BEP - Earnings call transcript Q1 2022 | Brookfield Renewable Partners L.P.

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Operator

Hello, and welcome to the BEP First Quarter 2022 Results Conference Call and Webcast. [Operator Instructions]. It is now my pleasure to introduce CEO, Connor Teskey.

Connor Teskey

Thank you, operator. Good morning, everyone, and thank you for joining us for our first quarter 2022 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 remind We would statements this call. that may make on you also forward-looking we to like differ are may statements future known subject unknown to risks, These our and and results materially.

Officer Managing Chief then Transition and overview an on and as Partner information, give provide our available kick update and will update our EDGAR Investment website. To business. on on And off of initiatives. provide you call, as Investing, the on encouraged results will review operating sheet to remarks, are well more growth will my FEDAR, For our an our filings on we today's Natalie regulatory After our an balance Wyatt Adomait, liquidity.

prepared those to questions. remarks, taking your forward we Following look

in business performed quarter. Our well the first

to substantial with of with pipeline the together to such as priority. represents And investors yet This trends, enhancing assets the capabilities leveraging emissions on benefits wind We sun for Energy security. assets capital of continue accelerate do will imported tailwind flows energy scale. energy value, higher renewables business. a to the the our uniquely at to the operating and capabilities become decarbonization occupies These energy, not net and low-cost business. enhance to rely the transportation need don't underappreciated of cash be goals and execute we'll as an Put infrastructure. operating Clean a those and becomes increasingly ourselves build-out complementary on more to our simply, decarbonization development across our position position the global security relevant accelerating the to and of drive capabilities continue X additional acquiring with

country's of We government our out developer. an solar acquired XXX for capacity. acceleration February, portfolio. this its increasing is Germany's In actively targets trend announced example including scale decarbonization recently within target utility are the play to own An of our German solar gigawatts seeing

global we and including capital result, the the will currently injected ready-to-build business a additional With see development we returns throughout plan, other that expected business achieve years. pull accelerating X at forward opportunities a sits megawatts accretive and portfolio. growing XX,XXX deployment at very in megawatts, into which expect pipeline, status of that doubling now several substantial development next have accelerate the to capital are our As we to our

a unit, recent clean include operations of funds increase XX% our on We highlights over X,XXX over the secured corporate $XXX same in period an offtakers. business generated to we normalized from $X.XX or including XXX hours of gigawatt to hours for gigawatt basis per Some million annually, deliver contracts energy XXXX.

closed over development liquidity, regions, including first $XXX We assets, progressing continued And We our no solutions. advanced and $X megawatt under or billion and limited carbon near-term activities, exposure. our maintaining floating million on $X.X capture of capacity execute noncore robust available with to recycling no approximately asset stage maturities on capital construction all our mature of of multiple investment finally, selling are near-term agreed maturities, across pipeline. material financial to billion almost rate invest we and XX,XXX transactions and in while

are Central in inflation potential inflation sustained the policy, a the spend of we few chain markets light our supply in monetary Next, future. increasingly and Bank's want to on tightened focused on outlook At for business minutes the trends. for

expect or We to sustained, well. fortunate is inflation our we either very transitory that whether regardless are business perform of

unchanged inputs our largely to cost sun, market, fact, approximately in our structures. remains assets we inflation it of this to contracts indexed as was the see that In have operating and a notable water Perhaps of where a is alternative tailwind given leverage cost primary inflation XX% most for meaningful fixed compounding our over and most wind relatively XX% and generation. fixed-rate costs increase year in given have business for effect energy The still X, across ago, our cost we input an drive which streams cost should operating electricity a that debt. to compares almost of fixed are which they exclusively inflating revenue

under Our of revenue XX,XXX risk. megawatts major lock benefit sign a advanced when from assets virtually of the on contract. construction stage and focus components cost always We we avoiding development our in

as and As positioned a means to chain of we have result, supply our while broadly, or we country technology. pipeline target our diversified we return. impact well share no locked in we large revenues matched costs industry remain a global disruptions believe exposure any have our and And to continue singular

have We and all therefore, manage we signed substantially have and no both to these our importantly, a delivery our obligation. will centralized development been and with chain have challenges procurement have these us for such impact also revenue strong Overall, growth our issues function, business. suppliers contract we of allows slow that secured concerns a scale, where business. customers relationships net projects material to the Most has that supply their not inputs

combined projects as clean in for near-term it the meet needs. the value the or of reduced continued their fact, walk projects could supply challenges with that has demand likely create In new customers' ready-to-build energy very high-quality delay as will can some away increased these opportunities for growth us projects, which, of developers have when

projects for We of prices. our are in have pipeline form PPA are generation fortunate very the to their seeing future higher demand and significant many in such

benefit two, is not prices and production, elevated wind demonstrated cheapest variable on solar the global the addition, bulk electricity In to input volatile costs. that subject has of generation as position reinforced energy of and and form

are of confident drive the not clean slowdown supply that globally. or pressures will a we in inflation adoption such, chain As energy

In fact, opposite. we're seeing the

prices far a Brookfield energy a small I'll that, of energy stability of as call With growth our strong and turn We XXXX have in discuss as well as to our both higher business strong in lead should our the Natalie are seen sector specifically the to the willingness over we buyers Renewable. for which for year We initiatives. benefits facing. see clean to tremendous decarbonization, costs to security outweigh accept increases from tailwinds

Unidentified Company Representative

Thanks, Connor, pleased our initiatives firmly opportunities for I'm growth here with change. leaders see some business as global to today the of near established the you that talk and good we in recent everyone. Decarbonization exciting a been our and to about of of and climate morning, some priority has term. be

topic both to raise ever order becomes The fund are you indirectly corporates to a directly markets governments in power are has volatile climate making back now track pace. investment both that which years, been emissions every markets the at accelerating demonstrates production emissions be meet to believe While the business can pace rising approximately opportunity to closing. focused from help electricity, net deep power that change final for a can investor to particularly think are for commitments lower our Every rapid a $X capital Renewable a success of every increasingly decarbonization, of at which is have sector. a is Brookfield year. the for importantly, to X and energy And or in of in and in. Brookfield's energy, important also alongside record operating platform massive to so of valuable. with Therefore, leadership expertise will drive investor It's the X/X flagship more global which be the decarbonization this which is in first through we if will the benefit have That's energy the in world. proven be approximately to be and because traced now the XXXX energy. $XX the of zero capital. will to capital a invested the energy of Meaning, net essential renewable step emissions need $XXX expertise, reason having can first transition about global of raising trillion systems. in carbon scale you Brookfield capital and estimated billion successful puts enable us trillion in decarbonization largest we We the it this require will decarbonization amount industry the decarbonize of position. is generation Achieving fund. that if And fund, we need stages uses to of renewables exciting in this invest is of over

track to invest opportunities our generation strategy energy evolving and clean add we risk-adjusted We the scale when of types have new at see to solutions in appropriate record other a energy transition returns.

want We deploy returns. and opportunities are driving set, we just Today, our highlight growing a target opportunity to are decarbonization a these couple themes. more across I capital seeing currently at of to

acquiring at of energy is clean first, The building course, and scale.

over businesses. backed close made X,XXX and advancing to fixed storage out we throughout commercial capacity quarter, by development our their In of long-term towards contracts. will significant multinationals finalizing initiatives be to solar This and build wind, contracting of price that are agreements and with Asia, megawatts numerous progress decarbonize

submit to SFE joint with We to projects Dutch wind also announced bids plans our build process. XXX-megawatt the in tender upcoming offshore to

their shift way great well renewable a significant we carbon that large decarbonization capital decarbonization to will second are Utilities businesses from and footprint lower business. enable to knowledge help. solutions example. energy them the to of to The to our capital thermal both our growth reaching require is The help clean energy to their own decarbonize to clean and is provide power energy to transition industries sector of use their to require and need opportunity doing operating capabilities around goals. and world, Many positioned

transition Finally, X. we to opportunities businesses the net that in are provide seeing services support to for investments

American we an new with a quarter, leading North capture carbon This class asset a provider. investment solutions decarbonization entered into in modular

of over to our well do provider time. as like-minded believe grow expertise decarbonization significant we our in trillions capture we hard customers. given And our over working footprint to Given experience dollars decarbonize coming capital an of partner to to sectors and abate and see potential to decades, operating positioned the so carbon network global we're required strong industrial our the

entry partner, provide solutions an in carbon capture a Our investment strong a point a pipeline. into and attractive proven product sizable cost-effective with will

carbon the CAD time. which the business. provides funding already conversion, common the capture The preagreed then common for us invested, our structure thresholds our expect of committed and option project. escalating investment We equity we of at the securities return protection commitment with strong have in downside convertible buildout tax XXX% our the upon is are a of any the of funding have to the and If will for we equity Canada, XXX of projects in first million majority meeting into investment at company up of credit carbon of price proposed own the given begun

I'll that, and for and renewables to global solutions, including decarbonization and our it capture solutions. other with and leaders, the discuss security turn energy green other carbon we financial firmly operating a build-out demand established focused continued are energy results on and hydrogen service forward, as With decarbonization the priority to Looking over of Wyatt of position. our increasing storage,

Wyatt Hartley

during availability, you, FFO benefited normalized per operations our We as unit strong up basis, Natalie. power On prices of generated million were and year-over-year. higher $XXX $X.XX recent a per results the Thank quarter acquisitions. our from unit XX% asset or

which are to while diversified we generation quarter resilient flows with in concentration higher-value or weaker counterparties the less business and to This long-term from are given to we And and for cash And less generation positive future. variability highly variability Further, year. value time, expect and from performance periods markets in already diversifying becomes was average exposure contract stronger to dynamic in lower a resource, translated profile. FFO. we offsetting line increasingly market continuously every our counterparty our normalizing. our single time expect lower-than-expected the Our the any limited is benefit mitigates in this also and our while markets portfolio, risk long-term with

at looking balance our and Next, sheet liquidity.

significant financial position billion growth. with available almost providing fund liquidity, $X strong flexibility remains to Our total of

locking to continued rates. extending the interest and of have term our our accelerate We activities, attractive debt financing in

floating no As our debt debt. shape, minimal in balance with sheet an near-term exposure a portfolio great duration of is rate XX across to our average material result, years, and maturities

drive to growth. fund We continue assets value to sell also and

capital our Mexico. returning Xx the sale doubles an in small our quarter, assets Brazil, to capital a period. over portfolio approximately we developed invested our XX-year by all number close to of will met our developer which conditions our signed hold than hold X-year hydro more a period, and $XXX sell During generate This agreement of million over global in the solar

attractive carbon-free constructive prices. spend Hydro to grid want hydros is we to baseload due I inflation prices, Finally, are Further, our to valuable assets hydros prices the enhance the the in the while to on our for given embedded grid And premier long-term the on grid perpetual going power built-in see largely are storage a benefits we the services contract Growing interminent large our few increasingly with benefited renewable today's these all-in quarter to renewables qualities market stabilizing ability expected the pricing impact basis more continues and an in technology supporting results minutes all-in its as status at stabilizing limited from and into capabilities from contracted was a year. this were increasingly market. dispatchability. added in environment demand generation Power higher and escalation. nature, its as

shareholders while approximately generation contribute to FFO On across for years, which Board management. in of will accretive have this ability $XXX meaningfully for this the over next funding And of morning. questions. thank the for North market and capacity, today's it with from That financing available throughout to America pass that, to should formal bottom our will call. for increasing growth. likely We today this capacity our and line. our However, fleet creating back million prices remarks which come recontract our unitholders support. our year, our the hours Further, to almost joining a highly to of of would will Thank incremental represent we for benefit X concludes these incremental Resetting operator you forward behalf amounts hydro dynamics. us add source I'll the all ongoing X,XXX gigawatt generation

Operator

Instructions]. [Operator

Nelson Capital Our the first Ng question RBC comes line from with of Markets.

Nelson Ng

your had a development on questions just few pipeline. I

the that is the big is development of onshore commissioning the outlining wind trend being will few on next years. of just getting part extra for -- the guess, One picture, and all is very I like granularity noticed little hydro thing pipeline a thanks the trend developed in XXXX pipeline, your providing larger I and of like for kind XXXX. becoming So there's schedule that continue? that solar

Connor Teskey

X Thanks, Nelson. ways. different Great question. We'll perhaps answer that in

in and solar wind grid. but technologies. When wind, the current build solar, and our where both, entry we've pipeline. to than at better pursue that hydro less We existing The our to then hydro Well, little we're around growth confident their pipeline does bit hydro, development one energy see clean see world noticeable regarding one future. agnostic the is are why you for dispatchable seen we're we points our the we remain so less a the either there back That the expect continue tremendous Also first look wind to we relative could a reasons our baseload a in value towards is X between increasingly probably value assets and in more forward. that on which in ability to to of out wind in is growth have every hydros, increasing provide going solar development simply going We to remain and going mean solar. own scarce pipeline. to the day, diversified of trend happy to bias trend today for technology. And

Nelson Ng

And then there's pipeline, to think roughly on gigawatts that expecting commission just I through you're Okay. X XXXX. that

mention inflation that You costs and chain through managing supply you're issues. the did

And of in some then know the tax on Because gigawatts, to still So some due that supply issues? I you terms panel the are you I comfortable for -- PTC. through like contingencies with on to obviously have upside? are put Biden U.S., credits include that renewable that waiting that U.S. -- uncertainty does Or potential very solar X some there's people in like administration number imports. think any baked is with in like

on the view your X what's gigawatts. So

Connor Teskey

Certainly.

that. on your take words Maybe upside. I'll with confident very X So points

X under out. already today we the First that's that exists construction under what is disclose our to built all, pipeline in and of either gigawatts or contract be

Our business grow. to continuing is

do execute as So go to to we in-house to we our continue expect continue numbers would business assets, up time. acquire development new over those plan, to

the ability a to U.S. around have just different our versus both comments ability at technologies we different very your to assets we our pursue development pursue diversified operating other geographies. make would point in platform, The is assets

disruptions the and in we managing are minimal see don't there that to change certain growth markets to profile while through clear a expect path whatsoever. some around it So our world,

Nelson Ng

just then And one question. Great. Okay. last

In or that portfolio a you more on terms can the Asia, bit in XXX-megawatt on in then XXX-megawatt give another background in of bit location? of can the India Asia? that also, acquisition? rest it acquisition color wind of Is on And a give you timing

Connor Teskey

China, and in acquisition is I'll repeat in with the the in we with do to that the wind what transactions Asia past. ability are make both Yes. a Certainly, which business in same we to comment seeing done counterparties, China, is but continue have about

look pipelines pretty What both partners. consistent increasingly as the business us and more are India on we last in several we a Because strong over business quickly, very time, small Chinese would assets. those in execute grow, counterparties. markets. increasingly say closing. we forward, they're pretty what we would high-quality counterparty. relationships to expect those you quarters, coming repeat with and And I as developing with are, those the we And If low-risk, is deals attractive of increasingly, look repeat regular same their certainty execute provide we're And do the to we've with doing been those of doing buyer

years. definitely of terms In the of next within time the line the XXX two next megawatts,

Operator

of Our next with from line the Sean Stuart question comes TD Securities.

Sean Steuart

comment of your the of specific from as is I evolving what contracts on little a PPA touched comments, recontracting. for looks in I And length your few pricing on on how have you increasingly you the like, environment the suppose, upside I corporate FFO hydro. at questions these guess that's favor? end potential Why Can a bit specifically

Wyatt Hartley

our either seeing us duration an appropriate or merchant that in hadn't say But the through that's and from duration always contracts viewed is on contracted weren't we we option value so even short just we've because position, and hedges, we've contracts on with that longer-term hydro. away a on Yes. what specifically is exposure really protecting done through focused but we manage what to securing hydros long-term our America North Look, price Sean, spot merchant to financial movements. give have always that we

grid are environment hydros, challenges for longer-term of nature that so renewables in this environment, hydros described the around And dispatchable with the occurring we the is what seeing and Connor that seeing a and the both are baseload I we're interminisy now that the on of our given basis. interest

longer-term be Now you quarter, are we hydros. is years, the contract very to And definitely longer-term hydro the financeability position use attractive increased that does our we that it XX, attractive time definitely whatever, just XX-year contract. proceeds XX growth. it that last enhances expect That's all would of that we in a But have a cost then again, remembered But lock with is our for very the in say It Hydro-Quebec not did assets on not but that could to a duration. But on can be generates one interest. XX contracts will us. that our over with only that contracting would that a duration. with on what And very years. price of hydro low we at fund

financing. X a maintaining additional positive to last contract as execute quarter, So CAD an signed we off billion raised that BBB a reminder, while we that again, rating

it's financing seeing the interest it where for associated dynamic duration contracts, longer and an the that's definitely So benefit. we're has

Connor Teskey

our exposure, exposure with merchant of to merchant have hydros. X, why just when we lock why provide there. these the exposure little And in for supplement more us settlement is we Even just we it's have on short-term jump when see upside. either volumes. typically we to to XX sales the or we granularity and place helpful help said And in portfolio contracts the contracts the electricity Even those Connor. our of months, of it's primary merchant U.S. within largely really I what maybe X have might those and a bit that -- short-term it Sean,

throughout it, So most those of when XXXX, move had power of this of to to increase a our we as why prices to locked we way. in of get the latter the the But for to XXXX. loaded our call And are in increasingly our that's the that's year began for quarter for benefit first one mid- dramatically the see -- throughout strong now back-end prices pricing throughout a fashion power the XXXX, in increased tailwinds half going we hit reasons financials we we of year. already in, business hydros going

Sean Steuart

to follow-up question for A Entropy carbon context. into Connor you gave the you investment useful potential step a Advantage or for detail That's Can speak capture. first as great Natalie, long-term deal on the green versus opportunity do might available? transition hydrogen be technology of you're for capture as that other that pursuing other you the versus that carbon well? energy like How set the benchmark options some options

Connor Teskey

Certainly.

So energy would United capture, Natalie, Sean, capture. and of we're our growing or if facilitate Stuart, that one go decarbonization hydrogen, Carbon think markets, carbon say, services and and to is States. in. we like them. Canada Brookfield jump core From many to particularly and the in standpoint, in economic sorry, I rapidly companies a Renewable you'd green of anything looking first there's then all add, perhaps -- at please I'll

it's step expect we our grow to past be it first and very an asset that player into So market we going absolutely rapidly class this forward. quarter, made grow significant a while and in do that

room well. do the Canada, of to United in platform run to in While tons there expand expect is also as our we States

look to capital approach going we versus terms the returns no best I the solar, carbon the than asset another. and of see approach going effort to decarbonization other across We're some technology to regions, across There where agnostic like we capture We're or classes way would going those. our them. allocate risk-adjusted to across concerted do be in we overconcentrate to is one better exact technologies, we're those wind, hydro. of In same say to that worse

Unidentified Company Representative

established that means Yes, we of that if first we just by kind reservoirs of U.S. those on, yes, have But they well-known let's benefit seeing move ability the storage because say, capture where carbon we're opportunities platform absolutely to I pursuing geography the maybe risk-adjusted focus can we're more returns. have actually the And agree, have in global seeing both. Conor. we a the

Operator

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

Rupert Merer

quick follow-up carbon a in on table renewables? Just you Brookfield on the more give you you in like competitive What Can see capture. the color this a to investing to brings market. advantage might would what give maybe

Connor Teskey

here Certainly. a not And we long-term go two, work back is to the capabilities; counterparties fundamentals. similar to but done carbon What needs is and very contracts be The to side: an equation we to reason like capture corporate asset is capital be that structure is on operating why similar. important to are the technology, that's done investment provided; to it both these on be the to the need renewable the that financeable with class only one carbon bring is perhaps the one, and are three, capture side ability and economic. profile to needs proven development, great around needs you carbon most so construction offtakes to drawn decarbonization we very what

world. long-term, plants and is to You it very constructed, flow once is solar highly our the highly around And stream of visible, wind stable build asset. a cash an similar

Rupert Merer

capture Great. potential And facilities? do look well Power a for as customer see carbon as at for contracts Green as you this uptake you

Connor Teskey

Absolutely.

enhance we to customers. And do portfolio her what exactly with trying relationship to our remarks. this the across things Natalie that our goes of One said are is in

step decarbonization every in is, first emissions. Scope address let's The corporate X plan almost our

produce able our from of consumption we those But solutions can forward want X capture while Let's cost, we green electricity. reduces goals. other we technologies energy solutions this increasingly businesses well. be solutions. decarbonization now to carbon last offer their are two, the electricity and and decarbonization solutions businesses from our we've other those forms had that often to efficiency added other and expect we've power, as to assets procure reduces green abate CCS, reach emissions for going power, are there, And business but hard be help do emissions, of going own always to could within to or add the That quarter, different to decarbonization as well

Rupert Merer

answer, may your for a question the talking similar offshore here about And second but get you're Dutch wind I very tender.

going be a call. it's to subsidy-free highlighted You

bidding successful? You may here, to bit not would What what can for your but competitive there? information your want strategy make be give some

Connor Teskey

Certainly.

maybe we're of dynamic seeing highlight that about. First it's really helpful offshore just that to all, we're a in excited

For years, of grown around very world to their many offshore largest the the markets tariffs. have rapidly feed-in use due

bid around global subsidy excited of factor; it on don't Renewable is and wins we that lowest like really strengths, willing become are at to differentiating wind about served and thing to the cost more of be our of because operators, we're to compete winners support markets cost one, a One whole key Brookfield not low on going essentially tariff the capital. X capital low we our operating person in seeing the we and more price and but auctions. the who's premier because where offshore This largest our You auction. two, we think a world. it based because pursue contracting helps great auction the the us those in bidders. feed-in well to are necessarily return feel, bid that that And hasn't construction plays auctions financial is capabilities industry the corporate really

bring it's disrupting pipelines. largest we and auction of They without have builder biodiversity it the think sets. bring development very a great operator. best-in-class those offshore a one us the So powerful wind to how We skill global of construct make think We're about with in renewables, offshore the and knowledge both We contracting. the leading be together corporate construction. best-in-class partnership. specific things and very They -- environment, marine operators comes we we're Netherlands, bring complementary partnered when wind to thrilled operating to both

Rupert Merer

if selection you be to going So on bid offer the done price, top? your the to takes isn't what can that

Unidentified Company Representative

working more Natalie the and to with partnering when the are this on the of be little closely be been and goes to -- to technical And said. submission the going really based particular. gone able what table brings working a front. bit that Connor expect to very here, We've system locals both integration Rupert. reveal and focus Brookfield it got we contracts, but in, to back track We've to that in We've which lot on have SSD record with those on the bid Renewable SSD been ecological it's post of can the bring innovation a commercial

Operator

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

Mark Jarvi

Obviously, hydro Just you volatility, which pricing. you the realized prices. But recontracting. off that coming to movement more talked in against maybe could allow about to power back higher do balance capture also how upper

structure can make that pricing there? that but in locking terms higher upside? leave to contracts So you you Or trade-off that maybe peak the sacrificing in price that of of some some out do how of might yourself be

Connor Teskey

the layer upside. in to that we always what layer hedges and miss go such too an don't we we much and the asset-by-asset amounts too the that and us our contracting a miss through. of basis weekly into in either immediately That's allow to And and try those and really, We make into we daily raise don't or leave significant do become can exactly contracts We decision long-term financeable far our prices much for through capital. on and decisions assets to upside go not our is downside lock And play decision. that merchant can too long-term on we the direction.

to aren't for trying perfection. price We

the business do too that a the very to are far other. for our provides long We attractive being looking term way over without one or something either return

Mark Jarvi

yields Okay. And higher. move obviously, volume seen we've

higher seen in whether marketing terms in or asset you transactions on you're and Just Have risk-free asset of rates out there, of last bar the anything of it's sales dynamics seeing change rate in transactions back terms months? leverage. the the the of couple

Connor Teskey

in a What the helpful down. that's through No. growth two bid say review very well. markets markets comments in in also of assets. prices and volatile certainly And private can public perhaps pipeline us, strong markets there in but a make is for have The now. to markets would consistent, helps quite the and for sector it both the would are we that is flowed opportunities we -- terms volatility public And continued renewables we that decarbonization asset stable the we of up as seen moving monetizations, renewables yet. hasn't private are Share right

that been comment of X make to we interest it's to rates months, it probably any over important lack moved up is comes interest last depth at not have but moved all slightly seen the we interest the underlying when the other decarbonization rates so market the mass hasn't Yes, significantly rates for rates The power financing think market. well have underlying have and renewable in higher, up, of assets. depth reduced financing are on

Mark Jarvi

that you you in credit bit movement not to that of pass come say rates? base in a that little spreads allows all Would have through sort

Connor Teskey

there's it's still Mark, out the It's of off No, all incremental say limited, of depth spreads because in at the and just spreads, a historically I'd the level a low. increase a And meaningful so with widened very coming there. a where go you curve, base we bit. around Yes. the bit uncertainty rates it's where if opposite it's a historically even of we're again, it the rates, was But just where period still are the especially low. out widening have

widening a spreads of bit So base the and attractive it's of irrespective rates. underlying increasing still of very kind a market, of a

Mark Jarvi

PPA U.S. of would say the lots market. higher things How there's from that question, some Last commentary prices, Okay. operating, are companies what there you're particularly into other are in you seeing guys increases regions and prices? bigger of interest other those on cost you Or heard pass-through offtake U.S. you're par increases? PPA seen other the of on market been higher about the on regions terms where Are in we've and of they price pass-through market? seeing

Connor Teskey

decarbonization, PPAs account market. prices It's markets. energy what I an be and slightly and make is They that But to power taking are having but very relatively stable prices global security to efficient. seeing would volatile. say we'll very, trend the markets in seeing relative as into a It of increases of energy comment are a great are modest dynamics the in the The where before. Directionally, higher certainly price global we're are environment all very we redundant, question. benefits that is not same are

the such uncertainty. market creating as a the investigations in solar and are perhaps So some where U.S. recent chain panel disruptions supply

higher everywhere, PPA it's region. have regional doesn't market You happening slight a might a versus see dynamics. slightly that in the specific variation is in dynamics some price increase Directionally, a those but there on given depending the

Operator

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

Mark Strouse

anti I you U.S. in SERD in making that answered. to want to I'm the solar been have the come you're think did the case impression that them back there. of Most

of of types all, based is projects that you're just is suppliers -- that then that that is the working you you're already project And First the country? have the panels of on new because using? Or in on, that second all, right?

Connor Teskey

and about and The managing U.S. I bit really current driven me would a our Let say X out answer on the situation phone impact little in believe it's question the Mark. the try investigation was cut things. that. But there, And the I by

time The point At we revenue typically, first procurement create same we we obligation. in lock delivery into the that time, the and of therefore, made panels. the is at lock a contract you a

when to pipeline years. out that majority secured the on in of development few over look support already U.S., at the vast we build have panels the our land, So we next

market get our suppliers the our balls or increasingly customers. Not advantageous, The every procurement that call I therefore, reallocate recognize the to thing we global in a of I is with in relationships meet this suppliers. on valuable. great environment, is to have last needs. the our it, is capability But relationships would able number with makes then our comment we also point do quarter. becoming And And procurement situations the probably more we less where have second is and suppliers, panels relationship capability. with we have curve And we customers' largest I that on are throwing this like only make huge this underestimate advantageous wouldn't

energy because that in forward power with together going a what's largest do the back, long-standing the time. of relationships. we clean long that understanding and of very for tough mean providers our often can work that we're business X to project two, green at trying not either our put of But to conversation might different another And our they're happening us takes And to market. we puts and take And they well. are mean the we customers they that counterparties have are long-term some get bring work might that to would portfolio. I have environment one relationships price that's the ability helping contracted as and customers with our with those in are on in position And positions We within we to lot in say a our very corporate offtakes. them this together a project wanted. a These

Operator

our of Raymond Quezada James. And next David comes question with from line the

David Quezada

just that? just or is Maybe back of discussed like coming the certainty it on via opportunity. or different to there, investments capture if scale carbon the something for I'm the Canada policy in pace pricing dependent contract or they've all curious on structure carbon

Connor Teskey

regime. tax that we increasing made capture Canada. but why there carbon entrap capture. in we signed is we reason U.S. baked are just fairly thought we before a is David. our for deal we really weeks to the the Thanks, investment days the provides Canada announced for in defined to economic in something Canada hadn't certainty is legislated Obviously, that or see of nice opportunity and benefit carbon and a underwriting. there Part price And similarly the the That is credit upside an happen, might and an in investment carbon

But basis we great that fund of of predicated as these current that we support a regimes, investments, in we when would support start. it's are and I we aren't based upside, are our prospective bets investment long on We future. uncertain looking got you've credits do we U.S. and the market different that, future. the that deploy in and So In that's at on what certainly confidence support changes through is are convert if see regimes well. remainder and entropy of from think off will nice because is the making projects there, to form And invest economic that nature. tax is in upside gives a or likely great. that term certain say that's that on the to an what more other What in or today XXQ the making legislation through uncertain us expected there's can accelerated we're

David Quezada

just one for me. maybe That's great more color. then And

might PPA say, just environment. leadership I'm comment you prices differ how the year renewable if you're from, contract gone corporate maybe contract power. beneficial other maybe curious that able on -- position Just said certainly given terms with the higher. curious of you terms mean, now more I'm your those a buyers any I negotiate current ago? that to there's in have if can

Connor Teskey

scale well. hydro storage. very for PPAs, electricity contracts term procure three, knowledge, are requirements and of we're that near the customers are trend products would little to and an power more The needs. the costs vanilla Two, in there also produce side power payers meet baseload I opportunities on procurers we're the we're same significant expand adjusting things not an the them. And customers in and green higher. with to of improvement in be that higher a because maybe One, previous and But allows highlight approach quarter-by-quarter just are have on of services bit that matching seeing that the X spectrum the or simply both obviously, are basis. green corporate continues energy prices side, of green more premium evolution continues dissimilar that There is counterparties are quarters. Those provider for. a value-add are both and a PPA unique to XX/X a more green on power, to Increasingly, seeing. their are solar more like not a seeing wind prices as provide bit looking bit that higher

putting on like in adjustment factors PPAs. based panel Sometimes things those prices

constructive very to So procurers objectives is meet of and the the efficient both power. green increasingly producers and market of

Operator

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

Andrew Kuske

for you how a overview period is on could [indiscernible] what mix us that question DEP's think maybe longer and if energy high-level the time? business Infrastructure a give now fund? role about over the And And transition just your think Fund means Connor. of I with you for

Connor Teskey

very it's And simple. question. Great

fund. component renewables new Global Andrew, Brookfield deployment the both. Infrastructure years, through For deploy transition Brookfield's we answer, renewable was through vehicle deploying have will of our primary we Global today, also the The And is for Fund.

risk in We will same the the as asset classes the to continue that the same to done LP Fund, be Brookfield of key component Brookfield capital renewable has generation transition decarbonization the profile deploying way decades. And in the have into and and Infrastructure on development same BGTF, for fund the then asset clean Global unchanged. investment Brookfield now, also focuses and addition, of renewable energy solutions. the build-out in classes, and completely and that we remains fund the That services

deployment. are for still So is our in last we are in past combined perfectly the And incrementally, funds the line through commitments in we're And with we the bit to now also Bet-target those the have key decade. BGTS. investing way investing

David Quezada

plus having get you pipeline of perpetual an that Do set it think appropriate -- assets. accelerating Okay. take to you've see but of and That's product, duration, cater helpful. that maybe some the the seen longer-term product. BEP, opportunity presents for super but yield now core, oriented that too product had ahead I have of the more to far kind that pipeline of of areas XX,XXX potential got, isn't of longer developer it's because And ourselves, an opportunity not completely then to product, as megawatts of right maybe and the a other core maybe appropriate development group the we've a those

Connor Teskey

greatest out things we're different that generally. would might development lots development once pipeline perspective. and model. optionality. to growth the be more XX selling and I that flip them to gigawatt probably going the development going we're things of think that would to assets just at investor. value. us but BAM, best to on be building pipeline rapid regions, some highest a across pipeline And and down a different. but our say, build all also it us monetize So be and gets pursue build those way in assets our might monetizing the do I ourselves those for XX,XXX building from But a increasingly be it's our assets another value. megawatts and whichever that of not them gives almost going of That objective out be and might with always minority with holding ready That That to we've selling to the might to increased derisked specific classes asset capabilities comment given We across

Operator

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

Naji Baydoun

back Just to SSE partnership. go the wanted to

the tenders focus that noted innovation. of you think I a on

time. you SSE. So Is just it I and the just about to wondering Or you understand will tenders markets more other due you can it talk in projects? details come other about what do if But that expand can out the partnership with Netherlands? in upcoming means to think limited the

Connor Teskey

Certainly.

on for thrilled with be gone. respect opportunities opportunities I projects. get to so. our play that. we're work in thrilled on auction. and with Dutch if a later how Right May in, results have now, large-scale with we the do best-in-class in the work tremendous organization. would they're would a future, if business, the with So We'll are our has but our there to we'd throughout We on work more to do there and bid increasingly this is focus are see SSE, out partners SSE, collaboration year, And the this how other be them partnership And thrilled we to say

Naji Baydoun

here. It be I to accelerating. seems Okay. question your a growth really organic had just And about

asset XXXX just by sales, you alone. achieve even like deployment growth seems through then full I target gigawatts able to seems target commissioning and guess we with about already year it new that in when when like year it you schedule, you announced capacity urges a think that even achieve going look if at additions. last you're factor and your double some might can you the organic today, you X halfway year of forward be You're that

asking, M&A that guess I the way long-winded picture? then is what And is of into a So fit really the plan?

Connor Teskey

Certainly.

to the make absolutely there's maybe double So in a our when look parallel business that. years, comment XX plan I to to our just of the as would upside next And we question. one at size your

the we first and that, may an entirely to opportunity risk-adjusted last have we best And risk-adjusted very assets We're current for never capital been the there the environment, little For that's operating absolutely of quarters, We've years. is couple volatile or could the flexibility best current while remind because that the create well. we've on which seen even market buy is the we've the In everyone where development several returns. to over had our environment going time. last should size our a we to focused entirely here, to in maybe to proportion where of we'll returns. development, X see us simply continue we to do allocate the do absolutely change our the maybe but upside that think I of doubling between in the see number summary, portfolio. yes, as But operating

Operator

next with of question line the comes from William Our Grippin UBS.

William Grippin

earlier question Just ADCBD. on Mark's going to back from

acquisition. challenges on pipeline there? You specifically portfolio I'm related significantly just acquired you've ADCBD? there Urban time risk. expanded the to that have the just been that over curious, solar the you've on contracts your I projects? recently specifically Are understand Grid development grid urban -- hedged within are But in maybe with working the component U.S. what the Any curious, seeing -- out that sourcing you

Connor Teskey

important to in which When bit dive we maybe an bought a Urban Grid is This February. question. Great dynamic we acquired into. little deeper

transaction but power brought One is, weren't value them We incredible majority stage of marketing, connection. ready business And being anywhere PPA that last at XX%, slower prices is secured it about we financing QX were owners. business contract and great, good were permits Grid that buy we to greatly, for of very time and corporate procuring key for seeing panels, The XX%, do XX% assets, we're became underwriting. fact QX to we going prices construction is year. perhaps vast outweighed while slightly the the that build-out to potentially, able we question them once had that build of and now projects that than What to drill contracting for that your about greatly capabilities. contracted. the the was is early that such the from panels a land, by to the we grid between Urban unique due development, To PPA why slightly it of is down delayed of be procuring and assuming things Urban into pace felt grid components higher line underwrote we may have

being So far of delay outweighed very but while the those do in little we we're because projects some are easier U.S. assets the have on by panels contracted access today. projects ready-to-build that seeing until those that PPA the might weren't to increased price there's panels, a scarce bit that's market

William Grippin

in makes -- dovetailing And additional this of that bit, just we're create I attractive does the It step to Yes. disruption potentially acquire pipelines an sense. industry maybe guess off for seeing a valuations? at that opportunity and Brookfield

Connor Teskey

with our have relationships our some that consider with size, for fortunate off invest our very And if by caught we sheet. balance may market us There global we opportunity those And other customers, or procurement, are disruptions. our an creates participants partner It with absolutely be been these side that to it. would some our counterparties, may. of scale,

Operator

showing I'm questions. And no further

that, I'll Teskey, back over with CEO, any the turn to closing Connor remarks. for call So

Connor Teskey

for We have day. everyone joining our next look of call and of end forward their us Thank quarter updating you, today's we'd at a with continued like QX you good the support thank Great. on to and Brookfield results. Well, Renewable. to

Operator

Ladies and gentlemen, this concludes today's conference. Thank you for participating.

disconnect. now may You

Brookfield Renewable Partners (BEP) 6 May 222022 Q1 Earnings call transcript