BEP - Earnings call transcript Q2 2021 | Brookfield Renewable Partners L.P.

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Operator

Thank you for standing by, and welcome to the BEP Second Quarter 2021 Results Conference Call and Webcast. [Operator Instructions]. It is now my pleasure to introduce CEO of Brookfield Renewable, Connor Teskey.

Connor Teskey

Thank you, operator. Good morning, everyone, and thank you for joining us for our second quarter 2021 conference call.

our would news remind letter release, can found we copy that to begin, be our of investor on we like you to a unitholders Before website. supplement and

you We also on call. future unknown statements These results we and make subject known and forward-looking this to that are risks, want statements may may remind to our differ materially.

growth for liquidity. The questions. driving should -- results provide and operating stakeholders initiatives. provide today's remarks, on taking an and are encouraged an business, an that our will come the on well filings being This green to our and After outlook tailwinds accelerate towards increasing growing forward growth a of as amounts SEDAR, EDGAR the update well Corporation, as regulatory call, on solutions. the to Wyatt Renewable overview After available opportunity recent off as kick decarbonize. update for as will investment our allocated the world Brookfield our we you our on which as to It clean is to both focus surprise demand of review there information, an increasingly sheet sector. initial balance To imperative around further continue recent no capital an and other For on your we website. on look global increased renewables energy as is update

us. decarbonization governments believe global to businesses have invest As goals, to one and of the with their ahead great the runway we them record businesses few and we achieve of a help capabilities track with both partner scale, and also

returns market conditions. earn in We have to excellent continued these

as on investors can is development opportunities tailwinds also global favor opportunities value-add that increasing. industry focused operating And accelerate, with access scale leverage remained set our and our to number the scale, we capital. have of We expertise and reach where skill

quarter. levels basis per through prior our per with We and for a period XX% normalized million generation the our from same and number growth We off-takers assets assets with asset signed coming corporate generated FFO the -- acquisitions number of a development now the both $XXX the to unit major availability, or a from $X.XX over highlights as new of of high continue and high-quality a we perform hours development approximately gigawatt for well industries. unit, will walk year in XX We on benefit renewable of increase asset of across all online. XXX agreements

grow advanced our in approximately of with contracting through and industry and to is agreed leadership projects construction approximately which we Our approximately growing billion million demonstrates permitting range a across progressed momentum the our continues approximately megawatts X,XXX invest added of megawatts a corporate transactions. now $XXX to rapidly net We and trend. XX,XXX development world. X,XXX or over invested to pipeline, development Year-to-date, megawatts global or Renewable have around Brookfield $X.X equity of to

billion or and And meaningful $X.X year. $XXX net Renewable far so we Our billion over robust sheet from with this asset available $X.X balance no raised strategic almost Brookfield near-term up-financing recycling of million to maturities. finally, and liquidity activities approximately remains

recent initiatives. our growth Now some turning to attention

States, repowering contracted world. in of the and the Shepherds Flat the project, highlight commenced approach the one for flow cash us to to capital value allow our solutions, more which flow Flat, we capabilities energy drive projects acquired XXX-megawatt fully continues the of located which that repowering this is to that growth. to opportunities investing executed recently agreements June, We operating we largest decarbonization approach. year. renewable favor transactions our to earlier and As United and will leveraging Shepherds into wind In our those this growth utilize several in continue strengths, is

example the XX%, a extending will will end comparable can enhanced us, as hardware more the capitalize is complete By the that our we requiring with only advanced of XXXX, how meaningfully increase life. of gigawatt greenfield the the platforms the equipment will equipment annually, to of rotors while is the deliver almost asset's as capabilities, equity infrastructure. under world. returns. by continue by measuring capital the useful current Doing maintaining the the is expected clean and mid- power additional the -- repowering receive that XXX in repowering as we environment. generation purchase power a attractive XXX to power We while meters the agreement. also approximately as Furthermore, leading of energy time that project more one given fraction of with it This the so longer have the technologically to no cost XXX both renewable and an of turbines position operating well requires structure, current the turbine of robust revenues repowering This a combination production our and high-teens efficient in meaning we is rest been market other support our rotors the generating and investment on competitive the expected from generate hours replace advantages requires retrofitted additional

global by means only for the Shepherds Flat With power no with gigawatts returns. existing at is X grow segment age of next project. have suppliers, is to an this We our attractive XXX reaching and one where capacity market global we continue derisk to relationships only our large. repowerings this opportunity, the business financing years, offtakes equipment XX and of wind within estimated partners years the largely leveraged is

repower to we on well both as to for Given other projects, existing global our acquire our returns expect portfolio capitalize capabilities, across scale operating investors. those and attractive opportunities as we reach our to deliver

and North America, power, pipeline. largest future. our to operating of world's the Europe, XX,XXX This corporate signed in capabilities work strategic purchase teams Asia our a in and agreement Brazil supported projects of construction renewable together support renewable green also with energy the the and buyer megawatt new deep we agreements to agreement collaboration local power Amazon quarter, projects will additional by This with develop opportunities to leverage development on from

We while operating efficiency, experience implement jointly costs solutions development provided upgrading Trane's project support critical basis energy generation customers and We and with installing and to our made support customers. infrastructure, generation the inflation sustainability other industrial public energy. escalating on are develop This energy agreement offer and goals contracts for to our collaborate reducing comprise transition grids Polish almost decarbonization activities. Trane opportunities. and energy infrastructure leading and curtailment or The build-out across development secured and renewables distributed retrofits power to their achieving global distributed engineering attractive leading to climate upgrades offshore North meet storage help In XX-year and building leverages to Amazon progress America. significant sector commercial, prices, electricity business jointly with and with of X.X at time of gigawatts energy-efficient new will targets of the at with we along solar, U.S. captive risk. energy agreed through no The on-site customer of our same while pursue we business, them Furthermore, renewable wind will excited greener to in helping projects Technologies energy. with decarbonization-as-a-service

sector. attractive have structures contract the global we believe these wind previously, available As are offshore in we stated some most the of

goal delivering now facilities XXXX. in with focused on activities are executing We of the starting the construction

To XXX required In million track country. wind year Brookfield project onshore footprint almost next Renewable to under and our In on the deliver Recently, EUR wind of addition, initiatives, solar on and fund have in across schedule solar years, to budget. business million or our to X-gigawatt agreed under completed our portfolio and stake the grow at in under-construction XX%. activities opportunities the over Brazil, our increase capital the portfolio solar for invest XXX-megawatt continue X of onshore an we increases next schedule construction are approximately are framework projects. us budget our additional providing to and growth ahead shareholders to almost on and XXX-megawatt to by to advancing we construction and $XX our construction activities approximately wind progress net these

are to raised country. which for construction additional positioned $XX agreed was its continue In expand an path capacity and zero to a XXXX. acquire and we in projects This by Renewable in acquisition alongside third million megawatts of in transactions transition Fund, to global to is contracted fully country, wind Renewable China Brookfield a capabilities agreed Apple to portfolio XXX-megawatt net to This our the and we totaling million procurement net to in China, collective $XXX contracted $XX two $XX Renewable. in million close or lastly, assets India, million deliver we or advance in the China, to our transaction a to to track local Brookfield Apple's the of net providing stake their suppliers megawatts XX% diversify capacity. of continues platform platform and grow to prudently XXX approximately And Energy invest quarter. Our have on approximately well, across in XXX expected us

is assets solar The a from local with acquired XXXX. first in developer we whom

projects just ready-to-build venture the the where development contracted we undertake part are and have the and acquire once pipeline are with is permitted transaction development in partners, we a This of solar a to We our X.X-gigawatt they begin XXX-megawatt joint the ready acquire opportunity first a will construction. developing potential project. fully option that they of fully to activities,

was transaction right is to in a us portfolio underlying solar gives large borrowers we results year with derisked. call of I'll acquire contracted that a and to Indian operating solar one loans been a fully developer XXX-megawatt our The turn acquired in has The the the discuss substantially Wyatt late financial investment XXXX. the commissioning second to following over position. that, the project project, once With X of

Wyatt Hartley

Connor. you, Thank

has make this XX I Before many including almost BEPC the privatization or position, to we S&P the expanded the the Clean we consideration TerraForm Global and Power, Energy Corporation, Russell launch, Brookfield of XXX public many comments Canada brief operating a the in it the Renewable of XXX%. the achieved addition new were float financial our XXXX, and since and we to offer welcoming corporate approximately at out time, BEPC. launch It institutional entity. as able to goals has Index. and including spun set by investors few want since discuss months MSCI been We I that on In results indices, shares

investors And forward, decarbonization access we are that and will market pleased with very positive and the portfolio We offer looking globally renewable our broadening base BEPC continue assets, the leading our investor reception. to to of liquidity enhancing of securities. an way additional expect our

results. operating Turning to

our basis, per second availability were $X.XX normalized million from and as we year-over-year. our per strong During initiatives. up results acquisitions, or unit business unit asset the quarter, XX% of benefited On generated margin-enhancing $XXX FFO recent a

During the strong continues for the flow FFO contract hydroelectric $XXX in our delivered Despite of to below the million. long-term increasingly cash the resiliency segment given exhibit quarter, generation coming quarter the asset profile. diversified base and portfolio average,

reiterated As we resource does previously, not impact have is manage we expected, how business. cyclicality the but

in clean the by are bolsters against region long-term mitigating remains as contracts resource, a to continuously year, our Our below well of diversifying Brazil particularly exposure season the single assets. prudently the on that dispatchable reservoirs business our focus impacted fleet and services country, dryer-than-normal of value electricity the and contracting ancillary rainy has the while variability. further counterparty Securing or any inevitable portfolio a average. and generator this managing market of been by uniqueness southeastern

a As the there been thermal is spot the generation, prices energy risk modest forced significantly and of has grid have dispatch in result, to country. higher-priced increased as rationing operator

is environment. Our this portfolio in positioned well

obligations this on the no to delivery for signed risk we for And could being of XXXX. realize short of we year next little of strong pricing have potentially year. rest our We very and contracts power

at on for or solar the from and continue purchase million advantage of pricing year fleet power Concurrently, of BRL for take double the in XXX a wind project with highly project. benefit agreements. development these agreement regulatory in generated to this we from $XX the generate from our Brazil, strong uncontract revenues an to long-duration executed on the in our mechanism of generation country. we from $XXX segments million stable of a Our contracts contracted purchase the the to Further, power XXX-megawatt revenue diversification and environment solar executed assets we new market as and our approximately price additional combined free of flows generation FFO XXXX million generating the cash

critical achieve quarter industrial grid-stabilizing Our intermittency ancillary and energy partners generated to electricity while million of segment their of continues during commercial and grids. transition to backup portfolio greener $XX we FFO capacity assist as goals the the services decarbonization provide required grow, our increasing address and

financial continues Our to be strong. position

available $X.X We of billion liquidity. have approximately

no maturities coverage financings are is business, and balance sheet a meaningful our Brookfield Recently, our which rating Renewable. of Fitch initiated rating, investment-grade nonrecourse has approximately Our S&P. near-term XX% BBB+ existing consistent our with to assigning of from

to and environment advantage During take across the executed investment-grade of $X.X billion on interest of approximately we continued quarter, the rate business. low the financings

several growth. million we to capital or liquidity Recently, proceeds initiatives million We Renewable to to Brookfield over bolster and on equity execute our $XXX support also approximately continue from raised $XXX net of recycling initiatives. further

expect to strategic from capital proceeds up-financing continue to recycling meaningful Looking initiatives. generate forward, we and

of capital fund the So we our to on are growth not markets reliant business.

the existing and sheet remain capital and and servicing key continue total call. September. over for us questions. place all unitholders through executing to thank their helping we on we this our it Day, the for our priorities, our our investors of Thank I'll Board for with connecting enhanced maintaining committed sources look balance to a our you cash to including XXst Brookfield concludes scheduled value term. ongoing with formal Investor diverse joining our forward the to today's earn decarbonization ahead, customers long morning. growing on of goals That at of management We for and shareholders support robust remarks XX% of Annual access our in take to operational XX% operator is Looking Renewable, which to behalf of that, business back flows on a strong the and our from our and On their pass process, portfolio. to and And achieve you return focus

Operator

[Operator Instructions].

line Rob the Scotiabank. Our first from with comes of Hope question

Robert Hope

some wanted the under as into I costs fall come collaboration effect? put Amazon. technologies, geographies, on that goalposts the eventually can start agreement this you And around kind How with line? that well of as could to time agreement does

Connor Teskey

corporate but thank in. world, one collaboration green Wyatt, largest we our I Perhaps largest excited simply, with of start, of power is We're green the buyer will you. Amazon providers power world. and the and the about and Certainly, of suppliers please Amazon. around around Put very are the jump

of of years. power determined. collaboration ambitious So global world. included a in Amazon's interest. core very geographies we the it to of size makes excited not this this think is alignment the across think this specific projects for all is our help initially be the materially are nature a coming It's those And ability in and what because projects still our will probably discuss green could to targets natural most ambitious we about support actual in being around But us is prudent sizable given in multiple initiatives, us that procurement agreement terms grow in is that them

Robert Hope

with The majority question will it the there? All take interact interest of Could BEP? right. transition as a global it how opportunities. in do of And see you XX% then capital fund follow-up in maybe of a just terms was announced, that think kind we

Connor Teskey

Great you. question. Thank

transition fund, with the funding commitment Brookfield fund Brookfield's other similar Renewables to the Brookfield investment BAM's Renewable funds where Renewable, will fits Brookfield mandate. to For the be flagship

the direct be Given Renewable. mandate and continue the do to of renewable the we to fund in Renewable for attractive Brookfield decarbonization of acquisition the we largest made such the we the fund It most we we're be funds. expect funds it Brookfield certain when opportunity privatized make suitable around that to be simply build-out Renewable we transition investments will will enhances and of the expect And because the TERP Brookfield do power is make that growth for private investments world. target Brookfield so the that through and but renewable does when decarbonization may the power investments transition transition assets, over excited most last majority as opportunities strategic case year, to through all

Operator

National Bank. of line Merer comes Rupert next the from question with Our

Rupert Merer

higher for over some couple pricing negotiation Brazil. contract do in potential assets upside Now you recontracting your how power see there? talked up next the and of you with for there the in your How be years? much about And will the of of Brazil much Brazil the prices and capacity environment

Connor Teskey

Perfect.

we and why of one, going position us a we power conditions is use specifics. as this are such of of In seen to in But do In we've of we we to continue well are it thus what hand I but of the variability can start the But some forward resource a cushion resource I such use is operation contracts, The basis then any to experienced. for flexibility low to drought-like hand Brazilian do highly contracted these it, we provide what more as all to our Wyatt, for that look do, always cushion. is the minority far long-term Rupert, this to you for but some don't hydrology So small might positions years leave years, that being majority our year. I situations. do certain the contract situations on we a years short-term hold like Wyatt don't of variability to obviously a sufficient targeting currently handle we we profile. that number contracted under in of specifics? for account

Wyatt Hartley

Yes.

remaining our of seeing benefit we And around numbers that down just achieved then use one, historical And is we're back XX% What to or our between to to can lot to that short our we the XX% XX% we we that going very be not LTA that and short. power data into that's mentioned secondly, translates up. delivery not comments potentially a as being of of a So XXXX, open. to mentioned, attractive track, price XX% -- normal in this we year the surplus that in contracting XX% obligations, energy above XX%, we that we're and we and to Rupert, year our portfolio prepared way the course that so to we're a that about caught we and extent generation as in monetizing leave of that, some put then where then resource Connor generate is market. think like

So majority contracted. portfolio but upside, is the some there of our is

Rupert Merer

other And really infrastructure sorts from could going capture or It peers so, the investing in some Okay. Rob. renewable you're your last infrastructure contemplate question And follow-up investing of Very up or like to gas? do coming your to good. investment, natural you the of much could like seems anticipating of the Are future. think carbon in in you make in a if years? how be hydrogen that you

Connor Teskey

Thanks, a at the providing Rupert. to We the solutions, many our or transition And in higher and and feel increasingly being emissions that their Few different that partner investments many -- more capital green come of provider. decarbonization particular, corporates and we decarbonization energy be businesses higher setting more operating to are Increasingly, solutions step is supplying world with reason by a themselves. for ways been question. first around businesses that has around objectives corporates strong very X position are power. and provider, for and that their business that making that address to in business the is decarbonization for scope in plan

helping to corporates to this tremendous own comes them low-hanging for reach engage what fruit and of be do us that helpful provision amount other get and years. targets. partner a is their then on there, in the it decarbonization those provider the of in leading zero we decarbonize power -- than We From a a a ways their ways green with And plan. allows we corporates green being see opportunity. have power, we other producer of been provider help producer or net counterparties business their in can When to

of the incredibly technologies we some you closely. mentioned, absolutely And are following

is for many that hydrogen and is not But markets over in that the doing investable such the green well take the will comes portfolio that to Green what scale green for foot will we're advantage production around long-term future the hydrogen green the internally batteries. world front expect of available. a duration opportunities market within become whether when positioned both curve We of very opportunities Brookfield and those that in on down type ready is cost when feel And the energy cost other our well, curve storage a when and for investing that be we cost-effective hydrogen wide it we be large time. exceptionally we the one positioned they at carbon of to hydrogen green and looking future as of on opportunity we are attractive future be for hydrogen or basis storage I well the comes and today. opportunities down just capture build-out would in looking in in Renewable be say one are opportunity

Operator

the Sean Steuart And our next of with from question line comes TD Securities.

Sean Steuart

us more X And attractive on -- by not A recycling, and to couple I'm X to with you're can financing want But the capital last capital has start that's fronts, both where opportunity or updated surprise, you valuation and you spots, wondering a of over And activity. whether ambitions suppose. and months if a set? ongoing Connor, seeing respect the the evolved sweet to of geography? recycling it's that I I give questions. technology referenced with thoughts those on ongoing

Connor Teskey

And Certainly. closed we also Maybe and assets. pretty shortly Thanks, our the say In expect close sale Scottish things. approvals just recently the wind received Irish two we've announced of previously wind Sean. to and the quarter, to U.S. our here. would sale

the things of terms perhaps market, seeing in we're In we there's two that would highlight. dynamics

environment for where plan. our assets. the that forms assets. We for We are remarks asset business of increasing there for robust creates other into de-risked, us contracted wind we to in more assets, and and capital about a derisked continue simply towards a is to classes spoke power sell robust more we've is seeing flowing solar how assets or very see renewable prepared decarbonization bid our That for sustainable achieved prices long-term very, long-term and which

in the our the inherent and storage hydro the that would assets those of up-financing we of more our portfolio, us seeing solar characteristics of to sell helpful The increasingly current other characteristics we're within it's chose wind fleet. and also and And assets, hydro significant are North to is to stated baseload value that both -- in thing there's we from long increasing tremendous of monetization in if say particularly capital becoming recycling where but up-financing and those and America. the increasingly up-financing our raise for capacity we've capacity market helpful have increasing scarcity portfolio, valuable ever terms build-out a within perspective is perspective to because we an capital seeing that an fleet. our hydro us from in Within we're

Sean Steuart

useful. That's

Can your over that following opportunity your scale on behind decarbonization with And of more the to if comments to context respect on some any you question, out with possible, partnership give services. Second Trane that term? the and previous objectives context us to your mid partnership grow Technologies? long

Connor Teskey

Certainly.

secondly, of we generation energy-efficient and it leader me, solar commercial excited an full in excuse commercial really a What providing because one we're on cross-sell see generation building. decarbonization we respective by that on-site we And Brookfield benefits an and bases we providing a renewable provide dynamic distributed agreement take each global products is for on our two can about in self-consumption is in customer and the industrial same transaction a So the ways: to our and with in building. sectors. And products simply, And services the customers. leader outside for collectively, of is to of But exact obvious suite power one, step Trane our services -- unparalleled counterparties. really are the Trane industrial the therefore, to maybe across are this the other's the see of providing U.S. distributed inside fastest-growing unparallel opportunity can of back, put we in the tremendous target business growth most generation we Renewable. platforms a within

what even but these and say is growing of well. faster our alongside it invest business an efficiency some opportunity in energy Trane already So the grow we building this is to to would also inside than as creates solutions decarbonization providing DG

Operator

Capital of with next our from line comes question Nelson RBC Markets. And the Ng

Nelson Ng

and Great. think on generation? -- noticed you expect going generation lower strong was the -- so of you the question year Brazil make weak I additional hydrology is, said In commentary, rest your in forward, QX for was the would I up hydrology the do that the uncontracted profit weak. in I And just hydrology actually the for guess pretty Brazil? the

Connor Teskey

just Nelson, it fairly Brazil. X had I'll So above markets. and of the hydro our maybe United clarify, hydrology start, Canada, We We but to did a hydrology was weak States hydrology quarter LTA X across below have in LTA in Colombia.

reversion mentioned our clarification. we would we Mid-Continent QX. And a manage add in LTAs. U.S. seeing towards partway remarks, opening of long-term I The Brazil at through point, this And is, Canadian and in his So want the to the exception one Wyatt are of as already that the make assets, to I business thing LTA. just with we're most

So was be QX we're what to difficult in expect QX at seeing as this in hydrology point. as it we on don't based

in In in would will when XXXX be to try hydrology terms beneficial The of year, Brazilian look activities our would in to it think not we what Brazil we significantly for be certainly market. be. what production to to forecast us are guess exactly But portfolio. done have and next the prudent it's I recontracting hydrology tough

Nelson Ng

it. this assets? there a your other forward? Or government lot assets the can then color And Is you provide contracts just can Okay. additional specific a Got very of and recontracted from for more that for on in then bit essentially the pull you your to do going ability -- market? is

Wyatt Hartley

Yes. Nelson, it's Wyatt here.

available the realized It's they right. the to their projections overcontracted. XXXX, looked was as But or the country not exactly market. that effectively the they at company here distributing what they of happened were -- Brazil generate -- You're for it's broadly broadly really or distributors in

the of distribution projects or regulator mechanism often position up And that uncontract, so the set when that does occurs, reducing thereby certain companies. over-contracted government a the what can whereby is

it was being in the the so that was of year what provided project case, was And this XXXX opportunity delivered effectively new any uncontract. for is to

And as country. development XXX-megawatt mentioned, the to project deliver our so -- about in we we're

eligible And uncontract in were good XXXX to double a -- then and very under we revenues. able and so effectively was this to earn market free mechanism rates the recontract that concurrently boost the at for for

Nelson Ng

XXXX, in following same So right? for the It's just year? those be assets would contracted

Wyatt Hartley

Exactly contract, right. for put onwards. that the the It from in asset, the built and continues we is It is only not when uncontracted XXXX PPA long XXXX focused contract place term. we

Nelson Ng

then just before the And get one last queue. in back question Okay. I

the repowering lot of that mentioned Connor, side, you opportunities On are there. out a there

obviously Flat. Shepherds You're on working

think have a other there U.S. Or I given project geographies California, the focus in repowering tax you the are York main Is that New I and now? you're on believe. on focused in the right available credits?

Connor Teskey

And question. absolutely great you're right. certainly, Yes,

are that. States. We seeing driving attractive opportunities And the there's two primarily most right the in really now United things

get is that projects are U.S. very repowering credit qualify lot mentioned, And supportive very there's the the can tax And scale regimes for to second you States. economies bigger. about in that a much simpler, therefore, simply, the of there's then is in repowering it the which you United process. a put U.S. As the during nuance

authorities And the United is that And forward a be installed closely. more tracking eligible excited broader market. us that's we wind from we're in gets as in and think greatest the States, support very very large we fleet seeing for the does for Europe. will for that term and in future, repowering is governments regulatory opportunities While something reason the in have aging come that Europe repowering, opportunity short the are does very the that

Operator

with from And Strouse Mark line question JPMorgan. the comes our next of

Mark Strouse

me, I just want to mind. don't clarify something for you if

the response component the as increase you inputs constraints very globally, your as that? what projects, PPA the that getting potentially for any with with to areas diversified customer to prices, need raising And much extent pushback? increase is are to Are you pricing some well. Just we're supply particular seeing delays that you assets understand across geographies, across but and in your of you're seeing the well are

Connor Teskey

Mark. about we'll our this And maybe we'll then down talk the macro come perspectives. Thanks, little two from Certainly. go business. a We'll bit and to at different

was obviously, over, any panels supply largely and or solar supply short-term there's two, a driven be we're X our in is When that online. by as going And last things much business, effect months. behind This incredibly resolved was there key call immaterial. this supply forward, been increasingly over next through any increasing increase of, shocks the of notably it number markets it, production X I short-term to equipment I those as demand; And visibility would say costs, at months. to also point. XX So call largely comes to production but back has two a largely result capacity point new coming we to there concerns an seemed see us, growing muted X and these the very shocks expect to. shocks supply would And it, in we look one, in on

lock that prices very, leave contractually approach months of projects. removed I First and downside have in moves we're returns. our X therefore, contract largest shortage. and that and supply we has very dramatically concurrently, from us our close contract. risk any ourselves development both on in last procure the lock underlying eroding to if we foremost, things effect same increasing say those a and we're exposed in affect and material or possible, locked affected our basis We mitigant we together, as as And one part the a thing won't market in prices in could equipment equipment risk always and look terms our and we therefore, would sides the is management never our at time taking X to to do been would do over of that

of this on Absolutely. continue therefore, solar at within things our second at that work our we we we've centralized through suppliers. developments time our maybe point, or And our as development a the And to say to the on yes, was have the supply Tier be was world it outside But around none to maintained Tier of construction The strong it like they large we schedules, and with schedules plan. boundaries relationships is, shocks? X thing with and result would very the suppliers adjust procurement, when material. X of budget. shipping all look had And

Mark Strouse

kind else? on globally. infrastructure of clarity similar then And Europe, potential a seeing customers regarding Fit-for-XX sitting on waiting on anything the just of kind the any U.S., question, in program government you prospective I incentives waiting term, near are Okay. your mean bill of around their more hands in for --

Connor Teskey

Not waiting things the biases utility massive overarching in incremental And to corporate increase demand individual demand particularly. in for short-term power. for to these more outweighs going for just and far say But would our I in the visibility. overarching green is increase support that any are customers continued be business. tailwinds All growth a

So a impact from I seeing. it's say not what material would having we're

see all We demand the major for continue world. growing to green markets universally around across power

Operator

line the question Hammond with our next of And Sandler. Piper comes from Pearce

Pearce Hammond

you there international curious, based not intriguing I just markets And may their that with plans? the moving Are decarbonization in forward have be some upon your where look markets up outsized look what was get right there when might markets that now. might international that time? you opportunities that up own in the forefront, built around they're some be moving expertise able are apply to markets you to you over the be and some

Connor Teskey

And to could our footprint. look in through a China, small small we the the markets And on there operations of through we're looking Thanks, there's all say great I very be prudent larger to on we The over Pearce. attractive a increasingly around continue where and are platforms we suggest we it our platform we And or are X would It's Chile, the these any of our or accelerated core more wouldn't enter we're a this ground. around forward. But see addition world in in last But nice have returns. have there global see we the question. point, basis. do and we that we And X about if have deploy we an going looking a number are the we've that years, At markets, world small markets we in capital few our years going to to risk-adjusted America, regions a of in Japan, cautious where in thing where a the ourselves are when grow benefit continue that to where best could in dramatically continues our to last the personnel our have at years. to to on and to allocate we underlying acquire. grow large but to operations, companies look opportunities. Uruguay. going to we in in Australia, coming can capital years, expand be footprints markets, growth approach where We're portfolio South in India, few operations see have projects had are assets the Europe, recent do could look number and markets opportunities North we core see attractive markets the

Pearce Hammond

And when bill, think two starts. my moving look a benefit that know you Brookfield in be kind and one through that big you infrastructure bill? of -- or fits that is then But different I follow-up are Biden or at in bill things question, could beneficiary the there Washington

Connor Teskey

Certainly.

so investors in some will United increasingly growing potential you where our teams. -- that own under faster across decarbonization to spectrum. the most large bill using in-house are things about our the growth but bill, we Biden's as pipeline of see that play of of operators And of organic operating increases development quarter-over-quarter, or pipeline can different been most that be in One about projects considered There the across our at parts ourselves the a we developed And is development in help so development think it lot we X,XXX tax is a opportunities. across megawatts when bill pulled portion added the have that such obvious is The many that development some can of with credit helpful market. spectrum of a exciting pipeline our and development could entire look are pipeline. Biden's the certainly infrastructure some be things increase obvious assets, the that one, decarbonization will there's of all-encompassing. States, that And number development and the one there bill, the forward. of was those for in That's

Operator

question BMO. And Ben from comes our the Pham with of line next

Benjamin Pham

transition seeing you pure-play, perhaps comments, with and for the you you're now at to you company that maybe just energy next with energy the your more company? Renewable, fund look years, alignment to that XX transition think balanced evidence the What's a you and -- are Brookfield that demand you there's or and great overwhelming an like, it are Do between more versus data fund. that sounds renewable guys the

Connor Teskey

forward. go it's the and great Ben, -- and X more comment back over we our last of a And question. that have a or made years we investments to I'll increasingly more before, X developer and and I solutions. decades owner, been acquirer would leading a renewable decades a operator, transition global slowing see generation we decarbonization and say energy basis and grow decades, on in is do And for business solutions of been and an have about scale, if decarbonization all. what is we our provider, participate being of exponential growth business also power component portion to to incremental our growth continues down not The very forward. sector that our a renewable And assets. at we opportunity a going The more that in expect large at going to not and growth, solutions completely

type So expect renewable also of significant but in component business, our business sorry, renewable power what growth investments. in generation is -- power growth energy I traditional we say, I both to tremendous the should would these traditional say generation transition see the

have, a decarbonization provider. as base renewables predominantly that power a it company, aren't sizable global already we view take will generation solutions long we a the but ourselves time we before certainly Given do renewable

Benjamin Pham

off payment and to close then to maybe that [indiscernible] government? relation the pretty then the balance pulling it some your still -- generation letting some assured your the forward, in half, questions And generation the great. much on you from in you're get the second your about early fixed just maybe a question Is disclosures -- of generation. That's Okay. Brazil, shaping that a mentioned macro has

Wyatt Hartley

to and energy in way our and team of kind advantage the certain with just mechanism, on pooling That's mechanism marketing the pricing works Brazil Ben. generation allows the right, pooling take in exactly that's of Yes, your central shape the periods. you ground

we to of. well. advantage something reflective exactly continue It's we looking that as take of And years And optimize just what in to expect forward, the do annually so that's coming our generation. that that's we

Operator

next Our question Mark of with Markets. comes the Capital CIBC from Jarvi line

Mark Jarvi

to back come to wanted I couple of topics. a

appreciate stages, agreement. talk this not want Amazon I First really can it, contracting you one but whether early is about clarify it's you is that to much and of or don't too kind energy kind a those that's of more new you'll Or scale? all-encompassing just all it to if is or their and attributes? of needs DG building of utility existing be on assets, fit assets

Connor Teskey

by utility support large you for and projects. services Mark, assets. of What driven data usage incredible new under needs development their those are cloud largely expect question. And consumers of the agreement the green power businesses data of And growth Amazon's data the largely the the thank we centers. this load is center renewable energy of are obviously, and and centers energy can scale power

projects from develop expect a that our we but acquire, will development and be pipeline wind global solar, drive new projects organically both or existing either may across collaborative primarily this and we it it's to new initiative. and So

Mark Jarvi

Okay. That's back to And very comments. helpful. then going just the inflation

exposure the into. of and lot this of costs. bit offshore of just on on Poland. wind inflation you've some starting inflation sort projects, they a talk the where you're costs point? get pass there Gamesa higher stuff profit warning pressures any a Maybe the at the to locked least the came a that in on some want also so wind with a about to that the little of up in There's Siemens escalator Is of out at project offshore projects brought You talk,

Connor Teskey

certainly. Yes,

much CFDs take types first These are want many to much of not They to with are really and your four is us they're see contracts to reasons, just see enjoy moment offshore. maybe the contracts. We versus part a very speak These so of require don't So we about in for why reason we and captured long-term versus these their to The for market years but contracts. opportunities want how XX-year price. contracts curtailment we risk, spoke inflation-linked. in to line the question. price

the So offshore these of quality we the very needs But we streams. are projects them basis through going And cash to obviously, brought of market. the very, of contracts Polish readily online. people understand And underlying market be to that the will be the take first flow to one out, robustness either. we risk don't think is on built shine the will

in CapEx of nothing seeing CapEx our would underwriting. I about we're investment costs, in say what earlier we're this underwrote this year cost. at of terms recovering this concerned a that In there's point nothing obviously in isn't global with We line economy. in terms And that

In terms the Equinor. of building is offshore out pipeline partnered business our with in Poland,

perspective. existing nothing from and CapEx a that see us one this the owners we partnered and developers, of with point concerns leading we're So at offshore

Mark Jarvi

percentage kind Okay. mean XX see question that to the done at see plus a Or on we XX% Asia so, And And of that sort XX%, like your couple sort growth? of are continue maybe pace roughly in for that XX of China, Bloomberg I XX% steadily been to And Is a deployment equity forecast last the while a of India could cadence of now? climb deployment. then in of in of we a numbers, this to of just is if XX% years. quarters, what's is my look there the higher? deployment kind if in XX%, I the than deployed be where the little Or just last capital of right New Energy should level? capital Is more the it's some next year. bit equity that for that, we

Connor Teskey

Certainly.

in an the capital on to we our So to forward. attractive in wherever is on we've to seen be we able and that What would And flexible, do those to to and platforms, what look seeing ability both ground those we're acquisitions India and we bolt-on is too opportunities. going small investment entered the markets in built both we prescriptive platforms out don't attractive now since operational markets. regions, continue most those XXXX the in expect and our regionally China tend remain deploy see we basis almost continuous have

I be countries. long think and investments, period, comes of developed of our There it when opportunity XX% we periods in then to or XX%, countries. into XX% see to change extended XX% India in more developing going developed expect going that China Europe. geographic developing said to we've focus we in and versus, over that We But portfolio close expect equity is be forward. and in countries don't let's may to to deployed our countries, our where stay XX% any XX% or to plus say, America that of North pretty plus time

Operator

line the with Suisse. And of our next from Kuske Andrew question Credit comes

Andrew Kuske

do incubating basis? over own in the assets I about doing is lines, monetization builds question the their Connor. but Clearly, throughout call. And potential? now Are guess I expanding And other later it Brookfield really unique time, how underneath this a business businesses you're portfolio provider right. comments and you number are a distinct you've with for guess been be of can that which philosophically, into business And you upon your for effectively solutions think just Renewables on longer-term

Connor Teskey

solutions are at to What response of changing still owning sector. that think have we technology provider. real on space solar, back in us. global solutions. We call a approach of hydro, would storage, question Over aren't pursue when operating it, technologies our indirectly well extrapolate or the binary we're our in There's generation It's other either directly wind, to our look we're a binary energy these solutions decarbonization That's assets approach power solutions and on leading to of differentiates focus around of to why and changing energy by supported cash investing traced risk, can things that where a forms easiest type knowledge by owning to never direct or we're your emissions through that few that having carbon maybe scale been we the very good want we not player decades you tell is, clean as question, around that knowledge generation, in, And Andrew. and And more to tolerance of we well it's where I investing We to our more core philosophy being positioned. say be visible or we solutions. flows. XX% world being distributed to to to are platform going decarbonization look of highly focus risk development strategy. taking leveraging to binary want long-term those at risk. in our And or we risk placed

point one operating building and readily which be a a counterparty in looking viable, available cost-effective, we to of partner or operating either can be businesses capital scale technology governments scale to a where provider terms would installing, as existing solutions. taking or commercially I a but the going leading solutions, look rather risk edge -- the technology the one, was not is to pursue be about these question, we're great to we So on decarbonization make

Andrew Kuske

commentary. So the you capital? What frame your context? much and and about never will in really guess force? that, full became more for the more in color how entered you I batteries helpful extension really you technology a then as batteries more economic very of viable we That's that look wind. back of think viable economic kind more scale do stages larger or do Brookfield time and leader was And of become beginning the think in if solar time, And

Connor Teskey

battery we them scale that penetration energy within say considered sector. broader today. are may one it that of other, the installing our to a the the is And necessarily sector people the seeing I increasingly but closely. kind each solutions make, Fantastic we're going one we in batteries be beyond all can traditional very, And complementary of battery comment of Andrew, it's of batteries be energy say I select iron-air lithium-ion following increasing I pumped whether or the being different would these would storage them, maybe very improvements now, to or The are right technologies. question. energy of storage number And in would think winner out longer-duration increasing comes sector, portfolio that the hydro we storage isn't cases provide. are batteries are following

batteries, are in situations an select and at see While within they batteries increasing commercially commercially our basis point viable not portfolio, particularly a this across widespread are portfolio, our on installing those cropping number we today, America. of viable we are in situations up and North

trend, becoming the relative batteries we're and because would seeing say, few next that short large-scale already the medium So we definitely would I in term, see larger investable years. in opportunity, a to

Operator

of Frederic Bastien And line James. our question next Raymond comes from with the

Frederic Bastien

Connor, from on the just project? Polish business. circling the renewable wind are How back Equinor and far breaking on offshore you ground

Connor Teskey

Yes.

of number a still there's things to be So done.

Our track to do start expectation would XXXX, on be everything and that to in construction at this point. is

Frederic Bastien

Are you now? look investing indifferent at or least right other ones and to this projects? open development And under in in newer belt underway to well potentially investing before would that to get your offshore you

Connor Teskey

with able investment opportunity would we with where were opportunities, attractive comfortable we find invest this strength, those years offshore to where today. for liked, We've opportunities a thought we in to we same an see invest in upside attractive protection. we Absolutely, incredibly approach, our transact with point. counterparty we similar The in number returns. appropriate we our Poland risk-adjusted strong us downside finding provided was significantly today the would at could other using one that been a space of If offshore play opportunities that offshore readily profile

Operator

with question Baydoun Markets. comes next line of the IA from Naji Capital Our

Naji Baydoun

view maybe curious Polish be in Just believe project in a that it's staying process auction your I one. -- project your Baltic bidding the offshore XXXX, of wind. subsidy-free or in I'm pipeline. otherwise? the about there third topic on of just the it Is

Connor Teskey

Absolutely.

same segment have a have we But given we the X.X to Polish build project, out we seeing upside We we projects while size project, number or was no of the think, to prescriptive and gigawatt very for there's great there, because around increased support as the we're two we the project combined. the rapid the other It's we're that made, And offshore as there visibility make project. weren't need maturation It's asset So any that that large. opportunities certainly monetize is a a increasingly wind before our think definitely increased of in And less to valuable. decisions still underwriting. in initially, that third decisions. years will and find significant been future. ways it's look but about

Naji Baydoun

or made it developing been there? either it selling just definitely, of maintaining kind decision the suppose I But hasn't about Okay. flexibility

Connor Teskey

decisions made no yet. Absolutely,

Naji Baydoun

Maybe be What just XX%. a net increased Brookfield to -- clarification about the BEP? to stake the that would of to

Connor Teskey

Certainly.

invest XX%. through own So our fund we where we private

on be a we shy So would just XX%. look-through of basis,

Naji Baydoun

Perfect. Okay. Got it.

India. Just question the last on

prospects could more with and be color pipeline and joint think there's if that provide the that How you If maybe developed the move on opportunities to you quickly add venture. X.X-gigawatt you pipeline? can development more forward think to

Connor Teskey

Certainly.

So only I second of JV might question now, answer the Right first. part pipeline. that our partnership that applies to X.X-gigawatt

they agreement. of new focus adding development at in a of point. India, We're our this outside but would assets specific around opportunities be this So different or seeing number that's

the make investment of to have the within do to I of gigawatt, decision on that developed remainder deferred terms be In on see we think expected. time there's make on opportunity line to for would two line. whether one an attractive too, say, our time X.X but if But other projects, it thing would other appropriate acquire years. that option those a slightly we That's our expect option, within those the being, plan counterparty. the us. both is was this we of want an or not next we pipeline, with reiterate opportunities. represent the probably I couple they opportunities is not would always projects, up acquire those projects And They're as are the We is going to a

Operator

Thank you.

turn Now CEO, call I Teskey, any back will the Connor remarks. over to for closing

Connor Teskey

everyone. Thank you, Okay.

good As the for look have you day. with support. We you, always, results. their continued thank forward we our end want at and to everyone to a of Thank next updating quarter QX

Operator

you now disconnect. for This and concludes participating, call. today's you may conference Thank

Brookfield Renewable Partners (BEP) 5 Aug 212021 Q2 Earnings call transcript