BEP Q2 2021 Earnings Conference Call

August 5, 2021

And liquidity.

Wyatt: Liquidity, after which we look forward to taking your questions. The tailwinds for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to decarbonize. This is driving increased demand for green energy and other clean solutions. It should come as no surprise that there is both a growing investment opportunity as well as increasing amounts of capital being allocated towards the sector. As one of the few businesses with the scale, track record, and global capabilities to both partner with governments and businesses, and also invest to help them achieve their decarbonization goals, we believe we have a great runway ahead of us. We have continued to earn excellent returns in these market conditions. We have remained focused on opportunities where we can leverage our global reach, operating and development expertise, and scale access to capital.

Connor Teskey: Liquidity, after which we look forward to taking your questions. The tailwinds for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to decarbonize. This is driving increased demand for green energy and other clean solutions. It should come as no surprise that there is both a growing investment opportunity as well as increasing amounts of capital being allocated towards the sector. As one of the few businesses with the scale, track record, and global capabilities to both partner with governments and businesses, and also invest to help them achieve their decarbonization goals, we believe we have a great runway ahead of us. We have continued to earn excellent returns in these market conditions. We have remained focused on opportunities where we can leverage our global reach, operating and development expertise, and scale access to capital.

After which we look forward to taking your questions.

The tailwind for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to Decarbonize.

This is driving increased demand for green energy and other clean solutions.

It should come as no surprise that there is both a growing investment opportunity as well as increasing amounts of capital being allocated towards the sector.

As 1 of the few businesses with the scale track record and global capabilities to both partner with governments and businesses and also invest to help them achieve their decarbonization goals. We believe we have a great runway ahead of us.

We have continued to earn excellent returns in these market conditions we.

We have remained focused on opportunities, where we can leverage our global reach operating and development expertise.

And scale access to capital.

And as industry tailwind accelerates.

Wyatt: As industry tailwinds accelerate, the number of scale, value-add opportunities that favor investors with our skill set is also increasing. We will now walk through a number of highlights for the quarter. We generated FFO of $268 million or $0.42 per unit, a 23% increase on a normalized per-unit basis over the same period in the prior year. As our assets continue to perform well with high levels of asset availability, and we benefit from growth from both new acquisitions and the development asset and a number of our development assets coming online. We signed 28 agreements for approximately 800 gigawatt-hours of renewable generation with high-quality corporate off-takers across all major industries. Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend.

Connor Teskey: As industry tailwinds accelerate, the number of scale, value-add opportunities that favor investors with our skill set is also increasing. We will now walk through a number of highlights for the quarter. We generated FFO of $268 million or $0.42 per unit, a 23% increase on a normalized per-unit basis over the same period in the prior year. As our assets continue to perform well with high levels of asset availability, and we benefit from growth from both new acquisitions and the development asset and a number of our development assets coming online. We signed 28 agreements for approximately 800 gigawatt-hours of renewable generation with high-quality corporate off-takers across all major industries. Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend.

The number of scale value add opportunities that favor investors with our skill set is also increasing.

We will now walk through a number of highlights for the quarter.

We generated <unk> of $268 million.

Our <unk> 42 per unit.

A 23% increase on a normalized per unit basis over the same period in the prior year.

As our assets continue to perform well with high levels of asset availability.

And we benefit from growth from both new acquisitions, and the development asset and a number of our development assets coming online.

We signed 28 agreements for approximately 800 gigawatt hours of renewable generation with high quality corporate off takers across all major industries.

Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend.

We progressed approximately 7500 megawatts of development projects through construction and advanced permitting.

Wyatt: We progressed approximately 7,500 MW of development projects through construction and advanced permitting, and added approximately 4,000 MW to our global development pipeline, which is now over 30,000 MW around the world. Year to date, we have invested or agreed to invest approximately $1.9 billion or approximately $500 million net to Brookfield Renewable of equity across a range of transactions. Our balance sheet remains robust, with almost $3.3 billion of available liquidity and no meaningful near-term maturities. Finally, we raised approximately $1.3 billion or over $650 million net to Brookfield Renewable from asset recycling and strategic upfinancing activities so far this year. Now turning our attention to some recent growth initiatives.

Connor Teskey: We progressed approximately 7,500 MW of development projects through construction and advanced permitting, and added approximately 4,000 MW to our global development pipeline, which is now over 30,000 MW around the world. Year to date, we have invested or agreed to invest approximately $1.9 billion or approximately $500 million net to Brookfield Renewable of equity across a range of transactions. Our balance sheet remains robust, with almost $3.3 billion of available liquidity and no meaningful near-term maturities. Finally, we raised approximately $1.3 billion or over $650 million net to Brookfield Renewable from asset recycling and strategic upfinancing activities so far this year. Now turning our attention to some recent growth initiatives.

And added approximately 4000 megawatts to our global development pipeline, which is now over 30000 megawatts around the world.

Year to date.

We have invested or agreed to invest approximately $1.9 billion.

For approximately $500 million net to Brookfield renewable of equity across a range of transactions.

Our balance sheet remains robust with almost $3.3 billion of available liquidity and no meaningful near term maturities.

And finally <unk>.

We raised approximately $1.3 billion.

Or over $650 million net to Brookfield renewable from asset recycling and strategic up financing activities. So far this year.

Now turning our attention to some recent growth initiatives.

As more capital continues to flow into renewable energy and Decarbonization solutions.

Wyatt: As more capital continues to flow into renewable energy and decarbonization solutions, our approach to growth will continue to favor those opportunities that allow us to utilize our strengths: investing for value and leveraging our operating capabilities to drive cash flow growth. We recently executed several agreements and transactions that highlight this approach. In June, we commenced the repowering of the fully contracted 845 MW Shepherds Flat wind project, which we acquired earlier this year. Shepherds Flat, which is located in the United States, is 1 of the largest repowering projects in the world. We will replace the turbine hardware with longer rotors and more efficient equipment while maintaining the rest of the infrastructure. This is expected to increase production by approximately 25%, generating 400 GWh of additional clean energy annually, while also meaningfully extending the asset's useful life.

Connor Teskey: As more capital continues to flow into renewable energy and decarbonization solutions, our approach to growth will continue to favor those opportunities that allow us to utilize our strengths: investing for value and leveraging our operating capabilities to drive cash flow growth. We recently executed several agreements and transactions that highlight this approach. In June, we commenced the repowering of the fully contracted 845 MW Shepherds Flat wind project, which we acquired earlier this year. Shepherds Flat, which is located in the United States, is 1 of the largest repowering projects in the world. We will replace the turbine hardware with longer rotors and more efficient equipment while maintaining the rest of the infrastructure. This is expected to increase production by approximately 25%, generating 400 GWh of additional clean energy annually, while also meaningfully extending the asset's useful life.

Our approach to growth, we will continue to favor those opportunities that allow us to utilize our strengths.

Investing for value and leveraging our operating capabilities to drive cash flow growth.

We recently executed several agreements and transactions that highlight this approach.

In June.

We commenced the repowering of the fully contracted 845 megawatts Shepherd flat wind project, which we acquired earlier this year.

Shepherd flat, which is located in the United States is 1 of the largest repowering projects in the world.

We will replace that turbine hardware with longer rotors, and more efficient equipment, while maintaining the rest of the infrastructure.

This is expected to increase production by approximately 25% generating 400 gigawatt hours of additional clean energy annually.

While also meaningfully extending the assets useful life.

Furthermore.

Wyatt: Furthermore, given that the cost is only a fraction of a comparable greenfield project and the enhanced generation can support a more robust capital structure, the repowering requires no additional equity from us, meaning that the investment will generate attractive mid to high teens returns. This repowering is an example of how we capitalize on our competitive advantages in the current market environment. By the time we complete the repowering by the end of 2022, it is expected that 320 turbines will have been retrofitted, with rotors measuring almost 130 meters and other technologically advanced equipment as we continue to deliver power and receive revenues under the current power purchase agreement. Doing so requires the combination of both our operating capabilities as well as our position as one of the leading renewable power platforms in the world.

Connor Teskey: Furthermore, given that the cost is only a fraction of a comparable greenfield project and the enhanced generation can support a more robust capital structure, the repowering requires no additional equity from us, meaning that the investment will generate attractive mid to high teens returns. This repowering is an example of how we capitalize on our competitive advantages in the current market environment. By the time we complete the repowering by the end of 2022, it is expected that 320 turbines will have been retrofitted, with rotors measuring almost 130 meters and other technologically advanced equipment as we continue to deliver power and receive revenues under the current power purchase agreement. Doing so requires the combination of both our operating capabilities as well as our position as one of the leading renewable power platforms in the world.

Given that the cost is only a fraction of a comparable greenfield project and the enhanced generation can support a more robust capital structure.

The requiring the Repowering requires no additional equity from us.

Meaning that the investment will generate attractive mid to high teens returns.

This repowering is an example of how we capitalize on our competitive advantages in the current market environment.

By the time, we complete the repowering by the end of 2022.

It is expected that 320 turbines will have been retrofitted.

With rotors, measuring almost 130 meters and other technologically advanced equipment as we continued to deliver power and receive revenues under the current power purchase agreement.

Doing so requires the combination of both our operating capabilities.

As well as our position as 1 of the leading renewable power platforms in the world.

Wyatt: We have leveraged our existing relationships with equipment suppliers, financing partners, and power off-takes to largely de-risk this project. With an estimated 200GW of global wind capacity reaching 15 years of age within the next five years, the global market for repowerings is large. Shepherds Flat is by no means the only opportunity, and this is only one segment where we continue to grow our business at attractive returns. Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other projects, both across our existing portfolio as well as those we acquire to deliver attractive returns for our investors. This quarter, we also signed a strategic collaboration agreement with Amazon to develop new renewable projects supported by power purchase agreements and to work together on additional green energy opportunities in the future.

Connor Teskey: We have leveraged our existing relationships with equipment suppliers, financing partners, and power off-takes to largely de-risk this project. With an estimated 200GW of global wind capacity reaching 15 years of age within the next five years, the global market for repowerings is large. Shepherds Flat is by no means the only opportunity, and this is only one segment where we continue to grow our business at attractive returns. Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other projects, both across our existing portfolio as well as those we acquire to deliver attractive returns for our investors. This quarter, we also signed a strategic collaboration agreement with Amazon to develop new renewable projects supported by power purchase agreements and to work together on additional green energy opportunities in the future.

We have leveraged our existing relationships with equipment suppliers financing partners and power offtake to largely Derisk. This project.

With an estimated 200 gigawatts of global wind capacity, reaching 15 years of age within the next 5 years, the global market for Repowering as large.

Shepherd flat is by no means the only opportunity.

And this is only 1 segment, where we continue to grow our business at attractive returns.

Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other projects.

Both across our existing portfolio as well as those we acquire to deliver attractive returns for our investors.

This quarter.

We also signed a strategic collaboration agreement with Amazon to develop new renewable projects supported by power purchase agreements and to work together on additional green energy opportunities in the future.

This agreement.

Wyatt: This agreement, with the world's largest corporate buyer of renewable power, will leverage our deep operating capabilities and local teams in North America, Europe, Brazil, and Asia to support the construction of projects from our 31,000-megawatt development pipeline. We are excited to collaborate with Amazon and support them in achieving their climate goals while at the same time helping to transition global electricity grids to greener energy. Furthermore, we agreed with Trane Technologies to jointly pursue and offer decarbonization as a service for commercial, industrial, and public sector customers. This will comprise of energy-efficient retrofits and upgrades of building energy infrastructure along with captive distributed solar, energy storage, and other power generation across North America. The agreement leverages our leading US distributed generation business and Trane's leading energy efficiency, engineering, and project development experience to jointly development and implement new customer opportunities.

Connor Teskey: This agreement, with the world's largest corporate buyer of renewable power, will leverage our deep operating capabilities and local teams in North America, Europe, Brazil, and Asia to support the construction of projects from our 31,000-megawatt development pipeline. We are excited to collaborate with Amazon and support them in achieving their climate goals while at the same time helping to transition global electricity grids to greener energy. Furthermore, we agreed with Trane Technologies to jointly pursue and offer decarbonization as a service for commercial, industrial, and public sector customers. This will comprise of energy-efficient retrofits and upgrades of building energy infrastructure along with captive distributed solar, energy storage, and other power generation across North America. The agreement leverages our leading US distributed generation business and Trane's leading energy efficiency, engineering, and project development experience to jointly development and implement new customer opportunities.

With the world's largest corporate buyer of renewable power will leverage our deep operating capabilities and local teams in North America, Europe, Brazil, and Asia to support the construction of projects from our 31000 megawatt development pipeline.

We are excited to collaborate with Amazon and support them in achieving their climate goals, while at the same time, helping to transition global electricity grids to cleaner greener energy.

Furthermore.

We agreed with Trane technologies to jointly pursue an offer decarbonization as a service for commercial industrial and public sector customers.

This will comprise of energy efficient retrofits and upgrades of building energy infrastructure, along with captive distributed solar energy storage and other power generation across North America.

The agreement Leverages, our leading U S distributed generation business.

And trains leading energy efficiency engineering and project development experience to jointly development and implement new customer opportunities.

Wyatt: The decarbonization solutions provided will help customers meet sustainability targets while reducing operating costs through upgrading critical energy infrastructure and installing on-site renewable energy. In our Polish renewables business, we made significant progress on our development activities. We secured 25-year contracts to support the buildout of almost 1.5 gigawatts of offshore wind projects at attractive prices escalating with inflation with no basis or curtailment risk. As we have stated previously, we believe these are some of the most attractive contract structures available in the global offshore wind sector. We are now focused on executing construction activities with the goal of delivering the facilities starting in 2025. In addition, we are on track to deliver our 200-megawatt under-construction onshore wind portfolio by next year and are advancing opportunities to grow our onshore wind and solar footprint in the country.

Connor Teskey: The decarbonization solutions provided will help customers meet sustainability targets while reducing operating costs through upgrading critical energy infrastructure and installing on-site renewable energy. In our Polish renewables business, we made significant progress on our development activities. We secured 25-year contracts to support the buildout of almost 1.5 gigawatts of offshore wind projects at attractive prices escalating with inflation with no basis or curtailment risk. As we have stated previously, we believe these are some of the most attractive contract structures available in the global offshore wind sector. We are now focused on executing construction activities with the goal of delivering the facilities starting in 2025. In addition, we are on track to deliver our 200-megawatt under-construction onshore wind portfolio by next year and are advancing opportunities to grow our onshore wind and solar footprint in the country.

The Decarbonization solutions provided will help customers meet sustainability targets, while reducing operating costs through upgrading critical energy infrastructure and installing on site renewable energy.

In our Polish renewables business, we made significant progress on our development activities.

We secured 25 year contracts to support the build out of almost 1.5 gigawatts of offshore wind projects at attractive prices escalating with inflation with no basis or curtailment risk.

As we have stated previously we believe these are some of the most attractive contract structures available in the global offshore wind sector.

We are now focused on executing construction activities with the goal of delivering the facilities starting in 2025.

In addition, we are on track to deliver our 200 megawatt under construction onshore wind portfolio by next year and are advancing opportunities to grow our onshore wind and solar footprint in the country.

To fund these growth initiatives shareholders have agreed to 2 capital increases required over the next 2 years, providing the framework for us to invest an additional 150 million euros or approximately $50 million net to Brookfield renewable and increase our stake in the business to almost 40%.

Wyatt: To fund these growth initiatives, shareholders have agreed to capital increases required over the next two years, providing the framework for us to invest an additional €150 million or approximately $50 million net to Brookfield Renewable and increase our stake in the business to almost 40%. In Brazil, our construction activities continue to progress on budget and on schedule across our almost 2 GW portfolio of under-construction wind and solar projects. Recently, we completed construction activities at our approximately 300 MW solar project ahead of schedule and under budget. Our global procurement platform and construction capabilities have positioned us well, and we are on track to deliver an additional approximately 900 MW of fully contracted projects in 2022.

Connor Teskey: To fund these growth initiatives, shareholders have agreed to capital increases required over the next two years, providing the framework for us to invest an additional €150 million or approximately $50 million net to Brookfield Renewable and increase our stake in the business to almost 40%. In Brazil, our construction activities continue to progress on budget and on schedule across our almost 2 GW portfolio of under-construction wind and solar projects. Recently, we completed construction activities at our approximately 300 MW solar project ahead of schedule and under budget. Our global procurement platform and construction capabilities have positioned us well, and we are on track to deliver an additional approximately 900 MW of fully contracted projects in 2022.

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In Brazil.

Our construction activities continue to progress on budget and on schedule across our almost 2 gigawatt portfolio of under construction wind and solar projects.

Recently, we completed construction activities at our approximately 300 megawatts solar project ahead of schedule and under budget.

Our global procurement platform and construction capabilities have positioned us well and we are on track to deliver an additional approximately 900 megawatts of fully contracted projects in 2022.

In China.

Wyatt: In China, alongside Apple's China Clean Energy Fund, which was raised by Apple and its local suppliers to advance their collective transition to net-zero in the country, we agreed to acquire a 55% stake in a 213 MW contracted portfolio of wind assets for $60 million or approximately $15 million net to Brookfield Renewable. This transaction continues to expand and diversify our platform in China, providing a path to continue to prudently grow our capacity in the country. This acquisition is expected to close in Q3. Lastly, in India, we agreed to invest $130 million or $35 million net to Brookfield Renewable across two transactions totaling 900 MW of capacity. The first is with a local solar developer from whom we acquired assets in 2019. We will acquire a 450 MW fully contracted ready-to-build solar project.

Connor Teskey: In China, alongside Apple's China Clean Energy Fund, which was raised by Apple and its local suppliers to advance their collective transition to net-zero in the country, we agreed to acquire a 55% stake in a 213 MW contracted portfolio of wind assets for $60 million or approximately $15 million net to Brookfield Renewable. This transaction continues to expand and diversify our platform in China, providing a path to continue to prudently grow our capacity in the country. This acquisition is expected to close in Q3. Lastly, in India, we agreed to invest $130 million or $35 million net to Brookfield Renewable across two transactions totaling 900 MW of capacity. The first is with a local solar developer from whom we acquired assets in 2019. We will acquire a 450 MW fully contracted ready-to-build solar project.

Alongside apples, China renewable energy fund, which was raised by Apple and its local suppliers to advance their collective transition to net zero in the country.

We agreed to acquire a 55% stake in a 213 megawatt contracted portfolio of wind assets for $60 million or approximately $15 million net to Brookfield renewable.

This transaction continues to expand and diversify our platform in China.

Providing a path to continue to prudently grow our capacity in the country.

This acquisition is expected to close in the third quarter.

And lastly.

In India, we agreed to invest $130 million or <unk> $35 million net to Brookfield renewable.

Across 2 transactions totaling 900 megawatts of capacity.

The first is with a local solar developer from whom we acquired assets in 2019.

We will acquire a 450 megawatt fully contracted ready to build solar project.

This opportunity.

Wyatt: This opportunity is just the first potential transaction of part of a 1.7-gigawatt development pipeline that we are developing in a joint venture with our partners, where they undertake the development activities and we have the option to acquire the projects once they are fully permitted and ready to begin construction. The second transaction is with a large Indian solar developer that was one of the underlying borrowers in a portfolio of loans we acquired in late 2020. The investment gives us the right to acquire a 450-megawatt fully contracted solar project one year following commissioning once the project has been substantially de-risked. With that, I'll turn the call over to Wyatt to discuss our operating results and financial position. Thank you, Connor. Before I discuss our operating results and financial position, I want to make a few brief comments on Brookfield Renewable Corporation, or BEPC.

Connor Teskey: This opportunity is just the first potential transaction of part of a 1.7-gigawatt development pipeline that we are developing in a joint venture with our partners, where they undertake the development activities and we have the option to acquire the projects once they are fully permitted and ready to begin construction. The second transaction is with a large Indian solar developer that was one of the underlying borrowers in a portfolio of loans we acquired in late 2020. The investment gives us the right to acquire a 450-megawatt fully contracted solar project one year following commissioning once the project has been substantially de-risked. With that, I'll turn the call over to Wyatt to discuss our operating results and financial position.

Is just the first potential transaction of part of a 1.7 gigawatt development pipeline that.

That we are developing in a joint venture with our partners, where they undertake the development activities and we have the option to acquire the projects once they once they are fully permitted and ready to begin construction.

The second transaction is with a large Indian solar developer that was 1 of the underlying borrowers in our portfolio of loans, we acquired in late 2020.

The investment gives us the right to acquire a 450 megawatt fully contracted solar project 1 year. Following commissioning once the project has been substantially derisked.

With that I'll turn the call over to white to discuss our operating results and financial position.

Wyatt Hartley: Thank you, Connor. Before I discuss our operating results and financial position, I want to make a few brief comments on Brookfield Renewable Corporation, or BEPC.

Thank you Connor.

<unk> discuss our operating results and financial position I want to make a few brief comments on Brookfield Renewable Corporation are Betsy.

It has been 12 months since we spun out this corporate entity.

Wyatt: It has been 12 months since we spun out this corporate entity. In that time, it has achieved many of the goals we set at launch, including welcoming almost 250 new institutional investors and the addition to many indices, including the Russell 1000, the MSCI Canada, and the S&P Global Clean Energy Index. We were able to offer BEPC shares as consideration in the privatization of TerraForm Power, and we expanded the public float since launch by approximately 300%. We are very pleased with the positive market reception, and looking forward, we expect that BEPC will continue to offer investors an additional way to access our globally leading portfolio of renewable and decarbonization assets, broadening our investor base and enhancing the liquidity of our securities.

Wyatt Hartley: It has been 12 months since we spun out this corporate entity. In that time, it has achieved many of the goals we set at launch, including welcoming almost 250 new institutional investors and the addition to many indices, including the Russell 1000, the MSCI Canada, and the S&P Global Clean Energy Index. We were able to offer BEPC shares as consideration in the privatization of TerraForm Power, and we expanded the public float since launch by approximately 300%. We are very pleased with the positive market reception, and looking forward, we expect that BEPC will continue to offer investors an additional way to access our globally leading portfolio of renewable and decarbonization assets, broadening our investor base and enhancing the liquidity of our securities.

In that time it has achieved many of the goals, we set at launch including welcoming almost 250, new institutional investors.

And the addition to many indices, including the Russell 1000.

MSCI, Canada, and the S&P global clean Energy index.

We were able to offer best C shares as consideration in the privatization of Terraform power.

And we expanded the public float since launch by approximately 300%.

We are very pleased with the positive market reception.

And looking forward, we expect that Betsy will continue to offer investors an additional way to access our globally, leading portfolio of renewable and de carbonization assets.

Broadening our investor base and enhancing the liquidity of our securities.

Turning to operating results.

Wyatt: Turning to operating results, during the Q2, we generated FFO of $268 million or $0.42 per unit as our business benefited from recent acquisitions, strong asset availability, and margin-enhancing initiatives. On a normalized basis, our per-unit results were up 23% year-over-year. During the Q2, our hydroelectric segment delivered FFO of $154 million. Despite generation for the Q2 coming in below the long-term average, the portfolio continues to exhibit strong cash flow resiliency given the increasingly diversified asset base and contract profile. As we have reiterated previously, resource cyclicality is expected but does not impact how we manage the business. Our focus remains on mitigating exposure to any single resource, market, or counterparty by continuously diversifying and contracting the business while prudently managing the assets.

Wyatt Hartley: Turning to operating results, during the Q2, we generated FFO of $268 million or $0.42 per unit as our business benefited from recent acquisitions, strong asset availability, and margin-enhancing initiatives. On a normalized basis, our per-unit results were up 23% year-over-year. During the Q2, our hydroelectric segment delivered FFO of $154 million. Despite generation for the Q2 coming in below the long-term average, the portfolio continues to exhibit strong cash flow resiliency given the increasingly diversified asset base and contract profile. As we have reiterated previously, resource cyclicality is expected but does not impact how we manage the business. Our focus remains on mitigating exposure to any single resource, market, or counterparty by continuously diversifying and contracting the business while prudently managing the assets.

During the second quarter, we generated <unk> of $268 million or <unk> 42 per unit as our business benefited from recent acquisitions.

<unk> asset availability and margin enhancing initiatives.

On a normalized basis, our per unit results were up 23% year over year.

During the quarter, our hydro electric segment delivered <unk> of $154 million.

Despite generation for the quarter coming in below the long term average.

Portfolio continues to exhibit strong cash flow resiliency, given the increasingly diversified asset base and contract profile.

As we have reiterated previously.

Resource cyclicality as expected, but does not impact how we manage the business.

Our focus remains on mitigating exposure to any single resort.

Market, our counterparty by continuously diversifying and contracted the business, while prudently managing the asset.

Securing contracts the value of the uniqueness of our fleet as a generator of dispatch vote clean electricity and ancillary services further bolsters our portfolio against inevitable variability.

Wyatt: Securing contracts that value the uniqueness of our fleet as a generator of dispatchable clean electricity and ancillary services further bolsters our portfolio against inevitable variability. Brazil has been impacted by a drier than normal rainy season this year, particularly in the southeastern region of the country, and reservoirs are well below long-term average. As a result, spot prices have increased significantly as the grid operator has been forced to dispatch higher-priced thermal generation, and there is modest risk of energy rationing in the country. Our portfolio is well positioned in this environment. We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022, and we could potentially realize very strong pricing on contracts we sign for next year.

Wyatt Hartley: Securing contracts that value the uniqueness of our fleet as a generator of dispatchable clean electricity and ancillary services further bolsters our portfolio against inevitable variability. Brazil has been impacted by a drier than normal rainy season this year, particularly in the southeastern region of the country, and reservoirs are well below long-term average. As a result, spot prices have increased significantly as the grid operator has been forced to dispatch higher-priced thermal generation, and there is modest risk of energy rationing in the country. Our portfolio is well positioned in this environment. We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022, and we could potentially realize very strong pricing on contracts we sign for next year.

Brazil has been impacted by a drier than normal rainy season this year.

<unk> in the southeastern region of the country and.

And reservoirs are well below long term average.

As a result spot prices have increased significantly as the grid operator has been forced to dispatch higher priced thermal generation.

And there is modest risk of energy rationing in the country.

Our portfolio is well positioned in this environment.

We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022 and.

And we could potentially realize very strong pricing on contracts, we signed for next year.

Our wind and solar segments generated a combined $178 million or <unk> <unk> as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long duration power purchase agreement.

Wyatt: Our wind and solar segments generated a combined $178 million of FFO as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long-duration power purchase agreements. Further, to take advantage of the strong pricing environment in Brazil, we executed on a regulatory mechanism to uncontract our generation for the year of 2022 from our approximately 300 MW solar development project in the country. Concurrently, we executed on new contracts for this generation in the free market at double the power purchase agreement price, generating an additional 135 million Brazilian reais or $27 million of revenue from the project.

Wyatt Hartley: Our wind and solar segments generated a combined $178 million of FFO as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long-duration power purchase agreements. Further, to take advantage of the strong pricing environment in Brazil, we executed on a regulatory mechanism to uncontract our generation for the year of 2022 from our approximately 300 MW solar development project in the country. Concurrently, we executed on new contracts for this generation in the free market at double the power purchase agreement price, generating an additional 135 million Brazilian reais or $27 million of revenue from the project.

Further to take advantage of the strong pricing environment in Brazil, we executed on a regulatory mechanism to uncontrolled our generation for the year of 2022 from our approximately 300 megawatts solar development project in the country.

Concurrently we executed on new contracts for this generation and the free market at double the power purchase agreement price generating.

<unk> generated an additional $135 million, Brazilian reais or $27 million.

Of revenue from the project.

Our energy transition segment generated $44 million of <unk> during the quarter as our portfolio continues to grow while we assist commercial and industrial partners achieve their de carbonization goals and provide critical grid stabilizing ancillary services and backup capacity.

Wyatt: Our energy transition segment generated $44 million of FFO during the quarter as our portfolio continues to grow while we assist commercial and industrial partners achieve their decarbonization goals and provide critical grid stabilizing ancillary services and backup capacity required to address the increasing intermittency of greener electricity grids. Our financial position continues to be strong. We have approximately $3.3 billion of available liquidity. Our investment-grade balance sheet has no meaningful near-term maturities, and approximately 90% of our financings are non-recourse to Brookfield Renewable. Recently, Fitch initiated coverage of our business, assigning a BBB+ rating, which is consistent with our existing rating from S&P. During the quarter, we continued to take advantage of the low-interest rate environment and executed on approximately $1.5 billion of investment-grade financings across the business. We also continued to execute on several initiatives to further bolster our liquidity and support growth.

Wyatt Hartley: Our energy transition segment generated $44 million of FFO during the quarter as our portfolio continues to grow while we assist commercial and industrial partners achieve their decarbonization goals and provide critical grid stabilizing ancillary services and backup capacity required to address the increasing intermittency of greener electricity grids. Our financial position continues to be strong. We have approximately $3.3 billion of available liquidity. Our investment-grade balance sheet has no meaningful near-term maturities, and approximately 90% of our financings are non-recourse to Brookfield Renewable. Recently, Fitch initiated coverage of our business, assigning a BBB+ rating, which is consistent with our existing rating from S&P. During the quarter, we continued to take advantage of the low-interest rate environment and executed on approximately $1.5 billion of investment-grade financings across the business. We also continued to execute on several initiatives to further bolster our liquidity and support growth.

Required to address the increasing intermittency of greener electricity grid.

Our financial position continues to be strong.

We have approximately $3.3 billion of available liquidity are.

Our investment grade balance sheet has no meaningful near term maturities and approximately 90% of our financings are nonrecourse to Brookfield renewable.

Recently Fitch initiated coverage of our business assigning a triple B positive rating, which is consistent with our existing rating from S&P.

During the quarter, we continued to take advantage of the low interest rate environment and executed on approximately $1.5 billion of investment grade financings across the business.

We also continued to execute on several initiatives to further bolster our liquidity and support growth.

Recently, we raised over $850 million or approximately $410 million net to Brookfield renewable of equity proceeds from capital recycling initiatives.

Wyatt: Recently, we raised over $850 million or approximately $410 million net to Brookfield Renewable of equity proceeds from capital recycling initiatives. Looking forward, we expect to continue to generate meaningful proceeds from strategic upfinancings and capital recycling initiatives, so we are not reliant on capital markets to fund the growth of our business. Looking ahead, we continue to focus on growing our business and executing on our key operational priorities, including maintaining a robust balance sheet and access to diverse sources of capital and surfacing value through enhanced cash flows from our existing portfolio. We remain committed to helping our customers achieve their decarbonization goals and, in the process, earn our investors a strong total return of 12% to 15% over the long term.

Wyatt Hartley: Recently, we raised over $850 million or approximately $410 million net to Brookfield Renewable of equity proceeds from capital recycling initiatives. Looking forward, we expect to continue to generate meaningful proceeds from strategic upfinancings and capital recycling initiatives, so we are not reliant on capital markets to fund the growth of our business. Looking ahead, we continue to focus on growing our business and executing on our key operational priorities, including maintaining a robust balance sheet and access to diverse sources of capital and surfacing value through enhanced cash flows from our existing portfolio. We remain committed to helping our customers achieve their decarbonization goals and, in the process, earn our investors a strong total return of 12% to 15% over the long term.

Looking forward, we expect to continue to generate meaningful proceeds from strategic financing and capital recycling initiatives. So.

So we are not relying on capital market to fund the growth of our business.

Looking ahead, we continue to focus on growing our business and executing on our key operational priorities, including maintaining a robust balance sheet and access to diverse sources of capital and surfacing value through enhanced cash flows from our existing portfolio.

We remain committed to helping our customers achieve their decarbonization goals and in the process R&R investors a strong total return of 12% to 15% over the long term.

On behalf of the board and management of Brookfield renewable we thank all of our unit holders and shareholders for their ongoing support and look forward to connecting with you at our annual Investor Day, which is scheduled to take place on the 20 <unk> of September.

Wyatt: On behalf of the board and management of Brookfield Renewable, we thank all our unit holders and shareholders for their ongoing support and look forward to connecting with you at our annual investor day, which is scheduled to take place on 21 September. That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that, I'll pass it back to our operator for questions.

Wyatt Hartley: On behalf of the board and management of Brookfield Renewable, we thank all our unit holders and shareholders for their ongoing support and look forward to connecting with you at our annual investor day, which is scheduled to take place on 21 September. That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that, I'll pass it back to our operator for questions.

That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that I'll pass it back to our operator for questions.

Thank you.

Operator: Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Our first question comes from the line of Robert Hope with Scotiabank.

As a reminder to ask a question you will need to press star 1 on your telephone.

To withdraw your question press the pound key.

Yes.

Our first question comes from the line of Rob Hope with Scotiabank.

Good morning, everyone.

Robert Hope: Good morning, everyone. Chart on the collaboration agreement with Amazon, how did that kind of come into effect? Can you put some goalposts around technologies, geographies, costs that could eventually fall under this agreement as well as the timeline?

Start on the collaboration agreement with Amazon, how does that come into effect and can you can you put some goalposts around technologies geographies cost.

Eventually fall under this agreement as well as the timeline.

Certainly in <unk>.

Connor Teskey: Certainly, thank you. Perhaps I will start, Wyatt, please jump in. We're very excited about our collaboration with Amazon. Put simply, Amazon is the largest corporate buyer of green power around the world. We are one of the largest providers and suppliers of green power around the world. We think this is a natural alignment of interests. It's probably not prudent for us to discuss specific size because the actual projects that will initially be included are still being determined. This is a sizable, ambitious collaboration that is global in nature across multiple projects in all of our core geographies around the world. What makes us most excited about this agreement is, given Amazon's ambitious targets in terms of green power procurement and our ability to help support them in those initiatives, we think it could grow very materially in the coming years.

Thank you, perhaps I will start.

But why it please jump in.

We're very excited about our collaboration with Amazon.

Put simply Amazon is the largest corporate buyer of green power around the world and we are 1 of the largest <unk>.

Providers and suppliers of Green power around the world. So we think this is a natural alignment of interests.

It's probably not prudent for us discuss specific size because the actual projects that will initially be included are still being determined but this is a sizeable ambitious collaboration that is global in nature.

Across multiple projects in all of our core geographies around the world and what makes US. Most excited about this agreement is given amazon's ambitious targets in terms of green power procurement and our ability to help support them in those initiatives, we think it could grow very.

<unk> in the coming years.

Alright, Thanks for that and then maybe as a follow up question in terms of global opportunities.

Robert Hope: All right. Thanks for that. Then maybe as a follow-up question in terms of kind of global opportunities, the transition fund that just was announced, how do you think it will interact with BEP? Could we see you take a 25% interest in the majority of capital there?

Transitioning from that just was announced how do you think you will interact with.

With Bep could we see you take a 25% interest in the majority of capsular.

Great question. Thank you.

Connor Teskey: Great question. Thank you. For Brookfield Renewable, the transition fund will be similar to Brookfield's other flagship funds, with Brookfield Renewable funding BAM's commitment to the fund where the investment fits Brookfield Renewable's mandate. Given the transition fund's mandate around renewable power buildout and the growth and acquisition of decarbonization assets, we expect that most of the transition fund's investments will be suitable for Brookfield Renewable. It does continue to be the case that we may make certain direct investments through Brookfield Renewable when it is strategic to do so, such as when we privatized TERP last year, but we do expect the majority of the investments that we will make to be made through Brookfield private funds. We're excited because the transition fund simply enhances the opportunity for Brookfield Renewable to target the largest and most attractive renewable power and decarbonization opportunities all over the world.

For Brookfield renewable.

<unk> transitioned fund will be similar to Brookfield other flagship funds.

With Brookfield renewable funding <unk> commitment to the fund where the investment fits Brookfield renewables mandate.

Given.

That transition fund's mandate around renewable power build out and the growth in acquisition of Decarbonization assets. We expect that most of the transition funds investments will be suitable for Brookfield renewable.

Got it.

It does continue to be the case that we may make.

Make certain direct investments through Brookfield renewable when it is strategic to do so such as when we privatize TERP last year, but we do expect the majority of the investments that we will make to be made through Brookfield private funds and we're excited because they transitioned fund simply enhances.

The opportunity for Brookfield renewable to target the largest and most attractive renewable power and decarbonization opportunities all over the world.

I appreciate the color. Thank you.

Robert Hope: Appreciate the call. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Rupert Merer with National Bank.

Next question comes from the line of Rupert <unk> with National Bank.

Good morning, everyone.

Rupert Merer: Good morning, everyone. Now, you've talked about Brazil and the higher power prices there and the potential for recontracting some of your assets in Brazil. How much of your capacity in Brazil will be up for contract negotiation over the next couple of years, and how much upside do you see with the pricing environment there?

Now you've talked about Brazil, and the higher power prices there.

And the potential for re contracting some of your assets in Brazil how.

How much of your capacity in Brazil will be up for contract negotiation over the next.

Couple of years and how much upside do you see the pricing environment there.

Perfect. So.

Connor Teskey: Perfect. Rupert, why don't I start, and then I might hand to Wyatt for some of the specifics. What we look to do in our Brazilian operation is we are obviously targeting a highly contracted profile, but what we do do is we always leave sufficient cushion to account for any resource variability, such as the resource variability we've seen thus far this year. In certain years, we don't use all that cushion. In years of low hydrology like this one, we use more of it, but it positions us well to handle situations such as the drought-like conditions that are currently being experienced. The majority of our power is contracted going forward for a number of years under long-term contracts, but we do continue to hold a small minority of positions that we contract on a short-term basis to provide flexibility in these situations.

Rupert why don't I start and then I might hand to Wyatt for some of the specifics but.

What we look to do in our Brazilian operation is we are obviously targeting a highly contracted profile, but what we do do is we always leave sufficient cushion to account for any resource variability such as the resource variability we've seen thus far this year.

<unk> in certain years, we don't use all that cushion in years of low hydrology like this 1 we use more of it but it positions us well to handle situations such as the drought like conditions that are currently being experienced.

The majority of our power is contracted.

Going forward for a number of years under long term contracts, but we do continue to hold a small minority of position that we contract on a short term basis to provide flexibility in these situations.

Connor Teskey: Wyatt, can I hand to you for some of the specifics?

Wyatt can I hand to you for some of the specifics.

Wyatt: Yes. So just to put some numbers around that, Rupert, as Connor mentioned, the way we think about contracting our portfolio is so that in a down-resource year like we're seeing this year and then potentially into 2022, that we're not going to be short of our delivery obligations, and we use a lot of historical data to back that up. What that translates to is between 80% and 85% of our normal course or LTA generation we contract, and then we leave that remaining 15% to 20% open. That's where we, one, we achieve the benefit of not being caught short, and secondly, as we mentioned in our prepared comments, that to the extent we generate above that 80% to 85%, we're then monetizing that surplus energy in a very attractive power price market.

Wyatt Hartley: Yes. So just to put some numbers around that, Rupert, as Connor mentioned, the way we think about contracting our portfolio is so that in a down-resource year like we're seeing this year and then potentially into 2022, that we're not going to be short of our delivery obligations, and we use a lot of historical data to back that up. What that translates to is between 80% and 85% of our normal course or LTA generation we contract, and then we leave that remaining 15% to 20% open. That's where we, one, we achieve the benefit of not being caught short, and secondly, as we mentioned in our prepared comments, that to the extent we generate above that 80% to 85%, we're then monetizing that surplus energy in a very attractive power price market.

Yes, so just to put some numbers around that Rupert.

As Conor mentioned the way, we think about contract in our portfolio is so that in a down resource year like we're seeing this year and potentially into 2022 that we're not going to be short of our delivery obligations and we use a lot of historical data to back that up what that translates to is between.

80%, 85% of our.

Normal course, our LTA generation, we contract and then we leave that remaining 15% to 20% open.

And Thats, where we 1 we achieved the benefit of not being caught short and secondly, as we mentioned in our prepared comments that to the extent, we generate above that 80% to 85%, whereas and monetizing that surplus energy in a very attractive power price market. So there is some upside but the majority of our.

Wyatt: There is some upside, but the majority of our portfolio is contracted.

Wyatt Hartley: There is some upside, but the majority of our portfolio is contracted.

Folio is contracted.

Okay very good thanks.

Rupert Merer: Okay. Very good. Thanks. Really, a follow-up to the last question from Rob Hope. It seems like you're anticipating you could be investing in other sorts of infrastructure in the future. Are you going to contemplate investing in hydrogen infrastructure like some of your peers, or carbon capture, or renewable natural gas? If so, how much of your investment do you think that could make up in the coming years?

And really a follow up to the last question from Rob.

It seems like your.

Anticipating you could be investing in other sorts of infrastructure in the future are you going to contemplate investing in hydrogen infrastructure like some of your peers or.

Carbon capture or renewable natural gas and if so how much of.

Of your investment do you think that could make up in the coming years.

Thanks Rupert.

Connor Teskey: Thanks, Rupert. A few different ways to come at that question. Increasingly, more and more of our business has been making investments around being a solutions provider, providing energy transition and decarbonization solutions, in particular for businesses and corporates around the world that increasingly are setting higher and higher decarbonization objectives for themselves. We feel that we are in a very strong position to be that operating partner and that capital provider. The reason for that is the first step in many corporates or many businesses' decarbonization plan is to address their Scope 2 emissions by supplying their business with green power. We have been a producer and provider, a leading producer and provider of green power to corporates for years. What this allows us to do is help corporates get the low-hanging fruit in their decarbonization plan.

A few different ways to come at that question.

Increasingly more and more of our business.

<unk> has been making investments around being a solutions provider, providing energy transition and decarbonization solutions in particular for businesses and corporates around the world that increasingly are setting higher and higher decarbonization objectives for themselves.

We feel that we are in a very strong position to be that operating partner in that capital provider.

And the reason for that is the first step in many corporates are many businesses de carbonization plan is to address their scope 2 emissions by supplying their business with green power, where we have been a producer and provider a leading producer and provider of green power to corporates for years.

And what this allows us to do is help corporates get the low hanging fruit in their decarbonization plan.

Connor Teskey: From there, we engage with those counterparties on other ways that we can be helpful in being a partner in helping them decarbonize their business or reach their own net-zero targets. When it comes to ways other than the provision of green power, we see a tremendous amount of opportunity. Some of the technologies you mentioned, we are absolutely following incredibly closely. We expect green hydrogen to be a very large and attractive investable opportunity for Brookfield Renewable in the future, and one that we feel that we are exceptionally well-positioned for when the cost curve for the production of green hydrogen comes down over time.

From there. We then engaged with those counterparties on other ways that we can be helpful. In in being a partner in helping them decarbonize their business or reach their own net zero target.

When it comes to ways other than the provision of Green power.

We see a tremendous amount of opportunity in some of the technologies. You mentioned, we are absolutely following incredibly closely.

We expect green hydrogen to be a very large and attractive investable opportunity for Brookfield renewable in the future and 1 that we feel that we are exceptionally well positioned for when the cost curve for the production of green hydrogen comes down over time.

Green hydrogen is is not.

Connor Teskey: Green hydrogen is not cost-effective on a widescale basis in many markets around the world today. What we are doing internally is looking both within our portfolio and in opportunities in the market that will be well-positioned when that cost curve for green hydrogen comes down, such that we will be on the front foot and ready to take advantage of those investing opportunities in the future when they become available. I would say green hydrogen is just one type of future opportunity we're looking at. We're looking at other opportunities as well, whether it be carbon capture storage or the buildout of long-term duration energy storage and batteries.

Cost effective on a wide scale basis in many markets around the world today, but what we are doing internally is looking both within our portfolio and in opportunities in the market that will be well positioned when that cost curve for green hydrogen comes down such that we will be on the front foot and ready to.

Take advantage of those investing opportunities in the future when they become available.

And I would say green hydrogen is just 1 type of future opportunity we're looking at.

We're looking at other opportunities as well.

Whether it be carbon capture storage or the build out of long term duration energy storage and batteries.

Great. Thanks for the color I'll leave it there.

Rupert Merer: Great. Thanks for the call. I'll leave it there.

Thank you.

Operator: Thank you. Our next question comes from the line of Sean Steuart with TD Securities.

And our next question comes from the line of Sean Stewart with TD Securities.

Thanks, Good morning.

Sean Steuart: Thanks. Good morning. A couple of questions. I want to start with the ongoing capital recycling and upfinancing activity. You referenced ongoing ambitions on both of those fronts, and that's not a surprise, I suppose. Connor, I'm wondering if you can give us updated thoughts on, with respect to capital recycling, the valuation sweet spots, whether it's by technology or geography, and has that evolved over the last three to six months and where you're seeing a more attractive opportunity set?

Couple of questions I want to start with.

The ongoing capital recycling and our financing activity.

You referenced.

Ongoing ambitions on both of those fronts and thats not a surprise I suppose but.

I'm wondering if you can give us updated thoughts on.

With respect to capital recycling, the valuations sweet spot, whether it's by technology or a geography.

Has that evolved over the last 3 to 6 months and what are you seeing more attractive opportunity set.

Certainly thanks, Sean.

Connor Teskey: Certainly. Thanks, Sean. Maybe just to say two things. In the quarter, we closed the previously announced sale of our Irish and Scottish wind assets, and we've also recently received the approvals and would expect to close our US wind sale pretty shortly here. In terms of dynamics that we're seeing in the market, there's perhaps two things we would highlight. We continue to see a very, very robust bid for de-risked, long-term contracted wind and solar assets. We spoke in our prepared remarks about how there is more and more capital flowing towards renewable power asset classes and other forms of sustainable or decarbonization assets. That is simply increasing the prices that we are seeing for long-term de-risked assets, which creates a robust environment for us to sell into for assets where we've achieved our business plan.

Maybe just to say 2 things in the quarter, we closed the previously announced sale of our Irish and Scottish wind assets.

And we've also recently received the approvals and would expect to close our U S wind sale.

Pretty shortly here.

In terms of dynamics that we're seeing in the market. There is perhaps 2 things we would highlight we continue to see a very very robust bid for de risked long term contracted.

Wind and solar assets.

We spoke in our prepared remarks about how there is more and more capital flowing towards renewable power asset classes and other forms of sustainable or de carbonization assets that is simply increasing the.

The prices that we are seeing for a long term derisked assets, which creates a robust environment for us to sell into for assets, where we've achieved our business plan.

The other thing that we're seeing in terms of capital recycling and up to Nancy is the increasing value.

Connor Teskey: The other thing that we're seeing in terms of capital recycling and upfinancing is the increasing value and scarcity of our hydro fleet. Within our portfolio, we've long stated that we have significant upfinancing capacity within our hydro fleet. We would say in the current market where there's an increasing buildout of wind and solar, and the baseload characteristics and the inherent storage characteristics of hydro are increasingly becoming more valuable. That is helpful to us from both a monetization perspective if we ever chose to sell those assets, but it's also increasingly helpful to us from an upfinancing perspective because we're seeing tremendous capacity to raise capital in those assets within our portfolio, particularly in North America.

And scarcity of our hydro fleet.

Within our portfolio. We've long stated that we have significant up financing capacity within our hydro fleet and we would say in the current market, where there is an increasing buildout of wind and solar and the base load characteristics and the inherent storage character.

<unk> of hydro are increasingly becoming more valuable that is helpful to us from both a monetization perspective, if we ever chose to sell those assets, but it's also increasingly helpful to us from an up financing perspective.

Because we're seeing tremendous capacity to raise capital in those assets within our portfolio, but particularly in North America.

Thanks for that detailed answer that's useful.

Sean Steuart: Thanks for that detail. That's useful. Second question, following on your previous comments with respect to decarbonization services, can you give us some more context behind your partnership with Trane Technologies and, if possible, any context on the scale of that partnership opportunity and your objectives to grow that out over the mid to long term?

Second question.

Following on your previous comments with respect to.

De Carbonization services can you give us some more context behind your partnership with Trane technologies.

If possible any context on the scale of <unk>.

That partnership opportunity and your objectives to grow that aid over the mid to long term.

Certainly.

Connor Teskey: Certainly. Maybe to take a step back, our distributed generation business in the US is one of our fastest-growing and most dynamic platforms within Brookfield Renewable, and we see a tremendous growth opportunity for providing on-site renewable power generation for self-consumption by commercial and industrial counterparties. What we see in this agreement with Trane that we're really excited about is we are a leader in providing distributed solar generation on the outside of the building. To put it simply, Trane is a global leader in providing energy-efficient services and decarbonization services on the inside of the building. Therefore, the benefits of the transaction are really obvious in two ways. One, collectively, we can provide an unparalleled full suite of products to commercial and industrial customers. Secondly, we can cross-sell our respective products across each other's customer bases because we target the exact same sectors.

So maybe to take a step back.

Our distributed generation business in the U S is 1 of our fastest growing and most dynamic platforms within Brookfield renewable and we see a tremendous growth opportunity for providing on site.

Renewable power generation for self consumption bye bye.

Commercial and industrial Counterparties.

What we see in this agreement with trained that we're really excited about is we are a leader in providing distributed solar generation on the outside of the building and to put it simply train as a global leader in providing energy efficient services and de Carbonization services on the <unk>.

Side of the building and therefore, the benefits of the transaction are really obvious in 2 ways..1 collectively we can provide an unparallel rollout excuse me an unparalleled.

Full suite of products to commercial and industrial customers, but secondly, we can cross sell our respective products across each other's customer basis.

Because we target the exact same sectors. So what we would say is this creates an opportunity to grow our DG business, even faster than it is already growing but also to invest alongside trained in providing some of these energy efficiency and de carbonization solutions inside the building is.

Connor Teskey: What we would say is this creates an opportunity to grow our DG business even faster than it is already growing, but also to invest alongside Trane in providing some of these energy efficiency and decarbonization solutions inside the building as well.

Well.

So that's all I had.

Sean Steuart: That's all I have.

Thank you.

Operator: Thank you. Our next question comes from the line of Nelson Ng with RBC Capital Markets.

And our next question comes from the line of Nelson <unk> with RBC capital markets.

Great. Thanks, and good morning, everyone.

Nelson Ng: Great. Thanks, and good morning, everyone. In the commentary, I think you said Brazil hydrology was pretty weak. I noticed that Q2 hydrology was actually strong. Just going forward, do you expect weak hydrology for the rest of the year in Brazil? I guess the question is, would the additional profit on the uncontracted generation make up for the lower generation?

And you're in the commentary.

I think you said, Brazil hydrology was.

Pretty weak.

I noticed that Q2 hydrology was actually strong.

And so.

So just going forward do you expect.

Weak hydrology for the rest of the year in Brazil, and I guess the question is.

Would be.

With the additional profit on the uncontrolled did generation makeup for for the lower generation.

So Nelson I'll start.

Connor Teskey: Nelson, I'll start, but maybe just to clarify, it was a fairly weak hydrology quarter across 3 of our 4 hydro markets. We had below-LTA hydrology in Canada, the United States, and Brazil. We did have above-LTA hydrology in Colombia. I just want to make that clarification. The one thing I would add is, as Wyatt mentioned in his opening remarks, we manage the business to the long-term LTA, and at this point, we're already partway through Q3. With the exception of Brazil, in most of our Canadian and mid-continent US assets, we are seeing a reversion towards LTA, so we don't expect hydrology to be as difficult in Q3 as it was in Q2 based on what we're seeing at this point. In terms of when we look to production in Brazil next year, it's certainly tough to forecast exactly what hydrology would be.

But maybe just to clarify.

It was a fairly weak hydrology quarter across 3 of our 4 hydro market.

We had below LTA hydrology in Canada, the United States and Brazil.

Did have above the LTA hydrology in Colombia.

So I just wanted to make that clarification.

The 1 thing I would add is as Wyatt mentioned in his opening remarks, we manage the business to the long term LTA and at this point, we're already part way through Q.

Q3, and with the exception of Brazil in most of our Canadian and mid continent U S assets, we are seeing a reversion towards LTA. So we don't expect hydrology.

To be as as difficult in Q3 as it was in Q2 based on what we're seeing at this point.

In terms of when we look to production in Brazil.

<unk>.

Next year.

It's certainly tough to forecast exactly what hydrology would be the re contracting activities. We have done are significantly beneficial to our portfolio, but I think it would be.

Connor Teskey: The recontracting activities we have done are significantly beneficial to our portfolio, but I think it would be not prudent for us to try and guess what hydrology will be in 2022 in the Brazilian market.

Sure.

Not prudent for us to try and guess wet hydrology will be in 2022 in the Brazilian market.

Okay got it and then can you just provide a bit more color on.

Nelson Ng: Okay. Got it. Then can you just provide a bit more color on your ability to essentially pull your contracts from the government and then recontract it in the market? Is there a lot of other is this for very specific assets, or can you do that for additional assets going forward?

Your ability to essentially.

All your contracts from the government and then re contracted in the market is there.

A lot of other.

This for very specific assets or can you do that for additional assets going forward.

Yes, Nelson its wide here youre exactly right its not broadly it's broadly available to the market, but it really what happened here was.

Connor Teskey: Yeah. Nelson, it's Wyatt here. You're exactly right. It's broadly available to the market, but really what happened here was, as the distributing company, the distributors in the country of Brazil looked at their projections for 2022, they effectively realized that they were overcontracted. So when that occurs, what the government or the regulator often does is set up a mechanism whereby certain projects can uncontract, thereby reducing that overcontracted position of the distribution companies. So in this case, what it was is effectively any project that was being delivered new for the year of 2022 was provided the opportunity to uncontract. So, as we mentioned, we're about to deliver our 300 MW development project in the country, and so that was eligible under this mechanism to uncontract.

Wyatt Hartley: Yeah. Nelson, it's Wyatt here. You're exactly right. It's broadly available to the market, but really what happened here was, as the distributing company, the distributors in the country of Brazil looked at their projections for 2022, they effectively realized that they were overcontracted. So when that occurs, what the government or the regulator often does is set up a mechanism whereby certain projects can uncontract, thereby reducing that overcontracted position of the distribution companies. So in this case, what it was is effectively any project that was being delivered new for the year of 2022 was provided the opportunity to uncontract. So, as we mentioned, we're about to deliver our 300 MW development project in the country, and so that was eligible under this mechanism to uncontract.

As did generate or the distributing company of the distributors in the country of Brazil looked at their projections for 2022.

Effectively realize that we're over contracted and so when that occurs what the government or the regulator often does is setup americanism, whereby certain projects Ken on contract, thereby reducing that over contracted position of the distributed distribution companies.

And so in this case what it was is effectively any project that was being delivered new for the year of 2022 was provided the opportunity to on contract and so as we mentioned we're about to deliver our 300 megawatt development project in the country and so that was.

Eligible for under this mechanism on contract and we then were able to concurrently we have contracted in the free market at effectively double the rates and earn a very good boost for 2022 revenues.

Connor Teskey: We then were able to concurrently recontract in the free market at effectively double the rates and earn a very good boost for 2022's revenues.

Wyatt Hartley: We then were able to concurrently recontract in the free market at effectively double the rates and earn a very good boost for 2022's revenues.

So those same assets would be contracted in the following years is just for 2022 factory right. It is not on contracting long term it is.

Nelson Ng: Those same assets would be contracted in the following years. It's just for 2022, right?

Connor Teskey: Exactly right. It is not uncontracting long term. It is focused only for 2022, and the PPA contract that we put in place when we built the asset continues from 2023 onwards.

Wyatt Hartley: Exactly right. It is not uncontracting long term. It is focused only for 2022, and the PPA contract that we put in place when we built the asset continues from 2023 onwards.

Only for 2022 and the contract.

The PPA contract that we put in place when we built the assay continues.

Continues from 2023 onwards.

Okay. Thanks.

Nelson Ng: Okay. Thanks. Thanks, Wyatt. Just one last question before I get back into queue. On the repowering side, Connor, you mentioned that there are a lot of opportunities out there. You're obviously working on Shepherds Flat. I think you have a project in New York and California, I believe. Is the main focus on repowering in the US given the available tax credits, or are there other geographies that you're focused on right now?

And then just 1 last question before I get back in the queue.

The Repowering side Conor you mentioned that there are a lot of opportunities out there. We are obviously working on shepherds flat I think you have a project in New York and California I believe.

Is the main focus on Repowering in the U S. Given the available tax credits or are there other geographies that you're focused on right now.

Yes, certainly a great question and you're absolutely right. We are seeing the most attractive opportunities.

Connor Teskey: Yeah. Certainly. Great question. You're absolutely right. We are seeing the most attractive opportunities right now primarily in the United States, and there's really two things driving that. As you mentioned, there's very supportive tax credit regimes that repowering qualifies for in the United States. Then there's a second nuance about the US that is much simpler, which is, to put it very simply, the projects in the US are a lot bigger, and therefore, you can get economies of scale during the repowering process. While we are seeing the greatest opportunities in the short term in the United States, the broader opportunity that gets us very excited is Europe. The reason for that is Europe does have a very large and aging wind-installed fleet that we think will be eligible for repowering.

Right now primarily in the United States, and there's really 2 things driving that and as you mentioned theres very supportive tax credit regimes that repowering qualify for in the United States and then there is a second nuance about the U S debt that is much simpler which is.

To put it very simply.

The projects in the U S are a lot bigger.

And therefore, you can get economies of scale during the Repowering process.

Well, we are seeing the greatest opportunities in the short term in the United States.

The broader opportunity that gets us very excited is Europe and the reason for that is Europe does have a very large and aging.

Wind installed fleet that we think will be eligible for repowering as in the future more support for Repowering does come forward from from governments and regulatory authorities in that market and that's something we're tracking very closely.

Connor Teskey: As in the future, more support for repowering does come forward from governments and regulatory authorities in that market, and that's something we're tracking very closely.

Great. Thanks for the color Conor I'll leave it there.

Nelson Ng: Great. Thanks for the color, Connor. I'll leave it there.

Thank you.

Operator: Thank you. Our next question comes from the line of Mark Strouse with JPMorgan.

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

Yes, good morning, thanks for taking our questions.

Mark Strouse: Yeah. Good morning. Thanks for taking our questions. I just want to clarify something for me, if you don't mind. Just with the supply constraints that we're seeing globally, I understand you're very well diversified across assets and across geographies, but for some of your projects, are you seeing delays in any particular areas with a need to potentially increase pricing as your component inputs increase as well? To the extent that you are raising PPA prices, what is the customer response to that? Are you getting much pushback?

Just wanted to clarify something for me if you don't mind just with.

Supply constraints that we're seeing globally.

Understand you're very well diversified across assets across geographies, but for some of your projects are you seeing are you seeing delays in any particular areas.

With the need to potentially increase pricing as your component.

Puts.

Increase as well.

And to the extent that you are raising PPA prices what is the customer response to that are you getting much pushback.

Certainly thanks, Mark and maybe.

Connor Teskey: Certainly. Thanks, Mark. Maybe we'll come at this from two different perspectives. We'll talk a little bit about the macro, and then we'll go down to our business. Obviously, there was an increase in equipment costs, notably in solar panels, over, call it, the last six or nine months. This was largely driven by increasing demand and, two, a number of, call it, short-term supply shocks in key production markets that we're largely through at this point. As we look going forward, one, those short-term supply shocks seem to be increasingly behind us, but there is also growing visibility on new production capacity coming back online, and we very much expect to see any supply concerns largely resolved over the next nine to 12 months.

Maybe we'll come at this from 2 different perspectives will talk a little bit about the macro and then we will go down to our business. So.

Obviously.

There was an increase in equipment costs, notably in solar panels or.

Over call it the last 6 or 9 months.

This was largely driven by and.

Increasing demand.

And to a number of call it short term supply shocks.

In key production markets that we're largely through at this point and as we look going forward when those short term supply shocks seem to be increasingly behind us, but there is also growing visibility on new production capacity coming back online and we very much expect.

To see any supply concerns largely resolved over the next 9 to 12 months.

When it comes to our business.

Connor Teskey: When it comes to our business, any effect as a result of these supply shocks has been incredibly muted, and I would say immaterial. There's 2 things I would point to. First and foremost, one thing we do as part of our risk management and approach to development is we procure our equipment at the same time as we lock in a contract. Therefore, we're never taking basis risk in that we lock in a contract and leave ourselves exposed to equipment prices increasing and dramatically eroding our returns. We would always look to do those things very, very close together, concurrently if possible. Therefore, we're locked in contractually on both sides, and market moves in terms of prices won't affect our underlying projects.

Any effect as a result of these supply shocks has been incredibly muted and I would say immaterial and there's 2 things I would point to.

First and foremost 1 thing we do as part of our risk management and approach to development is we procure our equipment at the same time as we lock in a contract and therefore, we're never taking basis risk and that we lock in a contract and leave ourselves exposed.

<unk>, 2 equipment prices, increasing and dramatically.

Eroding our returns we would always look to do those things very very close together.

Currently a possible and therefore, we're locked in contractually on both sides and market moves in terms of prices wont affect our underlying projects I would say that has been our largest mitigate over the last 6 to 9 months and removed.

Connor Teskey: I would say that has been our largest mitigant over the last six or nine months and removed any material downside effect that could have affected us from this supply shortage. The second thing we would say is, through our centralized procurement, we've maintained very strong relationships with the tier one suppliers. Yes, have we had to work with tier one suppliers to maybe adjust shipping schedules or things like that as a result of the supply shocks? Absolutely. None of it was material and outside the boundaries of our construction and development schedules. It was all within our plan. Therefore, when we look at our large solar developments around the world, at this point, they continue to be on time and on budget.

Any material downside effect that could have affected us from this supply shortage.

The second thing we would say is through our centralized procurement, we've maintained very strong relationships with the tier 1 suppliers and.

Yes have we had to work with tier 1 suppliers.

To maybe adjust shipping schedules or things like that as a result of of.

The supply shocks, absolutely, but none of it was material and outside the boundaries of our construction and development schedules. It was all within our plan and therefore, when we look at our large solar developments around the world at this point they continue to be on time and on budget.

Okay. Thanks, Tom and then similar question just regarding government incentives globally. I mean are you seeing in into your prospective customers and is sitting on their hands near term waiting on for more weighting on clarity around.

Mark Strouse: Okay. Thanks, Connor. Then similar kind of question just regarding government incentives globally. I mean, are you seeing any of your prospective customers kind of sitting on their hands near term, waiting on clarity around a potential infrastructure bill in the US, the Fit for 55 program in Europe? Anything else?

Potential infrastructure Bill in the U S. The fit for 55 program in Europe.

Anything else.

Not particularly.

Connor Teskey: Not particularly. All these things are going to be incremental tailwinds for our business, but I would say the overarching support is just a massive continued increase in corporate and utility demand for green power. The growth in that overarching increase in demand far outweighs any individual short-term customers' biases to waiting for more visibility. I would say it's not having a material impact from what we're seeing. We continue to see demand for green power growing universally across all major markets around the world.

All of these things are going to be incremental tailwind.

For our business, but I would say the overarching support is just a massive continued increase in <unk>.

Corporate and utility demand for green power and the growth in that.

Our overarching increase in demand far outweighs any individual short term customers.

Biases to waiting for more visibility so.

I would say, it's not having a material impact from what we're seeing we continue to see demand for green power.

Growing universally across all major markets around the world.

Okay very helpful. Thank you.

Mark Strouse: Okay. Very helpful. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Pearce Hammond with Piper Sandler.

Question comes from the line of Pearce Hammond with Piper Sandler.

Yes, good morning, and thank you for taking my question I was just curious when you look around international markets that you may not be right.

Pearce Hammond: Yeah. Good morning, and thank you for taking my question. I was just curious, when you look around the international markets that you may not be in right now, are there some markets that look intriguing based upon what they're moving forward with their own decarbonization plans? Are there some markets that might be moving up to the forefront where you might be able to get some outsize opportunities and apply your expertise that you have built up in the international markets over time?

Right right now are there some markets that look intriguing based upon what they are moving forward with their own compensation plans and are there some markets that might be moving up to the forefront where you might be able to get some outsize opportunities and apply your expertise that you have built up in the international markets over time.

Yeah.

Connor Teskey: Thanks, Piers. It's a great question. At this point, we wouldn't suggest that there's any markets around the world that we're looking to enter on an accelerated basis, but I would say there are a number of markets around the world where we have a very small footprint. Through our operations over the last three or four years, we have small footprints in a number of markets that we could look to expand on dramatically in the coming years. We're going to look to continue to grow in our core markets, North and South America, Europe, India, and China. In the last few years, we do have small operations through our underlying portfolio companies in Japan, in Australia, in Chile, and in Uruguay. These are all markets where we have operations, we have personnel on the ground.

It's a great question.

Sure.

At this point.

Sure.

We wouldn't suggest that there's any markets around the world that we're looking to enter on an accelerated basis, but I would say there are a number of markets around the world, where we have a very small footprint and through our operations over the last 3 or 4 years, we have small footprints.

A number of markets that we could look to expand on dramatically in the coming years.

We're going to look to continue to grow in our core markets, North and South America, Europe, India, China, but in the last few years, we do have small operations.

Through our underlying portfolio companies in Japan.

In Australia in Chile.

In Uruguay and these are all markets, where we have operations, we have personnel on the ground and in addition to our large core markets, we could see ourselves grow increasingly larger platforms going forward.

Connor Teskey: In addition to our large core markets, we could see ourselves grow increasingly larger platforms going forward. We're going to continue to be prudent and cautious and look to do it when we see attractive risk-adjusted returns. The benefit of our platform continues to be a global approach where we can allocate our capital where we see the best opportunities. The nice thing about the growth we've had in recent years is there are a few more regions where we are looking at opportunities and could deploy capital if we see attractive projects or assets to acquire.

But we're going to continue to be prudent and cautious and look to do it when we see attractive risk adjusted returns the benefit of our platform continues to be a global approach, where we can allocate our capital where we see the best opportunities.

And the nice thing about the growth. We've had in recent years are there are a few more regions, where we are looking at opportunities and could deploy capital if we see attractive.

<unk> or assets to acquire.

Pearce Hammond: All right. Thank you very much for that. My follow-up question, I know the Biden Infrastructure Bill's kind of moving through Washington and fits and starts, when you look at that bill, are there 1 or 2 different things that you think could be a big beneficiary or a benefit, Brookfield, in that bill?

Alright, Thank you very much for that and then my follow up.

Question.

The <unk> infrastructure for those kind of moving through Washington in fits and starts but when you look at that Bill are there 1 or 2 different things that you think could be a big beneficiary.

Brookfield and that Bill.

Certainly.

Connor Teskey: Certainly. One of the most exciting things about Biden's infrastructure bill is it is so all-encompassing. There are things in that bill that can be helpful to so many different parts of the market. We think for investors and operators such as ourselves that can play across the decarbonization spectrum, across operating or development assets, there will be a number of opportunities. The obvious one that jumps off the page for, is when you look at some of the growth in our development pipeline quarter-over-quarter, we added about 4,000 megawatts of development pipeline. A large portion of that increase was in the United States where we increasingly, we increasingly have been growing our development pipeline in-house using our own organic development teams.

1 of the most exciting things about <unk> infrastructure Bill is it is so all encompassing.

There are things in that bill that that can be helpful to so many different parts of the market and we think for investors and operators such as ourselves that can play across the decarbonization.

Across the decarbonization spectrum.

Across operating or development assets, there will be a number of opportunities.

Sorry.

Paid for is when you look at some of the growth.

In our development pipeline quarter over quarter, we added about 4000 megawatts of development pipeline and a large portion of that increase was in the United States, where we increasingly are we increasingly have been growing our development pipeline in house using our own orgs.

Development teams.

Connor Teskey: With some of the potential tax credit increases that are considered under Biden's bill, our development pipeline could see some of those projects developed faster and pulled forward. That's the most obvious one, but there's certainly a lot in the bill that will help decarbonization across the entire spectrum.

And with some of the potential tax credit increases that are considered under under buy and bill.

Our development pipeline could see.

Some of those projects developed faster.

Pulled forward that that's the most obvious 1 but theres certainly a lot in the bill that will help de carbonization across the entire spectrum.

Pearce Hammond: Thank you very much.

Thank you very much.

Thank you.

Operator: Thank you. Our next question comes from the line of Ben Pham with BMO.

The next question comes from the line of Ben Pham with BMO.

Hi, Thanks, good morning, what's the overwhelming demand for the energy transition funding.

Ben Pham: Hi. Thanks. Good morning. What's the overwhelming demand for the energy transition fund? It sounds like from your comments that there's great alignment between you guys and the fund. Do you think maybe now, just with that evidence or that data you're seeing, that you look at the next 10 years, are you Brookfield Renewable, are you perhaps working more with an energy transition company versus a pure-play balanced renewable company?

It sounds like from your comments that there is.

This greater alignment between between you guys and the Sun.

Do you think maybe now just with what's got evidence that data you're seeing that you look for the next 10 years.

Renewable are you, perhaps more of an energy transition company versus <unk>.

Peer play.

Balance renewable company.

Ben It's a great question and.

Connor Teskey: Ben, it's a great question. We increasingly, and I'll go back to a comment that we made before. More and more of our investments over the last 5 or 7 years have been about being a solutions provider, decarbonization and energy transition solutions. What I would say is, for decades and decades and decades, we have been a leading owner, operator, developer, and acquirer of renewable power generation assets. We do not see that growth in our business slowing down at all. The renewable sector continues to grow at an exponential basis on a global scale, and we expect to participate in our portion of that growth, if not more, going forward. The decarbonization solutions component to our business is completely incremental and also a very large growth opportunity going forward.

We increasingly and I'll go back to a comment that we made before more and more of our investments over the last 5 or 7 years have been about being a solutions provider decarbonization and energy transition solutions and.

What I would say is for decades and decades and decades, we have been a leading owner operator developer and acquirer of renewable power generation assets and we do not see that growth in our business slowing down at all the renewable sector continues to grow at an X.

Financial basis on a global scale.

And we expect to participate in our portion of that growth if not more going forward. The de carbonization solutions component to our business is completely incremental and also a very large growth opportunity going forward. So what I would say is we expect to see significant growth in both.

Connor Teskey: What I would say is we expect to see significant growth in both the traditional renewable power generation business, sorry, I should say, the traditional renewable power generation component of our business, but also tremendous growth in these energy transition-type investments. Given the sizable renewables base that we already have, it will certainly take a long time before we aren't predominantly a renewable power generation company. We do view ourselves as a global decarbonization solutions provider.

The traditional renewable power generation business, sorry, I should say the traditional renewable power generation component of our business, but also tremendous growth in these energy transition type investments.

Given the sizable.

Renewables base that we already have it will certainly take a long time before we are predominantly a renewable power generation company, but we do view ourselves as a global decarbonization solutions provider.

Okay, that's great and then.

Ben Pham: Okay, that's great. Then maybe a micro-question on Brazil, maybe to close off some of the questions that. Far, there's mentioned your disclosures about shaping generation. Is that just in relation to the assured generation? You're pulling forward some generation early and then you're letting it balance in the second half, but you still get pretty much your fixed payment from the government?

Maybe a question on Brazil, and maybe to close out some of the questions that some corners does matching.

Your disclosures about shaping generation is that does.

Is that just in relation to the assured generation youre pulling forward some generation rolling in.

Lending balances in the second half of the year, you still get your pretty much your fixed payments from the government.

Yes, that's exactly right Ben that's just with our energy marketing team on the ground and the way the pooling mechanism. The central pooling mechanism works in Brazil allows you to kind of shape your generation and take advantage of.

Connor Teskey: Yeah. That's exactly right, Ben. With our energy marketing team on the ground and the way that the central pooling mechanism works in Brazil allows you to kind of shape your generation and take advantage of pricing in certain periods. So that's exactly what that's reflective of. It's something that we do annually just to optimize our generation. We continue looking forward. We expect to take advantage of that in the coming years as well.

Wyatt Hartley: Yeah. That's exactly right, Ben. With our energy marketing team on the ground and the way that the central pooling mechanism works in Brazil allows you to kind of shape your generation and take advantage of pricing in certain periods. So that's exactly what that's reflective of. It's something that we do annually just to optimize our generation. We continue looking forward. We expect to take advantage of that in the coming years as well.

Pricing in certain periods, and so thats exactly what thats reflective of is something that we do.

Ali just to optimize our generation.

And we continue moving forward, we expect to take advantage of that in the coming years as well.

That's great Okay. Thank you.

Ben Pham: All right. That's great. Okay. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Mark Jarvi with CIBC Capital Markets.

Next question comes from the line of Mark Jarvi CIBC capital markets.

Thanks.

Mark Jarvi: Thanks, good morning, everyone. I wanted to come back to a couple of topics. First one is that Amazon agreement. I appreciate you don't want to talk too much about it. It's really early stages. Could you kind of clarify whether or not this is contracting of existing assets? Would it be building new assets to fit their energy needs? If that's more of a DG or utility scale, or is it just kind of all-encompassing on all those attributes?

I wanted to come back a couple of topics performers that Amazon and I. Appreciate you don't want to talk too much about it and it's really early stages, but can you kind of clarify whether or not this is.

Contracting of an existing asset will be building new assets to fit their energy needs and if thats more of a DG or utility scale or is it just kind of all encompassing on all of those activities.

Yeah.

Hi, Marc Thank you for the question.

Connor Teskey: Hi, Mark. Thank you for the question. What we expect under this agreement is largely the development of new assets. Amazon's green power needs are largely driven by the incredible growth of their cloud services businesses and the data center usage and the energy load of those data centers. Obviously, data centers are large consumers of energy and can support utility-scale renewable power projects. We expect this to drive new development projects from both our existing pipeline and new projects that we may either develop organically or acquire. It will be primarily across wind and solar, but it's a global collaborative initiative.

<unk>.

What we expect under this agreement is largely the development of new assets and.

Amazon's Green power needs are largely driven by the incredible growth of their cloud services businesses and the data center usage and the energy load of those data centers.

Obviously data centers are large consumers of energy and can support utility scale.

Renewable power projects. So we expect this to drive new development projects from both our existing pipeline and new projects that we may either develop organically or acquire.

And it will be primarily across wind and solar, but it's a global collab.

Collaborative.

Initiative.

Okay. Thanks, that's very helpful. And then just going back to the inflation comment.

Ben Pham: Okay. Thanks. That's very helpful. Just coming back to the inflation comments, you brought up the inflation escalator at the offshore wind projects in Poland. Is that a project also where you've locked in at least some of the costs at this point? There's lots of talk. Even Gamesa came out with a sort of profit warning and said they want to pass on some of the higher costs. Maybe just talk a little bit about any exposure there on inflation pressures on the offshore wind stuff that you're starting to get into.

Mark Jarvi: Okay. Thanks. That's very helpful. Just coming back to the inflation comments, you brought up the inflation escalator at the offshore wind projects in Poland. Is that a project also where you've locked in at least some of the costs at this point? There's lots of talk. Even Gamesa came out with a sort of profit warning and said they want to pass on some of the higher costs. Maybe just talk a little bit about any exposure there on inflation pressures on the offshore wind stuff that you're starting to get into.

And you brought up the inflation escalator of the projects offshore wind projects in Poland is.

Is that a public also you've locked in at least some of the cost at this point.

There's also talk Chemokinesis came here with us from a profit warning and so they want to pass on some of the higher cost maybe you could talk a little bit about any exposure there on inflation pressures on the offshore wind stuff that youre starting to get into.

Yeah.

Connor Teskey: Yeah. Certainly. Maybe just to speak for a moment to the first part of your question, the reason why we enjoy these contracts so much is really four reasons. They're very much in line with how we spoke for many years about the types of opportunities we wanted to see in offshore. We wanted to see long-term contracts. These are 25-year contracts. They are inflation-linked. These contracts don't require us to take curtailment risk. Their CFD is not versus market price, but versus captured price. We don't take basis risk on them either. Obviously, the Polish offshore market needs to be built out. We will be one of the first projects that are brought online.

Yes, certainly.

So maybe just to speak for a.

A moment to the first part of your question.

The reason why.

We enjoy these contracts so much is really 4 reasons and they're very much in line with how we spoke for many years about the types of opportunities. We wanted to see in offshore we wanted to see long term contracts. These are 25 year contracts.

They are inflation linked.

These contracts don't require us to take curtailment risk and their cfd is not versus market price, but versus captured price. So we don't take basis risk on them, either and obviously, the Polish offshore market needs to be built out.

We will be 1 of the first projects that are brought online, but we think the quality of these contracts is going to shine through very very readily to the market and people will understand the robustness of the underlying cash flow streams.

Connor Teskey: We think the quality of these contracts is going to shine through very, very readily to the market, and people will understand the robustness of the underlying cash flow streams. In terms of what we're seeing in CapEx costs, nothing that isn't in line with our underwriting. We obviously underwrote this investment earlier this year in a recovering global economy. I would say there's nothing at this point that we're concerned about in terms of CapEx costs. In terms of building the offshore pipeline out in Poland, our business is partnered with Equinor. We're partnered with one of the leading existing offshore owners and developers. We see nothing at this point that concerns us from a CapEx perspective.

In terms of what we're seeing in Capex costs.

Nothing no it isn't in line with our underwriting.

We obviously underwrote this investment earlier this year.

In a recovering global economy and <unk>.

I would say there is nothing at this point that we're concerned about in terms of Capex cost in terms of building the offshore pipeline out in Poland.

Our business has partnered with <unk>. So we're partnered with 1 of the leading existing offshore owners and developers and we see nothing at this point that concerns us from a capex perspective.

Ben Pham: Okay. My last question is just on equity deployment. If I look kind of roughly at the numbers, what's been done in China and India in the last couple of quarters, it's maybe like 10% to a little bit more than that, 10%+ of your equity deployment this year. Is that kind of the right level? I mean, we see some of these Bloomberg New Energy forecasts where deployment of capital in Asia could be 40%, 50% or that the whole capital deployed for the next 20 years. Is that a percentage that we should see just continue to steadily climb higher? If so, is there sort of a cadence to that growth, or are we at this sort of 10%, 20% pace for a while now?

Mark Jarvi: Okay. My last question is just on equity deployment. If I look kind of roughly at the numbers, what's been done in China and India in the last couple of quarters, it's maybe like 10% to a little bit more than that, 10%+ of your equity deployment this year. Is that kind of the right level? I mean, we see some of these Bloomberg New Energy forecasts where deployment of capital in Asia could be 40%, 50% or that the whole capital deployed for the next 20 years. Is that a percentage that we should see just continue to steadily climb higher? If so, is there sort of a cadence to that growth, or are we at this sort of 10%, 20% pace for a while now?

Okay and then my last question is just on <unk> deployment, and if I look kind of roughly the numbers, what's been done in China and India in the last couple of quarters equivalent 10, a little bit more in that 10% plus.

This year.

Kind of a right level or I mean, you see some bloomberg land and forecast were deployment of capital.

A 40% to 50% of it Walt capital applied for the next 20 years is that a percentage that we should see just continues that we climb higher and if so.

Is there a sort of a cadence of that growth or.

Are we at the sort of 10%, 20% pace for a while now.

Yeah.

Connor Teskey: Certainly. We don't tend to be too prescriptive and look to remain flexible, able to deploy our capital wherever we see the most attractive opportunities. What we have seen in India and China since we entered those markets in 2017 is we've built out our platforms, both operational and investment platforms, regionally on the ground in both those markets. What we're seeing now is the ability on an almost continuous basis to do small, attractive bolt-on acquisitions in those regions. We would expect that to continue going forward. I think when it comes to geographic focus of our investments, we've long said that 75% plus of our portfolio and our equity is going to be deployed into developed countries and then 20%, 25% in developing countries. We don't expect that to change going forward.

Certainly so we don't tend to be too prescriptive and look to remain flexible able to deploy our capital wherever we see the most attractive opportunities.

What we have seen in India in China. Since we entered those markets in 2017, as we built out our platforms, both operational and investment platforms regionally on the ground in both those markets.

And what we're seeing now is the ability to eat on an almost continuous basis to do small attractive bolt on acquisitions in those regions and we would expect that to continue going forward.

And then when it comes to geographic focus of our investments.

We've long said that.

75%, 75% plus of our portfolio and our equity is going to be deployed into developed countries and then 2025% in developing countries. We don't expect that to change going forward. There may be periods of time, where we see more opportunity in India or China versus.

Connor Teskey: There may be periods of time where we see more opportunity in India or China versus, let's say, North America or Europe. Over any extended period, we expect to stay pretty close to that 75% plus in developed countries and 20 to 25% in developing countries.

<unk>, let's say North America, or Europe, but over any extended period, we expect to stay pretty close to that 75% plus in developed countries and 20% to 25% in developing countries.

Ben Pham: Okay. Thanks for the answers, Connor.

Mark Jarvi: Okay. Thanks for the answers, Connor.

Okay. Thanks for the answers Glenn.

Thank you.

Operator: Thank you. Our next question comes from the line of Andrew Kuske with Credit Suisse.

And our next question comes from the line of Andrew <unk> with Credit Suisse.

Thanks, Good morning, I guess, a question for Conor and it really builds upon your solutions provider.

Andrew Kuske: Thanks. Good morning. I guess the question's for Connor, it really builds upon your solutions provider comments throughout this call. I guess just philosophically, how do you think about Brookfield Renewable's business on a longer-term basis? Are you effectively incubating other businesses underneath for later monetization potential? Clearly, you've been doing that with assets over time, but are now you expanding the portfolio into a number of business lines which can be unique and distinct in their own right?

Our comments throughout this call and I guess, just philosophically how do you think about Brookfield renewables business on a longer term basis.

Are you effectively incubating other businesses underneath for later monetization potential is clearly <unk> been doing that with assets over time, but are now you're expanding the portfolio into a number of business lines, which can be unique and distinct in their own right.

Okay.

Connor Teskey: It's a good question, Andrew. Maybe it's easiest to tell you around our philosophy and why we think we're well-positioned. There's a few things when we look at being that type of solutions provider. Over 70% of carbon emissions around the world can be traced back directly or indirectly to power generation in the energy sector. By being a leading player in that space and having knowledge of clean energy technologies that we have through decades of owning and operating wind, solar, hydro, storage, distributed generation, we're very well-placed to extrapolate that knowledge to other forms of decarbonization solutions. What I would say in, call it, more direct response to your question is we're not changing our approach to investing or changing our approach to risk tolerance as we pursue more of these decarbonization solutions.

It's a good question Andrew.

Yeah.

Maybe it's easier to tell you around our philosophy and why we think we're well positioned.

There's a few things when we look at being that type a solutions provider.

Over 70% of carbon emissions around the world can be traced back directly or indirectly to power generation in the energy sector and by being a leading player in that space and having knowledge of clean energy technologies that we have through decades of owning and operating wind solar hydro.

Storage distributed generation, we're very well placed to extrapolate that knowledge to other forms of decarbonization solutions.

I would say in call. It more direct response to your question is we're not changing our approach to investing our changing our approach to risk tolerance as we pursue more of these decarbonization solutions, we still are going to focus on owning real assets that are supported.

Connor Teskey: We still are going to focus on owning real assets that are supported by long-term, highly visible cash flows. We want to look at solutions where we aren't taking binary risk, either binary technology risk or binary development risk. That's never been core to our strategy. We want to focus on those solutions where investing in scale or leveraging our global platform differentiates us. The one point I would make about the question, which was a great one, is we're not going to look to be on the leading edge taking technology risk as we pursue these decarbonization solutions, but rather looking to be a counterparty to governments and businesses where we can be either a scale capital provider or a scale operating partner in terms of installing, building, or operating commercially viable, cost-effective, readily available existing technology solutions.

By long term highly visible cash flows we want to look at solutions, where we arent taking binary risk either binary technology risk or binary development risk that's never been core to our strategy and we want to focus on those solutions, we're investing in scale or leveraging our global platform.

Differentiates us.

The 1 point I would make a boat.

The question, which was a great..1 is we're not going to look to be on the leading edge, taking technology risk as we pursue these decarbonization solutions, but rather looking to be a counterparty to governments and businesses, where we can be either a scale capital <unk>.

<unk> or our scale operating partner in terms of installing building or operating.

Commercially viable.

Cost effective readily available existing technology solutions.

That's very helpful color and commentary and then I guess the extension of that if we look back in time.

Andrew Kuske: That's very helpful color and commentary. I guess the extension of that, if we look back in time, Brookfield was never a leader in the beginning stages of solar or wind. As the technology became more viable and more economic, then you really entered full force. How do you think about batteries, really, in that context? What kind of timeframe do you think batteries will become much more economic and more viable for you to put larger-scale capital?

Brookfield was never a leader in the beginning stages of solar or wind.

Technology became more viable and more economics than you really enter full force.

So how do you think about batteries really in that context, what kind of timeframe do you think batteries will become much more economic and more viable through larger scale capital.

Fantastic question and I would say, we're following the battery sector very very closely.

Connor Teskey: Fantastic question. I would say we are following the battery sector very, very closely, and maybe beyond the battery sector, the broader energy storage sector. We think the different energy storage solutions that are being considered right now, it isn't going to be necessarily one winner that comes out of them, but a number of them may be complementary to each other, whether it's increasing penetration of lithium-ion batteries or the increasing improvements people are seeing in kind of longer-duration iron-air batteries or the scale energy storage that traditional pumped hydro can provide. I would say we're following all of these technologies. The one comment I would make, Andrew, is we are increasingly installing batteries in select cases within our portfolio today.

Maybe beyond the battery sector, the broader energy storage sector, and we think the different <unk>.

Energy storage solutions that are being considered right now it isn't going to be necessarily 1 winter that comes out of them, but a number of them may be complementary to each other whether it's.

Increasing penetration of lithium ion batteries or the increasing improvements people are seeing and kind of longer duration iron air batteries or the scale energy storage that traditional pumped hydro can provide I would say we're following all of these technologies the 1 <unk>.

And I would make Andrew is we are increasingly installing batteries in select cases within our portfolio today, while batteries are not commercially viable on a widespread basis at this point in select situations within our portfolio they are commercially viable.

Connor Teskey: While batteries are not commercially viable on a widespread basis at this point, in select situations within our portfolio, they are commercially viable today, and we are installing batteries. We see an increasing number of those situations cropping up across our portfolio, particularly in North America. Because we're already seeing that trend, we would see batteries becoming a larger and investable, large-scale opportunity, I would say in the relative short to medium term, definitely in the next few years.

Today, and we are installing batteries and we see an increasing number of those situations cropping up across our portfolio, particularly in North America. So because we're already seeing that trend, we would see batteries becoming a.

Larger and investable.

Large scale opportunity I would say in the relative short to medium term.

Definitely in the next few years.

Okay very helpful. Thank you.

Andrew Kuske: Okay. Very helpful. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Frederic Bastien with Raymond James.

And our next question comes from the line of Frederic Pasadena with Raymond James.

Hi, Conor just circling back on the Polish renewable business.

Frederic Bastien: Hi, Connor. Just circling back on the Polish renewables business, how far are you and Equinor from breaking ground on the offshore wind project?

For our U and <unk> from breaking ground on the offshore wind project.

Yes, so there is still.

Connor Teskey: Yeah. There's still a number of things to be done. Our expectation would be to start construction in 2023, and everything is on track to do that at this point.

A number of things to be done.

Our expectation would be to start construction in 2023 and everything is on track to do that at this point.

And would you look to get this development under your belt or at least well underway before investing in other offshore projects are you indifferent to that and open to potentially.

Frederic Bastien: Would you look to get this development under your belt or at least well underway before investing in other offshore projects? Are you indifferent to that and open to potentially investing in newer ones right now?

Vesting of nuance right now.

Absolutely we would invest in other offshore opportunities today using our same approach.

Connor Teskey: Absolutely. We would invest in other offshore opportunities today using our same approach, finding those opportunities that play to our strength where we see attractive risk-adjusted returns. We've been incredibly comfortable with the offshore space for a number of years at this point. The opportunity in Poland was one where we were able to transact with a counterparty we liked in an investment profile that we thought provided us appropriate upside with strong downside protection. If we could find similar attractive opportunities, we would invest significantly in offshore readily today.

Finding those opportunities that play to our strength, where we see attractive risk adjusted returns we've been incredibly comfortable with the offshore space.

For a number of years at this point the opportunity in Poland was 1 where we were able to transact with a counterparty we liked.

In an investment profile that we thought provided us appropriate upside with strong downside protection, if we could find similar attractive opportunities we would.

Invest significantly in offshore readily today.

Got you. Thank you.

Frederic Bastien: Gotcha. Thank you.

Thank you.

Operator: Thank you. Our next question comes from the line of Naji Baydoun with Industrial Alliance Securities.

Next question comes from the line of Nausea, Baidu with capital markets.

Good morning.

Naji Baydoun: Hi. Good morning. Just staying on the topic of offshore wind, I'm just curious about the third project in your pipeline. I believe it's Baltic Eagle. Is there a view of maybe bidding that project into the Polish auction process in 2025, be it subsidy-free or otherwise?

Just staying on the topic of offshore and I'm just curious about your the third project in your pipeline.

Thats multi kwan.

Is there a view of maybe bidding projects.

The Polish auction process in 2025, B, a subsidy for you or otherwise.

Absolutely so.

Connor Teskey: Absolutely. We have a third project. It's very large, about the same size as the other two projects combined. Because there was less visibility around that project initially, we weren't as prescriptive in our underwriting. Given the increased support that we're seeing and the increased rapid maturation of the Polish offshore wind segment, that 1.5 GW project, we think, is increasingly valuable. While no decisions have been made, we will certainly look for opportunities to find ways to build out or monetize that asset in the future. We think there's definitely upside there. It's a great project, but we're still a number of years before we need to make any significant decisions.

We are we.

We have a third project, it's very large.

About the same size as the other 2 projects combined and because there was less visibility around that project. Initially we werent as prescriptive in our underwriting, but given the increased support that we're seeing and the increased.

Rapid maturation of the Polish offshore wind.

Segment.

That 1.5 gigawatt project, we think is increasingly valuable and while no decisions have been made we will certainly look for opportunities to.

Find ways to build out our monetize that asset in the future.

We think there's definitely upside there and it's a great project, but we are still a number of years before we need to make any significant decisions.

Okay.

Naji Baydoun: Okay. I suppose a decision hasn't been made about either developing it or selling it definitively, just kind of maintaining flexibility there?

Let's suppose decision hasnt been made about other developing it or selling it definitively just kind of maintaining flexibility there.

Absolutely no decisions made yes.

Connor Teskey: Absolutely. No decision's made yet.

Maybe just a clarification about the increased stake to 40% what would be the net of that to Brookfield to bep.

Naji Baydoun: Maybe just a clarification about the increased stake to 40%. What would be the net of that to Brookfield, to BEP?

And certainly so.

Connor Teskey: Certainly. We invest through our private fund where we own 25%. On a look-through basis, we would be just shy of 10%.

We invest through our private fund, where we own 25%. So on a look through basis that we would be just shy of 10%.

Okay perfect.

Naji Baydoun: Okay. Got it. Perfect. Just the last question on India. If you could provide more color on the 1.7 GW development pipeline with the joint venture, how quickly you think that can move forward and be developed, and maybe if you think there's opportunities to add more prospects to that pipeline?

The last question on India.

Could provide more color on the the 1.7 gigawatt development pipeline with the joint venture. How quickly you think that can move forward that would be developed and maybe if you think there's opportunities to add more prospects without pipeline.

Certainly so so I might answer the second part of that question first right now our JV partnership only applies to that 1.7 gigawatt pipeline. So that's our focus at this point.

Connor Teskey: Certainly. I might answer the second part of that question first. Right now, our JV partnership only applies to that 1.7-gigawatt pipeline, so that's our focus at this point. We're seeing a number of different opportunities around development or adding new assets in India, but they would be outside of this specific agreement. In terms of the other opportunities within that pipeline, there's two other projects that make up the remainder of those 1.7 gigawatts. Those are both being, I would say, developed on plan with our counterparty. They're on a slightly deferred timeline, as was always going to be expected. We would see the opportunity to make a decision on whether or not we want to acquire those projects. We expect within the next couple of years. That's probably an appropriate timeline. The one thing I would reiterate is this is an option for us.

We're seeing a number of different opportunities around development or adding new assets in India, but they would be outside of this specific agreement.

In terms of the other opportunities within that pipeline. There are 2 other projects that make up the remainder of those 1.7 gigawatts those are both being I would say developed on plan.

With our counterparty.

They are on a slightly deferred timeline as was always going to be expected, but we would see the opportunity to make a decision on whether or not we wanted to acquire those projects. We expect within the next couple of years, that's probably an appropriate timeline.

And the 1 thing I would reiterate is this is an option for us we do not have to acquire the projects, but it is our option 2 if we think they represent attractive investment opportunities.

Connor Teskey: We do not have to acquire the projects, but it is our option too if we think they represent attractive investment opportunities.

Okay, great. Thank you Tom.

Naji Baydoun: Okay. Got it. That's a great detail. Thank you, Connor.

Thank you.

Operator: Thank you. Now, I will turn the call back over to CEO Connor Teskey for any closing remarks.

Now I will turn the call back over to CEO, Conor <unk> for any closing remarks.

Okay. Thank you everyone as always we want to thank everyone for their continued support we look forward to updating you at the end of next quarter with our Q3 results. Thank you and have a good day.

Connor Teskey: Okay. Thank you, everyone. As always, we want to thank everyone for their continued support. We look forward to updating you at the end of next quarter with our Q3 results. Thank you, and have a good day.

This concludes today's conference call. Thank you for participating and you may now disconnect.

Operator: This concludes today's conference call. Thank you for participating, and you may now disconnect.

Yes.

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Yeah.

Yes.

[music].

Yeah.

Okay.

[music].

Okay.

[music].

Thank you for standing by and welcome to the BP second quarter 2021 results conference call and webcast.

Wyatt: Thank you for standing by, and welcome to the BEP Q2 2021 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. It is now my pleasure to introduce CEO of Brookfield Renewable, Connor Teskey.

Wyatt Hartley: Thank you for standing by, and welcome to the BEP Q2 2021 results conference call and webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star one on your telephone. If you require any further assistance, please press star zero. It is now my pleasure to introduce CEO of Brookfield Renewable, Connor Teskey.

At this time all participants are in a listen only mode.

The speaker presentations, there will be a question and answer session.

To ask a question during the session you will need to press star 1 on your telephone.

If you require any further assistance please press star zero.

It is now my pleasure to introduce CEO of Brookfield renewable Conor Chesapeake.

Thank you operator, good morning, everyone and thank you for joining us for our second quarter 2021 conference call.

Operator: Thank you, Operator. Good morning, everyone, and thank you for joining us for our Q2 2021 conference call. Before we begin, we would like to remind you that a copy of our news release, investor supplement, and letter to unit holders can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For further information, you are encouraged to review our regulatory filings available on SEDAR, EDGAR, and our website. To kick off today's call, we will provide an outlook on the business, an update on recent growth, and an update on recent growth initiatives.

Before we begin we would like to remind you that a copy of our news release Investor supplement and letter to unit holders can be found on our website.

We also want to remind you that we may make forward looking statements on this call.

These statements are subject to known and unknown risks and our future results may differ materially for further information you are encouraged to review our regulatory filings available on SEDAR, Edgar and our website.

To kick off today's call, we will provide an outlook on the business and update on recent growth in it and an update on recent growth initiatives.

After our initial remarks, why it will provide an update on Brookfield Renewable Corporation, an overview of our operating results as well as our balance sheet and liquidity.

Operator: After our initial remarks, Wyatt will provide an update on Brookfield Renewable Corporation, an overview of our operating results, as well as our balance sheet and liquidity, after which we look forward to taking your questions. The tailwinds for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to decarbonize. This is driving increased demand for green energy and other clean solutions. It should come as no surprise that there is both a growing investment opportunity as well as increasing amounts of capital being allocated towards the sector. As one of the few businesses with the scale, track record, and global capabilities to both partner with governments and businesses and also invest to help them achieve their decarbonization goals, we believe we have a great runway ahead of us. We have continued to earn excellent returns in these market conditions.

After which we look forward to taking your questions.

The tailwind for renewables continue to accelerate as stakeholders around the world increasingly focus on the global imperative to Decarbonize.

This is driving increased demand for green energy and other clean solutions.

It should come as no surprise that there is both a growing investment opportunity as well as increasing amounts of capital being allocated towards the sector.

As 1 of the few businesses with the scale track record and global capabilities to both partner with governments and businesses.

And also invest to help them achieve their decarbonization goals. We believe we have a great runway ahead of us.

We have continued to earn excellent returns in these market conditions.

Operator: We have remained focused on opportunities where we can leverage our global reach, operating and development expertise, and scale access to capital. As industry tailwinds accelerate, the number of scale, value-add opportunities that favor investors with our skill set is also increasing. We will now walk through a number of highlights for the quarter. We generated FFO of $268 million or $0.42 per unit, a 23% increase on a normalized per-unit basis over the same period in the prior year, as our assets continue to perform well with high levels of asset availability, and we benefit from growth from both new acquisitions and the development asset and a number of our development assets coming online. We signed 28 agreements for approximately 800 gigawatt-hours of renewable generation with high-quality corporate off-takers across all major industries.

We have remained focused on opportunities, where we can leverage our global reach operating and development expertise.

And scale access to capital.

And as industry tailwind accelerates.

The number of scale value add opportunities that favor investors with our skill set is also increasing.

We will now walk through a number of highlights for the quarter.

We.

<unk> up $268 million or <unk> 42 per unit.

23% increase on a normalized per unit basis over the same period in the prior year.

As our assets continue to perform well with high levels of asset availability.

And we benefit from growth from both new acquisitions, and the development asset and a number of our development assets coming online.

We signed 28 agreements for approximately 800 gigawatt hours of renewable generation with high quality corporate off takers across all major industries.

Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend.

Operator: Our momentum with corporate contracting continues to grow and demonstrates our leadership in a rapidly growing industry trend. We progressed approximately 7,500 MW of development projects through construction and advanced permitting, and added approximately 4,000 MW to our global development pipeline, which is now over 30,000 MW around the world. Year to date, we have invested or agreed to invest approximately $1.9 billion or approximately $500 million net to Brookfield Renewable of equity across a range of transactions. Our balance sheet remains robust with almost $3.3 billion of available liquidity and no meaningful near-term maturities. Finally, we raised approximately $1.3 billion or over $650 million net to Brookfield Renewable from asset recycling and strategic upfinancing activities so far this year. Now turning our attention to some recent growth initiatives.

We progressed approximately 7500 megawatts of development projects through construction and advanced permitting.

And then added approximately 4000 megawatts to our global development pipeline, which is now over 30000 megawatts around the world.

Year to date.

We have invested or agreed to invest approximately $1.9 billion or approximately $500 million net to Brookfield renewable.

Equity across a range of transactions.

Our balance sheet remains robust.

With almost $3.3 billion of available liquidity and no meaningful near term maturities.

And finally, we raised approximately $1.3 billion.

Or over $650 million net to Brookfield renewable from asset recycling and strategic up financing activities. So far this year.

Yeah.

Now turning our attention to some recent growth initiatives.

As more capital continues to flow into renewable energy and Decarbonization solutions.

Operator: As more capital continues to flow into renewable energy and decarbonization solutions, our approach to growth will continue to favor those opportunities that allow us to utilize our strengths: investing for value and leveraging our operating capabilities to drive cash flow growth. We recently executed several agreements and transactions that highlight this approach. In June, we commenced the repowering of the fully contracted 845 MW Shepherds Flat wind project, which we acquired earlier this year. Shepherds Flat, which is located in the United States, is one of the largest repowering projects in the world. We will replace the turbine hardware with longer rotors and more efficient equipment while maintaining the rest of the infrastructure. This is expected to increase production by approximately 25%, generating 400 GWh of additional clean energy annually while also meaningfully extending the asset's useful life.

Our approach to growth, we will continue to favor those opportunities that allow us to utilize our strengths.

Investing for value and leveraging our operating capabilities to drive cash flow growth.

We recently executed several agreements and transactions that highlight this approach.

In June we.

We commenced the repowering of the fully contracted 845 megawatt shepherds flat wind project, which we acquired earlier this year.

Shepherd flat, which is located in the United States is 1 of the largest repowering projects in the world.

We will replace that turbine hardware with longer rotors, and more efficient equipment, while maintaining the rest of the infrastructure.

This is expected to increase production by approximately 25% generating 400 gigawatt hours of additional clean energy annually.

While also meaningfully extending the assets useful life.

Furthermore.

Operator: Furthermore, given that the cost is only a fraction of a comparable greenfield project and the enhanced generation can support a more robust capital structure, the repowering requires no additional equity from us, meaning that the investment will generate attractive mid to high teens returns. This repowering is an example of how we capitalize on our competitive advantages in the current market environment. By the time we complete the repowering by the end of 2022, it is expected that 320 turbines will have been retrofitted with rotors measuring almost 130 meters and other technologically advanced equipment as we continue to deliver power and receive revenues under the current power purchase agreement. Doing so requires the combination of both our operating capabilities as well as our position as one of the leading renewable power platforms in the world.

Given that the cost is only a fraction of a comparable greenfield project and the enhanced generation can support a more robust capital structure the.

They are requiring that the repowering requires no additional equity from us.

Meaning that the investment will generate attractive mid to high teens returns.

This repowering is an example of how we capitalize on our competitive advantages in the current market environment.

By the time, we complete the repowering by the end of 2022.

It is expected that 320 turbines, while it's been retrofitted.

With rotors, measuring almost 130 meters and other technologically advanced equipment as we continued to deliver power and receive revenues under the current power purchase agreement.

Doing so requires the combination of both our operating capabilities.

As well as our position as 1 of the leading renewable power platforms in the world.

We have leveraged our existing relationships with equipment suppliers financing partners and power off takes 2 largely derisk. This project.

Operator: We have leveraged our existing relationships with equipment suppliers, financing partners, and power off-takes to largely de-risk this project. With an estimated 200GW of global wind capacity reaching 15 years of age within the next five years, the global market for repowerings is large. Shepherds Flat is by no means the only opportunity, and this is only one segment where we continue to grow our business at attractive returns. Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other projects both across our existing portfolio as well as those we acquire to deliver attractive returns for our investors. This quarter, we also signed a strategic collaboration agreement with Amazon to develop new renewable projects supported by power purchase agreements and to work together on additional green energy opportunities in the future.

With an estimated 200 gigawatts of global wind capacity, reaching 15 years of age within the next 5 years, the global market for Repowering as large.

Shepherd flat is by no means the only opportunity and this is only 1 segment, where we continue to grow our business at attractive returns.

Given our global reach and operating capabilities, we expect to capitalize on scale opportunities to repower other projects.

Across our existing portfolio as well as those we acquire to deliver attractive returns for our investors.

This quarter we.

Disagreement.

Operator: This agreement, with the world's largest corporate buyer of renewable power, will leverage our deep operating capabilities and local teams in North America, Europe, Brazil, and Asia to support the construction of projects from our 31,000-megawatt development pipeline. We are excited to collaborate with Amazon and support them in achieving their climate goals while at the same time helping to transition global electricity grids to greener energy. Furthermore, we agreed with Trane Technologies to jointly pursue and offer decarbonization as a service for commercial, industrial, and public sector customers. This will comprise of energy-efficient retrofits and upgrades of building energy infrastructure along with captive distributed solar, energy storage, and other power generation across North America. The agreement leverages our leading US distributed generation business and Trane's leading energy efficiency, engineering, and project development experience to jointly develop and implement new customer opportunities.

We are excited to collaborate with Amazon and support them in achieving their climate goals, while at the same time, helping to transition global electricity grids.

Greener energy.

Furthermore.

We agreed with Trane technologies to jointly pursue an offer decarbonization as a service for commercial industrial and public sector customers.

This will comprise of energy efficient retrofits and upgrades of building energy infrastructure.

Along with captive distributed solar energy storage and other power generation across North America.

The agreement Leverages, our leading U S distributed generation business.

And trains leading energy efficiency engineering and project development experience to jointly development and implement new customer opportunities.

The de Carbonization solutions provided will help customers meet sustainability targets, while reducing operating costs through upgrading critical energy infrastructure and installing onsite renewable energy.

Operator: The decarbonization solutions provided will help customers meet sustainability targets while reducing operating costs through upgrading critical energy infrastructure and installing on-site renewable energy. In our Polish renewables business, we made significant progress on our development activities. We secured 25-year contracts to support the buildout of almost 1.5 gigawatts of offshore wind projects at attractive prices escalating with inflation with no basis or curtailment risk. As we have stated previously, we believe these are some of the most attractive contract structures available in the global offshore wind sector. We are now focused on executing construction activities with the goal of delivering the facilities starting in 2025. In addition, we are on track to deliver our 200-megawatt under-construction onshore wind portfolio by next year and are advancing opportunities to grow our onshore wind and solar footprint in the country.

And our Polish renewables business, we made significant progress on our development activities.

We secured 25 year contracts to support the build out of almost 1.5 gigawatts of offshore wind projects at attractive prices escalating with inflation with no basis or curtailment risk.

As we have stated previously we believe these are some of the most attractive contract structures available in the global offshore wind sector.

We are now focused on executing construction activities with the goal of delivering the facilities starting in 2025.

Operator: To fund these growth initiatives, shareholders have agreed to capital increases required over the next two years, providing the framework for us to invest an additional EUR 150 million or approximately $50 million net to Brookfield Renewable and increase our stake in the business to almost 40%. In Brazil, our construction activities continue to progress on budget and on schedule across our almost 2-gigawatt portfolio of under-construction wind and solar projects. Recently, we completed construction activities at our approximately 300-megawatt solar project ahead of schedule and under budget. Our global procurement platform and construction capabilities have positioned us well, and we are on track to deliver an additional approximately 900 megawatts of fully contracted projects in 2022.

<unk>.

In Brazil.

Our construction activity has continued to progress on budget and on schedule across our almost 2 gigawatt portfolio of under construction wind and solar projects.

Recently, we completed construction activities at our approximately 300 megawatt solar project ahead of schedule and under budget.

Our global procurement platform and construction capabilities have positioned us well and we are on track to deliver an additional approximately 900 megawatts of fully contracted projects in 2022.

In China.

Operator: In China, alongside Apple's China Clean Energy Fund, which was raised by Apple and its local suppliers to advance their collective transition to net-zero in the country, we agreed to acquire a 55% stake in a 213 MW contracted portfolio of wind assets for $60 million or approximately $15 million net to Brookfield Renewable. This transaction continues to expand and diversify our platform in China, providing a path to continue to prudently grow our capacity in the country. This acquisition is expected to close in Q3. Lastly, in India, we agreed to invest $130 million or $35 million net to Brookfield Renewable across two transactions totaling 900 MW of capacity. The first is with a local solar developer from whom we acquired assets in 2019. We will acquire a 450 MW fully contracted ready-to-build solar project.

Alongside apples, China renewable energy fund, which was raised by Apple and its local suppliers to advance their collective transition to net zero in the country.

We agreed to acquire a 55% stake in a 213 megawatt contracted portfolio of wind assets for $60 million or approximately $15 million net to Brookfield renewable.

This transaction continues to expand and diversify our platform in China <unk>.

Providing a path to continue to prudently grow our capacity in the country.

This acquisition is expected to close in the third quarter.

And lastly.

In India, we agreed to invest $130 million or <unk> $35 million net to Brookfield renewable.

Across 2 transactions totaling 900 megawatts of capacity.

The first is with a local solar developer from whom we acquired assets in 2019.

We will acquire a 450 megawatt fully contracted ready to build solar project.

Operator: This opportunity is just the first potential transaction of part of a 1.7 GW development pipeline that we are developing in a joint venture with our partners where they undertake the development activities, and we have the option to acquire the projects once they are fully permitted and ready to begin construction. The second transaction is with a large Indian solar developer that was one of the underlying borrowers in a portfolio of loans we acquired in late 2020. The investment gives us the right to acquire a 450 MW fully contracted solar project 1 year following commissioning once the project has been substantially de-risked. With that, I'll turn the call over to Wyatt to discuss our operating results and financial position.

This opportunity is just the first potential transaction.

A part of a 1.7 gigawatt development pipeline that.

The second transaction is with a large Indian solar developer that was 1 of the underlying borrowers in our portfolio of loans, we acquired in late 2020.

The investment gives us the right to acquire a 450 megawatt fully contracted solar project 1 year. Following commissioning once the project has been substantially derisked.

With that I'll turn the call over to white to discuss our operating results and financial position.

Thank you Connor.

Wyatt: Thank you, Connor. Before I discuss our operating results and financial position, I want to make a few brief comments on Brookfield Renewable Corporation, or BEPC. It has been 12 months since we spun out this corporate entity. In that time, it has achieved many of the goals we set at launch, including welcoming almost 250 new institutional investors and the addition to many indices, including the Russell 1000, the MSCI Canada, and the S&P Global Clean Energy Index. We were able to offer BEPC shares as consideration in the privatization of TerraForm Power, and we expanded the public float since launch by approximately 300%.

Wyatt Hartley: Thank you, Connor. Before I discuss our operating results and financial position, I want to make a few brief comments on Brookfield Renewable Corporation, or BEPC. It has been 12 months since we spun out this corporate entity. In that time, it has achieved many of the goals we set at launch, including welcoming almost 250 new institutional investors and the addition to many indices, including the Russell 1000, the MSCI Canada, and the S&P Global Clean Energy Index. We were able to offer BEPC shares as consideration in the privatization of TerraForm Power, and we expanded the public float since launch by approximately 300%.

<unk> discuss our operating results and financial position I want to make a few brief comments on Brookfield Renewable Corporation are Betsy.

It has been 12 months since we spun out this corporate entity.

In that time it has achieved many of the goals, we set at launch including welcoming almost 250, new institutional investors.

And the addition to many indices, including the Russell 1000, the MSCI, Canada, and the S&P Global Clean Energy Index.

We were able to offer <unk> shares as consideration in the privatization of Terraform power.

And we expanded the public float since launch by approximately 300%.

We are very pleased with the positive market reception.

Wyatt: We are very pleased with the positive market reception, looking forward, we expect that BEPC will continue to offer investors an additional way to access our globally leading portfolio of renewable and decarbonization assets, broadening our investor base, and enhancing the liquidity of our securities. Turning to operating results, during Q2, we generated FFO of $268 million or $0.42 per unit as our business benefited from recent acquisitions, strong asset availability, and margin-enhancing initiatives. On a normalized basis, our per-unit results were up 23% year-over-year. During the quarter, our hydroelectric segment delivered FFO of $154 million. Despite generation for the quarter coming in below the long-term average, the portfolio continues to exhibit strong cash flow resiliency given the increasingly diversified asset base and contract profile. As we have reiterated previously, resource cyclicality is expected but does not impact how we manage the business.

Wyatt Hartley: We are very pleased with the positive market reception, looking forward, we expect that BEPC will continue to offer investors an additional way to access our globally leading portfolio of renewable and decarbonization assets, broadening our investor base, and enhancing the liquidity of our securities. Turning to operating results, during Q2, we generated FFO of $268 million or $0.42 per unit as our business benefited from recent acquisitions, strong asset availability, and margin-enhancing initiatives. On a normalized basis, our per-unit results were up 23% year-over-year. During the quarter, our hydroelectric segment delivered FFO of $154 million. Despite generation for the quarter coming in below the long-term average, the portfolio continues to exhibit strong cash flow resiliency given the increasingly diversified asset base and contract profile. As we have reiterated previously, resource cyclicality is expected but does not impact how we manage the business.

And looking forward, we expect that Betsy we will continue to offer investors an additional way to access our globally, leading portfolio of renewable and de carbonization assets.

Broadening our investor base and enhancing the liquidity of our securities.

Turning to operating results.

During the second quarter, we generated <unk> of $268 million or <unk> 42 per unit as our business benefited from recent acquisitions.

<unk> asset availability and margin enhancing initiatives.

On a normalized basis, our per unit results were up 23% year over year.

During the quarter, our hydro electric segment delivered <unk> of $154 million.

Despite generation for the quarter coming in below the long term average.

Portfolio continues to exhibit strong cash flow resiliency, given the increasingly diversified asset base and contract profile.

As we have reiterated previously.

Resource cyclicality as expected, but does not impact how we manage the business.

Our focus remains on mitigating exposure to any single resource.

Wyatt: Our focus remains on mitigating exposure to any single resource, market, or counterparty by continuously diversifying and contracting the business while prudently managing the assets. Securing contracts that value the uniqueness of our fleet as a generator of dispatchable clean electricity and ancillary services further bolsters our portfolio against inevitable variability. Brazil has been impacted by a drier than normal rainy season this year, particularly in the southeastern region of the country, and reservoirs are well below long-term average. As a result, spot prices have increased significantly as the grid operator has been forced to dispatch higher-priced thermal generation, and there is modest risk of energy rationing in the country. Our portfolio is well-positioned in this environment.

Wyatt Hartley: Our focus remains on mitigating exposure to any single resource, market, or counterparty by continuously diversifying and contracting the business while prudently managing the assets. Securing contracts that value the uniqueness of our fleet as a generator of dispatchable clean electricity and ancillary services further bolsters our portfolio against inevitable variability. Brazil has been impacted by a drier than normal rainy season this year, particularly in the southeastern region of the country, and reservoirs are well below long-term average. As a result, spot prices have increased significantly as the grid operator has been forced to dispatch higher-priced thermal generation, and there is modest risk of energy rationing in the country. Our portfolio is well-positioned in this environment.

Market, our counterparty by continuously diversifying and contracted the business, while prudently managing the assets.

Securing contracts the value of the uniqueness of our fleet as a generator of dispatch vote clean electricity and ancillary services further bolsters our portfolio against inevitable variability.

Brazil has been impacted by a drier than normal rainy season this year.

Early in the southeastern region of the country and.

And reservoirs are well below long term average.

As a result spot prices have increased significantly as the grid operator has been forced to dispatch higher priced thermal generation.

And there is modest risk of energy rationing in the country.

Our portfolio is well positioned in this environment.

Wyatt: We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022. We could potentially realize very strong pricing on contracts we sign for next year. Our wind and solar segments generated a combined $178 million of FFO as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long-duration power purchase agreements. Further, to take advantage of the strong pricing environment in Brazil, we executed on a regulatory mechanism to uncontract our generation for the year of 2022 from our approximately 300 MW solar development project in the country. Concurrently, we executed on new contracts for this generation in the free market at double the power purchase agreement price, generating an additional 135 million Brazilian reais or $27 million of revenue from the project.

Wyatt Hartley: We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022. We could potentially realize very strong pricing on contracts we sign for next year. Our wind and solar segments generated a combined $178 million of FFO as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long-duration power purchase agreements. Further, to take advantage of the strong pricing environment in Brazil, we executed on a regulatory mechanism to uncontract our generation for the year of 2022 from our approximately 300 MW solar development project in the country. Concurrently, we executed on new contracts for this generation in the free market at double the power purchase agreement price, generating an additional 135 million Brazilian reais or $27 million of revenue from the project.

We have little to no risk of being short of our power delivery obligations for the rest of this year and 2022 and.

And we could potentially realize very strong pricing on contracts, we signed for next year.

Our wind and solar segments generated a combined $178 million or <unk> as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long duration power purchase agreement.

Concurrently we executed on new contracts for this generation and the free market at double the power purchase agreement price.

Generating an additional $135 million, Brazilian reais or $27 million of revenue from the project.

Required to address the increasing intermittency of greener electricity grids.

Our financial position continues to be strong.

We have approximately $3.3 billion of available liquidity.

Our investment grade balance sheet has no meaningful near term maturities and approximately 90% of our finances are nonrecourse to Brookfield renewable.

Recently Fitch initiated coverage of our business assigning a triple B positive rating, which is consistent with our existing rating from S&P.

During the quarter, we continued to take advantage of the low interest rate environment and executed on approximately $1.5 billion of.

Of investment grade financings across the business.

We also continued to execute on several initiatives to further bolster our liquidity and support growth.

Recently, we raised over $850 million or approximately $410 million net to Brookfield renewable of equity proceeds from capital recycling initiatives.

Wyatt: Recently, we raised over $850 million or approximately $410 million net to Brookfield Renewable of equity proceeds from capital recycling initiatives. Looking forward, we expect to continue to generate meaningful proceeds from strategic upfinancings and capital recycling initiatives. We are not reliant on capital markets to fund the growth of our business. Looking ahead, we continue to focus on growing our business and executing on our key operational priorities, including maintaining a robust balance sheet and access to diverse sources of capital, and surfacing value through enhanced cash flows from our existing portfolio. We remain committed to helping our customers achieve their decarbonization goals and, in the process, earn our investors a strong total return of 12% to 15% over the long term.

Wyatt Hartley: Recently, we raised over $850 million or approximately $410 million net to Brookfield Renewable of equity proceeds from capital recycling initiatives. Looking forward, we expect to continue to generate meaningful proceeds from strategic upfinancings and capital recycling initiatives. We are not reliant on capital markets to fund the growth of our business. Looking ahead, we continue to focus on growing our business and executing on our key operational priorities, including maintaining a robust balance sheet and access to diverse sources of capital, and surfacing value through enhanced cash flows from our existing portfolio. We remain committed to helping our customers achieve their decarbonization goals and, in the process, earn our investors a strong total return of 12% to 15% over the long term.

Looking forward, we expect to continue to generate meaningful proceeds from strategic financing and capital recycling initiatives. So we are not relying on capital market to fund the growth of our business.

We remain committed to helping our customers achieve their decarbonization goals and in the process R&R investors a strong total return of 12% to 15% over the long term.

Wyatt: On behalf of the board and management of Brookfield Renewable, we thank all our unit holders and shareholders for their ongoing support and look forward to connecting with you at our annual investor day, which is scheduled to take place on the 21 September. That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that, I'll pass it back to our operator for questions.

Wyatt Hartley: On behalf of the board and management of Brookfield Renewable, we thank all our unit holders and shareholders for their ongoing support and look forward to connecting with you at our annual investor day, which is scheduled to take place on the 21 September. That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that, I'll pass it back to our operator for questions.

That concludes our formal remarks for today's call. Thank you for joining us this morning, and with that I'll pass it back to our operator for questions.

Thank you.

Robert Hope: Thank you. As a reminder, to ask a question, you will need to press star one on your telephone. To withdraw your question, press the pound key. Our first question comes from the line of Robert Hope with Scotiabank.

As a reminder to ask a question you will need to press star 1 on your telephone.

To withdraw your question.

The <unk>.

Our first question comes from the line of Rob Hope with Scotiabank.

Good morning, everyone.

Connor Teskey: Good morning, everyone. Why don't we start on the collaboration agreement with Amazon? How did that kind of come into effect? Can you put some goalposts around technologies, geographies, costs that could eventually fall under this agreement as well as the timeline?

Chart on the collaboration agreement with Amazon, how does that kind of come into effect and can you can you put some goalposts around technologies geographies cost back.

Centrally fall under this agreement as well as the time line.

Certainly in <unk>.

Rupert Merer: Certainly, and thank you. Perhaps I will start, but Wyatt, please jump in. We're very excited about our collaboration with Amazon. Put simply, Amazon is the largest corporate buyer of green power around the world, and we are one of the largest providers and suppliers of green power around the world, so we think this is a natural alignment of interests. It's probably not prudent for us to discuss specific size because the actual projects that will initially be included are still being determined, but this is a sizable, ambitious collaboration that is global in nature across multiple projects in all of our core geographies around the world. What makes us most excited about this agreement is, given Amazon's ambitious targets in terms of green power procurement and our ability to help support them in those initiatives, we think it could grow very materially in the coming years.

Thank you, perhaps I will start but why it please jump in.

We're very excited about our collaboration with Amazon.

Put simply Amazon is the largest corporate buyer of green power around the world and we are 1 of the largest <unk>.

Providers and suppliers of Green power around the world. So we think this is a natural alignment of interests.

Across multiple projects in all of our core geographies around the world.

And what makes US most excited about this agreement is given amazon's ambitious targets in terms of green power procurement and our ability to help support them in those initiatives, we think it could grow very materially in the coming years.

Alright, Thanks for that and then maybe as a follow up question in terms of global opportunities.

Connor Teskey: All right. Thanks for that. Then maybe as a follow-up question in terms of kind of global opportunities, the transition fund that just was announced, how do you think it will interact with BEP? Could we see you take a 25% interest in the majority of capital there?

<unk> transitioned from that just was announced how do you think it will interact with.

With Bep could we see you take a 25% interest in the majority of capsular.

Great question. Thank you.

Rupert Merer: Great question. Thank you. For Brookfield Renewable, the transition fund will be similar to Brookfield's other flagship funds, with Brookfield Renewable funding BAM's commitment to the fund where the investment fits Brookfield Renewable's mandate. Given the transition fund's mandate around renewable power buildout and the growth and acquisition of decarbonization assets, we expect that most of the transition fund's investments will be suitable for Brookfield Renewable. It does continue to be the case that we may make certain direct investments through Brookfield Renewable when it is strategic to do so, such as when we privatized TERP last year, but we do expect the majority of the investments that we will make to be made through Brookfield private funds. We're excited because the transition fund simply enhances the opportunity for Brookfield Renewable to target the largest and most attractive renewable power and decarbonization opportunities all over the world.

For Brookfield renewable.

Transition fund will be similar to Brookfield other flagship funds.

With Brookfield renewable funding <unk> commitment to the fund where the investment fits Brookfield renewables mandate.

Given.

It does continue to be the case that we may make.

The opportunity for Brookfield renewable to target the largest and most attractive renewable power and decarbonization opportunities all over the world.

Appreciate the color. Thank you.

Connor Teskey: Appreciate the call. Thank you.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Rupert Merer with National Bank.

Question comes from the line of Rupert <unk> with National Bank.

Good morning, everyone.

Wyatt: Good morning, everyone. Now, you've talked about Brazil and the higher power prices there and the potential for recontracting some of your assets in Brazil. How much of your capacity in Brazil will be up for contract negotiation over the next couple of years, and how much upside do you see with the pricing environment there?

Wyatt Hartley: Good morning, everyone. Now, you've talked about Brazil and the higher power prices there and the potential for recontracting some of your assets in Brazil. How much of your capacity in Brazil will be up for contract negotiation over the next couple of years, and how much upside do you see with the pricing environment there?

Now you've talked about Brazil, and the higher power prices there.

And the potential for re contracting some of your assets in Brazil how.

How much of your capacity in Brazil will be up for contract negotiation over the next.

A couple of years and how much upside do you see with the pricing environment there.

Perfect. So.

Rupert Merer: Perfect. Rupert, why don't I start, and then I might hand to Wyatt for some of the specifics. What we look to do in our Brazilian operation is we are obviously targeting a highly contracted profile, but what we do do is we always leave sufficient cushion to account for any resource variability, such as the resource variability we've seen thus far this year. In certain years, we don't use all that cushion. In years of low hydrology like this one, we use more of it, but it positions us well to handle situations such as the drought-like conditions that are currently being experienced. The majority of our power is contracted going forward for a number of years under long-term contracts, but we do continue to hold a small minority of positions that we contract on a short-term basis to provide flexibility in these situations.

Rupert why don't I start and then I might hand to Wyatt for some of the specifics but.

The majority of our power is contracted going forward for a number of years under long term contracts, but we do continue to hold a small minority of position that we contract on a short term basis to provide flexibility in these situations.

Rupert Merer: Wyatt, can I hand to you for some of the specifics?

Wyatt can I hand to you for some of the specifics.

Sean Steuart: Yeah. Just to put some numbers around that, Rupert. As Connor mentioned, the way we think about contracting our portfolio is so that in a down-resource year like we're seeing this year and then potentially into 2022, that we're not going to be short of our delivery obligations, and we use a lot of historical data to back that up. What that translates to is between 80% and 85% of our normal course or LTA generation we contract, and then we leave that remaining 15% to 20% open. That's where we, one, we achieve the benefit of not being caught short, and secondly, as we mentioned in our prepared comments, that to the extent we generate above that 80% to 85%, we're then monetizing that surplus energy in a very attractive power price market.

Yes, so just to put some numbers around that Rupert.

80%, 85% of our.

Normal course, our LTA generation, we contract and then we leave that remaining 15% to 20% open and Thats, where we are 1 we achieved the benefit of not being caught short and secondly, as we mentioned in our prepared comments that to the extent, we generate above that 80% to 85%.

And monetizing that surplus energy in a very attractive power price market. So there is some upside but the majority of our portfolio is contracted.

Sean Steuart: There is some upside, but the majority of our portfolio is contracted.

Okay very good thanks, and really a follow up to the last question from Rob.

Wyatt: Okay. Very good. Thanks. Really, a follow-up to the last question from Rob Hope. It seems like you're anticipating you could be investing in other sorts of infrastructure in the future. Are you going to contemplate investing in hydrogen infrastructure like some of your peers, or carbon capture, or renewable natural gas? If so, how much of your investment do you think that could make up in the coming years?

Wyatt Hartley: Okay. Very good. Thanks. Really, a follow-up to the last question from Rob Hope. It seems like you're anticipating you could be investing in other sorts of infrastructure in the future. Are you going to contemplate investing in hydrogen infrastructure like some of your peers, or carbon capture, or renewable natural gas? If so, how much of your investment do you think that could make up in the coming years?

It seems like your.

Anticipating you could be investing in other sorts of infrastructure in the future are you going to contemplate investing in the hydrogen infrastructure like some of your peers or or carbon capture or renewable natural gas and if so how much of.

Of your investment do you think that could make up in the coming years.

Thanks Rupert.

Rupert Merer: Thanks, Rupert. A few different ways to come at that question. Increasingly, more and more of our business has been making investments around being a solutions provider, providing energy transition and decarbonization solutions, in particular for businesses and corporates around the world that increasingly are setting higher and higher decarbonization objectives for themselves. We feel that we are in a very strong position to be that operating partner and that capital provider, and the reason for that is the first step in many corporates or many businesses' decarbonization plan is to address their Scope 2 emissions by supplying their business with green power. We have been a producer and provider, a leading producer and provider of green power to corporates for years, and what this allows us to do is help corporates get the low-hanging fruit in their decarbonization plan.

A few different ways to come at that question.

Increasingly more and more of our business.

We feel that we are in a very strong position to be that operating partner in that capital provider and the reason for that is the first step in many corporates are many businesses de carbonization plan is to address their scope 2 emissions by supplying their business with green.

Power, where we have been a producer and provider a leading producer and provider of green power to corporates for years and what this allows us to do is help corporates get the low hanging fruit in their decarbonization plan.

Rupert Merer: From there, we then engage with those counterparties on other ways that we can be helpful in being a partner in helping them decarbonize their business or reach their own net-zero targets. When it comes to ways other than the provision of green power, we see a tremendous amount of opportunity, and some of the technologies you mentioned, we are absolutely following incredibly closely. We expect green hydrogen to be a very large and attractive investable opportunity for Brookfield Renewable in the future, and one that we feel that we are exceptionally well-positioned for when the cost curve for the production of green hydrogen comes down over time.

From there. We then engaged with those counterparties on other ways that we can be helpful. In in being a partner in helping them decarbonize their business or reach their own net zero targets.

When it comes to ways other than the provision of Green power.

We see a tremendous amount of opportunity in some of the technologies. You mentioned, we are absolutely following incredibly closely.

Green hydrogen is is not.

Rupert Merer: Green hydrogen is not cost-effective on a widescale basis in many markets around the world today, but what we are doing internally is looking both within our portfolio and in opportunities in the market that will be well-positioned when that cost curve for green hydrogen comes down, such that we will be on the front foot and ready to take advantage of those investing opportunities in the future when they become available. I would say green hydrogen is just one type of future opportunity we're looking at. We're looking at other opportunities as well, whether it be carbon capture storage or the buildout of long-term duration energy storage and batteries.

Take advantage of those investing opportunities in the future when they become available.

And I would say green hydrogen is just 1 type of future opportunity we're looking at.

We're looking at other opportunities as well.

Whether it be carbon capture storage or the build out of long term duration energy storage and batteries.

Great. Thanks for the color there.

Wyatt: Great. Thanks for the call. I'll leave it there.

Wyatt Hartley: Great. Thanks for the call. I'll leave it there.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Sean Steuart with TD Securities.

And our next question comes from the line of Sean Stewart with TD Securities.

Thanks, Good morning.

Nelson Ng: Thanks. Good morning. A couple of questions. I want to start with the ongoing capital recycling and upfinancing activity. You referenced ongoing ambitions on both of those fronts. That's not a surprise, I suppose. Connor, I'm wondering if you can give us updated thoughts on, with respect to capital recycling, the valuation sweet spots, whether it's by technology or geography. Has that evolved over the last three to six months, where you're seeing a more attractive opportunity set?

Couple of questions I wanted to start with.

The ongoing capital recycling and a financing activity.

You referenced.

Ongoing ambitions on both of those fronts and thats not a surprise I suppose but.

I'm wondering if you can give us updated thoughts on.

With respect to capital recycling, the valuations sweet spot, whether it's by technology or a geography and.

Has that evolved over the last 3 to 6 months, what are you seeing more attractive opportunities.

Certainly thanks, Sean.

Rupert Merer: Certainly. Thanks, Sean. Maybe just to say two things. In the quarter, we closed the previously announced sale of our Irish and Scottish wind assets, and we've also recently received the approvals and would expect to close our US wind sale pretty shortly here. In terms of dynamics that we're seeing in the market, there's perhaps two things we would highlight. We continue to see a very, very robust bid for de-risked, long-term contracted wind and solar assets. We spoke in our prepared remarks about how there is more and more capital flowing towards renewable power asset classes and other forms of sustainable or decarbonization assets. That is simply increasing the prices that we are seeing for long-term de-risked assets, which creates a robust environment for us to sell into for assets where we've achieved our business plan.

Maybe just to say 2 things in the quarter, we closed the previously announced sale of our Irish and Scottish wind assets.

And we've also recently received the approvals and would expect to close our U S wind sale.

Pretty shortly here.

In terms of dynamics that we're seeing in the market. There is perhaps 2 things we would highlight we continue to see a very very robust bid for de risked long term contracted.

Wind and solar assets.

The prices that we are seeing for a long term derisked assets, which creates a robust environment for us to sell into for assets, where we've achieved our business plan.

Rupert Merer: The other thing that we're seeing in terms of capital recycling and upfinancing is the increasing value and scarcity of our hydrofleet. Within our portfolio, we've long stated that we have significant upfinancing capacity within our hydrofleet. We would say in the current market where there's an increasing buildout of wind and solar, and the baseload characteristics and the inherent storage characteristics of hydro are increasingly becoming more valuable. That is helpful to us from both a monetization perspective if we ever chose to sell those assets. It's also increasingly helpful to us from an upfinancing perspective because we're seeing tremendous capacity to raise capital in those assets within our portfolio, particularly in North America.

The other thing that we're seeing in terms of capital recycling and up to Nancy is the increasing value and scarcity of our hydro fleet.

Because we're seeing tremendous capacity to raise capital in those assets within our portfolio, but particularly in North America.

Thanks for that detail that's all that's useful.

Nelson Ng: Thanks for that detail. That's useful. Second question, following on your previous comments with respect to decarbonization services, can you give us some more context behind your partnership with Trane Technologies, and if possible, any context on the scale of that partnership opportunity and your objectives to grow that out over the mid to long term?

Question <unk>.

Following on your previous comments with respect to.

De Carbonization services can you give us some more context behind your partnership with Trane technologies.

If possible any context on the scale of of that partnership opportunity and your objectives to grow that out over the mid to long term.

Certainly.

Rupert Merer: Certainly. Maybe to take a step back, our distributed generation business in the US is one of our fastest-growing and most dynamic platforms within Brookfield Renewable, and we see a tremendous growth opportunity for providing on-site renewable power generation for self-consumption by commercial and industrial counterparties. What we see in this agreement with Trane that we're really excited about is we are a leader in providing distributed solar generation on the outside of the building, and to put it simply, Trane is a global leader in providing energy-efficient services and decarbonization services on the inside of the building. Therefore, the benefits of the transaction are really obvious in two ways. One, collectively, we can provide an unparalleled full suite of products to commercial and industrial customers. Secondly, we can cross-sell our respective products across each other's customer bases because we target the exact same sectors.

So maybe to take a step back.

Our distributed generation business in the U S is 1 of our fastest growing and most dynamic platforms within Brookfield renewable and we see a tremendous growth opportunity for providing on site.

Renewable power generation for self consumption by by <unk>.

<unk> industrial Counterparties.

<unk> of the building and therefore, the benefits of the transaction are really obvious in 2 ways..1 collectively we can provide an unparallel rollout excuse me an unparalleled full suite of products to commercial and industrial customers.

But secondly, we can cross sell our respective products across each other's customer bases.

Rupert Merer: What we would say is this creates an opportunity to grow our DG business even faster than it is already growing, but also to invest alongside Trane in providing some of these energy efficiency and decarbonization solutions inside the building as well.

Well.

So that's all I had.

Nelson Ng: That's all I have.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Nelson Ng with RBC Capital Markets.

And our next question comes from the line of Nelson <unk> with RBC capital markets.

Great. Thanks, and good morning, everyone.

Mark Strouse: Great. Thanks, and good morning, everyone. In the commentary, I think you said Brazil hydrology was pretty weak. I noticed that Q2 hydrology was actually strong. Just going forward, do you expect weak hydrology for the rest of the year in Brazil? I guess the question is, would the additional profit on the uncontracted generation make up for the lower generation?

And you're in the commentary.

I think you said, Brazil hydrology was.

Pretty weak.

I noticed that Q2 hydrology was actually strong.

And so.

So just going forward do you expect.

Weak hydrology for the rest of the year in Brazil, and I guess the question is.

<unk> would be.

With the additional profit on the uncontrolled did generation makeup for for the lower generation.

So Nelson I'll start.

Rupert Merer: Nelson, I'll start, but maybe just to clarify, it was a fairly weak hydrology quarter across three of our four hydro markets. We had below-LTA hydrology in Canada, the United States, and Brazil. We did have above-LTA hydrology in Colombia. I just want to make that clarification. The one thing I would add is, as Wyatt mentioned in his opening remarks, we manage the business to the long-term LTA, and at this point, we're already partway through Q3. With the exception of Brazil, in most of our Canadian and mid-continent US assets, we are seeing a reversion towards LTA, so we don't expect hydrology to be as difficult in Q3 as it was in Q2 based on what we're seeing at this point. In terms of when we look to production in Brazil next year, it's certainly tough to forecast exactly what hydrology would be.

But maybe just to clarify.

It was a fairly weak hydrology quarter across 3 of our 4 hydro markets.

We had below LTA hydrology in Canada, the United States and Brazil.

Did have above the LTA hydrology in Colombia.

So I just wanted to make that clarification.

The 1 thing I would add is as Wyatt mentioned in his opening remarks, we manage the business to the long term LTA and at this point, we're already partway through Q.

Q3, and with the exception of Brazil in most of our Canadian and mid continent U S assets, we are seeing a reversion towards LTA. So we don't expect hydrology.

To be as as difficult in Q3 as it was in Q2 based on what we're seeing at this point.

In terms of when we look to production in Brazil.

Next year.

It's certainly tough to forecast exactly what hydrology would be the re contracting activities. We have done are significantly beneficial to our portfolio, but I think it would be.

Rupert Merer: The recontracting activities we have done are significantly beneficial to our portfolio, but I think it would be not prudent for us to try and guess what hydrology will be in 2022 in the Brazilian market.

Not prudent for us to try and guess wet hydrology will be in 2022 in the Brazilian market.

Okay got it and then can you just provide a bit more color on.

Mark Strouse: Okay. Got it. Then can you just provide a bit more color on your ability to essentially pull your contracts from the government and then recontract it in the market? Is there a lot of other is this for very specific assets, or can you do that for additional assets going forward?

Your ability to essentially.

All your contracts from the government and then re contracted in the market is there.

A lot of other as this site.

This for very specific assets or can you do that for additional assets going forward.

Yes, Nelson its wide here youre exactly right its not broadly it's broadly available to the market, but it really what happened here was.

Rupert Merer: Yeah. Nelson, it's Wyatt here. You're exactly right. It's not broadly available to the market, but really what happened here was, as the distributing company, the distributors in the country of Brazil looked at their projections for 2022, they effectively realized that they were overcontracted. When that occurs, what the government or the regulator often does is set up a mechanism whereby certain projects can uncontract, thereby reducing that overcontracted position of the distribution companies. In this case, what it was is effectively any project that was being delivered new for the year of 2022 was provided the opportunity to uncontract.

As did generate or the distributing company of the distributors in the country of Brazil looked at their projections for 2022.

Effectively we realize that we're over contracted and so when that occurs what the government or the regulator often does it set up a mechanism whereby certain projects Ken on contract, thereby reducing that over contracted position of the distribution distribution companies.

Rupert Merer: As we mentioned, we're about to deliver our 300-megawatt development project in the country, and so that was eligible under this mechanism to uncontract, and we then were able to concurrently recontract in the free market at effectively double the rates and earn a very good boost for 2022's revenues.

Eligible for under this mechanism on contract and we then were able to concurrently re contracted in the free market at effectively double the rates and earn a very good boost for 2022 revenues.

So those same assets would be contracted in the following years is just for 2022 factory right. It is not on contracting long term it is.

Mark Strouse: Those same assets would be contracted in the following years. It's just for 2022, right?

Rupert Merer: Exactly right. It is not uncontracting long term. It is focused only for 2022, and the PPA contract that we put in place when we built the asset continues from 2023 onwards.

Only for 2022 and the contract.

The PPA contract that we put in place when we built the assay continues.

Continues from 2023 onwards.

Okay. Thanks, and then just 1 last question before I get back in the queue.

Mark Strouse: Okay. Thanks. Thanks, Wyatt. Just one last question before I get back into queue. On the repowering side, Connor, you mentioned that there are a lot of opportunities out there. You're obviously working on Shepherds Flat. I think you have a project in New York and California, I believe. Is the main focus on repowering in the US given the available tax credits, or are there other geographies that you're focused on right now?

The Repowering side Conor you mentioned that there are a lot of opportunities out there. We are obviously working on shepherds flat I think you have with project in New York, and California I believe.

Is the main focus on Repowering in the U S. Given the available tax credits or are there other geographies that you're focused on right now.

Yes, it's certainly a great question.

Rupert Merer: Yeah, certainly. Great question. You're absolutely right. We are seeing the most attractive opportunities right now primarily in the United States, and there's really two things driving that. As you mentioned, there's very supportive tax credit regimes that repowering qualifies for in the United States, and then there's a second nuance about the US that is much simpler, which is, to put it very simply, the projects in the US are a lot bigger, and therefore, you can get economies of scale during the repowering process. While we are seeing the greatest opportunities in the short term in the United States, the broader opportunity that gets us very excited is Europe.

Youre absolutely right, we are seeing the most attractive opportunities.

Right now primarily in the United States, and there's really 2 things driving that.

As you mentioned there is very supportive tax credit regimes that repowering qualify for in the United States and then there is a second nuance about the U S that is much simpler which is.

To put it very simply.

The projects in the U S are a lot bigger and therefore, you can get economies of scale during the repowering process.

And while we are seeing the greatest opportunities in the short term in the United States the broader opportunity that gets us very excited is Europe and the reason for that is Europe does have.

Rupert Merer: The reason for that is Europe does have a very large and aging wind-installed fleet that we think will be eligible for repowering as in the future more support for repowering does come forward from governments and regulatory authorities in that market, and that's something we're tracking very closely.

A very large and aging.

Wind installed fleet that we think will be eligible for repowering.

As in the future more support for Repowering does come forward from from governments and regulatory authorities in that market and that's something we're tracking very closely.

Great. Thanks for the color I'll leave it there.

Mark Strouse: Great. Thanks for the color, Connor. I'll leave it there.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Mark Strouse with JPMorgan.

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

Yes, good morning, thanks for taking our questions.

Pearce Hammond: Yeah. Good morning. Thanks for taking our questions. I just want to clarify something for me, if you don't mind. Just with the supply constraints that we're seeing globally, I understand you're very well diversified across assets and across geographies, but for some of your projects, are you seeing delays in any particular areas with a need to potentially increase pricing as your component inputs increase as well? To the extent that you are raising PPA prices, what is the customer response to that? Are you getting much pushback?

Wanted to clarify something for me if you don't mind just with the.

Supply constraints that we're seeing globally.

Understand you're very well diversified across assets across geographies, but for some of your projects are you seeing are you seeing delays in any particular areas.

With the need to potentially increase pricing as your component.

Puts.

The increase as well.

To the extent that you are raising PPA prices what is the customer response to that or are you getting much pushback.

Certainly thanks, Mark and maybe.

Rupert Merer: Certainly. Thanks, Mark. Maybe we'll come at this from 2 different perspectives. We'll talk a little bit about the macro, and then we'll go down to our business. Obviously, there was an increase in equipment costs, notably in solar panels, over, call it, the last 6 or 9 months. This was largely driven by increasing demand and, 2, a number of, call it, short-term supply shocks in key production markets that we're largely through at this point. As we look going forward, 1, those short-term supply shocks seem to be increasingly behind us, but there is also growing visibility on new production capacity coming back online, and we very much expect to see any supply concerns largely resolved over the next 9 to 12 months.

And maybe we'll come at this from 2 different perspectives will talk a little bit about the macro and then we'll go down to our business. So.

Obviously.

There was an increase in equipment costs, notably in solar panels.

Over call it the last 6 or 9 months.

This was largely driven by and.

Increasing demand.

And to a number of call it short term supply shocks.

In key production markets that we're largely through at this point and as we look going forward..1 those short term supply shocks and seem to be increasingly behind us, but there is also growing visibility on new production capacity coming back online and we very much expect.

To see any supply concerns largely resolved over the next 9 to 12 months.

When it comes to our business.

Rupert Merer: When it comes to our business, any effect as a result of these supply shocks has been incredibly muted, and I would say immaterial. There's 2 things I would point to. First and foremost, one thing we do as part of our risk management and approach to development is we procure our equipment at the same time as we lock in a contract. Therefore, we're never taking basis risk in that we lock in a contract and leave ourselves exposed to equipment prices increasing and dramatically eroding our returns. We would always look to do those things very, very close together, concurrently if possible, and therefore, we're locked in contractually on both sides, and market moves in terms of prices won't affect our underlying projects.

Any effect as a result of these supply shocks has been incredibly muted and I would say immaterial and there's 2 things I would point to.

<unk> to equipment prices, increasing and dramatically.

<unk> our returns we would always look to do those things very very close together.

Rupert Merer: I would say that has been our largest mitigant over the last six or nine months and removed any material downside effect that could have affected us from this supply shortage. The second thing we would say is, through our centralized procurement, we've maintained very strong relationships with the tier one suppliers. Yes, have we had to work with tier one suppliers to maybe adjust shipping schedules or things like that as a result of the supply shocks? Absolutely, but none of it was material and outside the boundaries of our construction and development schedules. It was all within our plan. Therefore, when we look at our large solar developments around the world, at this point, they continue to be on time and on budget.

Any material downside effect that could have affected us from this supply shortage.

The second thing we would say is through our centralized procurement, we've maintained very strong relationships with the tier 1 suppliers and yes have we had to work with tier 1 suppliers.

Maybe adjust shipping schedules or things like that as a result of of.

Okay. Thanks, Tom and then similar question just regarding government incentives globally. I mean are you seeing any of your prospective customers and us.

Pearce Hammond: Okay. Thanks, Connor. Then similar kind of question just regarding government incentives globally. I mean, are you seeing any of your prospective customers kind of sitting on their hands near term, waiting on clarity around a potential infrastructure bill in the US, the Fit for 55 program in Europe? Anything else?

Sitting on their hands near term waiting on for more weighting on clarity around.

A potential infrastructure bill in the U S. The fit for 55 program in Europe.

Anything else.

Not particularly.

Rupert Merer: Not particularly. All these things are going to be incremental tailwinds for our business, but I would say the overarching support is just a massive continued increase in corporate and utility demand for green power. The growth in that overarching increase in demand far outweighs any individual short-term customers' biases to waiting for more visibility. I would say it's not having a material impact from what we're seeing. We continue to see demand for green power growing universally across all major markets around the world.

All of these things are going to be incremental tailwind.

For our business, but I would say the overarching support is just a massive continued increase in <unk>.

Corporate and utility demand for green power and the growth in that.

Our overarching increase in demand far outweighs any individual short term customers.

Biases to waiting for more visibility so.

I would say, it's not having a material impact from what we're seeing we continue to see demand for green power.

Growing universally across all major markets around the world.

Okay very helpful. Thank you.

Pearce Hammond: Okay. Very helpful. Thank you.

Thank you and our next question comes from the line of Pearce Hammond with Piper Sandler.

Robert Hope: Thank you. Our next question comes from the line of Pearce Hammond with Piper Sandler.

Yes, good morning, and thank you for taking my question I was just curious when you look around the international markets that you may not be.

Ben Pham: Yeah. Good morning, and thank you for taking my question. I was just curious, when you look around the international markets that you may not be in right now, are there some markets that look intriguing based upon what they're moving forward with their own decarbonization plans? Are there some markets that might be moving up to the forefront where you might be able to get some outsize opportunities and apply your expertise that you have built up in the international markets over time?

Right right now are there some markets that look intriguing based upon what they are moving forward with their own de carbonization plans and are there some markets that might be moving up to the forefront.

Where you might be able to get some outsize opportunities and apply your expertise that you have built up in the international markets over time.

Thanks, Pearce, it's a great question.

Rupert Merer: Thanks, Piers. It's a great question. At this point, we wouldn't suggest that there's any markets around the world that we're looking to enter on an accelerated basis, but I would say there are a number of markets around the world where we have a very small footprint. Through our operations over the last three or four years, we have small footprints in a number of markets that we could look to expand on dramatically in the coming years. We're going to look to continue to grow in our core markets, North and South America, Europe, India, and China, but in the last few years, we do have small operations through our underlying portfolio companies in Japan, in Australia, in Chile, and in Uruguay.

At this point.

Prince and a number of markets that we could look to expand on dramatically in the coming years.

We're going to look to continue to grow in our core markets, North and South America, Europe, India, China, but in the last few years, we do have small operations through our underlying portfolio companies in Japan.

In Australia in Chile.

Rupert Merer: These are all markets where we have operations, we have personnel on the ground, and in addition to our large core markets, we could see ourselves grow increasingly larger platforms going forward, but we're going to continue to be prudent and cautious and look to do it when we see attractive risk-adjusted returns. The benefit of our platform continues to be a global approach where we can allocate our capital where we see the best opportunities. The nice thing about the growth we've had in recent years is there are a few more regions where we are looking at opportunities and could deploy capital if we see attractive projects or assets to acquire.

And the nice thing about the growth. We've had in recent years are there are a few more regions, where we are looking at opportunities and could deploy capital if we see attractive.

<unk> of our assets to acquire.

Ben Pham: I love it. Thank you very much for that. My follow-up question, I know the Biden infrastructure bill's kind of moving through Washington and fits and starts, but when you look at that bill, are there one or two different things that you think could be a big beneficiary or a benefit, Brookfield, in that bill?

Alright, Thank you very much for that and then my follow up.

Question.

Biden infrastructure for those kind of moving through Washington in fits and starts but when you look at that Bill are there 1 or 2 different things that you think could be a big beneficiary.

Brookfield and that Bill.

Certainly.

Rupert Merer: Certainly. One of the most exciting things about Biden's Infrastructure Bill is it is so all-encompassing. There are things in that bill that can be helpful to so many different parts of the market, and we think for investors and operators such as ourselves that can play across the decarbonization spectrum, across operating or development assets, there will be a number of opportunities. The obvious one that jumps off the page for. Is when you look at some of the growth in our development pipeline quarter-over-quarter, we added about 4,000 megawatts of development pipeline, and a large portion of that increase was in the United States where we increasingly have been growing our development pipeline in-house using our own organic development teams.

1 of the most exciting things about <unk> infrastructure Bill is it is so all encompassing.

There are things in that bill that that can be helpful to so many different parts of the market and we think for investors and operators such as ourselves that can play across the decarbonization.

Across the de Carbonization spectrum.

Across operating or development assets, there will be a number of opportunities.

Sorry.

Paid for is when you look at some of the Gore royalty.

Development teams.

Rupert Merer: With some of the potential tax credit increases that are considered under Biden's bill, our development pipeline could see some of those projects developed faster and pulled forward. That's the most obvious one, but there's certainly a lot in the bill that will help decarbonization across the entire spectrum.

And with some of the potential tax credit increases that are considered under under buy and bill.

Our development pipeline could see.

Some of those projects developed faster and.

Pulled forward that that's the most obvious 1 but theres certainly a lot in the bill that will help de carbonization across the entire spectrum.

Ben Pham: Thank you very much.

Thank you very much.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Ben Pham with BMO.

The next question comes from the line of Ben Pham with BMO.

Hi, Thanks, good morning, what's the overwhelming demand for the energy transition funding.

Mark Jarvi: Hi. Thanks. Good morning. What's the overwhelming demand for the energy transition fund? It sounds like from your comments that there's great alignment between you guys and the fund. Do you think maybe now, just with that evidence or that data you're seeing, that you look at the next 10 years, are you Brookfield Renewable, are you perhaps working more with an energy transition company versus a pure-play balanced renewable company?

It sounds like from your comments that there is.

This greater alignment between between you guys and the Sun.

Do you think maybe now just look what's that evidence and data you're seeing that you look for the next 10 years are you.

Okay.

<unk> are you, perhaps more of an energy transition company versus.

Pure play balance renewable company.

Ben It's it's a great question and we.

Rupert Merer: Ben, it's a great question. We increasingly, I'll go back to a comment that we made before. More and more of our investments over the last five or seven years have been about being a solutions provider, decarbonization and energy transition solutions. What I would say is, for decades and decades and decades, we have been a leading owner, operator, developer, and acquirer of renewable power generation assets, and we do not see that growth in our business slowing down at all. The renewable sector continues to grow on an exponential basis on a global scale, and we expect to participate in our portion of that growth, if not more, going forward. The decarbonization solutions component to our business is completely incremental and also a very large growth opportunity going forward.

We increasingly and I'll go back to a comment that we made before more and more of our investments over the last 5 or 7 years has been about being a solutions provider decarbonization and energy transition solutions.

What I would say is for decades and decades and decades, we've been a leading owner operator developer and acquirer of renewable power generation assets and we do not see that growth in our business slowing down at all the renewable sector continues to grow at an X.

Financial basis on a global scale.

And we expect to participate.

In our portion of that growth if not more going forward. The de carbonization solutions component to our business is completely incremental and also a very large growth opportunity going forward. So what I would say is we expect to see significant growth in both the traditional renewable power generation.

Rupert Merer: What I would say is we expect to see significant growth in both the traditional renewable power generation business, sorry, I should say the traditional renewable power generation component of our business, but also tremendous growth in these energy transition-type investments. Given the sizable renewables base that we already have, it will certainly take a long time before we aren't predominantly a renewable power generation company, but we do view ourselves as a global decarbonization solutions provider.

<unk> business, sorry, I should say the traditional renewable power generation component of our business, but also tremendous growth in these energy transition type investments.

Given the sizable.

Okay, that's great and then.

Mark Jarvi: Okay. That's great. Maybe a macro question on Brazil, maybe to close off some of the questions that so far. There's mentioned your disclosures about shaping generation. Is that just in relation to the assured generation? You're pulling forward some generation early and then you're letting it balance in the second half, but you still get pretty much your fixed payment from the government?

And maybe a.

Question on Brazil to closeout, some some of the questions that <unk> does matching.

Your disclosures about shaping generation is that is that just in relation to the assurant generation youre pulling forward some generation ROE and then.

Lending and balanced in the second half of year.

You're pretty much a fixed payment from the government.

Yes, that's exactly right Ben.

Operator: Yeah. That's exactly right, Ben. That's just with our energy marketing team on the ground and the way that the pooling mechanism, the central pooling mechanism, works in Brazil allows you to kind of shape your generation and take advantage of pricing in certain periods. So that's exactly what that's reflective of. It's something that we do annually just to optimize our generation, and we continue looking forward. We expect to take advantage of that in the coming years as well.

With our energy marketing team on the ground and the way the pooling mechanism the central pooling mechanism works in Brazil allows you to kind of shape your generation and take advantage of.

Pricing in certain periods, and so thats exactly what that is reflective and something that we do.

Annually.

Optimize our generation.

And we continue moving forward, we expect to take advantage of that in the coming years as well.

That's great Okay. Thank you.

Mark Jarvi: All right. That's great. Okay. Thank you.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Mark Jarvi with CIBC Capital Markets.

Your next question comes from the line of Mark Jarvi CIBC capital markets.

Thanks, Good morning, I wanted to come back a couple of topics performers that Amazon.

Andrew Kuske: Thanks. Good morning, everyone. I wanted to come back to a couple of topics. First one is that Amazon agreement. I appreciate you don't want to talk too much about it. It's really early stages. Could you kind of clarify whether or not this is contracting of existing assets? Would it be building new assets to fit their energy needs? If that's more of a DG or utility scale, or is it just kind of all-encompassing on all those attributes?

We don't want to talk too much about it and it's really early stages, but can you kind of clarify whether or not this is contracting of an existing asset that will be building new assets to fit their energy needs and if thats more of a DG or utility scale or is it just kind of all encompassing on all of those activities.

Hi, Marc Thank you for the question.

Rupert Merer: Hi, Mark. Thank you for the question. What we expect under this agreement is largely the development of new assets. Amazon's green power needs are largely driven by the incredible growth of their cloud services businesses and the data center usage and the energy load of those data centers. Obviously, data centers are large consumers of energy and can support utility-scale renewable power projects. We expect this to drive new development projects from both our existing pipeline and new projects that we may either develop organically or acquire. It will be primarily across wind and solar, but it's a global collaborative initiative.

Sure.

What we expect under this agreement is largely the development of new assets and.

Sure.

Amazon's Green power needs are largely driven by the incredible growth of their cloud services businesses and the data center usage and the energy load of those data centers.

Obviously data centers are large consumers of energy and can support utility scale.

Renewable power projects. So we expect this to drive new development projects from both our existing pipeline and new projects that we may either develop organically or acquire and it will be primarily across wind and solar but it's a global <unk>.

Collaborative.

Initiative.

Okay. Thanks, that's very helpful. And then just going back to the inflation comments.

Andrew Kuske: Okay. Thanks. That's very helpful. Just coming back to the inflation comments, you brought up the inflation escalator at the offshore wind projects in Poland. Is that a project also where you've locked in at least some of the costs at this point? There's lots of talk. Siemens Gamesa came out with a sort of profit warning and said they want to pass on some of the higher costs. Maybe you can just talk a little bit about any exposure there on inflation pressures on the offshore wind stuff that you're starting to get into.

And you brought up the inflation escalator of the projects offshore wind projects in Poland.

Is that a public also you've locked in at least some of the costs at this point and there's lots of talk initially came out with a sort of a profit warning and so they want to pass on some of the higher cost maybe you could talk a little bit about any exposure there on inflation pressures on the offshore wind stuff that you're starting to get into.

Yeah.

Rupert Merer: Yeah. Certainly. Maybe just to speak for a moment to the first part of your question, the reason why we enjoy these contracts so much is really 4 reasons, and they're very much in line with how we spoke for many years about the types of opportunities we wanted to see in offshore. We wanted to see long-term contracts. These are 25-year contracts. They are inflation-linked. These contracts don't require us to take curtailment risk, and their CFD is not versus market price but versus captured price, so we don't take basis risk on them either. Obviously, the Polish offshore market needs to be built out.

Yes, certainly.

So maybe just to <unk>.

For a moment to the first part of your question the reason why.

Rupert Merer: We will be one of the first projects that are brought online, but we think the quality of these contracts is going to shine through very, very readily to the market, and people will understand the robustness of the underlying cash flow streams. In terms of what we're seeing in CapEx costs, nothing that isn't in line with our underwriting. We obviously underwrote this investment earlier this year in a recovering global economy, and I would say there's nothing at this point that we're concerned about in terms of CapEx costs. In terms of building the offshore pipeline out in Poland, our business is partnered with Equinor, so we're partnered with one of the leading existing offshore owners and developers, and we see nothing at this point that concerns us from a CapEx perspective.

We will be 1 of the first projects that are brought online, but we think the quality of these contracts is going to shine through very very readily to the market.

And people will understand the robustness of the underlying cash flow streams.

In terms of what we're seeing in Capex costs.

Nothing that isn't in line with our underwriting.

We obviously underwrote this investment earlier this year.

In a recovering global economy, and I would say there is nothing at this point that we're concerned about in terms of capex cost in terms of building the offshore pipeline out.

In Poland.

Our business has partnered with Ecuador. So we're partnered with 1 of the leading existing offshore owners and developers and we see nothing at this point that concerns us from a capex perspective.

Andrew Kuske: Okay. Then my last question is just on equity deployment. If I look kind of roughly at the numbers, what's been done in China and India in the last couple of quarters, it's maybe like 10 to a little bit more than that, 10% plus of your equity deployment this year. Is that kind of the right level? I mean, we see some of these Bloomberg New Energy forecasts where deployment of capital in Asia could be 40%, 50% or that wall capital deployed for the next 20 years. Is that a percentage that we should see just continue to steadily climb higher? If so, is there sort of a cadence to that growth, or are we at this sort of 10%, 20% pace for a while now?

Okay and then my last question is just on <unk> deployment, and if I look kind of roughly the numbers what's been done in China.

In the last couple of quarters.

And a little bit more in that 10% plus of your ERP deployment this year.

Kind of a right level or I mean, we see some Bloomberg limited forecast where deployment of capital.

40% to 50% while capital applied for the next 20 years is that a percentage that we should see just continues to steadily climb higher and if so.

Is there a sort of a cadence of that growth or.

Are we at the sort of 10%, 20% pace for a while now.

Certainly so we don't tend to be too prescriptive and look to remain flexible able to deploy our capital wherever we see the most attractive opportunities.

Rupert Merer: Certainly. We don't tend to be too prescriptive and look to remain flexible, able to deploy our capital wherever we see the most attractive opportunities. What we have seen in India and China since we entered those markets in 2017 is we've built out our platforms, both operational and investment platforms, regionally on the ground in both those markets. What we're seeing now is the ability on an almost continuous basis to do small, attractive bolt-on acquisitions in those regions, and we would expect that to continue going forward. I think when it comes to geographic focus of our investments, we've long said that 75% plus of our portfolio and our equity is going to be deployed into developed countries and then 20%, 25% in developing countries. We don't expect that to change going forward.

We have seen in India in China since we entered those markets in 2017, as we built out our platforms, both operational and investment platforms regionally on the ground in both those markets and what we're seeing now is the ability to eat on an almost continuous basis.

To do small attractive bolt on acquisitions in those regions and we would expect that to continue going forward I think when it comes to geographic focus of our investments.

We've long said that.

Rupert Merer: There may be periods of time where we see more opportunity in India or China versus, let's say, North America or Europe, but over any extended period, we expect to stay pretty close to that 75% plus in developed countries and 20% to 25% in developing countries.

<unk>, let's say North America, or Europe, but over any extended period, we expect to stay pretty close to that 75% plus in developed countries and 20% to 25% in developing countries.

Andrew Kuske: Okay. Thanks for the answers, Connor.

Okay. Thanks for the answers Glenn.

Okay.

Thank you Andrew.

Robert Hope: Thank you. Our next question comes from the line of Andrew Kuske with Credit Suisse.

Our next question comes from the line of Andrew <unk> with Credit Suisse.

Thanks, Good morning, I guess, a question for Conor and it really builds upon your solutions provider.

Frederic Bastien: Thanks. Good morning. I guess the question's for Connor, and it really builds upon your solutions provider comments throughout this call. I guess just philosophically, how do you think about Brookfield Renewable's business on a longer-term basis? Are you effectively incubating other businesses underneath for later monetization potential? Clearly, you've been doing that with assets over time, but are now you expanding the portfolio into a number of business lines which can be unique and distinct in their own right?

Comments throughout this call.

Philosophically, how do you think about Brookfield renewables business on a longer term basis are you effectively incubating other businesses underneath for later monetization potential is clearly you've been doing that with assets over time.

Now you are expanding the portfolio into a number of business lines, which can be unique and distinct in their own right.

It's a good question Andrew.

Rupert Merer: It's a good question, Andrew. Maybe it's easiest to tell you around our philosophy and why we think we're well-positioned. There's a few things when we look at being that type of solutions provider. Over 70% of carbon emissions around the world can be traced back directly or indirectly to power generation in the energy sector. By being a leading player in that space and having knowledge of clean energy technologies that we have through decades of owning and operating wind, solar, hydro, storage, distributed generation, we're very well-placed to extrapolate that knowledge to other forms of decarbonization solutions. What I would say in, call it, more direct response to your question is we're not changing our approach to investing or changing our approach to risk tolerance as we pursue more of these decarbonization solutions.

Maybe it's easier to tell you around our philosophy and why we think we're well positioned.

There's a few things when we look at being that type of solutions provider.

Storage distributed generation, we're very well placed to extrapolate that knowledge to other forms of decarbonization solutions.

What I would say in call. It more direct response to your question is we're not changing our approach to investing our changing our approach to risk tolerance as we pursue more of these decarbonization solutions, we still are going to focus on owning real assets that are support.

Rupert Merer: We still are going to focus on owning real assets that are supported by long-term, highly visible cash flows. We want to look at solutions where we aren't taking binary risk, either binary technology risk or binary development risk. That's never been core to our strategy. We want to focus on those solutions where investing in scale or leveraging our global platform differentiates us. The one point I would make about the question, which was a great one, is we're not going to look to be on the leading edge taking technology risk as we pursue these decarbonization solutions, but rather looking to be a counterparty to governments and businesses where we can be either a scale capital provider or a scale operating partner in terms of installing, building, or operating commercially viable, cost-effective, readily available existing technology solutions.

Differentiates us so.

1 point I would make a boat.

Provider or a scale operating partner in terms of installing building or operating.

Commercially viable.

Cost effective readily available existing technology solutions.

That's very helpful color and commentary on I guess the extension of that if we look back in time.

Frederic Bastien: That's very helpful color and commentary. Then I guess the extension of that, if we look back in time, Brookfield was never a leader in the beginning stages of solar or wind. As the technology became more viable and more economic, then you really entered full force. How do you think about batteries, really, in that context? What kind of timeframe do you think batteries will become much more economic and more viable for you to put larger-scale capital?

Brookfield was never a leader in the beginning stages of solar or wind.

Technology became more viable and more economics.

Then you really enter full force.

So how do you think about batteries really in that context, what kind of timeframe do you think batteries will become much more economic and more viable through larger scale capital.

Fantastic question and I would say we are following the battery sector very very closely.

Rupert Merer: Fantastic question. I would say we are following the battery sector very, very closely, and maybe beyond the battery sector, the broader energy storage sector. We think the different energy storage solutions that are being considered right now, it isn't going to be necessarily one winner that comes out of them, but a number of them may be complementary to each other, whether it's increasing penetration of lithium-ion batteries or the increasing improvements people are seeing in kind of longer-duration iron-air batteries or the scale energy storage that traditional pumped hydro can provide. I would say we're following all of these technologies. The one comment I would make, Andrew, is we are increasingly installing batteries in select cases within our portfolio today.

Maybe beyond the battery sector, the broader energy storage sector, and we think that different.

Energy storage solutions that are being considered right now it isn't going to be necessarily 1 winner that comes out of them, but a number of them may be complementary to each other whether it's <unk>.

Increasing penetration of lithium ion batteries or the <unk>.

Increasing improvements people are seeing and kind of longer duration iron air batteries or the scale energy storage that traditional pumped hydro.

Can provide I would say we're following all of these technologies. The 1 comment I would make Andrew is we are increasingly installing batteries in select cases within our portfolio today, while batteries are not commercially viable on a widespread basis at this point.

Rupert Merer: While batteries are not commercially viable on a widespread basis at this point, in select situations within our portfolio, they are commercially viable today, and we are installing batteries. We see an increasing number of those situations cropping up across our portfolio, particularly in North America. Because we're already seeing that trend, we would see batteries becoming a larger and investable, large-scale opportunity, I would say in the relative short to medium term, definitely in the next few years.

In select situations within our portfolio. They are commercially viable today, and we are installing batteries and we see an increasing number of those situations cropping up across our portfolio, particularly in North America. So because we're already seeing that trend we would see batteries.

Becoming a.

Larger and investable.

Large scale opportunity I would say in the relative short to medium term.

Definitely in the next few years.

Okay very helpful. Thank you.

Frederic Bastien: Okay. Very helpful. Thank you.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Frederic Bastien with Raymond James.

And our next question comes from the line of Frederic Bastien with Raymond James.

Hi, Conor just circling back on the Polish renewable business.

Naji Baydoun: Hi, Connor. Just circling back on the Polish renewable business, how far are you and Equinor from breaking ground on the offshore wind project?

Where are you in that corridor from breaking ground on the offshore wind project.

Yes, so there is still.

Rupert Merer: Yeah. There's still a number of things to be done. Our expectation would be to start construction in 2023, and everything is on track to do that at this point.

A number of things to be done.

Our expectation would be to start construction in 2023 and everything is on track to do that at this point.

And would you look to get this development under your belt or at least well underway before investing in other offshore projects are you indifferent to that and open to potentially.

Naji Baydoun: Would you look to get this development under your belt or at least well underway before investing in other offshore projects? Are you indifferent to that and open to potentially investing in newer ones right now?

Vesting of nuance right now.

Absolutely we would invest in other offshore opportunities today using our same approach.

Rupert Merer: Absolutely. We would invest in other offshore opportunities today using our same approach, finding those opportunities that play to our strength where we see attractive risk-adjusted returns. We've been incredibly comfortable with the offshore space for a number of years at this point. The opportunity in Poland was one where we were able to transact with a counterparty we liked in an investment profile that we thought provided us appropriate upside with strong downside protection. If we could find similar attractive opportunities, we would invest significantly in offshore readily today.

Finding those opportunities that play to our strength, where we see attractive risk adjusted returns we've been incredibly comfortable with the offshore space.

For a number of years at this point the opportunity in Poland was 1 where we were able to transact with a counterparty we liked.

In an investment profile that we thought provided us appropriate upside with strong downside protection, if we could find similar attractive opportunities we would.

Invest significantly in offshore readily today.

Got you. Thank you.

Naji Baydoun: Gotcha. Thank you.

Thank you.

Robert Hope: Thank you. Our next question comes from the line of Naji Baydoun with Industrial Alliance Securities.

Next question comes from the line of Nausea, Baidu with capital markets.

Good morning.

[Company Representative] (Brookfield): Hi. Good morning. Just staying on the topic of offshore wind, I'm just curious about the third project in your pipeline. I believe it's Baltic Eagle. Is there a view of maybe bidding that project in the Polish auction process in 2025, be it subsidy-free or otherwise?

Just staying on the topic of offshore and I'm just curious about your the third project in your pipeline.

Dave its multi kwan.

Is there a view of maybe bidding projects.

The Polish auction process in 2025, B, a subsidy for you or otherwise.

Absolutely so.

Rupert Merer: Absolutely. We have a third project. It's very large, about the same size as the other two projects combined. Because there was less visibility around that project initially, we weren't as prescriptive in our underwriting. Given the increased support that we're seeing and the increased rapid maturation of the Polish offshore wind segment, that 1.5 GW project, we think, is increasingly valuable. While no decisions have been made, we will certainly look for opportunities to find ways to build out or monetize that asset in the future. We think there's definitely upside there. It's a great project, but we're still a number of years before we need to make any significant decisions.

We are we.

We have a third project, it's very large.

Rapid maturation of the Polish offshore wind.

Segment.

That 1.5 gigawatt project, we think is increasingly valuable.

And while no decisions have been made we will certainly look for opportunities to.

Find ways to build out our monetize that asset in the future.

We think there's definitely upside there and it's a great project, but we are still a number of years before we need to make any significant decisions.

Okay.

[Company Representative] (Brookfield): Okay. I suppose a decision hasn't been made about either developing it or selling it definitively, just kind of maintaining flexibility there?

Let's suppose decision hasnt been made about other developing it or selling it definitively just kind of maintaining flexibility there.

Absolutely no decisions made yet.

Rupert Merer: Absolutely. No decision's made yet.

Maybe just a clarification about the increased stake to 40% what would be the net of that to Brookfield to bep.

[Company Representative] (Brookfield): Maybe just a clarification about the increased stake to 40%. What would be the net of that to Brookfield to BEP?

And certainly so.

Rupert Merer: Certainly. We invest through our private fund where we own 25%. On a look-through basis, we would be just shy of 10%.

We invest through our private fund, where we own 25%. So on a look through basis that we would be just shy of 10%.

Okay perfect.

[Company Representative] (Brookfield): Okay. Got it. Perfect. Just the last question on India. If you could provide more color on the 1.7 GW development pipeline with the joint venture, how quickly you think that can move forward and be developed, and maybe if you think there's opportunities to add more prospects to that pipeline?

The last question on India.

You could provide more color on the the 1.7 gigawatt development pipeline with the joint venture.

Quickly you think that can move forward that would be developed and maybe if you think there's opportunities to add more prospects without pipeline.

Certainly so so I might answer the second part of that question first right now our JV partnership only applies to that 1.7 gigawatt pipeline. So that's our focus at this point.

Rupert Merer: Certainly. I might answer the second part of that question first. Right now, our JV partnership only applies to that 1.7-gigawatt pipeline, so that's our focus at this point. We're seeing a number of different opportunities around development or adding new assets in India. They would be outside of this specific agreement. In terms of the other opportunities within that pipeline, there's 2 other projects that make up the remainder of those 1.7 gigawatts. Those are both being, I would say, developed on plan with our counterparty. They're on a slightly deferred timeline, as was always going to be expected. We would see the opportunity to make a decision on whether or not we want to acquire those projects. We expect within the next couple of years. That's probably an appropriate timeline. The one thing I would reiterate is this is an option for us.

We're seeing a number of different opportunities around development or adding new assets in India, but they would be outside of this specific agreement.

In terms of the other opportunities within that pipeline. There are 2 other projects that make up the remainder of those 1.7 gigawatts those are both being I would say developed on plan.

With our counterparty.

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And the 1 thing I would reiterate is this is an option for us we do not have to acquire the projects, but it is our option 2 if we think they represent attractive investment opportunities.

Rupert Merer: We do not have to acquire the projects, but it is our option to if we think they represent attractive investment opportunities.

Okay, great. Thank you Tom.

[Company Representative] (Brookfield): Okay. Got it. That's a great detail. Thank you, Connor.

Thank you.

Robert Hope: Thank you. Now, I will turn the call back over to CEO Connor Teskey for any closing remarks.

Now I will turn the call back over to CEO, Conor <unk> for any closing remarks.

Okay. Thank you everyone as always we want to thank everyone for their continued support we look forward to updating you at the end of next quarter with our Q3 results. Thank you and have a good day.

Rupert Merer: Okay. Thank you, everyone. As always, we want to thank everyone for their continued support. We look forward to updating you at the end of next quarter with our Q3 results. Thank you, and have a good day.

This concludes today's conference call. Thank you for participating and you may now disconnect.

Robert Hope: This concludes today's conference call. Thank you for participating, and you may now disconnect.

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