Q1 2024 Clearway Energy Inc Earnings Call

Good day, and thank you for standing by and welcome to the Clearway Energy, Inc. First quarter 2024 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation there'll be a question and answer session to ask a question. During this session. Please press star one one on your telephone.

Operator: Good day, and thank you for standing by. Welcome to the Clearway Energy Inc. first quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Chris Sotos, outgoing president and CEO of Clearway Energy Inc.

And wait for your name to be announced to withdraw your question. Please press star. One again, please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker today, Chris Sotos, outgoing President and CEO of Clearway Energy Inc.

Christopher S. Sotos: Good morning.

Christopher S. Sotos: Good morning. We first want to thank you for taking the time to join Clearway Energy Inc.'s first quarter call. Joining me this morning are Akil Marsh, Director of Investor Relations, Sarah Rubenstein, CFO, and Craig Cornelius, President and CEO of Clearway Energy Group, our sponsor and incoming CEO of Clearway Energy Inc. Before we begin, I'd like to quickly note that today's discussion will contain forward-looking statements, which are based on assumptions that we believe to be reasonable as of this date, but actual results may differ materially.

First thank you for taking the time to join Clearway Energy, Inc. First quarter call. Joining me. This morning are a kill Marsh director of Investor Relations, Sir Rubenstein, CFO, and Craig Cornelius President and CEO of Clearway Energy group, our sponsor and incoming president and CEO of Clearway energy.

Christopher S. Sotos: Before we begin I'd like to quickly note that today's discussion will contain forward looking statements, which are based on assumptions that we believe to be reasonable as of this date.

Christopher S. Sotos: Please review the safe harbor in today's presentation, as well as the risk factors in our SEC file. In addition, we will refer to both GAAP and non-GAAP financial metrics. For information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures, please refer to today's presentation. Turn to page 4.

Christopher S. Sotos: Actual results may differ materially. Please review the safe Harbor in today's presentation as well as the risk factors in our SEC filings.

Christopher S. Sotos: We will refer to both GAAP and non-GAAP financial measures for information regarding our non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. Please refer to today's presentation.

Christopher S. Sotos: Turning to page four <unk>.

Christopher S. Sotos: Julien's first quarter delivered solid results, primarily due to strong renewable resources at Alta, generating $52 million of CAFDI, establishing a strong start for the year, allowing for a reaffirmation of our 2024 guidance of $395 million. Clearway also increased its dividend by 1.7% for the quarter, bringing our quarterly dividend to 0.4102 a share, or $1.6408 on an annualized basis, in line Our latest investments continue to achieve commercial operations, with Cedar Creek and Texas Solar Nova 2 now contributing to C1's kilowatt capacity.

Christopher S. Sotos: <unk> first quarter delivered solid results, primarily due to strong renewable resource with alpha generating $52 million of Kathy establishing a strong start for the year, allowing for a reaffirmation of our 2024 guidance of $395 million.

Christopher S. Sotos: Clearly also increased its dividend by one 7% for the quarter, bringing our quarterly Devon to quarterly dividend to <unk> 41 zero to a share or $1 64 on an annualized basis in line with our targeted dividend growth of 7% for 2024.

Christopher S. Sotos: The latest investments continue to achieve commercial operations with Cedar Creek, and Texas solar and over to now contributing to see what's happening.

Christopher S. Sotos: CUN also committed to approximately $65 million of new corporate capital deployments since our last earnings call, generating five-year annual average cap yields of approximately 10% with the extra agreements on Danz Mountain and Rosamond South 1. As a result of our continued execution around deployment of the thermal proceeds, CELIN is increasing our pro forma CAFDI outlook to $420 million from $415 million. In the medium term through 2026, the remaining drop-down offers to fully allocate the thermal proceeds are on track to become commitments in 2024, allowing CELIN to achieve $2.15 of CAFDI per share by 2026 with no external capital and reaffirming the ability to achieve the upper range of 5-8% DPS growth through 2026.

Christopher S. Sotos: <unk> also committed to approximately $65 million of new corporate capital deployment since our last earnings call.

Christopher S. Sotos: A five year annual average cap the yields of approximately 10% with extra agreements on Dan's Mellon and Rosemont Southwind.

Christopher S. Sotos: As a result of our continued execution around deployment of the thermal proceeds.

Christopher S. Sotos: One is increasing our pro forma Kathy outlook to $420 million from $415 million.

Christopher S. Sotos: In the medium term through 2026, the remaining dropdown offers to fully allocate the thermal proceeds are on track to become commitments in 2020 for allowing <unk> to achieve $2.15 of Kathy for sure by 2026 with no external capital and reaffirm the ability to achieve the upper range of 5% to 8% EPS growth through 2020.

Christopher S. Sotos: Finally, as Craig will go into more detail on a couple of slides <unk> visibility to grow beyond 2026 continues to improve and several facets first we have completed a joint development agreement with Clearway group to optimize our Utah solar assets with the potential to invest up to $85 million in 2026 at a 10% cap yield.

Christopher S. Sotos: Finally, as Craig will go into more detail on a couple slides, C1's visibility to grow beyond 2026 continues to improve in several ways. First, we have completed a joint development agreement with Clearway Group that optimizes our Utah solar assets with the potential to invest up to $85 million in 2026 at a 10% cap. In addition, CUN has executed RE contracts for Marsh Landing and Walnut Creek with strong pricing, enhancing visibility into organic capex per share growth in 2027 and beyond. Importantly, these contracts were signed outside of the large procurement processes conducted by the utilities and demonstrate the critical role Clearways Gas Assets play in the California grid.

Christopher S. Sotos: In addition, <unk> has executed already contracts for Marsh landing and Walnut Creek with strong pricing enhancing visibility into organic cafe per share growth in 2027 and beyond.

Christopher S. Sotos: Importantly, these contracts were signed the outside of the large procurement processes conducted by the utilities and demonstrate the critical role clearly gas assets play in California.

Christopher S. Sotos: Finally, our sponsors 30 gigawatt renewable pipeline continues to develop with eight approximately eight gigawatts of late stage projects targeting Seo to use over the next five years.

Christopher S. Sotos: Finally, our sponsor's 30 gigawatt renewable pipeline continues to develop with approximately eight gigawatts of late-stage projects targeting CO2 use over the next five years. In summary, CLAIRE has started the year in a strong position with solid CAPTII performance, continued execution around our 2026 CAPTII goals, and continued progress and growth for 2027 and beyond. Page five provides a summary of clearly 65 million committed growth investments signed between our February call and now with anticipated commercial operations in the first half of 2025.

Christopher S. Sotos: In summary, clearly has started the year on a strong position with solid Kathy performance continued execution around our 2026 caps the goals and continued progress in growth for 2027 and beyond.

Christopher S. Sotos: Page five provides a summary of clearly $65 million of committed growth investments signed between our February call and now with anticipated commercial operations in the first half of 2025.

Christopher S. Sotos: These investments are expected to generate five-year annual average CAF yields of approximately 10%, underpinned by long-term contracts of 12 to 15 years, adding strong accretion to C1's asset mix and strong returns on a risk-adjusted basis. On the left side of the page is Dan Mountain Wind Asset, at 55 megawatts and the clearway first in Maryland, providing additional exposure to the PGM market with a strong long-term outlook for energy and recreation pricing in the future.

Christopher S. Sotos: These investments are expected to generate five year annual average cash yield of approximately 10% underpinned by long term contracts of 12 to 15 years, adding strong accretion to <unk> asset mix and strong returns on a risk adjusted basis.

Christopher S. Sotos: On the left side of the page with Dan Mountain wind asset at 55 megawatts in clear ways first in Maryland, providing additional exposure to the PJM market with a strong long term outlook for energy and rec pricing in the future on.

Christopher S. Sotos: On the right side of the page, you can see the corporate capital and anticipated CAFD frozen on South 1, a 257 megawatt solar plus storage project in California with no settled revenue contracts with a diversified offtake profile. Both of these investments continue to expand the fleet with strong CAfty accretion and significant contracted tenors, adding to long-term CAfty growth prospects of C1. I'd be remiss if, in my last call as CWIN CEO, I did not see our graph showing growth through 2026.

Christopher S. Sotos: On the right side of the page you see the corporate capital anticipate coffee frozen months Alif, one at 257 megawatt solar plus storage project in California with notes settled revenue contracts with a diversified offtake profile.

Christopher S. Sotos: Both of these investments continue to expand the fleet with strong capture accretion a significant contract with tenors, adding long term cap the growth prospects of <unk>.

Christopher S. Sotos: I'd be remiss from my last call as <unk> CEO I do not see our graph showing growth through 2026, our sponsor through Craig's leadership and the work of so many colleagues at Clearway Energy group had developed and dropped to <unk> over 800 megawatts in 15 different dropdown assets in order to redeploy the thermal proceeds efficiently at.

Christopher S. Sotos: Our sponsor, through Craig's leadership and the work of so many colleagues at Clearway Energy Group, had developed and dropped to CWIN over 1,800 megawatts and 15 different drop-down assets in order to redeploy the thermal proceeds efficiently and accretively. Clearly, enterprise has always been about execution, developing quality assets, raising capital to fund them, both during construction and over the long term, and execution of being stewards of those assets and the cash they generate over their useful lives. Slide six demonstrates our path to $2.15 per share, with the remaining approximately $150 million of excess fundal proceeds to be deployed at an approximate 10% five-year annual average cap to yield.

Christopher S. Sotos: Critically the.

Christopher S. Sotos: Clearly enterprise has always been about execution execution developing quality assets execution of raising capital to fund them. Both during construction and long term and execution of being stewards of those assets and the casualty generate over their useful lives.

Christopher S. Sotos: Fixed demonstrates our path to $2 15 per share with the remaining approximate $150 million of excess thermal proceeds could be deployed in approximately 10% five year annual average cap deal.

Christopher S. Sotos: These remaining assets should achieve their commercial operation dates during 2025, putting C1 in a good position for 2026 and beyond for CAFD generation and dividend growth. So, while I'm moving on from Clearway to find new opportunities, I feel confident that Craig, who has led so much of the execution that has put C1 on its current growth trajectory through this volatile period, will continue the enterprise's legacy of execution regardless of market challenges. Craig, I'm turning it over to you. Thanks, Craig.

Christopher S. Sotos: These remaining assets sort of achieved commercial operation dates during 2025, putting <unk> in a good position for 2026 and beyond for capital generation and dividend growth.

Christopher S. Sotos: So while I'm moving on from clear way to find new opportunities as we are confident that Craig what's so much of execution as puts <unk> current growth trajectory through this volatile period, we will continue the enterprises legacy of execution, regardless of market challenges Craig turning over to you.

Thanks, Chris.

Craig Cornelius: I want to start just by saying how grateful all of us at Clearway are for the truly remarkable work that you've done over more than a decade to build up the business that we have become. As the results we achieved during the last quarter attest, you're leaving Clearway Energy Inc. in a strong position with forward momentum. We look forward to honoring your legacy through execution and value creation in the quarters and years ahead.

Craig: To start just by saying how grateful for all of US are clear we are for the truly remarkable work that you've done over more than a decade to build up the business that we have become.

The results we achieved during the last quarter, our test Youre, leaving Clearway Energy, Inc, and I'll have a strong position with forward momentum, we look forward to honoring your legacy with execution and value creation in the quarters and years ahead.

Craig Cornelius: As Chris mentioned, CWIN is well positioned to be able to fully allocate the remaining thermal proceeds in 2024 via committed investments in drop-down offers that will enable CWIN to meet its previously stated goal for run rate CAFD per share in 2026. Together, the partnership interests offered already and the pending offer will provide the opportunity to invest approximately $150 million of corporate capital into projects with very solid long-term contractual structures at an accretive capital yield of 10%.

Craig: As Chris mentioned.

Craig: <unk> is well positioned to be able to fully allocate the remaining thermal proceeds in 2024 by our committed investments on dropdown offers that will enable <unk> to meet its previously stated goal for run rate <unk> per share in 2026 <unk>.

Craig: Together the partnership interests offered already and the pending offer will provide the opportunity to invest approximately $150 million of corporate capital into projects with very solid long term contractual structures.

Craig: Accretive cap the yield of 10%.

Craig Cornelius: Once these offers go through CWIN's customary rigorous underwriting and approval process, led by CWIN's independent directors on the Governance, Conflicts, and Nominating Committee, these future potential commitments can complete CWIN's growth investment path to achieving $215 of CAPD per share by 2020. To go into more details on the existing and pending offers, the first projects I'll highlight are the Luna Valley and Daggett Storage One projects.

Craig: Once these offers go through <unk> customary rigorous underwriting and approval process led by <unk> independent directors on the governance conflicts. The nominating committee. These future potential commitments can complete <unk> growth investment path to achieving $2 15 of cap deeper share by 2026.

Craig: To go into more details on the existing and pending offers the first projects I'll highlight are the lunar valeant daggett storage one projects.

Craig Cornelius: High compatible with CWIN's investment mandate, the project's generation and capacity are underpinned by diversified, note-settled contracts with investment-grade load-serving entities with terms of over 15 years. Subject to approval by its GCN committee, CWIN could commit to investments in the projects during the second quarter of 2024, with funding of investments in the projects to occur in the first half of 2025. The final project plan for the allocation of the thermal proceeds is the Pine Forest Solar Plus Storage Complex.

Craig: Really compatible with <unk> investment mandate, the project's generation and capacity is underpinned by diversified notes settled contracts with investment grade load serving entities with terms of over 15 years.

Subject to approval by its GCN Committee <unk> could commit to investment in the projects during the second quarter of 2024 with funding of investments and the projects to occur in the first half of 2025.

Craig: The final project planned for allocation of the thermal proceeds is the pine forests solar plus storage complex. The projects 300 megawatts of solar generation will be fully contracted with a diverse set of investment grade Counterparties with 17 years average contract life.

Craig Cornelius: The project's 300 megawatts of solar generation will be fully contracted with a diverse set of investment-grade counterparties with 17 years of average contract life. Meanwhile, its 200 megawatts of battery capacity will complement the solar generation at Pine Forest and balance our overall renewable generation fleet in Texas. An offer is planned for early this summer, and subject to approval by CWIN's GCN, we would aim to conclude an investment commitment in 2024 and fund the investment in Q4 2025.

Craig: Meanwhile, it's 200 megawatts of battery capacity will complement the solar generation at pine forests, and balance our overall renewable generation fleet in Texas and offer is planned for early this summer and subject to approval by <unk> GCN, we would aim for concluding an investment commitment in 2024 and funding the <unk>.

Craig: <unk> in Q4 2025.

Craig Cornelius: In conclusion, we are pleased to have a clear line of sight ahead towards meeting our previously stated goal of reaching 215 and run rate CAPD per share by 2026. Turning to slide eight, we want to begin looking ahead beyond 215 and CAFD per share to our levers for further growth in CAFD and dividends per share in the years beyond 2026. A first impactful lever, which we began to discuss in more detail over the last six months, is the potential to increase CAFD per share contributions from our California gas fleet as we contract open capacity in the fleet to deliver resource adequacy, or RA, in 2027 and beyond.

Craig: In conclusion, we are pleased to have a clear line of sight towards meeting. Our previously stated goal of reaching $2 15 and run rate <unk> per share by 2026.

Craig: Turning to slide eight I want to begin looking ahead beyond 2015, and <unk> <unk> per share to our levers for further growth and Kathy and dividends per share and the years beyond 2026.

Craig: Our first impactful lever, which we began to discuss in more detail over the last six months is the potential to increase cap deeper share contributions from our California gas fleet as we contract open capacity in the fleet to deliver resource adequacy.

Craig: In 2027 and beyond.

Craig Cornelius: Our natural gas assets are some of the most modern and clean plants in California and are located in extremely useful locations where they provide peaking generation and RA capacity to help ensure the grid's reliability during periods of high demand and harmonize the system with increasing renewable penetration.

Craig: Our natural gas assets are some of the most modern and clean plants in California, and our <unk>.

Craig: Okay, and extremely useful locations, where they provide peaking generation and <unk> capacity.

Craig: Capacity to help ensure the grids reliability during periods of high demand and harmonize the system with increasing renewable penetration.

Craig Cornelius: In recent years, tight capacity conditions in the Western US, coupled with thoughtful system planning from regulators, have put a particular focus on the need for load-serving entities to procure clean, dispatchable capacity from plants like ours. Together, these dynamics are allowing us to extend and enhance the revenue profile from our plans at levels that increase the gap deeper share contribution that we receive from each unit of their scarce and valuable capacity. Against that backdrop, we are pleased to announce today our first RA contract signings of the year for the fleet, with approximately 200 megawatts of new resource adequacy contracts signed for Marsh Landing and Walnut Creek.

Craig: In recent years tight capacity conditions in the Western U S. Coupled with thoughtful system planning from regulators have put a particular focus on the need for load serving entities to procure clean dispatch of bulk capacity from plants like ours too.

Craig: Together these dynamics are allowing us to extend and enhance the revenue profile from our plants at levels that increase the cap deeper share contribution that we receive from each unit of their scarce and valuable capacity.

Craig: Against that backdrop, we are pleased to announce today, our first or a contract signings of the year for the fleet with approximately 200 megawatts of new resource adequacy contracts signed for Marsh landing in Walnut Creek, the new contracts added <unk> to our fleet is contracted position over 2027% to 130, bringing it up to 52%.

Craig Cornelius: The new contracts add tenor to our fleet's contracted position over 2027 to 2030, bringing it up to 52% for 2027, and at prices reflective of today's market for one and four-year RA contracts with delivery beginning in late 2026. With these contracts now complete, we continue to retain 875 megawatts of gas unit capacity for RA delivery in 2027 and 1645 megawatts of capacity available for RA delivery over 2028 to 2030. From here, over the balance of 2024, we will continue to market the balance of the fleet's open position for varying contract durations over 2027 to 2030 through both bilateral engagements and through the state's Central Procurement Entity RFP process

Craig: For 2027 at pricing reflective of today's market for one and four year contracts with delivery beginning in late 2006.

Craig: With these contracts now complete we continued to retain 875 megawatts of gas unit capacity for our <unk> delivery in 2027, and 1645 megawatts of capacity available for our <unk> deliver delivery over 2028 to 2030.

Craig: From here over the balance of 2024, we will continue to market the balance of the fleets open position for bearing contract durations over 2027% to 2030 through both bilateral engagements and through the state central procurement entity RFP process.

Our core strategy is focused on striking a sensible balance between extending contracted visibility for dividend planning, while also ensuring that the plants received revenues reflective of the system value they deliver.

Craig Cornelius: Our core strategy is focused on striking a sensible balance between extending contracted visibility for dividend planning while also ensuring that the plants receive revenues reflective of the system value they deliver. In that strategy, we will aim to continue our practice of incrementally contracting forward in a way that provides high visibility through two years forward while seeking that right balance of visibility and value. In the quarters to come, we'll continue to update you on the status of our progress as we advance the marketing of our RA capacity and would anticipate having a more complete update on the outlook of what that capacity could deliver in terms of 2027 CAFD per share contribution.

Craig: And that strategy, we will aim to continue our practice of incrementally contracting forward in a way that provides high visibility through two years forward, while seeking that right balance of visibility on value.

In the quarters to come we'll continue to update you on the status of our progress as we advance the marketing of our RA capacity and would anticipate having a more complete update on the outlook of what that capacity could deliver in 2027 <unk> per share contribution.

Craig Cornelius: In the meantime, we want to be clear about the commitments that we make to you about what exactly those will be. But, to affirm what we outlined in our last November call-in, If we were to contract the balance of our open position at the same average pricing secured under these recent contracts, that could enable C1 cap deeper share growth at the low end of 5% to 8% into 2027 without a need for additional capital investment. Moving to slide nine.

Craig: In the meantime, we want to be measured about the commitments that we make to you about what exactly that will be.

Craig: To affirm what we outlined in our last November Collins.

Craig: If we were to contract the balance of our open position at the same average pricing secured under these recent contracts that could enable a <unk> <unk> per share growth at the low end of 5% to 8% into 2027 without a need for additional capital investment.

Craig: Moving to slide nine.

Craig Cornelius: In addition to organic growth and CAFD per share contribution from our gas lead, we are beginning to look towards the other building blocks we can use to grow CAFD per share in 2027 and beyond. First among those building blocks is the ability for CWIN to invest in repowerings, expansions, or hybridization of capacity around our existing well-sited fleet of renewable generation assets. We have had a track record of doing this successfully already with our wind fleet and now see an opportunity set of over 1.6 gigawatts of projects that Clearway Group and CWIN are evaluating for potential execution over the next five years.

Craig: In addition to organic growth in <unk> per share contribution from our gas fleet. We are beginning to look towards the other building blocks, we can use to grow cap D per share in 2027 and beyond.

Craig: First among those building blocks is the ability for <unk> to invest in repowering expansions or hybridization of capacity around our existing well cited fleet ever knowable generation assets. We have had a track record of doing this successfully already with our wind fleet and now see an opportunity of over one six gigawatt.

Craig: Lots of projects that Clearway group and <unk> are evaluating for potential execution over the next five years.

Craig Cornelius: As part of that opportunity set, we're pleased to announce that CWIN has established an agreement with Clearway Group that aims to develop and build a family of contracted battery assets adjacent to CWIN's existing fleet of solar projects in Utah, in what we hope is the first of many examples of how CWIN's existing renewable project site inventory can one day house complementary battery capacity. The first phase of this framework, which we're calling Honeycomb, targets completion of 320 megawatts of storage capacity by mid-2026 to serve a long-term tolling agreement with an investment-grade utility.

Craig: As part of that opportunity set we're pleased to announce that <unk> has established an agreement with Clearway group that aims to develop and build a family of contracted battery assets adjacent to <unk> existing fleet of solar projects in Utah and what we hope is the first of many examples of how <unk> existing renewable project site inventory can one day.

Craig: House complementary battery capacity.

Craig: The first phase of this framework, which we're calling honeycomb targets completion of 320 megawatts of storage capacity by mid 2026 to serve our long term tolling agreement with an investment grade utility the.

Craig: The agreement provides <unk> with the right to invest in these projects at a 10% targeted CAFTA yield if and when the projects reach of readiness for financial close on construction.

Sarah Rubenstein: The agreement provides C1 with the right to invest in these projects at a 10% targeted CAF yield if and when the projects reach readiness for financial close and construction. Subject to CWIN investment direct and independent director approval, the expected CWIN investment opportunity for this initial 320 megawatt phase is presently estimated to be up to $85 million in corporate capital. With funding of this potential project investment not expected to occur until the first half of 2026, we expect CWIN to be able to permanently fund this project with existing sources of liquidity, including retained capital and corporate debt capacity.

Craig: Subject to see when investment direct and independent director approval expected see when investment opportunity for this initial 320 megawatt phase is presently estimated to be up to $85 million in corporate capital with funding of this potential project investment not expected to occur until the first half of 2026.

Craig: We expect <unk> to be able to permanently fund this project with existing sources of liquidity, including retained Kathy and corporate debt capacity to be clear <unk> will only exercise this option to the extent it is kathie and value accretive to see when shareholders. When development is concluded and the projects already foresee when investment commitment decision.

Sarah Rubenstein: To be clear, CWIN will only exercise this option to the extent it is CAFDI and value-accretive to CWIN shareholders when development is concluded and the projects are ready for a CWIN investment commitment decision. In addition to the opportunities for investment around CWIN's existing assets, Clearway Group is advancing 4.4 gigawatts of late-stage new-build project investment opportunities, targeting CODs over 2026 to 2029, with the vast majority of the projects in markets where Clearway Group has a long track record of successful development execution.

Craig: In addition to the opportunity is for investment around <unk> existing assets Clearway group is advancing four four gigawatts of late stage Newbuild project investment opportunities targeting cod's over 2026 to 2029 with the vast majority of the projects in markets, where Clearway group has a long track record of successful.

Craig: Development execution.

Sarah Rubenstein: We are optimistic about where this family of projects can take CWIN's growth prospects over time. But, very importantly, we want to emphasize that our planning for that growth will emphasize first and foremost our ability to grow in a way that is financially accretive to CUNY shareholders. The growth opportunities that we've outlined here are being planned thoughtfully in relation to CUN's historical capital allocation framework, which has served it very well over time and which we intend to continue.

Craig: We are optimistic about where this family of projects can take <unk> growth prospects over time.

Craig: Very importantly, we want to emphasize that our planning for that growth will emphasize first and foremost our ability to grow in a way that is financially accretive when shareholders. The growth opportunities that we've outlined here are being planned thoughtfully in relation to <unk> historical capital allocation framework, which has served us very well over time, and which we intend to continue.

Craig: To restate that framework when funding corporate capital commitments see when we will look to maximize <unk> per share net of the cost of financing. While also assuring that investments meet long term metrics aligned with its underwriting criteria at.

Sarah Rubenstein: To restate that framework, when funding corporate capital commitments, CUN will look to maximize cap-to-per-share net of the cost of financing, while also assuring that investments meet long-term metrics aligned with its underwriting criteria. At a high level, we will source corporate growth capital from retained capital to the extent available as a first source of funds, followed by excess debt capacity in line with our target double B rating as a second source of funds.

Craig: At a high level, we will source corporate growth capital from retained cap D to the extent available as a first source of funds followed by excess debt capacity in line with our target double B rating as a second source of funds and we will plan investments that call for external equity issuance only when financial market conditions make us confident that in <unk>.

Sarah Rubenstein: And we will plan investments that call for external equity issuance only when financial market conditions make us confident that an incremental investment funded by equity would be accretive to shareholders, as has been demonstrated consistently over time since the inception of CWIN in 2018. Clearway Group is a sponsor of Clearway Energy, Inc., and it will continue to advance its pipeline of development, mindful of the goals and context of CWIN, with pacing of development and corporate capital funding to optimize value accretion for CWIN shareholders.

Craig: Mental investment funded by equity would be accretive to shareholders.

Craig: As has been demonstrated consistently over time since the inception of <unk> went in 2018.

Craig: Clearway group is the sponsor for Clearway Energy, Inc. We will continue to advance its pipeline of development mindful of the goals in context of coelom with pacing of development and corporate capital fundings to optimize value accretion for <unk> shareholders from the combination of these building blocks for growth, we hope to see forward to the ability to grow the cap deeper share in dividends.

Sarah Rubenstein: From the combination of these building blocks for growth, we hope to see forward to the ability to grow the CAPD per share and dividends per share that we deliver to our shareholders in 2027 and beyond. And we expect to provide further information as it becomes available later this year. With that, I'll turn it over to Sarah for the financial update.

Craig: Per share that we delivered to our shareholders in 2027 and beyond and we expect to provide further information as it becomes available later this year with that I'll turn it over to Sarah for the financial update Sarah.

Sarah Rubenstein: Thanks, Craig. On slide 11, we provide an overview of our financial results, which includes first quarter adjusted EBITDA of $211 million and CAFD of $52 million. First quarter results reflected strong fringe resource at the ALTA facilities and the impact of timing of planned spring maintenance outages for certain gas plants, which will occur during the second quarter. This is offset in part by lower solar irradiance from higher than average rainfall.

Sarah: Thanks, Greg on Slide 11, we provide an overview of our financial results, which includes first quarter adjusted EBITDA of $211 million and Kathy.

Sarah: The 2 million first quarter results reflected.

Sarah: Researchers at the Alta facilities and the impact of timing of planned spring maintenance outages for certain gas plant, which will occur during the second quarter.

Sarah: This is offset in part by lower solar irradiance from higher than average rainfall.

Sarah Rubenstein: From a seasonality perspective, the first quarter is one of the four contributors to full-year results. We are pleased with these strong first quarter results. And considering the smaller impact of the first quarter, the previously mentioned timing impacts, and our observations on second quarter performance to date, we are reaffirming our full year 2024 CAFD guidance of $395 million. 2024 CAFD guidance continues to reflect P50 median renewable energy production for the full year, as well as contributions from committed growth investments based on expected COD timing.

Sarah: From a seasonality perspective, the first quarter is one of the contributors to full year results.

Sarah: We are pleased with the strong first quarter results and considering the smaller impact of first quarter. The previously mentioned timing impacts and our observations on second quarter performance. Today, we are reaffirming our full year 2020 forecast the guidance of $395 million.

Sarah: In 2020 forecast the guidance continues to reflect <unk> median renewable energy production for the full year.

Sarah: As well as contributions from committed growth investments based on expected timing.

Sarah Rubenstein: The company continues to have no external capital needs to fund the line of sight growth needed to meet our dividends per share growth objectives through 2026 and pro forma credit metrics in line with target ratings. With anticipated contributions from the remaining drop-down offers, Line of Sight CASD remains at $435 million, or $2.15 per share. In addition, Clearway continues to demonstrate progress towards growth beyond the $215 million mark, with the additional RA contracts previously mentioned and the potential for additional contracting at favorable rates, as well as further opportunities for drop-downs.

Sarah: Company continues to have no external capital needs to fund your line of sight growth needed to meet our dividend per share growth objective through 2020.

Sarah: And pro forma credit metric in mind with target rating.

Sarah: With anticipated contributions from the remaining dropdown offers.

Sarah: Save Cascade remains at $435 million or $2 <unk> per share.

Sarah: In addition, clearway continues to demonstrate progress towards growth beyond the cubic team with the additional <unk> contracts previously mentioned and potential for additional contracting at favorable rates as well as further opportunities for dropdown.

Sarah Rubenstein: For example, the Honeycomb Battery Asset Expansion Project that we previously discussed. We do anticipate that dropdowns targeted for 2026 and beyond will require a source of external capital, and we expect to be able to utilize retained capital to the extent available, excess corporate debt capacity while maintaining our target credit metrics, and availability under our revolving credit facility. Depending on the relevant timing, we may also consider the use of our existing ATM facility. Now, I'll turn it back to Craig for his closing remarks.

Sarah: Both the honeycomb battery asset expansion project.

Sarah: That we previously discussed with you.

Sarah: You anticipate that Dropdowns targeted for 2026 and beyond will require source of external capital and we expect to be able to utilize retained at <unk> to the extent available excess corporate debt capacity.

Sarah: <unk>, our target credit metrics.

Sarah: <unk> ability under our revolving credit facility.

Sarah: Depending on the relevant timing, we may also consider the east of our existing ATM facility.

Sarah: Now I will turn it back to Craig for closing remarks.

Craig: Thank you Sarah.

Craig Cornelius: Thank you, Sarah. Turning to slide 13, I'll recap where we stand in making progress towards meeting the key goals that we've set for Clearway Energy Inc. this year. Thanks to its solid first quarter results, CWIN remains on track to meet its 2024 CAFDI guidance and its 2024 DPS growth goal of 7%. Beyond 2024, our path to 215 of CapDeeper share looks increasingly clear. On the back of the commitments CWIN has now made for investments in Dan's Mountain and Rosamond South, and with an eye to the current and pending offers that would finish the allocation of the proceeds received from the sale of our district thermal business,

Craig: Turning to slide 13, I'll recap, where we stand in making progress towards meeting the key goals that we've set for Clearway Energy Inc. This year.

Craig: Thanks to our solid first quarter results <unk> remains on track to meet its 2020 forecast the guidance and it's 2024 to EPS growth goal of 7%.

<unk> 2024, our path to $2 15 of cap deeper share looks increasingly clear on the back of the commitment <unk> has now made for investments in Dan's mountain and Rosemont, South and with an eye to the current and pending offers that would finish allocation of the proceeds received from the sale of our district thermal business.

Craig Cornelius: Furthermore, we are in an excellent position towards firming up our ability to grow CAFD per share within our long-term target of five to 8% in 2027. The new RA contracts we signed at strong prices and the joint development agreement signed for the development of the honeycomb battery assets are the beginning of additional data points that we'll share on our post 2026 growth outlook as we go through the year. Lastly, we continue to evaluate opportunistic third-party M&A while adhering to our disciplined capital investment underwriting standards.

Craig: Furthermore, we are in excellent position towards firming up our ability to grow caf deeper share within our long term target of 5% to 8% in 2027.

Craig: The new <unk> contracts, we signed its strong pricing and the joint development agreement signed for development of the honeycomb battery assets are at the beginning of additional data points that we'll share on our post 2026th growth outlook as we go through the year.

Craig: Lastly, we continue to evaluate opportunistic third party M&A, while adhering to our disciplined capital investment underwriting standards through these initiatives for future value creation and disciplined execution in our current core business. We are focused on delivering good outcomes for the shareholders of Clearway Energy Inc.

Craig Cornelius: Through these initiatives for future value creation and disciplined execution in our current core business, we are focused on delivering good outcomes for the shareholders of Clearway Energy, Inc., meeting the goals that we had set for this year and out through 2026, and extending those in the years that follow. We are pleased with the momentum that we've built in 2024 thus far and look forward to extending that momentum in the days ahead. Operator, please open the lines for questions. Thank you.

Craig: The goals that we had set for this year and out through 2026 and extending our nose in the years that follow.

We are pleased with the momentum that we built in 2024, thus far and look forward to extending on that momentum in the days ahead.

Speaker Change: Operator, please open the lines for questions.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. One moment for questions. Our first question comes from Michael Lonegan with Evercore ISI. You may proceed.

Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw. Your question. Please press star one again, one moment for questions.

Speaker Change: Our first question comes from Michael Logan with.

Michael B. Lonegan: Evercore ISI you May proceed.

Michael B. Lonegan: Hi, Thanks for taking my question and congrats on a great update.

Michael B. Lonegan: Hi, thanks for taking my question and congrats on a great update. So, you talked about the new contract terms at Walnut Creek and Marsh Landing, you know, providing higher capacity than run rate expectations. Just wondering if you could give us a sense of how much higher, maybe in percentage terms, you know, they were and would continued contracting at these levels change how aggressively you pursue drop-downs, you know, over this time frame or third-party M&A, given, you know, the organic growth.

Michael B. Lonegan: So you talked about the new contract terms at Walnut Creek and Marsh landing provide.

Michael B. Lonegan: Providing higher cap than run rate expectation just wondering if you could give us a sense how much higher maybe in percentage terms. They were in and with continued contracting at these levels change how aggressively you pursue dropdowns over this timeframe or third party M&A given the.

Michael B. Lonegan: The organic growth.

Craig Cornelius: Maybe I can take your question on each of those two parts, first, since we are in the middle of an annual procurement cycle for California through the Central Procurement Entity Process, which is seeking to establish sources of supply for the needs of load serving entities into the 27 and period beyond 2027. It's not really to the advantage of the company for us to go into detail about the pricing that we're securing and the contracts that we've already executed bilaterally.

Speaker Change: Maybe to take your question and each of those two parts.

Speaker Change: First.

Speaker Change: Being that we are in the middle of an annual procurement cycle for California.

Speaker Change: Through the central procurement entity process, which is seeking to establish sources of supply for the needs of load serving entities.

Speaker Change: Into the 2007 and and period beyond 2027.

Speaker Change: It's not really to the advantage of the company for us to go into detail around the pricing that we're securing in the contracts that we've already executed bilaterally.

Craig Cornelius: I think our vision here is that we'll go through that procurement cycle and, as we go further into this year, provide an update on our outlook of CAFD per share contribution from the business as a whole after we've seen the results of that procurement cycle. So I think for the benefit of the shareholders, we'll stay focused on giving you an outlook and an aggregate later. We also have an obligation towards our customers to maintain confidentiality on the terms of those contracts for their benefit as well as ours. So hopefully, you can understand that outlook.

Speaker Change: Our vision here is that we'll go through that procurement cycle and as we go further into this year.

Speaker Change: <unk> provide an update on our outlook of <unk> per share contribution from the business as a whole after we've seen the results of that procurement cycle.

Speaker Change: So I think for the benefit of the shareholders, we'll stay focused on giving you an outlook in aggregates later.

Speaker Change: We also have an obligation towards our customers to maintain confidential out confidentiality on the terms of those contracts for their benefit as well as ours. So hopefully you can understand that outlook, but we're quite happy with what we've secured in those contracts to date and we feel quite good about the setup of the overall market in the <unk>.

Craig Cornelius: But we're quite happy with what we've secured in those contracts to date, and we feel quite good about the structure of the overall market and the way it would value these resources that we have, that we're in a position to be able to offer. I think with respect to further growth investments, as we noted before, we want to be very deliberate about pacing new commitments based on the creativeness of the sources of capital that we have available to us.

Speaker Change: It would value. These these resources that we have.

Speaker Change: We're in a position to be able to offer I think with respect to further growth investments as we noted before we want to be very deliberate about pacing.

New commitments based on the accretive Ness of the sources of capital that we have available to us and I think you are right to note that there is a relationship between the cap the contribution that we would expect from the resource adequacy capacity that we have on those units and the amount of retained Kathy that we would have to allocate and hopefully also.

Craig Cornelius: And I think you're right to note that there is a relationship between the CAFD contribution that we'd expect from the resource adequacy capacity that we have on those units and the amount of retained CAFD that we would have to allocate, and hopefully also with that, the value of our underlying equity and our overall corporate debt capacity. So I think we'll think about all those things in relation to each other as we pace additional investment commitments but feel quite good about the fact that we have sufficient building blocks in development to offer CUN numerous opportunities for growth, provided that those investment opportunities are accretive.

Speaker Change: With that the value of our of our of our underlying equity on our overall corporate debt capacity. So I think we'll think about all those things in relation to each other as we pace additional investment commitments, but feel quite good about the fact that we have sufficient building blocks and development to offer.

Speaker Change: Numerous opportunities for growth provided that does investment opportunities are accretive.

Speaker Change: Great. Thank you and then secondly from me.

Craig Cornelius: And then secondly, for me, you know, given all the data center demand, I just wonder if we could, you know, expect you to pursue third-party M&A opportunities for gas generation, you know, in addition to the renewables for storage you have planned.

Speaker Change: Given all of the data center demand just wondering if we could.

Speaker Change: Back to you to pursue third party M&A opportunities for gas generation.

Speaker Change: In addition to the renewables for storage you have planned.

Speaker Change: Planned.

Speaker Change: No I think.

Craig Cornelius: Now, I think you know, what we would like to do for the moment is to describe the overall strategy that we have for engagement and the particular ways that we pursue the execution of that opportunity set, which Clearway, I think, will address in due time when we've got specific new commitments to be able to reference. As you can imagine, being one of the country's largest developers and owner operators of clean electricity generation assets, with a footprint that spans most of the country's major power markets.

Yes.

Speaker Change: What we would like to do for the moment is to describe the overall strategy that we have for.

Speaker Change: Engagement.

Speaker Change: In the particular ways that we pursue the execution of.

Speaker Change: Of that opportunity set as clear way I think we will address in due time when we've got specific.

Speaker Change: New commitments to be able to reference.

Speaker Change: As you can imagine being one of the country's largest developers and owner operators of clean electricity generation assets.

Speaker Change: With a footprint that spans most of the country's major power markets.

Craig Cornelius: Clearways Enterprise obviously occupies a place at the intersection of the emerging trend for load growth and energy value expansion as the U.S. economy's appetite for computation grows. And our footprint and our development pipeline, and our proven capabilities certainly put us in a position where engagement with the country's leading data center developers and hyperscalers is a pretty customary and core part of our origination and development. So engagements with those customers are most certainly ongoing, and those are around a spectrum of potential opportunities and with a range of potential partners and customers.

Speaker Change: Clearway is enterprise, obviously occupies a place at the intersection of the emerging trend for load growth.

Energy value expansion is the U S economy's appetite for computation grows.

Speaker Change: And our footprint in our development pipeline and our proven capabilities certainly put us in a position where engagement with the country's leading data center developers and hyper scaler pretty customary and core part of our origination and development, so and engagements with those customers are certainly ongoing and those are.

Speaker Change: Round, a spectrum of potential opportunities and with a range of potential partners and customers, but it would be premature at this stage to comment pretty specifically on the way that that attractive opportunity set would be something we'd prosecute.

Craig Cornelius: But it would be premature at this stage to comment pretty specifically on the way that that attractive opportunity set would be something we'd prosecute within Clearways context or with specific growth capital investments by CUN. I think what we can say is that we do have a pretty significant set of building blocks that can potentially support both behind the meter in front of the meter project configurations and demand, and that we're also advancing projects that will serve traditional load serving entities who have a need for increased carbon free energy supply to serve growing data center load, and that they are exhibiting a high degree of flexibility around what they would be prepared to accommodate in contractual structures and settlement terms and pricing and locations, given the substantial needs that they have for meeting load growth.

Speaker Change: Within clear ways context, or with specific growth capital investments by <unk>.

Speaker Change: What we can say is that we do have a pretty significant set of building blocks that can potentially support both behind the meter in front of the meter project configurations and demand and then we're also advancing projects that will serve traditional load serving entities, who have a need for increased carbon free energy of supply.

Speaker Change: To serve growing data center load and that they are exhibiting a high degree of flexibility around.

Speaker Change: What day would be prepared to accommodate and contractual structures settlement terms and pricing and locations given.

Speaker Change: Substantial needs that they have for meeting load growth.

Craig Cornelius: I think just the last thing that I'd note is that from amongst the 4.4 gigawatts of late stage opportunities that we'd identified previously, as you can imagine, many of those are in the major markets where this need is greatest and that we have a pretty strong track record for execution in those geographies, which is something that customers like that certainly value.

Speaker Change: I think just the last thing that I would note.

Speaker Change: Is that fair.

Speaker Change: Amongst the four four gigawatts of late stage opportunities that we've identified previously as you can imagine many of those are in the major markets, where this need as exhibited in that we have a pretty strong track record for execution in those geographies, which is something that customers like that certainly value.

Speaker Change: Great. Thanks for taking my question.

Operator: Great, thanks for taking my question.

Speaker Change: Thank you.

Speaker Change: One moment for questions.

Noah Duke Kaye: One moment for questions. Our next question comes from Noah Kaye with Oppenheimer. You may proceed.

Speaker Change: Our next question comes from Noah Kaye with Oppenheimer You May proceed.

Noah Duke Kaye: Hey, thanks. You know, Chris, congratulations, and best of luck in your next stage, and thanks for the dialogue over the years. And Craig, you know, congratulations as well.

Speaker Change: Thanks.

Noah Duke Kaye: Chris Congratulations.

Noah Duke Kaye: Best of luck in your and your next stage and and thanks for the dialogue over the years and Craig Congratulations as well.

Noah Duke Kaye: My first question is really around the transition itself maybe.

Noah Duke Kaye: My first question is really around the transition itself. Maybe just talk a little bit about how you operationalize the transition. Obviously, you're keeping, it seems, the, you know, investment and management principles of the platform very much intact. But, you know, Craig, maybe just talk a little bit about, you know, your focus areas and, you know, how we should think about you kind of coming into this role while still continuing to drive all the development and growth of the sponsor, you know, along with the team.

Noah Duke Kaye: So a little bit how you operationalize the transition obviously, you're keeping it seems the.

Noah Duke Kaye: Investment in management principles of the platform very much intact, but.

Noah Duke Kaye: Greg maybe just talk a little bit about your focus areas and how we should think about you kind of coming into this role while still continuing to drive all of the development and growth at the sponsor.

Greg: Along with the team.

Greg: Yes, thanks for the congratulations.

Craig Cornelius: Yeah, thanks for the congratulations, Noah. And, you know, I think all of us at Clearway could not be in greater agreement with you about the really incredible track record of value creation that Chris's tenure here has spanned. You know, I think this is actually an extraordinarily smooth transition process, as Chris and I noted together when we had the opportunity to talk with you and others when we announced our succession. This is a business that we built together over more than a decade.

Greg: I think all of us a clear way it could not be and greater acquired with you about the really incredible track record of value creation that Chris's tenure here has spanned.

Greg: I think this is actually an extraordinarily smooth transition process as Chris and I had noted.

Greg: Together, when we had the opportunity to talk with you and others.

Greg: When we announced our succession.

Greg: This is a business that we built together over more than a decade the people who.

Craig Cornelius: The people who together comprised the nearly 1,000 employees of Clearway in aggregate have been colleagues to each other over that 10 years, and in many cases, even more time. And we operate already as a very integrated enterprise in everything from our approach to financial planning, to our underwriting and structuring of individual assets, to our planning of corporate capital allocation and long-term dividend policy. So, in a lot of respects, the management of this enterprise has been a joint collaboration of Chris and I over time, and it reflects the collaboration of people across the nation.

Greg: Together comprised of nearly 1000 employees of clear way.

Greg: In aggregate have been colleagues to each other over that 10 years and in many cases, even more time and we operate already has a very integrated enterprise in everything from.

Greg: Our approach to financial planning to our underwriting and structuring of individual assets to our planning of corporate capital allocation and long term dividend policy. So.

Greg: And a lot of respects the management of this enterprise has been a joint collaboration of Chris and I over time and it reflects collaboration of people across the nation and in pretty much every respect everybody is continuing to do their work and the way that they did beat.

Craig Cornelius: And in pretty much every respect, everybody is continuing to do their work in the way that they did before. So, I think this transition is actually about as smooth as you possibly could imagine. As you've noted, I think a key hallmark for us in terms of capital allocation and planning for Clearway Energy Inc. is that we will continue on with the business model that has been very successful for us to date.

Greg: Before so I think this.

Greg: This transition is is actually about as smooth as you, possibly could imagine and as you've noted I think a key hallmark for us in terms of capital allocation and planning for Clearway Energy, Inc. Is that we will continue on with the business model that has been very successful for us to date. So.

Craig Cornelius: So, that's absolutely a starting point. I think we are at a juncture here now where we have the opportunity to look ahead. I think to the extent that there are new things afoot, it's really going to be a function of what the dynamic energy markets provide us as an opportunity, and we feel quite good about what those can ultimately provide for Clearway Energy Inc. as we look forward.

Greg: That's absolutely a starting point.

Greg: I think.

Greg: We are at a juncture here now where we have the opportunity to look ahead and.

Greg: I think to the extent that there are new things that foot, it's really going to be a function of what the dynamic energy markets provide us as an opportunity and we feel quite good about what those can can ultimately provide for clearway energy Inc. As we look forward.

Speaker Change: Thanks for that color Craig.

Craig Cornelius: Thanks for that caller, Craig. Hoping you could give us an update. Wearing one of your hats on the development side, we've heard from some of the equipment providers into the solar space so far this quarter around some project delays, and obviously, there's just very robust demand for power, given one of my peers' earlier comments around data center and other load growth. But just talk about what you're seeing in terms of bottlenecks, gating factors, and how you view the timetables and trajectory for the key projects you have under development.

Speaker Change: You could give us an update.

Speaker Change: We're in one of your hats on the development side.

Craig: We've heard from some of the.

Speaker Change: Equipment providers into the solar space so far this.

Speaker Change: This quarter around some project.

Speaker Change: Delays and.

Speaker Change: There is just very robust demand for power given.

Speaker Change: Mike.

Speaker Change: Peers earlier comments around data center, another load growth, but just talk about what you're seeing in terms of bottlenecks gating factors and how you're viewing kind of the timetables and trajectory for the key projects you have under development.

Craig Cornelius: Yeah, yeah. I think one of the things that we're very proud of about ClearWay, as we've built it up over time, is just the overall quality of craftsmanship that we bring to our work in every dimension, which includes the way that we develop projects, structure them, and obtain supplies for them. You know, I think something that we've demonstrated over the last five years is that, in general, we have demonstrated thoughtfulness around potential risks and supply chain or policy disruptions that has allowed our company to continue executing projects where sometimes peers have been less able to do so.

Speaker Change: Yes.

Speaker Change: Yes, I mean, I think one of the things that we're very proud of about clear way.

Speaker Change: We built it up over time is just the overall quality of craftsmanship that we bring to our work in every dimension.

Speaker Change: Which includes the way that we develop projects structure them and obtain supplies for them.

Speaker Change: I think something that we've demonstrated.

Speaker Change: Over the last five years is that in general we have.

Speaker Change: Demonstrated a thoughtfulness around potential risks in supply chain or policy disruptions that.

Speaker Change: <unk> has allowed our company to continue executing projects, where sometimes peers have been less able to do so.

Craig Cornelius: And, you know, I think that's something that's certainly occurring now again. So we invested pretty heavily in high-voltage equipment supply over the course of the last few years. I think we did that ahead of peers, which helps secure execution-type timetables for us and for the utility customers that we serve and need to interconnect us. I think we were pretty thoughtful about establishing domestic content supply chains for all of the wind and solar and battery projects, which can convey additional value and fundamental economic returns for projects but also assure that the projects can be executed when policy changes may make it more difficult to import certain equipment. And again, we've done that.

Speaker Change: And I think that's something that's certainly occurring now again, so we invested pretty heavily around high voltage equipment supply.

Speaker Change: Over the course of the last few years I think we did that ahead of peers, which helped secure execution type timetables for us and for the utility customers that we serve and need to interconnect us.

Speaker Change: I think we were pretty thoughtful about establishing domestic content supply chains.

Speaker Change: For all of wind and solar and battery projects.

Speaker Change: Which both.

Speaker Change: Ken convey additional value and funded and fundamental economic returns for projects, but also assure that the projects can be executed when policy changes may make it more difficult to import certain equipment and again, we've done that we've previously announced that we had established domestic content supply chains for example.

Craig Cornelius: We previously announced that we had established domestic content supply chains, for example, for solar and battery projects. And those supply chains are absolutely going to help us underpin the execution timetables that we have projects for over the late-stage pipeline we've identified through 2026 and 2027. And, you know, I think, as you're probably alluding to, with respect to potential near-term disruptions for solar projects, we don't face a risk of those based on the more recent solar trade cases that have been formulated based on the format of the supply chains that we're maintaining and our contractual relationships in the format of that trade case.

Speaker Change: For solar and for battery project.

Speaker Change: And thats the supply chains are absolutely going to help us underpin the execution timetables that we have projects for over the late stage pipeline, we'd identified through 2026 and 2027.

Speaker Change: And I think as you are probably alluding to with respect with respect to potential near term disruptions for solar projects.

Speaker Change: We don't face the risk of those based on the more recent solar trade cases that have been formulated based on.

Speaker Change: The format of the supply chain that we're maintaining and our contractual relationships in the format of that trade case, So we feel very good about.

Craig Cornelius: So we feel very good about fulfilling the projects that we've offered already, the new ones that have, that are pending offers, and the timetables that are shown here. We also feel very good about the family of supply chain solutions that are required to continue to advance the 4.4 gigawatts of late-stage projects that we've identified for growth over 2026 to 2029.

Speaker Change: Fulfillment of the projects that we've offered already the new ones that have.

Speaker Change: That that are pending offer and the timetables that are shown here and we feel also very good about the family of supply chain solutions that are required to continue to advance. The four four gigawatts of late stage projects that we've identified for growth over 26% to 29.

Speaker Change: Very clear and detailed thank you.

Noah Duke Kaye: Very clear and detailed. Thank you.

Speaker Change: Thank you and as a reminder to ask a question. Please press star one on your telephone one moment for our questions.

Operator: Thank you. And as a reminder, to ask a question, please press star one one on your telephone. One moment for questions. Our next question comes from Alex Kania with Marathon Capital. You may proceed.

Speaker Change: Our next question comes from Alex Kania with Marathon capital you May proceed.

Alexis Stephen Kania: Hey, good morning. First of all, you know, again, congrats to both Chris and Craig on the new future roles and everything.

Alex Kania: Hey, good morning first of all again congrats.

Alex Kania: The question Craig.

Alex Kania: The new future roles and everything so that's great.

Alexis Stephen Kania: So that's great. Maybe I'm thinking about the battery opportunities, you know, certainly with this, the new framework for development, joint development of effectively, I guess, retrofitting batteries to existing renewables. I was just wondering if you could talk a little bit more about what that opportunity means in a greater context among the whole portfolio. And then, you know, what were the kind of financial thoughts behind moving forward with that? Are battery prices low enough and returns high enough that this makes a lot of sense today?

Alex Kania: Maybe.

Alex Kania: Thinking about the battery opportunities certainly with this.

Alex Kania: The new framework for development joint development.

Alex Kania: Effectively I guess retrofitting battery to existing renewables.

Speaker Change: Wondering if you could talk a little bit more about what that opportunity means.

Speaker Change: And a greater context, among the whole portfolio and then.

Alexis Stephen Kania: Maybe, you know, even preferable to, you know, other types of renewable development. I just want to kind of think about where that, where the batteries, you know, show up in the hierarchy of investment opportunities. Yeah, sure.

Speaker Change: What was the maybe financial thoughts behind moving forward with that as our battery prices low enough and returns high enough that this makes a lot of sense today, maybe even preferable to.

Speaker Change: The other types of renewable development I, just want to kind of think about like where that where the batteries.

Speaker Change: Up in the hierarchy of investment opportunities.

Speaker Change: Yes sure.

Craig Cornelius: Yeah, sure. Well, I think something that you may have noticed over the course of the last few years was that Clearway launched a pretty substantial development investment campaign to create opportunities both for greenfield construction of batteries, as well as increasingly additions of batteries at sites that already house operating renewable projects that are owned by CUN. And we did that, being a major incumbent in the West, recognizing that it was likely that regulators and load serving entities would have a need to procure incremental capacity to be able to enhance grid reliability and that they would exhibit a preference to do that wherever possible with batteries.

Speaker Change: Well I mean I think.

Speaker Change: Something that you may have noticed over the course of the last few years with that clear way.

Speaker Change: Surged pretty substantial development investment campaign too.

Speaker Change: Create opportunities both for Greenfield construction of batteries as well as increasingly.

Speaker Change: Additions of batteries that place that already.

Speaker Change: Operating renewable projects that are owned by <unk> and.

Speaker Change: And we did that being.

Speaker Change: A major incumbent in the west recognizing that it was likely that regulators and load serving entities would have a need to procure incremental.

Speaker Change: Capacity.

Speaker Change: To be able to enhance grid reliability and that they would exhibit a preference to doing that wherever possible with batteries and that puts us in a position in those markets of the west to be able to execute.

Craig Cornelius: And that puts us in a position in those markets of the West to be able to execute revenue contract structures that are favorable, extremely favorable for the company in duration and settlement terms, as well as price.

Speaker Change: New contract structures that are favorable extremely favorable for the company in duration and the settlement terms as well as price and.

Speaker Change: That's something that you can see in the hybridized solar and battery projects that we've just completed this past year and with <unk> now has an ownership interest in California. The most recent set of projects that we've offered and signed commitments around in the case of Rosemont, South and that are pending in the case of Luna Valeant Doug at one.

Craig Cornelius: And that's something that you can see in the hybridized solar and battery projects that we just completed this past year and in which CUN now has an ownership interest in California, the most recent set of projects that we've offered and signed commitments around in the case of Rosamond South and that are pending in the case of Luna Valley and Daggett One. But it also includes situations like this one for the Utah projects where acreage adjacent to our existing projects and grid capacity in those locations can accommodate additional batteries, and the types of duration on toll contracts for those batteries that we're able to secure, in a lot of respects, are the most favorable types of tenors that can be achieved in today's market because of how essential those battery resources are.

Speaker Change: But it also includes situations like this one for the Utah projects, where acreage adjacent to our existing projects.

Speaker Change: And grid capacity in those locations can accommodate additional batteries and the types of duration on toll contracts for those batteries that were able to secure and a lot of respect our.

Speaker Change: The most favorable types of tenors that can be achieved in today's market because of how essential of those battery resources are with respect to costs.

Craig Cornelius: With respect to costs, yeah, I think we've been really collectively pleased across the industry about the continuing improvements in performance, efficacy, and safety of batteries, as well as the cost structure for manufacturing and delivering them, and constructing them. It's reminiscent of the kind of evolution that we saw in the industry for solar over 2011 to 2015. And, you know, that cost structure and the execution experience that we as a company are growing and the industry generally makes these resources, I think, extremely executable for construction and also highly performing when in operation.

Speaker Change: Yes, I think we've been really collectively pleased across the industry about.

Speaker Change: The continuing improvements in performance efficacy and safety of batteries as well as the cost structure for manufacturing and delivering them in constructing them.

Speaker Change: It's reminiscent of the kind of evolution that we saw in the industry for solar over 2011 to 2015.

Speaker Change: And that cost structure and the execution experience that we as a company are growing and the industry is generally makes these resources I think.

Speaker Change: Extremely executable for construction and also high performing when an operation and so we really like the fact that we've got.

Craig Cornelius: And so we really like the fact that we've got as many projects as we do gigawatts of them in the Western U.S., in places where load-serving entities and utilities need to firm those renewable resources with batteries and the kind of execution capability we've built up. So these are very attractive investment opportunities for CWIN in structure and return, and we hope that these first projects, which we're calling Honeycomb, are the shape of a lot to come.

Speaker Change: As many projects as we do gigawatts of them in the Western U S. In places where load serving entities in utilities need to firm those renewable resources with batteries and the kind of execution capability. We built up. So these are very attractive investment opportunities for <unk> and structure and return and we hope.

Speaker Change: That these first projects that were calling honeycomb or the shape of a lot to come.

Speaker Change: Thank you.

Speaker Change: Thank you.

Speaker Change: Okay.

Craig Cornelius: I would now like to turn the call back over to Craig Cornelius, incoming president and CEO of Clearway Energy Inc., for closing remarks.

Speaker Change: I would now like to turn the call back over to Craig Cornelius incoming President and CEO of Clearway Energy, Inc. For closing remarks.

Craig Cornelius: Thank you everyone for joining us today and for your ongoing support of Clearway Energy, Inc. We look forward to what the days ahead have in store and to our next conversation in the quarter ahead, operator, you can close the call.

Craig Cornelius: Thank you everyone for joining us today and for your ongoing support of Clearway Energy Inc. We look forward to what the days ahead have in store and to our next conversation in the quarter ahead. Operator, you can close the call.

Speaker Change: Thank you. This concludes the conference. Thank you for your participation you may now disconnect.

Operator: Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Craig Cornelius: Yes.

Craig Cornelius: [music].

Craig Cornelius: Okay.

Craig Cornelius: Okay.

Craig Cornelius: Yes.

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