Q4 2022 Brookfield Renewable Corp and Brookfield Renewable Partners LP Earnings Call
Yes.
Okay.
Good day, and thank you for standing by welcome to the P. P. Brookfield renewables fourth quarter conference call.
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I would now like to hand, the conference over to your Speaker today, Connor Tusky Chief Executive Officer. Please go ahead.
Yeah.
Thank you operator.
Good morning, everyone and thank you for joining us for our fourth quarter 2022 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.
Everyone.
Subject to known and unknown risks and our future results may differ materially.
One let's call.
More information you are encouraged to review our regulatory filings available on SEDAR, Edgar and on our website.
Call letter to unit holders can be found on our web site.
In today's call.
Site remind you that we may make forward looking statements on this call.
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These statements are subject to known and unknown risks and our future results may differ materially.
Strategic initiatives within our group.
<unk> to review, our regulatory filings available on SEDAR, Edgar and on our web.
Hello radar growth.
And lastly.
This call.
Well conclude the call.
<unk> 2022 performance.
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Julian Thomas.
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<unk>, who heads up strategic initiatives within our group, we will discuss how we are harnessing our partnership with institutional capital to accelerate our growth.
I heard a double digit average annual <unk> growth for over a decade.
By discussing our operating results.
Operation.
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Over 1 billion.
Our remarks.
All of our 56.
<unk> any of your questions.
An 8% increase over last year.
We've had another successful year.
Our high quality cash flows.
Here for the double digit average annual <unk> growth for over a.
<unk> from acquisitions.
We generated funds from.
Deploy capital.
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All our targets.
Our 56.
Market we operate.
8% increase over last year.
<unk> operations.
<unk> ability of our high quality cash flows.
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<unk> organic growth and commercial initiatives.
Record performance.
<unk> from acquisitions.
If with 19000 megawatts of capacity either under construction.
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We're in advanced stages.
Yes.
While dramatically expanding our renewables operations.
Flying to almost 110000 megawatts.
We also delivered record performance.
Vince from our development activities.
A returning development dollars beginning to flow through our income statement.
<unk> instructions.
And that we expect to continue as more and more of our projects reach commercialization.
We increased our global development pipeline to almost 110000 megawatts.
<unk> 2022 has been our strongest year to.
What phase.
Eight we closed or agreed to invest up to $12 billion or close to $3 billion net to Brookfield renewable.
Can you as more and more of our projects reach commercialization.
It represents almost half of our growth target for that period.
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2022 has been our strongest year to date.
Newer boats remains highly compelling.
Date agreed to invest up to $12 billion.
G profile.
In <unk> net to Brookfield renewable.
<unk> clean energy demand.
<unk> for the next five years.
And in energy independent.
Almost half of our growth target for that peer.
In full deployment.
The investment environment for renewables remains highly compelling.
Owning and operating renewables.
Selling for G profile.
Sure some of the most attractive opportunities going forward.
Phil and electrification.
Wyatt and Julian will discuss later.
Can you to be key trends accelerating renewable deployment.
<unk> levels of liquidity.
<unk>, our disciplined approach to investing.
The pools of capital.
And operating renewables.
Alongside large scale institutional capital.
<unk> opportunities going forward.
Cute on sizeable transactions that generate strong risk adjusted return.
Word maintain a best in class balance sheet.
For the year.
<unk> levels of liquidity.
We're up to $4 6 billion.
<unk> and deep pools of capital.
$1 billion net to Brookfield renewable.
<unk> heard scale institutional capital.
Initiatives.
Most of us to execute on sizable transactions.
This business.
<unk> strong risk adjusted return.
This complementary platforms that enhance our current offering.
<unk> agreed to invest up to $4 6 billion.
And three large renewable development businesses in the United States.
Our capital into a renewable development initiatives.
<unk> and scout clean energy.
<unk> growth within our existing business.
<unk> estimates enhance our position in what is our largest market.
<unk> that enhance our current offering.
74000 megawatts of operating and development capacity in the U.
<unk> businesses in the United States.
Acquiring these businesses.
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We have worked quickly to integrate them into our overall U S platform.
And have begun executing on the business plans, we set out.
Our kit.
Yeah.
Bringing our total size to 74000 megawatts of operating and development capacity.
Inflation reduction act and strong corporate demand.
Businesses.
And pulling us to accelerate the development pipelines and grow these businesses beyond our original underwriting expectations.
This plans we set out.
Turning to nuclear power.
Performance from these new investments.
We formed a strategic partnership with cameco to acquire Westinghouse.
<unk> strong corporate demand.
<unk> largest nuclear services businesses.
<unk> element pipelines.
And the energy transition.
<unk> under our original underwriting expectations.
Obtaining the required approvals for this investment.
<unk> clear power.
To close the transaction in the second half of 2023.
Sure with cameco to acquire Westinghouse.
Well.
One of the world's largest nuclear services businesses.
Our underwriting.
Is there in the energy transition.
At night as a provider of clean dispatch bolt Baseload power generation.
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And are on track to close the transaction in the second half of 2023.
<unk> It has selected Westinghouse's AP 1000 technology.
Seeing benefits of the investment beyond our underwriting.
<unk> the scale nuclear reactors.
<unk> recognized as a provider of clean dispatch both base load power generation.
<unk> targets and greater energy independence.
<unk>, the Polish government announced.
We're also progressing our transition asset invest.
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And then recently.
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G based developer operator, and owner of R&D assets.
<unk> targets.
Do you invest.
<unk> energy independence.
In dollars or 100 million net to Brookfield renewable.
<unk> transition asset investments.
<unk> did convertible structure.
<unk> recently.
The development of new agriculture renewable natural gas.
<unk> helper, operator, and owner of R&D assets.
In the continuation of our strategy of entering into high growth transition asset classes.
Brookfield renewable.
Two our core renewables business.
<unk> convertible structures.
Similar to carbon capture and storage.
Culture renewable natural gas.
Okay.
We have invested.
Assets is another.
The upfront capital deployments with experienced partners.
Other growth transition asset classes.
Despite us.
As complementary to our core renewables.
Russian over future investments.
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<unk> significant potential upside returns on our capital.
<unk> and renewable natural gas.
As we entered 2023.
Small upfront capital deployments with experienced parts.
<unk>, leading global clean energy company with deep access to capital.
<unk> detection.
<unk> equally positioned to execute.
<unk> investments.
<unk> crack of clean energy and decarbonization investment opportunities around the world.
Yeah.
As we entered 2023.
Operating performance.
Tremendous momentum.
<unk> and positive outlook for the business.
Clean energy company with deep access to capital.
An increase to our distributions.
<unk>.
$1 35 per unit on an annualized basis.
For <unk> around the <unk>.
World.
Since 2011.
And positive outlook for the business.
<unk> publicly listed.
You announced a five 5% increase to our distributions.
To Julian to discuss the importance of our capital sources and supporting our growth.
<unk>. This is the 12th consecutive year of at least 5% annual distribution growth.
With the strength of our balance sheet and our ability to invest alongside large scale institutional capital represents a significant competitive.
<unk> over to Julian to discuss the importance of our capital sources and supporting our growth.
Image sheet utilizing long duration nonrecourse debt.
We have said for many years that the strength of our balance sheet and our ability to invest alongside large scale institutional capital.
Financial strength and flexibility so we can invest throughout the cycle.
It'll always prioritized capitalizing the business with a strong investment grade balance sheet.
Briefly to the compounding of our cash flows.
Sheet recourse debt.
<unk> delivered to our unit holders.
Net liquidity.
In addition to this approach is our structure of investing alongside Brookfield private funds.
And flexibility so we can invest throughout the cycle.
Long term institutional capital.
<unk> for long term success as it contributes meaningfully to the compounding of our cash flows.
<unk>.
And the total returns delivered to our unit holders.
Managed capital for more than 2000 institutional clients.
Holders driven investing alongside Brookfield private funds.
<unk> management to invest.
Access to scale.
We have the ability to target multibillion dollar transactions.
We'll target sizable deals.
<unk> or in many cases far more competitive.
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Structure is often underappreciated by the market.
Additional climb.
However.
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This means we have the ability to target multibillion dollar transaction.
Combined with our platform capabilities this means that.
<unk> far more competitive.
We can generate strong risk adjusted returns.
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Attractive.
However.
So de carbonization opportunities.
<unk> meaningful competitive advantage for our business.
<unk> energy transition remains very strong.
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We have significant institutional demand to invest alongside experienced owners.
Basis.
Operators and investors like.
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Success of Brookfield first transition fund demonstrates.
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The phase <unk> 15 billion.
<unk> investor appetite for energy transition remains very strong.
Facilitate.
<unk> significant institutional demand to invest alongside experienced owners.
Operators and investors like.
<unk> commitments and Brookfield history.
Sure the first transition fund.
Three new clients.
Fund.
Illustrating investor desire to allocate meaningful capital towards energy transition.
I am dedicated to facilitate.
Brookfield Private fund strategy.
<unk> net zero economy.
<unk> relationships with large pool.
<unk>.
<unk> long term private capital.
And Brookfield history.
The opportunity to invest alongside.
History.
Illustrating investor desire to allocate meaningful capital towards energy transition.
As co investors.
<unk>, a key part of Brookfield Private fund strategy.
Access to capital.
<unk> relationships with large pool.
Paul.
<unk> long term private capital.
<unk> investment.
Little seek the opportunity to invest alongside.
<unk> investment program and perhaps.
Testing in our private fund.
<unk> interest from our Lps.
Funds separately in our investments as co invest.
And the process is moving along well.
Our access to capital.
Well.
<unk> and provides another source of liquidity.
Market participants.
<unk>, our Westinghouse investment.
Funding source represent an even more meaningful competitive advantage.
In practice.
<unk> institutional capital supports our ability to invest in great businesses.
Thus in Westinghouse.
This result.
House processes are moving along well.
For our investors.
Well today.
The scale of our transition fund.
For some market participant.
Fund Tusa relationship.
<unk>.
Funding source represents an even more meaningful competitive advantage.
Ships in our funding strategy that will continue to employ.
<unk> and great businesses.
Our business and seek.
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<unk> scale attractive investment opportunities.
Our investors.
With that I'll turn it over to <unk> to discuss our operating results and financial position.
Hips and capital that brings.
<unk>. Thank you Julian.
For meaningful step change.
Dan mentioned in his earlier remark.
That will continue to employ.
ARX <unk> in the quarter.
Grow our business in <unk>.
<unk> created from strong global power prices.
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<unk> and continued growth.
With that I'll turn it over to <unk> to discuss our operating results and financial position.
<unk> of over 1 billion.
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Or $1 56.
Our.
Good day.
We had strong results in the quarter.
And an increase of 8% versus the same period.
<unk> prices.
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<unk> and continued growth.
Our business is backed by high quality cash flows.
We generated <unk> of over $1 billion.
So.
For $1 56.
Hi will source of clean.
And solid performance.
And as more intermittent renewables come on.
<unk> period last.
For 5000 gigawatt hours of generation.
Year by high quality cash.
And across our portfolio.
Flows perpetual hydro portfolio.
And the positive pricing.
Please valuable source.
Polio.
Baseload power.
Capacity across our fleet.
Sure Bose come online.
The accretive contracts.
Mined over 5000 gigawatt hours of generation.
<unk>.
<unk> available for re contracting across our portfolio.
So over the next five years.
And the positive pricing.
And remains excellent.
<unk> folio.
Available liquidity is robust.
Paucity across our fleet.
Again flexibility to fund our growth.
That we expect to contribute additional <unk>.
Our access to capital.
So cost funding source for our.
Paul.
We are resilient to the rise in interest rates globally.
Growth remains excellent.
Kind of our borrowings.
<unk> is robot.
Paul.
Providing significant flexibility to fund our <unk>.
For the remaining term of 12 years.
Growth on the importance of our access to capital.
And only 3% exposure to floating rate debt.
We are resilient to the rising interest rates globally.
At facility.
<unk> for 90% of our borrowings being.
The cost of capital continues to be differentiated.
<unk> of course.
<unk> of approximately $3 7 billion of available liquidity.
Cereal near term maturities.
And financial flexibility.
<unk> exposure to floating rate debt.
The scarcity.
During the year, we secured approximately $10 billion of nonrecourse financings across the business.
Okay.
Resulting in approximately $1 2 billion and up financing proceeds.
Got it.
Brookfield renewable.
The significant financial flexibility.
So accelerating our capital recycling activities.
<unk> during the year, we secured approximately 10 billion.
<unk> of our full cycle investment strategy.
<unk> business.
<unk> and approximately $1 2 billion and our financing proceeds.
<unk> risk.
Brookfield.
Risk size mature renewable assets.
So accelerating our capital recycling activities.
Advancing numerous capital recycling.
<unk> and a critical part of our full cycle investment strategy.
We have initiated several processes.
<unk> you have very constructive.
As our business plan.
<unk>.
<unk> executed on our investment.
Risks renewable assets.
These asset.
The capital buyers.
$4 billion in aggregate.
<unk> capital recycling.
$5 billion net Brookfield renewable our proceeds.
<unk> initiated several processes.
Significant incremental liquidity in the coming quarter.
And executed R&R investment thesis.
In closing we remain focused on delivering.
Generate up to $4 billion in aggregate.
In return for Arvind.
Great.
$5 billion net to Brookfield renewable.
There seem to be disciplined allocators of capital.
<unk> provide significant incremental liquidity in the coming <unk>.
Fishing <unk> capabilities to enhance value and de risk our opinion.
Quarter on delivering 12% to 15% long term total returns for our investor.
All our unit holders and shareholders for the ongoing support.
<unk> blend allocators of capital.
Sure Brookfield renewable future.
A little funding source.
Updating you on our progress throughout 2023.
As value and Derisk our.
<unk> includes our formal remarks for today's call.
On behalf of the board and management.
And with that I'll pass it back to our operator for <unk>.
<unk> going to support.
We are excited about Brookfield renewable future.
Crestar one one on your telephone.
<unk> throughout 2023.
To withdraw your question. Please press star one again.
Today's call.
Please standby, while we compile the Q&A roster.
And with that I'll pass it back to our operator for questions.
As a reminder to ask a question. Please press star one one on your telephone.
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To withdraw your question. Please press star one again.
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A couple of questions with respect to the broader asset recycling plan that you laid out.
Why it beyond the Mexican.
<unk> comes from the line of.
And just any context on.
Stewart with TD Securities.
Apology focus.
For that asset sale program.
Couple of questions.
And at any.
<unk> respect to the broader asset.
The Crystal ball.
<unk> laid.
Ms.
Why it beyond the Mexican.
Sure, Sean it's Conor, perhaps I'll take that.
Our technology focus.
We probably don't want to comment on any of the life sales processes that we have going.
On return.
We're certainly happy to provide.
Some incremental color.
The background to this is during the second half of 2022, we saw significant inbounds.
<unk>.
We probably don't want to comment on any of the life sales processes that we have going.
He has those inbounds are particularly coming.
Some incremental color.
Bill we have largely de risked and we've largely executed.
<unk> 22, we saw significant inbounds.
<unk> and our initial business planning and that's when we like to sell assets. When we have an interested buyer and we've completed the derisking and value creation process that we initially set off to do.
What I would say in terms of locations it's.
<unk>, our initial investment thesis and our initial business plan.
Majority of capital recycling that we see the potential for <unk> in the next <unk>.
Few quarters is largely in the Americas.
And that we initially set off to do.
Erica for us.
<unk> in terms of locations.
<unk>.
Our.
We're very we absolutely recognize that underlying rates have gone up.
They claim that we see the potential for in the next.
Up if at all.
In the Americas.
<unk> widening in terms of target investment returns on our total IRR basis.
<unk> IRR.
Inbound price indications that we have seen so we continue to monitor that but we do still see a very very constructive.
Or if at all.
<unk> bid.
<unk> widening in terms of target investment returns on our total IRR based.
Good we'd look to sell as part of this program.
Indications that we have seen so we continue to monitor that but we do still see a very very constructive.
Graham.
Of.
The buildup of your advance.
Risked high quality.
Vance will then.
<unk> assets and those are the types of things that we'd look to sell as part of this program.
Wine platform.
At least compared to the guidance you gave a quarter ago can you give us any detail on what's been added to that.
Graham in your supplemental.
The.
<unk> mission the buildup of your advanced stage.
Certainly so.
And why it if I Miss anything please don't hesitate to jump in there is two things in particular that have been added.
Each quarter ago can you give us any detail on what's been added to the.
Ed.
In the latter part of last year we've.
But.
This strategy.
So I'll start and why and if I Miss anything please don't hesitate to jump in.
<unk> is a somewhat unique strategy.
<unk> has been added.
Within India, where you buy large plots of land that have.
It sort of last year we.
And.
This strategy.
Multiple phases and sell the power from those.
<unk> India.
And that is a somewhat unique strategy.
We've done a number of those transactions in the latter part of the year and that would certainly be inflating that number.
A strong grid connection.
The highlight.
Multiple phases and sell the power from those.
<unk>.
SaaS.
Projects to multiple offtake.
Yes.
We've done a number of those transactions in the latter part of the year and that would certainly be inflating that number.
A large chemical production facility that <unk> is building in the region that they want to be supported by Green power.
SaaS.
<unk> is a very sizable.
Yes.
We have with them.
We're talking Gigawatts.
It will be directly contracted to a new large chemical production facility that VA SaaS is building in the region.
Anything else you would add there.
And by Green power.
Sure.
That is a very sizable.
Sure.
We had.
In past highlighted our rooftop solar business in China, where the business or the momentum for that busy.
Why it I'm sure that covers most of it but anything else you would add there.
That business, but you highlighted that the majority of them.
The only other thing Conor I would add is we are in.
Past highlighted our rooftop solar business in China, where the.
The business or the momentum for that business continues to build and so.
Connor of Robert Hope with Scotiabank.
No.
Your line is now open.
The majority of them Connor.
Good morning, everyone, maybe hoping you could comment on what your investment pipeline looks moving forward in terms of I'll call it asset acquisitions or maybe larger platforms.
Comes from the line.
Our fees are assets that are looking at the best.
<unk>.
First you mentioned that inbound indications for pricing hasn't changed on your end, but what about.
Okay.
<unk> pipeline looks.
Or maybe a little bit more work on the financing or contracting.
Moving for maybe larger platforms.
Any geographies or assets that are looking for.
Side remained strong and there's probably two key things that we would.
Best year end, but what about.
<unk>.
Assets that would require.
<unk>, maybe a little bit more work on the financing or contracting.
If you could comment here that we've made previously.
If we go all the way back to 2021.
<unk> remains strong and there's probably two key things that we would.
Our markets around the world.
We did a lot of due diligence processes, we analyzed a lot of opportunities.
I'll make a comment here that we've made previously.
And we struggled to see things, where we were comfortable with the value entry point.
We looked at buying a lot of renewable development platforms in our core markets around the world.
Little bit of macro uncertainty rising rates.
<unk> analyzed a lot of opportunities.
In pressures that perhaps other market participants.
And we struggled to see things, where we were comfortable with the value entry point.
<unk> in 2020 through.
Two there were a number of things in the market.
Renewables developers high quality renewables developers in our core markets.
<unk>.
Clint.
Apply chain pressures that perhaps other market participants.
At <unk> in 2021.
Vince.
<unk> seen as we enter 2023 as we see that dynamic.
'twenty two sorry.
Nick we do see that dynamic continuing in the early part of the year and we are seeing the ability.
Three points.
Leave too.
That have fallen out of our chairs to to execute on in 2021.
Where we can obviously use our corporate capabilities too.
One dynamic.
To enhance those businesses.
<unk> see that dynamic continuing.
Is three points, there and hope to execute some of those transactions in the near term.
We believe two.
The other thing that we would highlight is with the rise in rates and in some of the market uncertainty and perhaps capital scarcity in the market.
Do believe that we are going to see more opportunities in 2023 to buy operating assets than perhaps we saw in last year or the year before that.
The thing that we would highlight is with the rise in rates in some of the market uncertainty and perhaps capital scarcity.
<unk> begin to come back in the strike.
I believe that we are going to see more opportunities in 2023 to buy operating assets than perhaps we saw in.
I would have accelerated.
Before that.
Subsequent to 2023.
That an increasing portion of our pipeline.
Are most of the issues behind us as well.
<unk> begin to come back in the strike.
As noted you the confidence to further accelerate development into 2020.
Follow up there if we take a look at your development pipeline you have accelerated.
Three that into two chunks.
Some 2023.
Yeah about our 2023 pipeline.
Most of the issues behind us as well as inflation do you have a good handle on that to give you the confidence to.
In 2022 was our biggest year of development on record we brought three five gigawatts of new projects online.
Perhaps split that into two chunks.
<unk> three.
I would say about our 2023 pipeline.
We expect to bring about five gigawatts online.
In the supplemental we see.
Of these 2023 projects.
<unk> development on record, we brought three five gigawatts of new projects online.
Ex the Derisked at this point, it's a lot of it is either under construction or it's already fully contracted.
<unk> back to bring about five Gigawatts online.
The funding is secured and a lot of these projects all the funding is already in the ground.
Portion about five gigawatts.
Any incremental equity to get those projects across the line. So our confidence on delivery in 2023 is very strong.
And we often make the comment that funding is secured.
<unk> chain issues.
<unk> X all the funding is already in the ground.
Probably beyond 2023, because our 2023 is very well wrapped up I think theres, probably two dynamics to consider there.
<unk> three is very strong.
We're really seeing.
Long when you speak about the supply chain issues.
<unk> solar modules.
So we think about that probably beyond 2023, because our 2023 is very well wrapped up.
<unk> or defense.
Really two dynamics.
At prices in the low 20 so.
All the way back to where they were in 2019, but.
The majority of the way back.
<unk> module.
Back to a place where there continues to be some.
The past year or so we've seen them quoted as high as call. It 40.
<unk> acquired continues to be the United States.
Defense, so not all the way back to where they were in 2019, but.
The majority of the way back.
Okay.
The one place where there continues to be some.
Buyers.
Uncertainty.
Management of the supply chain required continues to be the United States.
Months ago. So it's definitely a good news story from both an execution and an economics perspective.
Procurement system.
Putting orders in ahead of time working with our key suppliers.
We definitely see the supply chain in total getting much easier to manage than where we were six or 12 months ago. So it's definitely a good news story from both an execution.
Yes, good morning.
Mix perspective.
Morning.
The U S solar development question.
That's great. Thank.
A little about how the availability of grid interconnections is evolving.
Our next question comes from the line of Rupert <unk> with National Bank financial.
Yeah.
Hi.
Through.
On the U S.
I appreciate you asking it because it is one of our favorite questions.
<unk>.
The focus on grid connection interconnection availability is certainly something that has grabbed much more headlines.
Sure.
Across the industry I would say in the last six or 12 months.
And as it should.
Part of any development process, you need to secure land do you need to secure grid connection and you need to secure permitting.
Certainly something that has grabbed much more headlines.
First three.
The industry I would say in the last six or 12 months.
Yeah.
Going on to grids around the world.
As part of any development process, you need to secure land do you need to secure grid connection and you need to secure permitting.
<unk>.
From there you need to get equipment, and EPC and a contract, but you need those first three.
This is something that we've been focused on probably now for four or five years.
Grids around the world.
Years.
Developers and the quality of their pipelines, we've always been taking into account what rig connections they have and where do they fit within the interconnection queue.
Like this question is.
And the likelihood and the economics at which.
Yeah.
They can be built out.
Yes.
A great example of this is urban grid, which we bought last year.
Taking into account what rig connections, they have and where do they fit within the interconnection queue.
<unk>, perhaps didn't.
<unk> pipelines and the likelihood and the economics at which.
Folio of.
Positions in the PJM interconnection queue that.
We bought last year.
The PGM is a very high value market for renewables development. So.
This will continue to be a focus but we feel it's something.
<unk> has an incredibly strong.
Not because of our work in the last six or 12 months, but because of our work over the last four or five.
<unk>.
Most would recognize PGM is a very high value market for renewables development. So.
All in fact when we.
<unk> need to be a focus but we feel it's something.
Yes.
That we have well in hand, not because of our work in the last six or 12 months, but because of our work over the last four or five years.
When we will get those grid connections.
I just wanted to limit your.
<unk>, Thanks, and a follow up on the.
Not at all in fact when we.
Awesome.
Our.
Are you seeing any of your.
Our expected pipeline and the projects that we want to bring online that already takes into account our views of when we'll get those grid connections.
Or are in the wind asset given.
Actions Thanks, Brian .
And then a follow up on the asset.
Yes, certainly.
Yes.
Sure.
Always do what is in the best interest.
Ourselves and our unit holders in terms of capital recycling, where we allocate capital where we seek to.
Our recycle some assets.
Certainly.
We do believe that our.
<unk>.
Portions of our hydro portfolio around the world.
The.
Irreplaceable asset.
In terms of capital recycling, where we allocate capital where we seek to.
That skewed value growth.
Till some assets.
<unk> lead to not only provide base load clean.
<unk>.
<unk> basketball power.
Portions of our hydro portfolio around the world.
And ancillary services.
<unk> asset.
Is the grid that increasingly are going to have more intermittent.
Asset.
Global wind and solar connected so.
Would we sell those assets.
It provide base load clean.
Absolutely, but only at a price that we feel takes into account that that extremely robust.
<unk> electricity grids that increasingly are going to have more intermittent.
Vantage point.
Wind and solar connected so we.
Would we sell those assets at the appropriate price absolutely, but only at a price that we feel it takes into account that that extremely robust.
Hello capital markets.
Just for those assets that were seeing from our vantage point.
Question on <unk>.
The U S market.
<unk>.
<unk>.
I'm wondering.
How do you see your.
U S initiatives shaking out the next.
Spreading.
CMO capital markets.
Is there do you think it.
Development backlogs going into <unk>.
<unk>.
And M&A around the corner.
And.
Or maybe.
I'm wondering.
So there's been I know you mentioned decentralize.
Your U S initiatives shaking out the.
Anything else you can share.
The next set.
How are.
So in the U.
Projects, there, but do you think.
Certainly so it's a good question Ben.
I think the thing to recognize about our U S platform.
I know you mentioned that your centralized.
<unk> differentiate us in the U S.
Anything else you can share in terms of.
S. A level that is very very tough for almost any other platform to match.
It's a good question Ben.
The scale of our platform.
Both our U S platform.
A very diverse set.
<unk> in the U S.
At <unk> technologies.
A level that is very very tough for almost any other platform to match.
Increasing opportunities.
The scale of our platform.
In the U S.
<unk> that we have a very diverse.
Full of different ways, but I'll give the first example.
<unk> technologies.
70000 megawatts of operating and development capacity there, we can provide green power on a scale in the U S that very few others can so when youre thinking of the largest corporate procured as of Green energy in that market, we can satisfy not only their existing needs, but their growing needs in the future in a meaningful way.
<unk> <unk> capacity there.
We're increasingly seeing in particular in the U S. Given not only the size, but the breadth of our portfolio.
Sure sure as of Green energy in that market, we can satisfy not only their existing needs, but their growing needs in the future in a meaningful way.
Throw assets with wind and solar projects in the regions to provide $24 seven green power solutions.
<unk> of our portfolio.
The 100% clean energy so.
Together to provide unique solutions to our customer.
It's also the market that.
<unk> hydro assets with wind and solar projects in the regions.
And the most amount of development progress last year.
<unk>.
<unk>.
To a customer that wants a 100% clean energy.
Our most active markets for at least the foreseeable future.
Date, but it's also the market that.
<unk> interests are you still the most bullish on solar.
Last year and the most amount of development progress last year.
Sure.
I think it's important to recognize we see solar as the fastest growing technology in terms of megawatts that will be added to the grid.
On a global basis, because it is the cheapest.
Solar.
<unk> bulk electricity production in most markets and it is on a relative basis.
I think it's important to recognize we see solar as the fastest growing technology in terms of megawatts that will be added to the grid.
Yes.
On a global basis, because it is the cheapest.
Major markets around the world, we would probably expect solar to be.
<unk> have basis.
When renewable technology.
Operationally intensive to one build and to maintain.
<unk> indefinitely, we'll go wherever we see the most attractive risk adjusted returns.
In major markets around the world, we would probably expect solar to be the fastest growing renewable technology in terms of where we will invest our capital.
Our reach.
<unk> indifferent, we'll go wherever we see the most attractive risk adjusted returns.
Matt.
Being things across all technologies in the current environment.
Sure so.
Okay.
Last question.
We're in all the regions around the world, where we feel the need to be there.
On.
Obviously last year, we made are.
Now that you wanted to.
Our failure, we set up a team there in fact in this last quarter, we brought our first project online.
Ian.
<unk>.
That's a market that will continue to look at opportunities in.
We feel the need to be there.
Spanned in Europe , we're not a large player in all the European markets and they do have slightly different electricity grids and we're seeing very very.
Our project online.
<unk> hung moves by many regular term regulatory bodies and governments in Europe .
<unk>.
To enable the faster build out of renewables.
We're not a large player in all the European markets and they do have slightly different electricity grids.
Peter form of energy security so.
I would say.
A regulatory regulatory bodies and governments in Europe .
To work a geographical.
Geographic footprint, but probably just.
<unk>.
And then our positions in what we already consider to be our core market.
Establish.
A greater form of energy security so.
I would say.
Talking any major changes beyond our historic.
Geographically footprints, but probably just.
<unk> Raymond James.
Our positions in what we already consider to be our core markets.
<unk> good morning Brook.
Equivalent constructors sub yesterday, it's taken some modest store positions in publicly traded stocks when you think about adding.
Next question comes from the line of Frederic Bastien with Raymond James.
Be more weighted towards corporate carve outs right now or are you also seeing good opportunities.
<unk>.
Two four.
For instance, Texas, 12 yesterday, and some modest sold positions in publicly traded stocks.
Oh.
So think about adding.
In the lab.
So that's to your portfolio.
18 months.
As demonstrated by the transactions that we've done we've really focused on.
<unk>.
Alright.
Is that or what you would call pure play developers.
As I should say it's both.
<unk>.
We felt like a lot of those the pipelines in those businesses were very far advanced there were projects that were either under construction or about to come online, but very few of them had operating assets. Even when you look at something like Scout energy that we did at the end of last year, you could already see the market moving in that direction is when we bought scout it comes.
With.
<unk> is we're very far advanced there were projects that were either under construction or about to come online.
Julio of operating assets as well so we are seeing opportunities.
Opportunities on the private side as well, but no doubt.
The current economic environment, and some of the down wins.
Large pipeline of future development opportunities, but a large portfolio of operating assets as well so.
Certainly increased the opportunities we see in the public take private space as well.
As well, but no doubt.
The current economic environment, and some of the down wins.
L P company.
Throughout Q4 across public market.
Patients almost on an ongoing basis throughout the cycle.
Private space as well.
<unk> in that regard have gone up or down.
In particular over the last cut.
A couple of quarters, but its something we do on an ongoing basis and something we will continue to do it.
Well almost on an ongoing basis.
The source transactions over.
Five to 10 years.
Our activities in that regard have gone up or down.
In particular over the last.
Years.
Four quarters, but it is something we do on an ongoing basis and something we will continue to do it.
CRC versus next year and the following.
<unk> source transactions over.
Targeting about five Gigawatts this year.
Great that's helpful.
Last one for me of the 19 gigawatt of advance stage construction ready projects, which you highlighted.
Jumped.
<unk> five gigawatts for this year.
A little bit more closer to five five the next year, but I would say five is probably a pretty healthy run rate of where we're at right now.
And just maybe for the following year.
Oh, sorry.
Okay.
I jumped it's about five gigawatts for this year end.
A little bit more closer to five five the next year, but I would say <unk> is probably a pretty healthy run rate of where we're at right.
Okay.
Funding picture.
Now.
So $1 5 billion of targeted asset sales for this year.
A large part of I think your overall.
Hey, Dan.
Proceeds from asset sales over the next few years, how much of this pulling forward.
Just wanted to go back to the funding picture.
There is some funding needs versus just the song valuations on the assets as we previously mentioned.
So a large part of those but I think overall.
A question in two ways I would say.
But sales over the next few years, how much of this pulling forward.
<unk>.
I would say those will happen throughout 2023, and some may stretch into 2024.
Our decisions on the assets as we previously mentioned.
Or that it's all coming in the next 11 months.
I'll answer that question in two ways I would say.
This isn't may take time, so and certainly could extend into next year.
I would say those will happen throughout 2023, and some of them may stretch into 2024.
<unk> part of your question.
We wouldn't want to give anyone the impression that it's all coming in the next 11 months.
The simple fact, I'd almost say, it's coincidental that.
<unk> take time so.
We are completing the business plans.
<unk>.
And believe that we have extracted the value add opportunity that we saw in a number of businesses.
Demand, we're seeing for our assets and the.
As those business plans in those operations.
At a point, where we are completing the business plans.
A variety of businesses, we have but we've had a number of complete throughout 2022.
But we saw it.
It's the opportunity for a very attractive and accretive capital recycling this year.
<unk> business plans in those operations.
Sure.
<unk>.
Complete is going to ebb and flow over the wide variety of businesses, we have but we've had a number of complete throughout 2022.
And just one last question on offshore wind.
Two part question one if you can just discuss.
<unk> here.
This auction in the Netherlands.
Third call it before.
Participating in that market going forward.
<unk>, which we like to deploy.
So to participate in.
Sort of.
That's helpful. Thank you.
One last question on offshore wind.
Two part question one if you can just discuss.
So.
And in the Netherlands.
I Werent successful.
In our bid in the most recent Dutch auction, we continue to believe.
Okay.
<unk> very compelling market.
And the shrink.
We monitor all the major offshore wind markets around the world and there are certain attributes of that market that we thought were.
In our bid in the most recent.
<unk> auction.
<unk> leverage our power marketing capabilities.
<unk> market.
Wei and therefore, we will continue.
To look at opportunities in that market, we would not hesitate to go back there in the future.
Very interesting to us in particular, the ability to leverage our power marketing capabilities.
The thing I would say is.
<unk>.
We do look at offshore in many markets around the world.
To go back there in the future.
We believe that that is a long way in the future. So we'll monitor it but it's not something.
Sure.
The second thing I would say is.
<unk> now.
We do look at offshore in many markets around the world.
<unk>.
In Poland.
Like Colombia, we continue to believe that that is a long way in the future. So we'll monitor it but it's not something.
Around.
High on our radar right now.
The ability for those contracts.
Now for us.
<unk> be priced in euros are both very very helpful to our.
In Poland.
<unk> is an underwriting for that business.
The way the adjustments that the government has made in the region around.
Inflation indexation and the ability for those contracts.
<unk> here to ask a question Thats Star one one.
<unk> full to our investment thesis and underwriting.
One of Andrew Kuske with credit Suisse.
No.
Okay. Thank you.
Yes.
Maybe a big picture question.
A lot of tech companies have a lot of appetite for.
Ask a question Thats Star one.
For a number of those companies kind of got over their skis, we got us under build out.
One of Andrew Kuske with credit Suisse.
What are you really seeing from that customer base.
Good morning, maybe a big picture question.
So is there a little bit of a pause.
And companies.
Still full throttle.
As for effectively renewable ppas.
Ed.
Absolutely full throttle well, we say that without hesitation.
The demand we continue to see.
From the tech sector, particularly in our biggest markets North America Europe is.
So.
Tremendous.
Full throttle.
<unk>.
Many of our largest clients and simply.
Full throttle, we say that without hesitation.
The demand we continue to see.
They are trying to go 100% green over the next.
North America Europe .
Sorry, three years or eight years and.
As many of our largest clients and simply.
Given the size of their business is today.
<unk> of their business.
<unk>.
Comes even more monumental when you consider the growth of those businesses going forward, even if that growth trajectory.
Alright, three or eight years and.
<unk> onto demand coming out of that sector continues to be tremendous.
<unk> is today.
We continue to feel that there's very few that can supply on a scale that those types of customers desire.
<unk> Ford, even if that growth trajectory.
And then maybe just.
<unk>.
The way to think about Brookfield, optionality with providing solutions.
He used to be tremendous.
<unk> like the infrastructure funds, which you participate in.
Do that can supply on a scale that those types of customers did.
Core renewable fund and the broader Brookfield product shelf.
Or maybe just.
Self participate.
Brookfield Optionality with providing solutions.
Certainly we wouldn't rule anything out.
No.
We obviously have had.
Significant success recently with the launch of the transition fund and that has seen.
Not only tremendous interest from investors, but it's also seen tremendous opportunities for deploying.
<unk>.
We obviously have had.
<unk> continues to be constructive, which we expect it will we could see that that product.
<unk>.
Julie back in the market in the next 12 months.
From investors, but it's also seen.
The scaling of our existing products.
<unk>.
So we as the industry continues to get bigger.
Mint continues to be constructive, which we expect it will we could see that.
That product.
We wouldn't rule out different products.
<unk>.
One what our customers were looking for and we saw a significant opportunity.
To put that capital to work at attractive risk adjusted returns.
<unk>, both across the capital stack and across the risk reward spectrum.
Wouldn't rule out different products.
That is.
What our customers were looking for and we saw a significant opportunity.
To put that capital to work at attractive risk adjusted returns.
<unk>.
<unk>.
Where the market's going.
Think about.
We wouldn't rule it out.
Well the way the way, we'd probably see at most it's a great question, Andrew the way, we'd probably see at most today is.
Think about.
<unk> seen that stabilized solar would marry up really well.
The assets that that worked really well into an asset recycling program right now and.
Thinking about.
No.
Once we built them out once we've de risked them once they're under a long term PPA with long term financing in our long term O&M contract.
Like stabilized solar.
<unk> de risked attractive inflation linked cash flow stream.
Our recycling program right.
Because we're seeing for asset recycling.
Now.
Once we built them out once we've de risked them once they are under a long term PPA with long term financing in our long term O&M contract.
<unk>.
They very very de risked attractive inflation linked cash flow stream. Those are the types of opportunities, we're seeing for asset recycling and given how many dollars we put in the ground in recent years and how many projects we're bringing online.
Conor Tusky for closing remark.
<unk> entity that lends itself.
Some of the asset recycling initiatives that we've kicked off.
Always appreciate the support and interest in Brookfield renewable and we look forward to providing an update following the next quarter and throughout 2023. Thank you everyone and have a good day.
<unk> remarks.
This concludes today's conference call.
Such appreciate everyone dialing in we always appreciate the support and interest in Brookfield renewable and we look forward to providing an update following the next quarter and throughout 2023. Thank you everyone and have a good day.
The conference will begin shortly.
Today's conference call.
During Q&A you can dial star one one.
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