, Financing, Maturing In 2030, 1 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 24,000,000 | 100,000,000,000 | ||||||||||
Q2 2022, Financing, Maturing In 2030, 2 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 12,000,000 | 50,000,000,000 | ||||||||||
Q2 2022, Financing, Maturing In 2034 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 24,000,000 | 100,000,000,000 | ||||||||||
Q2 2022, Financing, Maturing In 2027 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 53,000,000 | 219,000,000,000 | ||||||||||
Q2 2022, Financing, Maturing In 2029 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 144,000,000 | 594,000,000,000 | ||||||||||
Q2 2022, Refinancing, Maturing In 2030 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 57,000,000 | $ 237,000,000,000 | ||||||||||
Q3 2022, Financing, Maturing In 2030 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 71,000,000 | $ 315,000,000,000 | ||||||||||
Q3 2022, Financing, Maturing In 2032 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 14,000,000 | |||||||||||
Borrowings, interest rate | 6.50% | 6.50% | ||||||||||
Q3 2022, Refinancing, Maturing In 2024 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 12,000,000 | |||||||||||
Q4 2022, Financing, Maturing In 2032 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 53,000,000 | $ 252,000,000,000 | ||||||||||
Q4 2022, Financing, Maturing In 2034 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | 200,000,000 | |||||||||||
Q4 2022 Financing, Maturing in 2046 | ||||||||||||
Disclosure of detailed information about borrowings [line items] | ||||||||||||
Carrying value | $ 87,000,000 | R$ 450000000 |
BORROWINGS - Narrative (Details
BORROWINGS - Narrative (Details) R$ in Millions, $ in Millions, $ in Millions | 3 Months Ended | ||||
Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 COP ($) | Dec. 31, 2022 BRL (R$) | |
Debt Associated With United States Distributed Generation Portfolio, Matures 2025 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Increase in borrowing capacity | $ 50 | ||||
Carrying value | $ 150 | ||||
2021 United States Revolving Credit Facility | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Increase in borrowing capacity | $ 250 | ||||
Carrying value | $ 750 | ||||
Debt Associated With Colombia Hydroelectric Assets, Matures In 2047 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Carrying value | $ 3,000,000 | ||||
Debt Associated With Brazilian Solar Assets, Maturing In 2047 | |||||
Disclosure of detailed information about borrowings [line items] | |||||
Carrying value | $ 68 | R$ 350 |
BORROWINGS - Supplemental infor
BORROWINGS - Supplemental information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of credit facilities [line items] | |||
Beginning balance | $ 13,512 | ||
Net cash flows from financing activities | (402) | $ 678 | $ (475) |
Ending balance | 13,715 | 13,512 | |
Non-recourse borrowings | |||
Disclosure of credit facilities [line items] | |||
Beginning balance | 13,512 | 12,822 | |
Net cash flows from financing activities | 926 | 1,462 | |
Non-cash, Disposal | 0 | (362) | |
Non-cash, Other | (552) | (410) | |
Ending balance | 13,715 | 13,512 | $ 12,822 |
Net cash flow from financing activities related to tax equity | (20) | 51 | |
Borrowings, Non-Cash, Transfer To Held-For-Sale | $ (171) | $ 0 |
NON-CONTROLLING INTERESTS - Sum
NON-CONTROLLING INTERESTS - Summary (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Non-controlling interests | |||
Disclosure of Non Controlling Interest [Line Items] | |||
Non-controlling interests | $ 10,951 | $ 10,558 | |
Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of Non Controlling Interest [Line Items] | |||
Non-controlling interests | 10,680 | 10,297 | |
Participating non-controlling interests – in a holding subsidiary held by the partnership | |||
Disclosure of Non Controlling Interest [Line Items] | |||
Non-controlling interests | $ 271 | $ 261 |
NON-CONTROLLING INTERESTS - Con
NON-CONTROLLING INTERESTS - Continuity (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Capital contributions | $ 569 | $ 65 | $ 438 |
Return of Capital | 82 | ||
Acquisition | (5,006) | ||
Disposals | (56) | (181) | |
Total | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 10,297 | ||
Net income (loss) | 336 | (23) | (92) |
Ending Balance | 10,680 | 10,297 | |
Total | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 10,297 | 10,290 | 10,258 |
Net income (loss) | 336 | (23) | (92) |
Other comprehensive income | 782 | 601 | 1,382 |
Capital contributions | 569 | 65 | 336 |
Dividends declared and return of capital | (1,268) | (655) | (513) |
Return of Capital | (82) | ||
Special distribution/TerraForm Power acquisition | (1,026) | ||
Disposals | (54) | (181) | |
Other | 18 | 200 | 27 |
Ending Balance | 10,680 | 10,297 | 10,290 |
Brookfield Americas Infrastructure Fund | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 685 | ||
Net income (loss) | 19 | 5 | (13) |
Ending Balance | 477 | 685 | |
Brookfield Americas Infrastructure Fund | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 686 | 1,002 | 922 |
Net income (loss) | 19 | 5 | (13) |
Other comprehensive income | (103) | (122) | 100 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (71) | (18) | (8) |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | (54) | (181) | |
Other | 0 | 0 | 1 |
Ending Balance | $ 477 | 686 | 1,002 |
Brookfield Americas Infrastructure Fund | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 75% | ||
Brookfield Americas Infrastructure Fund | Top of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 78% | ||
Brookfield Infrastructure Fund II | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 2,251 | ||
Net income (loss) | (34) | (32) | (17) |
Ending Balance | 2,615 | 2,251 | |
Brookfield Infrastructure Fund II | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 2,251 | 1,902 | 1,756 |
Net income (loss) | (34) | (32) | (17) |
Other comprehensive income | 448 | 411 | 189 |
Capital contributions | 4 | 1 | 4 |
Dividends declared and return of capital | (55) | (31) | (29) |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | 1 | 0 | (1) |
Ending Balance | $ 2,615 | 2,251 | 1,902 |
Brookfield Infrastructure Fund II | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 43% | ||
Brookfield Infrastructure Fund II | Top of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 60% | ||
Brookfield Infrastructure Fund III | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 1,226 | ||
Net income (loss) | (3) | (2) | (8) |
Ending Balance | 1,245 | 1,226 | |
Brookfield Infrastructure Fund III | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 3,186 | 3,082 | 2,834 |
Net income (loss) | 110 | (20) | (64) |
Other comprehensive income | 156 | 187 | 528 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (393) | (220) | (139) |
Return of Capital | (41) | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | 2 | 157 | (36) |
Ending Balance | $ 3,061 | 3,186 | 3,082 |
Brookfield Infrastructure Fund III | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 23% | ||
Brookfield Infrastructure Fund III | Top of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 71% | ||
Brookfield Infrastructure Fund IV | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 261 | ||
Net income (loss) | 1 | (3) | 1 |
Ending Balance | 707 | 261 | |
Brookfield Infrastructure Fund IV | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 261 | 74 | 0 |
Net income (loss) | 1 | (3) | 1 |
Other comprehensive income | 164 | 137 | 2 |
Capital contributions | 276 | 64 | 71 |
Dividends declared and return of capital | 0 | (11) | 0 |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | 5 | 0 | 0 |
Ending Balance | $ 707 | 261 | 74 |
Interests held by third parties | 75% | ||
Brookfield Global Infrastructure Income Fund | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Other comprehensive income | 10 | 0 | 0 |
Capital contributions | 200 | 0 | 0 |
Dividends declared and return of capital | (7) | 0 | 0 |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | 30 | 0 | 0 |
Ending Balance | $ 233 | 0 | 0 |
Brookfield Global Infrastructure Income Fund | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 1.50% | ||
Brookfield Global Infrastructure Income Fund | Top of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 6.80% | ||
Isagen institutional partners | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 2,442 | 2,650 | 2,375 |
Net income (loss) | 179 | 113 | 130 |
Other comprehensive income | 67 | (107) | 325 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (524) | (214) | (180) |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | (5) | 0 | 0 |
Ending Balance | $ 2,159 | 2,442 | 2,650 |
Interests held by third parties | 53% | ||
Isagen institutional partners | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 52.60% | ||
Isagen public non-controlling interests | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 13 | 14 | 13 |
Net income (loss) | 1 | 1 | 0 |
Other comprehensive income | 1 | 0 | 2 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (1) | (2) | 0 |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | (1) | 0 | (1) |
Ending Balance | $ 13 | 13 | 14 |
Interests held by third parties | 0.30% | ||
The Catalyst Group | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 132 | ||
Net income (loss) | 11 | 16 | 16 |
Ending Balance | 115 | 132 | |
The Catalyst Group | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 132 | 97 | 89 |
Net income (loss) | 11 | 16 | 16 |
Other comprehensive income | (19) | 28 | 27 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (9) | (9) | (35) |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | 0 | 0 | 0 |
Ending Balance | $ 115 | 132 | 97 |
Interests held by third parties | 25% | ||
TerraForm Power | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 2,197 | ||
Net income (loss) | 63 | (175) | (268) |
Ending Balance | $ 2,283 | 2,197 | |
Interests held by third parties | 35.50% | ||
TerraForm Power | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 853 | 961 | 2,129 |
Net income (loss) | 32 | (67) | (142) |
Other comprehensive income | 67 | (6) | 176 |
Capital contributions | 0 | 0 | 0 |
Dividends declared and return of capital | (123) | (105) | (86) |
Return of Capital | (41) | ||
Special distribution/TerraForm Power acquisition | (1,026) | ||
Disposals | 0 | 0 | |
Other | 3 | 70 | (49) |
Ending Balance | $ 832 | 853 | 961 |
Interests held by third parties | 33% | ||
Other | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | $ 52 | ||
Net income (loss) | 22 | 6 | 2 |
Ending Balance | 92 | 52 | |
Other | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Beginning Balance | 473 | 508 | 140 |
Net income (loss) | 17 | (36) | (3) |
Other comprehensive income | (9) | 73 | 33 |
Capital contributions | 89 | 0 | 261 |
Dividends declared and return of capital | (85) | (45) | (36) |
Return of Capital | 0 | ||
Special distribution/TerraForm Power acquisition | 0 | ||
Disposals | 0 | 0 | |
Other | (17) | (27) | 113 |
Ending Balance | $ 468 | $ 473 | $ 508 |
Other | Bottom of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 0.30% | ||
Other | Top of range | Brookfield and co-investors | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 80% |
NON-CONTROLLING INTERESTS - S_2
NON-CONTROLLING INTERESTS - Summary information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of subsidiaries [line items] | |||
Revenue | $ 3,778 | $ 3,367 | $ 3,087 |
Net income (loss) | 1,850 | 930 | (2,819) |
Total comprehensive income (loss) | 3,376 | 3,115 | (690) |
Property, plant and equipment, at fair value | 37,828 | 37,915 | |
Total assets | 43,288 | 41,986 | |
Total borrowings | 13,715 | 13,512 | |
Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Net income (loss) | 336 | (23) | (92) |
Net income attributable to non-controlling interests | 336 | (23) | (92) |
Carrying value of non-controlling interests | 10,680 | 10,297 | |
Total | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 3,236 | 2,807 | 2,635 |
Net income (loss) | 451 | (21) | (87) |
Total comprehensive income (loss) | 1,670 | 1,123 | 2,017 |
Net income attributable to non-controlling interests | 336 | (23) | (92) |
Property, plant and equipment, at fair value | 29,485 | 30,062 | |
Total assets | 32,750 | 32,423 | |
Total borrowings | 11,571 | 11,920 | |
Total liabilities | 16,955 | 16,946 | |
Carrying value of non-controlling interests | 10,680 | 10,297 | |
Brookfield Americas Infrastructure Fund | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 120 | 137 | 137 |
Net income (loss) | 25 | 7 | (15) |
Total comprehensive income (loss) | (106) | (161) | 109 |
Net income attributable to non-controlling interests | 19 | 5 | $ (13) |
Property, plant and equipment, at fair value | 131 | 1,053 | |
Total assets | 852 | 1,087 | |
Total borrowings | 14 | 179 | |
Total liabilities | 240 | 205 | |
Carrying value of non-controlling interests | 477 | 685 | |
Brookfield Americas Infrastructure Fund | Top of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 78% | ||
Brookfield Americas Infrastructure Fund | Bottom of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 75% | ||
Brookfield Infrastructure Fund II | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 324 | 269 | $ 261 |
Net income (loss) | (71) | (60) | (29) |
Total comprehensive income (loss) | 726 | 716 | 329 |
Net income attributable to non-controlling interests | (34) | (32) | $ (17) |
Property, plant and equipment, at fair value | 6,224 | 5,578 | |
Total assets | 6,367 | 5,685 | |
Total borrowings | 1,332 | 1,331 | |
Total liabilities | 1,601 | 1,549 | |
Carrying value of non-controlling interests | 2,615 | 2,251 | |
Brookfield Infrastructure Fund II | Top of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 60% | ||
Brookfield Infrastructure Fund II | Bottom of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 43% | ||
Brookfield Infrastructure Fund III | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 80 | 58 | $ 41 |
Net income (loss) | (4) | (3) | (11) |
Total comprehensive income (loss) | 71 | 332 | 287 |
Net income attributable to non-controlling interests | (3) | (2) | $ (8) |
Property, plant and equipment, at fair value | 2,107 | 2,061 | |
Total assets | 2,126 | 2,074 | |
Total borrowings | 347 | 347 | |
Total liabilities | 382 | 358 | |
Carrying value of non-controlling interests | 1,245 | 1,226 | |
Brookfield Infrastructure Fund III | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 71% | ||
Brookfield Infrastructure Fund IV | |||
Disclosure of subsidiaries [line items] | |||
Revenue | 112 | 25 | $ 5 |
Net income (loss) | 2 | (4) | 1 |
Total comprehensive income (loss) | 220 | 178 | 4 |
Net income attributable to non-controlling interests | 1 | (3) | $ 1 |
Property, plant and equipment, at fair value | 1,529 | 713 | |
Total assets | 1,722 | 798 | |
Total borrowings | 675 | 391 | |
Total liabilities | 780 | 450 | |
Carrying value of non-controlling interests | $ 707 | 261 | |
Brookfield Infrastructure Fund IV | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 75% | ||
Isagen | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 77.40% | ||
Revenue | $ 1,135 | 929 | $ 874 |
Net income (loss) | 340 | 214 | 258 |
Total comprehensive income (loss) | 467 | 11 | 877 |
Net income attributable to non-controlling interests | 257 | 162 | $ 195 |
Property, plant and equipment, at fair value | 8,264 | 8,497 | |
Total assets | 9,178 | 9,498 | |
Total borrowings | 2,356 | 2,224 | |
Total liabilities | 5,112 | 4,896 | |
Carrying value of non-controlling interests | $ 3,146 | 3,493 | |
Isagen | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 77% | ||
Isagen | Brookfield Infrastructure Fund III | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 23% | ||
Isagen | Brookfield Global Infrastructure Fund | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 1.50% | ||
The Catalyst Group | |||
Disclosure of subsidiaries [line items] | |||
Revenue | $ 131 | 136 | $ 141 |
Net income (loss) | 44 | 62 | 65 |
Total comprehensive income (loss) | (32) | 173 | 173 |
Net income attributable to non-controlling interests | 11 | 16 | $ 16 |
Property, plant and equipment, at fair value | 1,031 | 1,129 | |
Total assets | 1,053 | 1,140 | |
Total borrowings | 476 | 507 | |
Total liabilities | 491 | 511 | |
Carrying value of non-controlling interests | $ 115 | 132 | |
The Catalyst Group | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 25% | ||
TerraForm Power | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 35.50% | ||
Revenue | $ 1,324 | 1,239 | $ 1,161 |
Net income (loss) | 94 | (245) | (360) |
Total comprehensive income (loss) | 301 | (243) | 238 |
Net income attributable to non-controlling interests | 63 | (175) | $ (268) |
Property, plant and equipment, at fair value | 10,012 | 10,867 | |
Total assets | 11,192 | 11,939 | |
Total borrowings | 6,371 | 6,902 | |
Total liabilities | 8,275 | 8,916 | |
Carrying value of non-controlling interests | $ 2,283 | 2,197 | |
TerraForm Power | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 75% | ||
TerraForm Power | Brookfield Infrastructure Fund III | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 75% | ||
Other | |||
Disclosure of subsidiaries [line items] | |||
Revenue | $ 10 | 14 | $ 15 |
Net income (loss) | 21 | 8 | 4 |
Total comprehensive income (loss) | 23 | 117 | 0 |
Net income attributable to non-controlling interests | 22 | 6 | $ 2 |
Property, plant and equipment, at fair value | 187 | 164 | |
Total assets | 260 | 202 | |
Total borrowings | 0 | 39 | |
Total liabilities | 74 | 61 | |
Carrying value of non-controlling interests | $ 92 | $ 52 | |
Other | Top of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 80% | ||
Other | Bottom of range | Participating non-controlling interests – in operating subsidiaries | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 0.30% | ||
Brookfield Global Infrastructure Fund | |||
Disclosure of subsidiaries [line items] | |||
Interests held by third parties | 6.80% |
NON-CONTROLLING INTERESTS - Par
NON-CONTROLLING INTERESTS - Participating non-controlling interests (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of dividends [line items] | |||
Revenue | $ 3,778 | $ 3,367 | $ 3,087 |
Net income | 1,850 | 930 | (2,819) |
Comprehensive income | 3,376 | 3,115 | (690) |
Property, plant and equipment, at fair value | 37,828 | 37,915 | |
Total assets | 43,288 | 41,986 | |
Total borrowings | 13,715 | 13,512 | |
Participating non-controlling interests – in a holding subsidiary held by the partnership | |||
Disclosure of dividends [line items] | |||
Net income | 11 | 7 | 11 |
Net income attributable to non-controlling interests | 11 | 7 | 11 |
Carrying value of: | |||
Non-controlling interests | 271 | 261 | |
Holding Subsidiary | |||
Disclosure of dividends [line items] | |||
Revenue | 1,407 | 1,133 | 1,069 |
Net income | 475 | 334 | 472 |
Comprehensive income | 863 | 473 | 550 |
Property, plant and equipment, at fair value | 11,357 | 10,785 | |
Total assets | 12,887 | 12,408 | |
Total borrowings | 3,228 | 3,117 | |
Total liabilities | $ 6,320 | $ 5,967 |
BEPC EXCHANGEABLE SHARES, BEP_3
BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 11, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of limited partners equity [Line Items] | ||||
Number of shares issued (in shares) | 189,600,000 | 189,600,000 | ||
Exchangeable and Class B Shares | ||||
Disclosure of limited partners equity [Line Items] | ||||
Share exchanges | $ 0 | $ (1) | ||
Exchangeable and Class B Shares | TerraForm Power | ||||
Disclosure of limited partners equity [Line Items] | ||||
Units issued (in dollars per share) | $ 28.28 | |||
BEPC Exchangeable Units | ||||
Disclosure of limited partners equity [Line Items] | ||||
Units outstanding (in shares) | $ 25.34 | |||
Exchangeable Shares | ||||
Disclosure of limited partners equity [Line Items] | ||||
Share exchanges (in shares) | 12,308 | 16,071 | ||
Dividends declared | $ 220 | $ 209 | ||
Dividends paid | $ 220 | $ 207 | ||
Shares outstanding (in shares) | 172,218,098 | 172,203,342 | 172,180,417 | |
Class C | ||||
Disclosure of limited partners equity [Line Items] | ||||
Shares outstanding (in shares) | 189,600,000 | 189,600,000 | ||
Ordinary shares | ||||
Disclosure of limited partners equity [Line Items] | ||||
Maximum units for normal course issuer bid (in shares) | 8,600,000 | |||
Percentage of units for normal course issuer bid | 5% |
BEPC EXCHANGEABLE SHARES, BEP_4
BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES - Schedule of shares outstanding (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Exchangeable Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Beginning balance (in shares) | 172,203,342 | 172,180,417 |
Share issuance (in shares) | 27,064 | 38,996 |
Share exchanges (in shares) | (12,308) | (16,071) |
Remeasurement of liability (in shares) | 0 | 0 |
Ending balance (in shares) | 172,218,098 | 172,203,342 |
Class B | ||
Reconciliation of number of shares outstanding [abstract] | ||
Beginning balance (in shares) | 165 | 165 |
Share issuance (in shares) | 0 | 0 |
Share exchanges (in shares) | 0 | 0 |
Remeasurement of liability (in shares) | 0 | 0 |
Ending balance (in shares) | 165 | 165 |
Exchangeable and Class B Shares | ||
Reconciliation of number of shares outstanding [abstract] | ||
Beginning balance | $ 6,163 | $ 7,430 |
Share issuance | 1 | 1 |
Share exchanges | 0 | (1) |
Remeasurement of liability | (1,800) | (1,267) |
Ending balance | $ 4,364 | $ 6,163 |
GOODWILL (Details)
GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of changes in goodwill [abstract] | |||
Beginning of year | $ 849 | $ 970 | |
Foreign exchange | 126 | 121 | $ 20 |
End of year | 723 | $ 849 | $ 970 |
Hydroelectric | |||
Reconciliation of changes in goodwill [abstract] | |||
End of year | 559 | ||
Wind | |||
Reconciliation of changes in goodwill [abstract] | |||
End of year | 64 | ||
Utility-scale solar | |||
Reconciliation of changes in goodwill [abstract] | |||
End of year | $ 100 |
CAPITAL MANAGEMENT (Details)
CAPITAL MANAGEMENT (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Debt-to-total capitalization | 34% | 35% | ||
Borrowings | $ 13,715,000,000 | $ 13,512,000,000 | ||
Deferred income tax liabilities, net | 5,193,000,000 | 4,934,000,000 | ||
BEPC exchangeable and class B shares | 4,364,000,000 | 6,163,000,000 | ||
Equity | 16,824,000,000 | 14,225,000,000 | $ 11,725,000,000 | $ 17,874,000,000 |
The partnership | 5,873,000,000 | 3,667,000,000 | ||
Total capitalization | 40,161,000,000 | 38,868,000,000 | ||
Deferred financing fees | 65,000,000 | 34,000,000 | ||
Non-recourse borrowings | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Borrowings | 13,780,000,000 | 13,546,000,000 | ||
Participating non-controlling interests – in operating subsidiaries | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Equity | 10,680,000,000 | 10,297,000,000 | 10,290,000,000 | 10,258,000,000 |
Participating non-controlling interests – in a holding subsidiary held by the partnership | ||||
Disclosure of objectives, policies and processes for managing capital [line items] | ||||
Equity | $ 271,000,000 | $ 261,000,000 | $ 258,000,000 | $ 268,000,000 |
EQUITY-ACCOUNTED INVESTMENTS (D
EQUITY-ACCOUNTED INVESTMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disclosure of joint ventures [abstract] | |||
Balance, beginning of year | $ 455 | $ 372 | |
Investment | 48 | 0 | |
Share of net income | 6 | 2 | $ (4) |
Share of other comprehensive income (loss) | (58) | 87 | |
Dividends received | (4) | (3) | |
Foreign exchange translation and other | 4 | (3) | |
Balance, end of year | $ 451 | $ 455 | $ 372 |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and cash equivalents [abstract] | ||||
Cash | $ 433 | $ 405 | ||
Cash subject to restrictions | 207 | 115 | ||
Short-term deposits | 2 | 5 | ||
Cash and cash equivalents | $ 642 | $ 525 | $ 512 | $ 420 |
RESTRICTED CASH (Details)
RESTRICTED CASH (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Restricted Cash [Abstract] | ||
Operations | $ 27 | $ 23 |
Credit obligations | 30 | 52 |
Capital expenditures and development projects | 11 | 6 |
Total | 68 | 81 |
Less: non-current | (24) | (22) |
Current | $ 44 | $ 59 |
TRADE RECEIVABLES AND OTHER C_3
TRADE RECEIVABLES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Trade Receivables and Other Current Assets [Abstract] | ||
Trade receivables | $ 506,000,000 | $ 502,000,000 |
Collateral deposits | 603,000,000 | 434,000,000 |
Prepaids and others | 53,000,000 | 83,000,000 |
Income tax receivables | 66,000,000 | 30,000,000 |
Inventory | 18,000,000 | 20,000,000 |
Other short-term receivables | 75,000,000 | 77,000,000 |
Trade receivables and other current assets, net | $ 1,321,000,000 | $ 1,146,000,000 |
% of trade receivables that is current | 96% | 89% |
OTHER LONG-TERM ASSETS (Details
OTHER LONG-TERM ASSETS (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Other Long Term Assets [Abstract] | ||
Restricted cash(1) | $ 24 | $ 22 |
Long-term receivables | 38 | 30 |
Due from related parties | 9 | 10 |
Other | 30 | 7 |
Other long-term assets, net | $ 101 | $ 69 |
ACCOUNTS PAYABLE AND ACCRUED _3
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Accounts Payable and Accured Liabilities [Abstract] | ||
Operating accrued liabilities | $ 258 | $ 195 |
Accounts payable | 154 | 118 |
Interest payable on non-recourse borrowings | 85 | 71 |
Income tax payable | 74 | 3 |
Current portion of lease liabilities | 26 | 25 |
Exchangeable shares distributions distributions payable | 14 | 16 |
Other | 10 | 24 |
Total accounts payable and accrued liabilities | $ 621 | $ 452 |
PROVISIONS (Details)
PROVISIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of changes in other provisions [abstract] | ||
Balance, beginning of the year | $ 497 | $ 567 |
Additions | 0 | 0 |
Disposals | (1) | (12) |
Accretion | 11 | 9 |
Changes in estimates | (185) | (60) |
Foreign exchange | (8) | (7) |
Balance, end of the year | $ 314 | $ 497 |
OTHER LONG-TERM LIABILITIES (De
OTHER LONG-TERM LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Other Long Term Liabilities [Abstract] | ||
Lease liabilities | $ 338 | $ 346 |
Regulatory liabilities | 149 | 130 |
Pension obligations | 43 | 64 |
Concession payment liability | 10 | 10 |
Other | 75 | 86 |
Other long-term liabilities, net | $ 615 | $ 636 |
COMMITMENTS, CONTINGENCIES AN_3
COMMITMENTS, CONTINGENCIES AND GUARANTEES (Details) R$ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) MW | Mar. 31, 2023 BRL (R$) MW | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Development project cost | $ 505 | $ 392 | ||
Borrowings | 13,715 | 13,512 | ||
137 MW Wind Portfolio | Major business combination | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Wind power capacity | MW | 137 | 137 | ||
Other cash payments to acquire interests in joint ventures, classified as investing activities | $ 98 | R$ 529 | ||
Proportion of ownership interest in joint venture | 23% | 23% | ||
Sudsidiary | Letters of Credit | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Borrowings | 994 | $ 698 | ||
Less than 1 year | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Payments for development project expenditure | 475 | |||
In two years | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Payments for development project expenditure | 26 | |||
Thereafter | ||||
Disclosure of finance lease and operating lease by lessee [line items] | ||||
Payments for development project expenditure | $ 4 |
RELATED PARTY TRANSACTIONS - Na
RELATED PARTY TRANSACTIONS - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Oct. 16, 2017 USD ($) $ / shares | Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) $ / MWh | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Disclosure of transactions between related parties [line items] | |||||
Management fee fixed component quarterly | $ 5,000,000 | ||||
Base management fee | 169,000,000 | $ 175,000,000 | $ 129,000,000 | ||
Management service costs | 0 | 0 | 23,000,000 | ||
Borrowings | $ 13,715,000,000 | 13,715,000,000 | 13,512,000,000 | ||
Interest expense | 1,032,000,000 | 900,000,000 | $ 816,000,000 | ||
Sudsidiary | |||||
Disclosure of transactions between related parties [line items] | |||||
Fist distribution (in dollars per share) | $ / shares | $ 0.93 | ||||
Second distribution (in dollars per share) | $ / shares | 1.05 | ||||
Additional distribution (in dollars per share) | $ / shares | $ 0.12 | ||||
Proceeds from sales of investments accounted for using equity method | $ 288,000,000 | ||||
Transfer Of Carrying Value Of Assets And Liabilities | 23,000,000 | ||||
Sudsidiary | Incentive Distribution Right | |||||
Disclosure of transactions between related parties [line items] | |||||
Percentage distribution until further amount distributed | 15% | ||||
Percentage distribution thereafter | 25% | ||||
Share payments | $ 0 | 0 | |||
Sudsidiary | Class A | |||||
Disclosure of transactions between related parties [line items] | |||||
Percentage distribution until further amount distributed | 85% | ||||
Percentage distribution thereafter | 75% | ||||
TERP Brookfield Master Services Agreement | Sudsidiary | |||||
Disclosure of transactions between related parties [line items] | |||||
Management fee fixed component quarterly | $ 2,500,000 | ||||
Percentage of quarterly market capitalization increase | 0.3125% | ||||
Quarterly fixed fee component for the next four quarters | $ 3,000,000 | ||||
Quarterly fixed fee component, thereafter | $ 3,750,000 | ||||
TERP Brookfield Master Services Agreement | Sudsidiary | Top of range | |||||
Disclosure of transactions between related parties [line items] | |||||
Quarterly market capitalization increase (in dollars per share) | $ / shares | $ 9.52 | ||||
Power purchase agreement GLHA | |||||
Disclosure of transactions between related parties [line items] | |||||
Power purchase agreement, term | 20 years | ||||
Power purchase agreement GLHA | Brookfield Renewable | |||||
Disclosure of transactions between related parties [line items] | |||||
Electricity prices | $ / MWh | 37 | ||||
Annual increment as % of CPI | 20% | 20% | |||
Secured Revolving Credit Facility | Brookfield Renewable | |||||
Disclosure of transactions between related parties [line items] | |||||
Borrowings | $ 500,000,000 | ||||
Borrowings term | 3 years | ||||
Standby fee rate | 0.50% | ||||
Secured Revolving Credit Facility | LIBOR | Brookfield Renewable | |||||
Disclosure of transactions between related parties [line items] | |||||
Borrowings, interest rate | 3% | ||||
Series 8 | Medium Term Notes | |||||
Disclosure of transactions between related parties [line items] | |||||
Borrowings | $ 400,000,000 | $ 400,000,000 | |||
Unsecured Revolving Credit Facility | |||||
Disclosure of transactions between related parties [line items] | |||||
Interest expense | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - In
RELATED PARTY TRANSACTIONS - Income statement (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues | |||
Power purchase and revenue agreements | $ 72 | $ 163 | $ 361 |
Other income | |||
Interest Income, Related Parties | 9 | 10 | 0 |
Direct operating costs | |||
Energy purchases | (22) | (62) | (10) |
Energy marketing & other services | (7) | (11) | (17) |
Insurance services | 0 | (20) | (21) |
Total related party direct operating costs | (29) | (93) | (48) |
Interest expense | |||
Borrowings | (17) | (29) | (1) |
Other related party services | (4) | (13) | 0 |
Management service agreement | (169) | (175) | (152) |
Gains associated with agency arrangement | 0 | 62 | 0 |
Brookfield Asset Management | |||
Direct operating costs | |||
Insurance services | $ 0 | $ 0 | $ 0 |
RELATED PARTY TRANSACTIONS - Ba
RELATED PARTY TRANSACTIONS - Balance sheet (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets | ||
Due from related parties | $ 615 | $ 548 |
Non-current assets | ||
Due from related parties | 9 | 10 |
Current liabilities | ||
Due to related parties | 464 | 649 |
Total | 465 | 649 |
Non-current liabilities | ||
Due to related parties | 15 | 8 |
Subscription facility | ||
Non-current liabilities | ||
Non-recourse borrowings | 1 | 8 |
Brookfield | ||
Current assets | ||
Due from related parties | 41 | 16 |
Current liabilities | ||
Due to related parties | 37 | 21 |
Brookfield Renewable | ||
Current assets | ||
Due from related parties | 563 | 523 |
Current liabilities | ||
Due to related parties | 315 | 625 |
Share-settlement liability | 1 | 0 |
Brookfield | ||
Non-current liabilities | ||
Non-recourse borrowings | 0 | 0 |
Equity-accounted investments and other | ||
Current assets | ||
Due from related parties | 11 | 9 |
Non-current assets | ||
Due from related parties | 9 | 10 |
Current liabilities | ||
Due to related parties | 12 | 3 |
Brookfield, Brookfield Renewable, and Equity-accounted investments and other | ||
Current liabilities | ||
Due to related parties | 464 | 649 |
Brookfield Reinsurance and associates | ||
Current liabilities | ||
Due to related parties | 100 | 0 |
Non-current liabilities | ||
Non-recourse borrowings | $ 15 | $ 0 |
SUPPLEMENTAL INFORMATION (Detai
SUPPLEMENTAL INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from (used in) operating activities [abstract] | |||
Trade receivables and other current assets | $ (270) | $ (467) | $ 42 |
Accounts payable and accrued liabilities | 175 | (259) | 8 |
Other assets and liabilities | (8) | 99 | (60) |
Increase (decrease) in working capital | $ 103 | $ 627 | $ 10 |