Clearway Energy, Inc. Q1 FY2025 earnings call

Fleet Enhancements

• Mt. Storm repowering signed revenue contract with Microsoft, on track for commercial operation in phases from 2026 - 2027. Goat Mountain potential repowering advancing with awarded PPA. San Juan Mesa repowering development ongoing with PPA extension as bridge to 2027 repower.

Sponsor-enabled Dropdown Growth

• Clearway Group has over 9 gigawatts of CWEN compatible late-stage projects, on pace to complete safe harbor investments for approx. 13 gigawatts of projects. Spindle project (199 MW battery storage) signed long-term contract. Rosamond South II project advancing PPA negotiation. Honeycomb projects construction ongoing.

Asset-centered M&A

• Closed Tuolumne Wind acquisition. Signed binding agreement to acquire operational solar project in California, complementary to existing assets and with option for future battery hybridization.

Clearway delivered solid first quarter results across all segments. In the Renewables & Storage segment, capacity factors for solar improved by 4.7% to 25.7% and for wind improved by 2.9% to 33.9%. In the Flexible Generation segment, availability improved by 3% to 89.3%. First quarter adjusted EBITDA was $252 million and CAFD was $77 million.

2025 CAFD

• Reiterated 2025 CAFD guidance range of $400 million to $440 million, targeting higher end.

Growth Funding

• Expect to generate $250 million or more of retained CAFD from 2025 - 2027 to fund part of committed growth investments. Have excess debt capacity of approx. $400 million or greater. Intend to opportunistically issue modest amounts of equity via ATM facility to fund accretive growth.

Interest Rate Risk

• Mitigated interest rate risk for refinancing corporate bond due in 2028 via hedging base rates.

Tariff Impact

• Tariffs on Chinese content in batteries could impact CapEx, but working with suppliers and customers to manage.

Policy Risks

• Potential impact of IRA policy changes on project permits and tax credit monetization for repowered projects.

Q: How are you thinking about battery storage going forward?

A: Batteries have a bright future. Working with suppliers and customers to manage supply chain and tariff impacts, plan to continue executing battery projects.

Q: Could 2025 guidance be revised due to new acquisitions?

A: Need to get through more of the year, will track closing of acquisitions and other factors, update range if appropriate.

Q: Thoughts on M&A market and the recent solar project acquisition?

A: Market has more balance between buyers and sellers. Recent acquisitions have unique synergistic benefits, will continue to evaluate and execute on M&A with return proposition consistent with capital allocation framework.

Q: How is tax credit monetization for projects?

A: Capital structures use traditional tax equity partnerships, tax credits allocated to financial institutions, some can be transferred for additional benefit.