Brookfield Renewable Partners L.P. Q3 FY2025 earnings call

• Delivered $302 million of FFO ($0.46 per unit), up 10% y-o-y, and expect 10% plus FFO per unit growth for 2025.
• Advanced commercial priorities, signing contracts for 4,000 gigawatt hours per year of generation and commissioning 1,800 megawatts of new projects.
• Made strategic investments in critical technologies, including nuclear (partnership with U.S. government, Westinghouse's role), hydro (contracts with Google, Microsoft), and battery storage (340-MW battery in Australia).
• Growth driven by ongoing electrification, reindustrialization, and hyperscalers' data center spend for cloud computing and AI.

Hydroelectric Segment: Generated FFO of $119 million, up over 20% year-over-year due to solid generation from Canadian and Colombian fleets, higher pricing in U.S. operations, and increased earnings from commercial and operational activities. Wind and Solar Segments: Combined FFO of $177 million, supported by acquisitions but offset by asset sales. Distributed Energy, Storage and Sustainable Solutions Segments: Generated FFO of $127 million, up from prior year, supported by growth from Neoen acquisition and strong performance at Westinghouse. Total FFO for the quarter was $302 million or $0.46 per unit, up 10% year-over-year.

• Expect to deliver 10% plus FFO per unit growth for 2025.
• Continues to see accelerating demand for power across markets, with 4,000 GWh/year contracts signed and 1,800 MW of new projects commissioned.
• Nuclear partnership with U.S. government expected to drive significant earnings growth over time, with first projects likely to start development soon.

• Regulatory risks related to FEOC definitions and potential changes affecting project eligibility for tax credits.
• Cost overrun risks in nuclear projects and need for appropriate protections when investing in construction and ownership.
• Market risks associated with regulatory changes that could impact the portfolio, but expected to be manageable.

Q: Just in the U.S., can you talk about improvements in permitting pace and changes to speed up power deployment?

A: Incrementally seeing some progress, but bottleneck is ground-level execution. Intent to remedy is there, but progress limited so far but confident it will improve.

Q: Can you talk about the expected timeline for U.S. build-out associated with the Westinghouse agreement?

A: First projects expected to start development in next couple of quarters, with revenues starting soon, ramping up in 3-4 years. Energy Systems division of Westinghouse typically has ~20% margins during development and construction.

Q: How do you hedge basis risk around cost overruns or delays in Santee Cooper project?

A: Will structure investment to ensure appropriate protections around cost overrun risk, socializing with off-takers, suppliers, or financing if pursuing such opportunities.

Q: Have there been changes in perspective regarding eligibility of U.S. projects for federal tax credits?

A: Safe harbored U.S. development pipeline out to 2029, but monitoring FEOC definitions; expect manageable impact if changes occur.