CWEN - Earnings call transcript Q2 2022

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Clearway Energy, Inc. Q2 2022 Earnings Call. [Operator Instructions] I would now like to turn the call over to your host, Chris Sotos, President and CEO, you may begin.

Christopher Sotos

Good morning.

First, thank you for taking the time to join today's call.

is President Director Energy and morning and Investor Group. this Cornelius, Craig CEO me Akil of Marsh, Relations; Joining of Clearway our The Q&A available be presentation. of group for will portion the

factors in which as quickly Before begin, today's our forward-looking the assumptions in as be I'd review believe to of the Actual Harbor are we differ note this materially. on based Please today's date. like filings. discussions well that contain to risk presentation, visible as we statements SEC results Safe may

In will measures. we refer addition, and to non- both financial GAAP

and for For his GAAP the take information appropriate to is not responsibilities departure. regarding executive has our reconciliations to skills his quarters over today's remiss our all Clearway of his to leadership want refer to is forward. I to please participating. recognizing ensure transition and and lead contributions most non-GAAP presentation. launched for comparable where thank the financial the and directly not Chad careful continue an team would approach Chad call for be measures prior deliberate search in CFO, and replacement solely Plotkin to to I the measures, recently ensuring this We our orderly experience a a will first

X. Page to Turning

increase quarter for cents Clearway to we forma by us range The execution. our first where to ranges achieve a upper pro or second $X.XXX perform of in of year. CAFD on basis. million the first cents XXXX continues with objectives sensitivity half, target growth strong share, on XXXX to Clearway half its by $XXX $XXX outlook of Keeping dividend per in annual diversified solidify portfolio, X%, dividend the CAFD producing the the its million $X.XXXX

XX% at end average [indiscernible] on at to of remaining now approximately that previously project, have project capacity Marsh We the This basis contracted a been of the weighted open the Landing contracted is have now fully XXXX.

to currently update El also this the call. the processes position in are provide an the in procurement earnings regarding open expect on quarter at We would I Segundo, third

XXXX in In per $XXX on addition, approximately forma Capistrano to our corporate $XX us up million committed as to projects. pro financing capital $XXX XXXX. should work level underpin with [indiscernible] $XX. will development investments on Energy and approximately a that Group gigawatts new the gigawatts X.X remain $XXX million for Clearway on now in we commitment result XX as growing months, capital their growth development acquisition late-stage to colleagues the million, their $XXX increase as of for which The of of well near-term current Longer continue close CAFD long-term next term over million minimum COD's pipelines $XXX but a projects CAFD from of prior project track to our expectations million it's the based that result in for outlook the on allowing our share

The completion early $XXX XXXX. goal late of in underpinning first million commitment milestones QX and capital for or batch QX our target

commitments next is million the considered in only place planning commercial us completion Congress. and through qualifications, financial for set Reduction year total, and start exceeds service coming plan solar credit tax at As reach being the changes XXXX to construction. and months, of is that to opportunity project projects Act final the year. the potential profile capital a the out of including In capital Group Energy That's storage the during structure of in projects as $XXX resolution we beginning the of flows the arising Clearway across those Inflation their for bill,

outlook commitments opportunities Group offered the investment by Clearway near-term. estimate update an the which over provide Energy project capital will You on the

energy is track solar of sale XX% second with of the in the closing In addition, still Clearway half which on is of Group XXXX. Energy

robust the in, the in goals, or of dimensions make planning capabilities the an global have an participant sponsor, stronger even of for markets as enterprise, as across in applicable expect our well companies with leading productive several With agreements having commenced will subject energy Clearway regulation, even to collaboration generation renewable more clean outcome Energy the for as the provisions progress our $X.XX country's we CAFD million of plan, Thermal, we've full CAFD asset per share, $XXX they sale of an approximately with $X.XX grow million over $XXX Thermal allocation to visibility growth In of with proceeds, share. providing per and of line of of million remaining class. allocated continued diversify the executing excess around proceeds the $XXX supporting us

this outlook, the long-term change at new well ability portfolio, In line investing as through our EPS objectives. create reduce X% on portfolio Clearway distance to to to the as expansion our dividend new to its through grow growth great have growth continue in of upper the I gas target natural contracts assets solid with XXXX. X% Given in confidence of summary, to range in

Turning color a to perspective. overall X. provide Slide a more financial the we and quarter bit stand from where To on

to cash. half of quarter the adjusted the is and million EBITDA and our midpoint of today's very $XXX total ranges of of of first second this our of to in sensitivity the million CAFD year, with adjusted million $XXX close For was reporting portfolio million. $XXX $XXX EBITDA performance Contributing

related million. $XXX and first ranges, June July our running year half managed with currently was results This guidance and manage maintain led the ended as facility well in the above Overall by of delivered in offset as strong During for expected spring performance XXXX Renewables segment, was the company's as outage is production The the portfolio results surely an damage we event by Renewable Clearway's to early expeditiously continue company's scale. in line CAFD the of normal a results, weaker than the to sensitivity extended Segundo the boring Conventional at conditions. the to segment forced that to somewhat equipment. at primarily Wind with due quarter, of in outage, facility and we average all El

XXXX continues achievement the and of to a through the timing include full CAFD the year does As reminder, contribution closed the of segment [indiscernible] transaction assume given Thermal guidance from April, guidance. when of

approximately however, full sheet million existing informs the continues I'll flexibility, to factor Capricorn in have the CAFD $XXX next from our $XXX forma a the and investments outlook the contribution, sale, of [indiscernible] balance updated remains $XXX which the growth to perspective, of QX's on million company an corporate We the to acquisition commitment million speak Now, which the From growth be had CAFD. allocated. pro slide. the Thermal which impressive

interest completely of put, a XX% to and are is revolver company's rate insulated factor. our during forward fixed. in Simply with debt undrawn Our we macroeconomic volatility phenomenal we position a from our challenging are move

level debt million of our formation, levered Capistrano project speak to value capital five that turn CAFD average $XXX acquisition. and the comes Let's producing assumed CAFD slide an latest or accretion million transaction, overview from this year million XX.X% After require million allocation significant approximately of Capistrano to to a provides the X next to shall Capistrano $XX $XXX capital, of Page long-term $XX corporate the of about yield. capital.

purchase to XXXX. agreements The years further close We of diversification in power sells half Texas, second under and XX energy project and expect of average the Wyoming. into provides tenor Nebraska with this a weighted transition

as refining for will those growth, price continue any As utilizing in we on reinvest in $XX million accretive provides on per Clearway utilizing stepping worth were Thermal portfolio. and CAFD our exclusive stone generate repowered, acquisition of of the or X fund an an Group remain purchase excellent part of the execution on continued this exchange sale asset. Overall, that would an to share, Page event the to the acquisition, this Thermal develop projects $X.XX the long-term a right update Energy proceeds owner sale. project CWEN funds. In the provides cash greater to

now to the CAFD pro $X.XX CAFD of With share. per we Capistrano addition of see forma our outlook,

last investment continues $X.XX reaffirming be of to quarter, deliver share, $XX the with at to CAFD in Clearway next Energy's the drop-down generate million range discussed EPS million investors as those asset allocated the ability thereby XXXX. physical end approximately yield X% be X.X%, $XXX and achieve share through of CAFD should at per per portfolio average assume to to our proceeds with remain to X% providing proceeds Clearway to allocation, of per growth of upper the to greater, able or of reinvest CAFD we As $X.XX

capital addition, deployment XXXX like of between would intent. to that additional to and numbers $XXX and In the account merely I remind these now of the not our no assume proceeds our is which Thermal investors million deployment

our share in upper goals execution, achievement focus to to our the continue guidance and of X. Turning per sale growth. XXXX closing Thermal range of the Page at of an increase with Clearway's dividend on

yield, well to at to its acquire agreement generation addition assets. binding assets Energy repowering provides also captive which, opportunities historical for acquisitions Clearway appropriate at known a to We as pursue their returns. Capistrano have a Clearway are that of in continue the signed role given with strong Group the appropriate to portfolio sites

adhere patient be will to standards. underwriting and our We

Reduction We Group provisions of the latest assets continue and to work enactment our potential well for the climate the security Inflation as energy Act drop-down with the Energy of Clearway around as conclusion. is prospects the

to on outcome accretive participation are Clearway Operator, excellent is portfolio on these at position finally, value processes. and position and questions. also Marsh would impacted. may course of opportunity signing portfolio for win by the manner in our the as We on an natural grow in strong accreted due In gas the will lines in how details an through we and open those Energy terms provide XX% risk-adjusted open be also additional its returns. be Inc. capital the assets And procurement capacity Landing California please XXXX summary, an of focused enhancing remaining the always

Operator

from first Bank Our Instructions] of America. Julien question comes with Dumoulin-Smith [Operator

Anya Shelekhin

in stepping today. for Anya is This Julien

thinking in instance, are GIP for consider of the agreement long-term question, are monetizing strategic valuation, natural kind outlet there? those California the for them you strategic of optionality and actually, you how the just So was guess would the the you changes how about recently, selling gas portfolio them? assets, and made Total potential thinking curious, first just I light of potentially options I just

Christopher Sotos

Anya. couple Sure. of different Hopefully, questions, A unpack it. I

think And view decrease value the we think hold the over view assets, valuable. is assets of overall. those involvement underlying several those doesn't our that of of I on really, to have increase as we I [indiscernible] the value like desire change is our one them past tending the and talked we've the years, assets that So the question to the diversification versus Total's

where buy give In we're terms somebody terms I wanted all to if of exact wouldn't numbers out assets, where or that we'd where and to open valuation those, want to of of sell any but valuation in above those we are we we we'd doesn't in can Clearway as it any it of really be a with interested just hold, think but go asset we really if beyond sell value monetizing that. But for Energy.

Anya Shelekhin

question strategy you then on guys And your ask opportunities you are to How portfolio? further of versus thoughts curious today that what I does the just are if storage Where pass? guess overall if where IRA, could And are as well? expanding into on And that. then are on thinking a your today? your I seeing returns

Christopher Sotos

Sure.

over in answer think the the answer unfolds. part hand are how of talked strategy, we as the But for to Craig part. I'll prepared second first remarks, devils bit little details I exactly the a terms in I it of my of think and in kind the obviously, then

more perspective, of tax. a answer other it I if you big Renewables. I at our But in the for know obviously, our Craig, different flexibility long-term, parts approach applications and the two it's think some around positive pretty allows looking don't question. to us for PTCs want And

Craig Cornelius

and of and pleased the a that reduction of elegant sure. both piece Summer have customers system here, be of that the systems carbon we also couldn't the more crafted. Yes, legislation Senators resiliency. it legislation see mention It's really transition on our ultimately the form Well, but should enable that depend just enhancement reliability terms for energy in and truly to of

pleased by the form could more it. we be So, of really final not

as stand-alone all put to going as to happy Clearway development number better what the we're country program mid-decade. the build for a context. PTC enable our projects through pipeline anticipation of stand-alone West for the use excited of storage is The large economically be system and for and value In in advancing the capital will us work that viable which makes accelerated CWEN, overall. of we to be provisions mean of in permanent for years impaired across can be far The particularly wind assets from enable would a Virginia, in for our enable going to goes, to with in a it's clean approached our part a meaningfully our case, we've As that quantity work increasingly are that renewable for is should solar will velocity over generally model going structure into to but the the project where customers of over few through project demand especially wind a fraction the had underway battery enhanced resources going be ITC. significant ITC of the those PJM model Extension the given in we've to operating assets context we've the electing the we're of our any a sponsor for a of mean and for particular, cases of project proposition our capitalization that's location X hard That intent project greater really the stand-alone the the is the the resources for would deployed projects greater those look approximately storage of evolve better reliability high there's storage becoming to increased that of specifically be tax a the to And portfolio true credit. at and dispatchable we make portion and capital of in is be pipeline come also about for And long-term PTC program siting of in revenue as but of it will certainly of we we're the qualification can all can for projects in and many gigawatts country. And last both it the higher CWEN. going within management country. the stakeholders. course the the the to in a mean availability complementary storage resource way than transformative ITC the for an

look our we're deployment pipeline we yield. will substantial operating storage end that So across about out what we'll optimistic I'd opportunity an share to as see decade, fleet. for the the of of a that also paired expect And of

formation created economy. Just a more are and of the couple U.S. We've announced manufacturing of domestic incentives other points. a deployment domestic for creation The incredibly also resilient for useful content a of the

components. out underway be that a lastly, would the hydrogen then regions years areas, growth focus looking strength those accelerating critical work last of essential spectrum pursuing our incentives of on for work that are procurement said those collaboration some and in and have Solar that's forward pretty partners the we green the and solar in in in Texas. Total. in we enablers are long-term undertaking really driving we've buyers been also site U.S. them consortium We of of ambitions been in contained spearheaded supply through And with areas. support and wind, to legislation the we we've terms of at And wind sole and factories new where the our the in And to we're legislation few both in to capacity proprietary time. initiatives plans also battery in and that the the our chains are the enabler for those incentives evolve provenance the of economic have these component and suppliers we those in Western some here. then incentives for of offshore pretty employ as And

also operating attractive assets through optimistic classes compatible for for mandate those with legislation, this would we'll we investable in substantial in have investment take that that to the those be while time I'm and CWEN. and will yield CWEN, assets efforts So ultimately pretty be some

be Total, brightened while we legislation dependent of that and So us in and advancing we’ve would a remains legislation in enactment outlook the way through really that today. true specifically, the passed. weren’t CWEN substantially been generally The accelerated our new business for and for on

see work to finishes towards weeks hoping over next really Congress its enactment. the So few

Operator

from Our next Wolfe Research. question Keith comes with Stanley

Keith Stanley

over But you bill, of planned bucket to $XXX to the guess, dynamics? the for that bit more think the other show of to on than any could now and be level or from a the because drop-downs XX one. so? PTC it solar slide. it Could of $XXX CEG Thermal mentioned And the than relatedly, could months fully be the that a X you million million due I be, materially visibility just last I more confidence follow-up the assets Chris, on and overall of cash then redeploying on next comments First,

Christopher Sotos

Sure.

the out it the to want first the about the different? comes of make being we all question. I second I minimize Yes. answer tied about exactly before think, is, potentially prepared kind want obviously, question The this be think everything materially to in how not question disciplined. might to as we number sure what to again, exactly we're confidence, talking talked think remarks, to I does I yes, around pass. is but To your be see

I that final to appropriately. working are on depending sure million used think, exactly we of we some determination the cash But make how deploy much moves. of it the hard yes, be would obviously, $XXX

think is know but I when our high done. we're ability So pretty you'll play to

Keith Stanley

heat in how And can comments then assets with the spikes? some month you power give price Texas, wave and just the of any on last performed the

Christopher Sotos

books In Sure. are not once again, closed. July,

is held up of The an portfolio this have kind to indicative. well. So seems

in general, [indiscernible]. portfolio we the well performed from saw So spikes. price some But

Operator

Our next question comes from Colton TPH. Bean with

Colton Bean

portfolio. conventional the On

at there volatility? the to in Any three you of Would interest maintaining natural have the RA counterparty’s around facilities capitalize all recontracted. flexibility market updates do new potentially gas discretion? as that Or, be you’re how now on approaching dispatch to You two have agreements? still the

Christopher Sotos

at the capacity forward sold the margin. Sure. energy portion We

of currently would open basis. question, kind that to for So our be on your book an

be question, margin a the But open if counterparty assets. your piece, energy to However, as in interested we're currently, energy the is those buying well. open we'd to that on

Colton Bean

on to was was base And being approaching recontracting Segundo, But I El don’t that years likely in to still I that think CCGT it how at any know differences there? load, close a then too more come. with just running something ago it update fulsome and many you’re

Christopher Sotos

Not really.

We how ourselves, terms be on think But the Pico. should difference the really well obviously, view CCGT it's we energy it. a than positioned margin a within of market. I higher for us, for not on in think

Operator

from Goldman comes Michael with Sachs. question Lapides next Our

Michael Lapides

right high here. players, know whether one talk or wind landscape? more is this utility-scale holding international Can Will meaning a what’s dynamic, of the Steve about level centers, doing And contracts, don’t but question more and more I doing Chris kind you Can now? just of solar. infrastructure lot returns? with utility the about doing what large-cap the flowing the capital developing project on space it the in companies, talk just overall a into it’s it funds, more there’s you given Is length

Christopher Sotos

several Michael. then than, difference I over this not Thanks, in well industry of lot seeing pass a we're and has kind view what past dramatic for Craig it but saw capital to familiar, frankly, answer a for -- you're into think moved Michael, of last year, of over his I'll as years. the half we

we're I And market. a returns M&A seeing in of terms rich and what's available think pretty out what there, for so it's us,

be going allocate capital. continually we you how disciplined why we're that's me think to the emphasize I heard in

increase opportunities, it morning, back terms to I about in that So depending assets. X.X, the there's that's come with XX how quite out obviously see in on year. few bit think end a little those in do. I on treasuries, market also attractive what But this of there we treasuries But where is a up. the the intend We'll to think

I a overall, your pass this been pressure has versus So different has while. yet But IRRs But terms inflow think last, and view, of Craig, in happening through. there some that because from given difference? of real inflow that for I are quite no to downward any year that think

Craig Cornelius

to that risk it load-carrying the online, siting transmission to resources itself of one find built in might of financial in allow sponsor think, of the supply Yes, and and of last important Yes, strength The ourselves quality development, the quick, and and chain the months, a on all locational with project its to congestion say, individual time. And around for ways in, allowing time XX energy actually as what Chris. can sponsor brought ability capacity components both to its interconnections that things companies the more of and persist those And an of providers will is projects the period in customers where effective I acumen has operational it the the transmission of will we importance the terms get in grounded seeing years viability engaging sure. line asset some I been in the and of those I'll terms The customers we're might or suppliers have, of we're strength. like come of honestly, past. project terms energy of new go navigate useful for exist resources have. support and value important that to play think, the than and that in that two based they're and all system, project both the viability online project creation face. that customers quality get located very today, those they that challenges

need proven a demand So, years can renewable expect would had we've customers back from navigate. credibly to types what sponsors next I'm deflationary high. a there's going is to about to the quite businesses actually want to lower-cost think, store that and projects customers of then value scarcity that frame disruptions end-use also and to that resource or are the ours the deliver of and optimistic that's continue And and the a that ability like extraordinarily I navigate the proposition have because for still that want in storage have time we

for projects do and to of creation that produce into to and contracting flowing think revenue in to that a that that create portfolio So both and space. exhibit good really for be and the availabilities even adequate we into I'm all mid-decade CWEN these are in will And capital that going the persist CWEN optimistic of going the Total, I with incentives able makes the the to investments the returns what the projects. for continue that we're quite

Michael Lapides

And just contract on saw real deals quick buyers you I customers four guess? are centers, mean you two, maybe what than seeing years, three, shorter-term seek

Craig Cornelius

shifted It's actually opposite late the has I almost energy think, interesting is of locking lot inflationary trend shifted buyers course The the a useful the that part calculus predictable have trends of particular, to for in direction. that actually the of of resource months the overall have a It's been for in procurement over a observed that six last a in it. mix. cost an has

models of resources but the long And WECC. then a a commercial will the price around we’re the done some portfolio. intention upside those matching plan in that contracting resources floor that CWEN at those in could say. we’ve we with the their to When a when that undertaken for out entities, you participate year the we’ve natural allow of we noticed system us fit in also as first they because development exists. way put price contracts us, think And volatility thing designs of that with those run. work XX, in And probably that's the for substantial like are lot So the I'd for look XX load-serving that there’s buyers expansion who

I nice open portfolio in an to have that not portfolio protection. walk trying And both an may we’re question, tenders overall revenue the thing walking a to tenors That involve been as these see many with first downside that very resources complementary positions and we your to CWEN. have customers be construct match within total will further. think So to in and existing in long attractive

have in for them looking customers been to many fact, In links. cases, longer contract

Operator

with question next from comes Our Mark CIBC. Jarvi

Mark Jarvi

do impactful to looking store the back you the and portfolio? feel you existing IRA come maybe how – talk at around the if and impact can be particularly Can how current to like comment storage legislation sites you’ve whether the put versus to about got And now just even those repowering, wind. assets, more of on maybe the wanted I a in the many repowering? sites for both impact

Christopher Sotos

I'll half hand over back as problem, the to usual. No though. you

think I from keep that mind have benefit a view, lot assets new. to relatively in our the of our it's important of being

talked I repowering would not because our opportunity, as as you that it to with calls, over of other a happens it new lot relatively about tenured that repowering though gigawatt longer of kind through happen. it's a our as time got contracts we've on are assets of lot can A move So be need of renegotiated.

So I PTC rules terms tax impactful perspective from and is different the think in opportunity a treatment. overall, site of the around

long. and to you wouldn’t into want relatively too PPA I I is of However, read given, much is tenor young relatively as age the that, guess, the our fleet

next as your that. do or not like a the big there’s something though gigawatt opportunity But of months a view? XX what’s in it’s repowering So to Craig,

Craig Cornelius

didn't wind we be repower time that original had something way in that we've long from can that we revenue makes the will over expire. our those so advanced will Yes. the the program taken fairly of and of the status projects which with construction out optimal as lot tax the when cases, be a the very PPAs legislation And with has values past replace runway into place point contract pick equipment Chris equipment to is is time shorter benefit in of at a that's the frames of succession the time. the it's the staged asset time, has projects point the existing new program which those repowering the in for PPA put benefit our that the allow in we this projects of And at milestones anticipated the that those development account really the the the creates, a all systematic which to incentives, the important legislation new sites. repower which from really projects

wind would underway the of expect development in way hybridization place. and we or existing storage number pretty And pairing, evolving, us both entities In that worth solar in transmission commercial especially of with corridor us those wind through of we'll resources hours’ terms and the with retrofit West storage paired the a terms the solutions contracts Midwest load-serving and in programs of got evaluate meaningful find that thousands of across the plants, are that's support to storage existing that a that of is deploy it that useful for system both assets. the country. megawatt We've opportunity while solar even we to the allow

a more So, figure good mind to time to we in But there's be those will substantial as take reason commercial would there a really to projects. picture through out enhancement substantial through Chris keeping move optimal for we the good in for expect us I value decade. to that would move the to current There's this portfolio enhancement as the value reason think the decade. what's -- in expect there portfolio be says, that what as the is some

Mark Jarvi

is open a level being understand better XXX% bit And you see the you then on as just storage just storage, and on that just on the asset gigabit would market side? contracted level comfort and open performance to be your need start to

Christopher Sotos

Yes.

answer, Don't complex with. a I what it paired assets think more it's on depending especially wrong. it's get

is, I than lead which paired works where XXX% to overall portfolio our contracted. what to within the be general would of storage preference think to the may important But XXX%. type it's it have with, in think I say answers how it different assets

used. level So other the part question, interfaces If treat you of that's given with is contract overall nature contracted levels sense want really as little bit how make one-off, portfolio, to lower the storage could a higher a it it's how of is much assets. of your it's the

Mark Jarvi

And When look Chris, for Group at question a Clearway you. you expanding, keeps opportunities. of the lots pipeline, Energy

So lack growth. assets that of a will our it’s constrain not

to want anything down when that you So mix the negotiate? in thinking specific as assets of is which look you is there at? comes changing asset else assets about what that sort sit you’re in picture into to when of you discuss, the abundance on what think of just What the about decision-making giving going to now, Is assets? diversification terms else you

Craig Cornelius

had from to be let's of side. Renewables or say, the we've view, on want diversification goals XX-XX, Yes, really we our never XX-XX precise

it's value. about at right the So we the right the asset sure in have right for us, making place more that

don't two So acquisitions you wrong, the to tended see our of outside with as can past over California. of some get we've years, diversify

on within seen the a take are of you've lot probably we little place. where California M&A a there's if more $X, and our a outside So of than that's third-party bit margin,

Y not we general, that we as look at from of the to X really place. that want about terms assets in be though we good value diversify look So good of it's say It in that's is but kind kind to to right or how perspective. percentages of in

Mark Jarvi

in come but well on the are diversification, bullish taking also you the terms value? you underappreciated as or on that think tail well of of sort either too people did of as of in And in like of terms are decision longer-term certain specific geographic [indiscernible] you markets views the in power it think maybe where making terms

Christopher Sotos

all as very of are familiar, tenders initial most tail longer-term the the value, predominantly contracted. you're For

contract affect So our little of tail lot more it our doesn't really decision do helps the be maybe a a contract after obviously. where in be bit to of, really bit but little what markets and a the over still making interested we want period, okay, on inform lines view it

Operator

question Our next from comes ROTH. Clare Justin with

Justin Clare

dependent change yields this you Act. like equity potential market the seems potential will see wanted first be also you could drop-downs. And for growth also how but about do I market. but the sense with the I tax could CAFD know already could I us opportunity touched guess meaningfully higher for in just in opportunities here? you're economics? follow-up more a on just improve economics But here I give on to the economics It up and wanted I project Reduction how of to this see a little thinking here know you then your treatment change So here, could you the Inflation see

Christopher Sotos

Sure.

different of think there. I couple pieces a

trades, actually on of perspective think like, that's capital are where our kind In the stock weighted macroeconomic on than cap a and terms necessarily deals changing much the produces. cost the dependent of where of environment, treasuries what I IRA more

earlier discussion aren't an of having that current taxpayer. in profile especially point it actual buy Craig tax second out the we affects than get a question, direct I more lot where kind PTC, solar the a think, to, ITC it returns. project in obviously very made the affect I think of that To you can a that of will your around much terms cash versus equity, CAFD necessarily more how the into and allows

helpful those benefits for us. Some of as aren't

demographics that So returns I to of think of the it for achieve. us, able some we're changes

works it think we to the and see it I yields what all IRRs like. actually or say to have changes out CAFD if

Justin Clare

you just availability. was us for disruptive on UFLPA the supply could to I enforcement give how the then just might if here, module be sense solar a wondering And chain the

you projects give I us Solar? Hawaiian status your the could for into Daggett here? commitments whether factoring have here considering in And the the the you panels near-term, you for might think decision-making then that have maybe but projects that modules for are available? you Is be making

Christopher Sotos

Sure. I'll more your over to question. hand then and answer to It's first last Craig.

For us, projects operation commercial at we over to date. take tend

of it's So risk construction that though really of taking in arriving. we're not panels terms a lot as

it's really COD near So just we of or when for kind what funding tax we're on usually commit, depending worth, rules. at

terms in of just So other for the the of But Craig, part contact. question?

Craig Cornelius

does especially when in and proud technology very general, the and forecasting team solar procurement our to of that work in domain. Yes, sure. comes the it I'm

needs of generally as adopter early major been few ahead an a steps free bifacial of make we've everybody of an as procurement. of else what thinking like to us is look supply driver as that U.S.-made our well think in a Xinjiang think of procurement I And establishment of provisions chain in really polysilicon I that our about today in panels serving Foresight use enterprise.

to the withhold resilient release we same of we were way for kind the work, application the we responsibility supplies panel the configuration the Hawaii. supply have around are and Hoshine the of in through Foresight we that of that optimistic chain for that employed that put So order virtue by

to expectation for import compliance able modules UFLPA. the we're that with near-term all current working vendors our be the the Our will in with that pipeline is

the And expectation our CODs material opportunities. without participants confirmatory manageable estimated into for So UFLPA for future enterprise something temporary is to the compliance generally program. risk going earnings possible that's around its while think and estimated industry holds enforcement SCBP the the Pass incorporated near-term that today's any Victory use supply chain are then projects configuration We all Arica Hawaii, it's be the materially drop-down that CODs establishes conceivable, project, at and delaying it's presented in projects for because a been in the really arrangements. border projects Successor we've that which makes the procured supply chain of similar Solar our Solar of same projects, of Storage the Texas of supply Nova supported Daggett make for use that

policy are So way trying supply more even into in supply as go make the sort chain we U.S. established increasingly therefore, we’re localized have goal anticipated manufacturing the the of objectives and chain look procurement of for I certainly, U.S. objectives. going prove as legislation a the of that then run, future, to passed program into locations that policy and modules we spearhead think an that with we an to the feasible that consistent And resilient. the makes use short again, a us incentives we should mid-decade. planning for think, solar for And or

run, the think of thoughtful possible complicated because we be may regime whole disruptions procuring we on the we’ve that what bought ports and based the we bought these implementation where just we I who all in because it should of something that certainly in it’s from. panels And disruptions. while involve should see long we and will okay be the is that from. are But total, entities function, we’re way been CBP and right will think So we

Operator

Our with next question Noah Oppenheimer. from comes Kaye

Noah Kaye

up ask it and one high-level I cooperation off hasn’t in those where maybe start the side, to know a the of then for just obviously potentially we recontracting stage, planning the can side Maybe see out you opportunities but the you’re with development you and discussions, of sketch one walk the areas M&A based here. can yet financing And around even back the closed some Total since the side? and collaboration? through

Christopher Sotos

kind of have of the parts the then some walk I'll I'll and development Craig side. on through

a it's not as financing we though think pretty have market going [indiscernible] and we and strong presence obviously I forward So M&A, capital currently need

Craig Cornelius

its constraints the there's with the around have and the risk stages in positions of markets. those As toolbox between I with course, around for think for a projects markets, -- important certain Total presence value the establish to could power we collaborate counterparty during and the that potential be us to grows see, for collaboration. a Total we discussions signing your of a us positions time U.S. trading yieldco electric we're during manage its regulatory are in period as consistent question or the early for But closing interface markets, with reduction suggests, respectful act around where as in tool that in power ability revenue help that really in contract or to of some management be in capabilities power particular, need ability period. and time new opportunities energy to to unlocking And

forward we collaborating So one to look area them on. that's with

look strategies, terms that in value collaborate development and U.S. for the activities, with to do do our GIP certainly they drive we'll help we that work with procurement and us both elsewhere. on as for them In the of global projects

enterprises it the would When So is citing And in We're is be think look offshore the in certainly, the the our a how capabilities to Total as thought categories there's and when I think collaborating operating do on think them for assets in truly context the newer advancing of of them moving Total, green company can run do. the comes a the think up value-added collaborate together molecules they it And of I before, and a hydrogen in some renewable that bear formidable and we're But in production. work what's to we've to to them possible emerging in touched where and we do -- to thinking to class. to what purposes of could leader to and of asset of about know them an leading we you certainly, that been started do the interesting about about like built could and a hydrogen we vision they that marketing terms complementary are U.S. U.S. then matching has a longer that something and those with capabilities look Clearway globally, wind. in long-run Western the one building there's we we leader brings around regard. for what Western Total as there's asset as in be you opportunity class some green for wind, the leader, class. across cost us And way we that offshore a especially procurement -- out forward what that In own. with we've Total opportunity for service and global where in collaboration. in market I with look world-class is force asset

optimistic So about exist together can to these be what early right now. future. do the constraints we not be could respectful I as But out into we we are of regulatory that have look days and more

Noah Kaye

the I in off and the last, a of in over through more the then around you, to uncertainty bit the kind terms is but portfolio it, talk of of process clarification. call as Craig for and go the crews. follow-up, having had to again, just then you on guess, Obviously, anywhere this went quarter a maybe getting little about tariff remobilize you

peers delay specific period. to the kind pointed of of have Some time

experienced around you put you CODs? can know what in curious frame extent So any what to pushouts or to time any and

Craig Cornelius

general, employing much from were And chain in Hawaiian like the current we the projects. supply outlook say, have six materials AD/CVD that that different completion on projects part what in have months our not were than particular which facts for ago. exhibited that And would a Daggett the they earnings what of that those investigation. you'd of COD moved focus reflects contained of seen, The forecast reflect that is, observe are you

incurring they actions allocating also that reflects the the chain it of some in sponsor that took with costs Some track. priority we at to have on would the position so at that order company projects of done stay of material reflects top that suppliers supply perfect assure that to our the that we've work are that they incremental were panel candor, their in that And list. capacity

the disruptions its has I or that envisioned so the on originally either get these goal some projects supply before they advance the close as been chain they of think into the And capital as to can for those customers and our seriously. so resources costless trade deploy able to get policy-driven them. frames proposition that these those objectives been planned not be to our also time a online disruptions take entity for to CWEN to but And projects we parent that has possible

have keep to to accommodations project worked customers those and incurred working these those that with our with us working are be have who out to we've so, circumstances glad make And forward with the require. projects moving us costs been and

and our of So what cost costs or terms we in has disrupted impact it's terms were supply incur on been place. readiness others But without been impacts those think of planning not the schedule. our of in than first also to program on I overall, our modest because in the less chain

Operator

like any call at Chris to for I'd remarks. And I'm questions the time. not showing this any turn further over to back closing

Christopher Sotos

to I you talking and attending for everyone for in Take all to you thank care. say to want just I look November. forward

Operator

does this presentation. Ladies and conclude gentlemen, today's

now may day. a disconnect have and wonderful You

Clearway Energy (CWEN) 2 Aug 222022 Q2 Earnings call transcript