Brookfield Renewable Partners L.P. Q2 FY2025 earnings call

• Successful quarter with strong financial results, driven by large hydro fleet and 7.7 GW of new renewable capacity commissioned in 12 months. • Westinghouse's Nuclear Services business had strong results, benefiting from growing nuclear power momentum. • Received clarity on U.S. policy changes with the One Big Beautiful Bill, began safe harboring strategy for U.S. projects to secure credit eligibility through 2029. • Wyatt Hartley discussed Hydro Framework Agreement with Google, investment in Isagen, Westinghouse's role, and acquisition of Neoen. • Patrick Taylor highlighted FFO per unit growth, strong financial position with $4.7 billion liquidity, and successful financings totaling $19 billion year-to-date.

Hydroelectric segment: FFO up over 50% from prior year driven by strong performance from U.S. and Colombian fleets with hydrology above long-term average. Wind and solar segments: FFO essentially flat, with newly commissioned capacity and investment offset by asset dispositions and gains. Distributed energy, storage and sustainable solutions segments: FFO up almost 40% year-over-year, driven by strong results from Westinghouse.

• Expecting 12% to 15% long-term total returns for investors. • Continue to expect 10%-plus FFO per unit growth for the year. • Anticipate executing with greater confidence due to U.S. policy clarity, with plans to deploy safe harboring strategy. • Expect to commission approximately 8 GW in 2025, a record for the business.

• Future results may differ materially from forward-looking statements due to known and unknown risks. • Uncertainties around policy changes, potential alterations to tax credit eligibility criteria, and market dynamics that could impact project execution and financial performance.

Q: Congrats on a strong quarter. How to accelerate development in PJM area and leverage footprint?

A: Connor Teskey said they are already pulling forward development, using M&A capabilities, and framework agreements with large buyers to leverage demand.

Q: Development pipeline timing in North America?

A: Connor Teskey said it's purely timing based on individual project interconnection and COD dates.

Q: Big tech balance of base load vs intermittent renewable energy?

A: Connor Teskey said large tech companies want 24/7 power, contracts including capacity components, leveraging Brookfield's diverse technologies.

Q: Thoughts on Trump's executive order and tax credit eligibility?

A: Connor Teskey said they monitor reviews, feel confident in position, and can adapt using global supply chain.

Q: Hydro M&A environment in U.S. for Google framework?

A: Connor Teskey said hydro market is becoming more liquid, with optionality to use existing fleet or M&A.

Q: Adapting to U.S. market challenges like interconnection?

A: Connor Teskey said they consider interconnection in development and M&A, like buying Urban Grid for preferential queue positions.

Q: Batteries growth and target IRR?

A: Connor Teskey said batteries are fastest-growing, with U.S. top, returns attractive, likely top of IRR range now.

Q: Safe harbor business and rule changes?

A: Connor Teskey said most safe harboring done, uses offsite/onsite work test approach with modest CapEx.

Q: Key milestones for nuclear development?

A: Connor Teskey and Wyatt Hartley mentioned growth in U.S. new nuclear build, Westinghouse's role, and progress in Europe.

Q: Tech company CapEx changes and contractual frameworks?

A: Connor Teskey said increased appetite for new technologies, broader relationships with large tech companies.

Q: Changes in tax credits affecting U.S. renewables M&A?

A: Connor Teskey said M&A activity subdued due to market noise, expecting increase in next 12 months.