Q4 2024 Brookfield Renewable Corp Earnings Call

January 31, 2025

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Speaker Change: I would now like to hand, the conference over to your Speaker today, Connor Tusky Chief Executive Officer. Please go ahead.

Yeah.

Connor Tusky: Thank you operator and good.

Speaker Change: Good morning, everyone and thank you for joining us for our fourth quarter 2024 conference call.

Speaker Change: Before we begin we would like to remind you that a copy of our news release Investor supplement and letter to unit holders can be found on our website. We also want to remind you that we may make forward looking statements on this call. These statements are subject to known and unknown risks and our future results may differ materially for.

Speaker Change: For more information you are encouraged to review our regulatory filings available on SEDAR, Edgar and on our website.

Speaker Change: Before starting we would like to welcome Patrick Taylor, our newly appointed CFO to the call.

Speaker Change: We are thrilled to have Patrick on the team as we continue to add depth and talent to our leadership group.

Speaker Change: On today's call, we will provide a review of our 2020 for performance.

Speaker Change: And then why it will discuss our growth outlook in the U S and globally.

Speaker Change: And then lastly, Patrick will conclude the call by discussing our operating results.

Speaker Change: Recent asset recycling activities and our financial position.

Speaker Change: Following our prepared remarks, we look forward to taking your questions.

Speaker Change: Now before going through our 2024 results.

Speaker Change: We wanted to comment briefly on the current environment.

Speaker Change: Following several decades of modest electricity demand growth, we are experiencing a dramatic shift in demand driven by the AI Revolution, one of if not the most significant advancement in technology in our lifetime.

Speaker Change: This is driving a significant step change in demand for our product supporting our continued and accelerating growth.

Speaker Change: And while the renewable sector has traded down in the public markets on weaker sentiment stemming from the new U S administrations announced executive orders and potential policy changes for renewables.

Speaker Change: The simple fact is that the fundamentals for energy have never been better.

Speaker Change: The low cost renewable technologies that we have built our business on are the cheapest form of electricity production and are seeing greater demand than ever before.

Speaker Change: As a result.

Speaker Change: We believe that low cost renewables, which are readily available to deploy we'll play a leading role in the requirements for any and all increases in generation capacity that we are already seeing unfold.

Speaker Change: Our focus on the lowest cost most mature renewables technologies that have the greatest demand from corporate customers and are not reliant on government subsidy has positioned us well to benefit in the current environment.

Speaker Change: We have no exposure to the sectors of the market, which are seeing the greatest headwinds and we feel we are best positioned across the industry to capture the accelerating corporate demand.

As a result, we believe that low cost renewables, which are readily available to deploy we'll play a leading role in the requirements for any and all increases in generation capacity that we are already seeing unfold.

Speaker Change: With our extensive 200000 megawatt development pipeline, which is highly concentrated in the top data center markets globally.

Speaker Change: Executing our business plan will create significant value in our company and as market sentiment passes we expect to see that translate into the price of our shares.

Our focus on the lowest cost most mature renewables technologies that have the greatest demand from corporate customers and are not reliant on government subsidy has positioned us well to benefit in the current environment.

Speaker Change: The current market dislocation is also presenting significant investment opportunities for us.

Speaker Change: Our strong liquidity and robust funding model combined with lower public share prices across the sector and increased uncertainty for private market investors could also create the opportunity to acquire assets for value and further grow our business.

We have no exposure to the sectors of the market, which are seeing the greatest headwinds and we feel we are best positioned across the industry to capture the accelerating corporate demand.

With our extensive 200000 megawatt development pipeline, which is highly concentrated in the top data center markets globally.

Speaker Change: Turning now to our results.

Speaker Change: 2024 was another record year for our business.

Speaker Change: We delivered our strongest operating and financial results ever and position the business for significant further growth and value creation in the future.

Executing our business plan will create significant value in our company and as market sentiment passes we expect to see that translate into the price of our shares.

Speaker Change: We delivered 10% <unk> per unit growth year on year as we benefited from our inflation linked and contracted cash flows contributions from acquisitions.

The current market dislocation is also presenting significant investment opportunities for us.

Our strong liquidity and robust funding model combined with lower public share prices across the sector and increased uncertainty for private market investors could also create the opportunity to acquire assets for value and further grow our business.

Speaker Change: And the execution of various organic growth and value creation initiatives across our business, including the sale of Derisked operating assets and platforms, which generated strong returns and are now very much a regular and ongoing part of our business.

Turning now to our results.

24 was another record year for our business.

Speaker Change: We exceeded our capital deployment targets investing $12 5 billion and some outstanding businesses.

We delivered our strongest operating and financial results ever and position the business for significant further growth and value creation in the future.

Speaker Change: Including our investment in global renewable operator and developer Neyland.

We delivered 10% <unk> per unit growth year on year as we benefited from our inflation linked and contracted cash flows contributions from acquisitions.

Speaker Change: During the year, we advanced our commercial initiatives and continued to partner with the largest buyers of clean power globally, signing contracts for almost 19000 gigawatt hours per year of generation again.

And the execution of various organic growth and value creation initiatives across our business, including the sale of Derisked operating assets and platforms, which generated strong returns and are now very much a regular and ongoing part of our business.

Speaker Change: Another record performance and indicative of the incredible supply demand imbalance in favor of our product.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: We also signed the landmark renewable energy framework agreement with Microsoft in May a green to deliver 10, five gigawatts of new renewable energy capacity between 2020 fixed in 2030 in the U S and Europe.

We exceeded our capital deployment targets in that.

<unk> 12, 5 billion and some outstanding businesses, including our investment in global renewable operator and developer Neyland.

Speaker Change: And today, we are on track to not only meet but exceed our delivery targets.

During the year, we advanced our commercial initiatives and continued to partner with the largest buyers of clean power globally.

Speaker Change: This agreement will assist our fifth Microsoft data center growth and supported investment in AI powered cloud services, which continue to accelerate.

Mining contracts for almost 19000 gigawatt hours per year of generation again.

Another record performance and indicative of the incredible supply demand imbalance in favor of our product.

Speaker Change: The global Hyperscale layers are significantly ramping up investment in their data center infrastructure and are expected to continue to increase investment tremendously through the remainder of the decade.

Okay.

We also signed a landmark renewable energy framework agreement with Microsoft in May a green to deliver 10, five gigawatts of new renewable energy capacity between 2026 and 2030 in the U S and Europe and today, we are on track to not only meet but exceed our delivery targa.

Speaker Change: Power is increasingly a bottleneck to this planned data center development.

Speaker Change: And we are seeing these businesses ramp up their efforts to secure supply to ensure the delivery of their growth.

Speaker Change: Our agreement with Microsoft is a testament to our differentiated capabilities and we expect to continue to partner with the largest buyers of power going forward.

Yes.

This agreement will assist assist Microsoft data center growth and supported investment in AI powered cloud services, which continue to accelerate.

Speaker Change: This year, we commissioned a record 7000 megawatts of new capacity globally.

The global Hyperscale are significantly ramping up investment in their data center infrastructure and are expected to continue to increase investment tremendously through the remainder of the decade.

Speaker Change: Most seven times the capacity, we brought online just three years ago.

Speaker Change: And with our expanding development capabilities. We are also successfully grown our asset rotation activities.

Power is increasingly a bottleneck to this planned data center development and we are seeing these businesses ramp up their efforts to secure supply to ensure the delivery of their growth.

Speaker Change: We generated a record $2 8 billion of proceeds in 2024, and an average return of 25% IRR and approximately two five times, our invested capital crystallizing strong returns for our shareholders and generating significant capital to fund future growth.

Our agreement with Microsoft is a testament to our differentiated capabilities and we expect to continue to partner with the largest buyers of power going forward.

Speaker Change: Again, this positions us well in the current market.

This year, we commissioned a record 7000 megawatts of new capacity globally, almost seven times the capacity, we brought online just three years ago.

Speaker Change: We have continued to be uncompromising in how we fund our business and our balance sheet remains among the strongest in the sector.

Speaker Change: We executed record financings this past year and finished the year with $4 3 billion of liquidity to Opportunistically fund our growth.

And with our expanding development capabilities. We are also successfully grown our asset rotation activities.

We generated a record $2 8 billion of proceeds in 2024, and an average return of 25% IRR and approximately two five times, our invested capital crystallizing strong returns for our shareholders and generating significant capital to fund future growth.

Speaker Change: With our record results and in conjunction with our strong liquidity and robust outlook for our business. We are pleased to announce an over 5% increase in our annual distribution to $1 49, two cents per unit.

Speaker Change: Since Brookfield renewable with publicly listed in 2011, we have delivered 14 consecutive years of annual distribution growth of at least 5% per year.

Again, this positions us well in the current market.

We have continued to be uncompromising in how we fund our business and our balance sheet remains among the strongest in the sector.

Speaker Change: With that.

Speaker Change: We will now turn it over to Wyatt to further discuss our growth outlook in the U S and globally and how we are positioned to capitalize in the current market.

We executed record financings this past year and finished the year with $4 $3 billion of liquidity to Opportunistically fund our growth.

Speaker Change: Okay.

Thank you Conor and good morning, everyone.

With our record results and in conjunction with our strong liquidity and robust outlook for our business. We are pleased to announce an over 5% increase in our annual distribution to $1 49 to <unk>.

Speaker Change: As <unk> outlined in his remarks, there has been elevated volatility in public markets, reflecting uncertainty on potential regulatory changes affecting the renewable sector in the U S.

<unk> per unit.

Since Brookfield renewable with publicly listed in 2011, we've delivered 14 consecutive years of annual distribution growth of at least 5% per year.

Speaker Change: And while we see potential for regulatory changes we.

Speaker Change: We do not expect any material adjustments to the policies that have the greatest impact on our business.

Speaker Change: These are large as these largely have bipartisan support.

With that.

We will now turn it over to Wyatt to further discuss our growth outlook in the U S and globally and how we are positioned to capitalize in the current market.

Speaker Change: More important to our business or the current fundamentals for power.

Speaker Change: Globally and in the U S. Specifically the demand for electricity continues to accelerate at an incredible rate.

Okay.

Wyatt: Thank you Conor and good morning, everyone.

Speaker Change: Driven by broad based electrification of major industries, and the global energy grid.

Speaker Change: And a generational step change in demand for power to drive the AI Revolution.

Speaker Change: And while we see potential for regulatory changes.

Speaker Change: We also expect that supportive fiscal policy in the U S. We will drive further growth and manufacturing data center development and industry in the country, which will in turn drive further electricity demand.

Speaker Change: We do not expect any material adjustments to the policies that have the greatest impact on our business.

Speaker Change: These are large as these largely have bipartisan support.

Speaker Change: More important to our business or the current fundamentals for power.

Speaker Change: As a result, the growth prospects for low cost mature renewable technologies are better than at any point in history as they play a leading role in any and all increase in generation capacity.

Speaker Change: Globally and in the U S. Specifically the demand for electricity continues to accelerate at an incredible rate.

Speaker Change: Driven by broad based electrification of major industries, and the global energy grid.

Speaker Change: Simply put off takers of power will naturally take as much of the lowest cost solutions renewable before turning to other forms of generation to meet their needs.

Speaker Change: <unk>, a generational step change in demand for power to drive the AI Revolution.

Speaker Change: Yes.

Speaker Change: We also expect that supportive fiscal policy in the U S will drive further growth in manufacturing.

Speaker Change: As growing energy demand is being met with the Newbuild capacity. It has created two challenges transmission availability and grid stability.

Speaker Change: <unk> Center development and industry in the country, which will in turn drive further electricity demand.

Speaker Change: We see large scale battery systems and distributed generation is increasingly important parts of the solution.

Speaker Change: As a result, the growth prospects for low cost mature renewable technologies are better than at any point in history as they play a leading role in the Andean all increase in generation capacity.

Speaker Change: The grid scale batteries being developed today are able to charge with the Sun is shining and when the wind is low end and then discharge power at other times, enabling a more consistent power supplier.

Simply put off takers of power will naturally take as much of the lowest cost solutions renewable before turning to other forms of generation to meet their needs.

Speaker Change: Further by charging wind power's cheap and plentiful and distributed with powers scarce and in demand.

Speaker Change: Batteries are increasingly lucrative.

Speaker Change: As growing energy demand is being met with the Newbuild capacity. It has created two challenges transmission availability and grid stability.

Speaker Change: Distributed generation is also able to reduce demand during peak hours and provide backup power with grids are strained.

Speaker Change: The modular nature of both these technologies also makes them relatively easy to deploy almost anywhere.

Speaker Change: We see large scale battery systems and distributed generation.

Speaker Change: <unk> important parts of the solution.

Speaker Change: As batteries become more cost effective with cost declined at over 90% of the past decade.

Speaker Change: The grid scale batteries being developed today are able to charge, where the sun is shining and the wind is blowing and then discharge power at other times, enabling a more consistent power supplier.

Speaker Change: We expect that they will become a significant component of stabilizing the world's transmission grids and supported the accelerated build out of low cost mature renewable technologies.

Speaker Change: Further by charges when powers cheap and plentiful and distributed with powers scarce and in demand.

Speaker Change: At the end of 2024, we made our largest investment ever and our renewable power and transmission business with our investment in <unk>, a leading global renewable platform with best in class management and market leading positions in each of France, Australia and the Nordics.

Speaker Change: Batteries are increasingly lucrative.

Speaker Change: Distributed generation is also able to reduce demand during peak hours and provide backup power when grids are strained.

Speaker Change: The modular nature of both these technologies also makes them relatively easy to deploy almost anywhere.

Speaker Change: What may not be appreciated.

Speaker Change: <unk> is also a leading global operator and developer of battery energy storage systems.

Speaker Change: As batteries become more cost effective with cost declined at over 90% of the past decade.

Speaker Change: Technology that we are increasingly investing in it.

Speaker Change: With growing demand lower capital costs and higher potential revenues from stabilizing services. We are focused on deploying capital into battery battery energy storage solution in almost all markets.

Speaker Change: At the end of 2024, we've made our largest investment ever and our renewable power and transmission business with our investment in <unk>, a leading global renewable platform with best in class management and market leading positions in each of France, Australia and the Nordics.

Speaker Change: And with this investment we are one of the largest battery developers globally with 3300 megawatts of operated and under construction under construction capacity, an additional 35000 megawatts in our pipeline.

Speaker Change: What may not be appreciated.

Speaker Change: With the supportive demand backdrop, and the combination of our global scale significant access to capital and our combined operating and development capabilities across multiple suites of technologies, including Hydro wind utility scale solar distributed generation and storage to name a few.

<unk> is also a leading global operator and developer of battery energy storage systems.

Speaker Change: Technology that we are increasingly investing in it.

Speaker Change: We can deliver differentiated solutions to our customers few others can.

Speaker Change: Thereby generating significant value for our shareholders over the long term.

Speaker Change: And with that I'll pass it on to Patrick to discuss our operating results recent capital recycling initiatives and financial position.

Patrick Taylor: Thanks, a lot and.

Speaker Change: And good morning to everyone on the call are.

Speaker Change: Our business performed well this year delivering record results in the fourth quarter.

Speaker Change: Delivered <unk> of $304 million or.

Speaker Change: A <unk> 46 per unit up from 38 per unit in the same quarter last year representing.

Speaker Change: Representing a 21% increase year on year.

Speaker Change: We can deliver differentiated solutions to our customers few others can.

Speaker Change: On a full year basis, we delivered <unk> of $1 2 billion.

Speaker Change: Thereby generating significant value for our shareholders over the long term.

Speaker Change: Our $1 83 per unit up 10% year on year.

And with that I'll pass it on to Patrick to discuss our operating results recent capital recycling initiatives and financial position.

Speaker Change: Looking now at our segments.

Speaker Change: Our hydroelectric business generated solid results benefiting from a strong second half of the year from our Colombian business Isa home, helping offset weaker hydrology in North America.

Patrick: Thanks, Wyatt and good morning to everyone on the call.

Patrick: Our business performed well this year delivering record results in the fourth quarter.

Speaker Change: Our wind and solar segments generated record funds from operations, which were up 30% from last year as we benefited from a full year contribution from our recent acquisitions.

Patrick: <unk> delivered <unk> of $304 million or.

Patrick: Or <unk> 46 per unit up from 38 per unit in the same quarter last year, representing a 21% increase year on year.

Speaker Change: Our distributed energy storage and sustainable solutions segments also generated record results up 78% year on year with a full year contribution from Westinghouse, where we continue to see positive momentum.

Patrick: On a full year basis, we delivered <unk> of $1 2 billion.

Patrick: Our $1 83 per unit up 10% year on year.

Speaker Change: On the capital recycling front the.

Patrick: Looking now at our segments, our hydroelectric business generated solid results benefiting from a strong second half of the year from our Colombian business Isa home, helping offset weaker hydrology in North America.

Speaker Change: The strong fundamentals for power are benefiting our business as we are able to sell our derisked operating assets and portfolios to lower cost of capital buyers, who are looking for long life real assets delivering reliable cash flows.

Patrick: Our wind and solar segments generated record funds from operations, which were up 30% from last year as we benefited from a full year contribution from our recent acquisitions.

Speaker Change: Since 2020, we have generated almost $6 billion in proceeds at an average IRR of approximately 22% and a $2 one times multiple on invested capital.

Patrick: Our distributed energy storage and sustainable solutions segments also generated record results up 78% year on year with a full year contribution from Westinghouse, where we continue to see positive momentum.

Speaker Change: This year, we closed the sale of Scioto, where we realize the significant value we created through operational enhancements and the build out of their development function.

Patrick: On the capital recycling front the.

Speaker Change: Generating three times, our invested capital over a relatively short hold period.

Patrick: The strong fundamentals for power are benefiting our business as we are able to sell our derisked operating assets and portfolios to lower cost of capital buyers, who are looking for long life real assets delivering reliable cash flows.

Speaker Change: We also closed the sale of a 50% interest in shepherds slot, where we executed one of the largest wind repowering projects ever crystallizing significant value.

Speaker Change: Asset recycling will continue as a reliable and consistent way for us to deliver strong returns for our shareholders and generate capital to fund growth.

Patrick: Since 2020, we have generated almost $6 billion in proceeds at an average IRR of approximately 22% and a $2 one times multiple on invested capital.

Speaker Change: We expect to build off the strong momentum in 2025, and deliver even larger and more recurring monetization in the future.

Patrick: This year, we closed the sale of <unk>, where we realize the significant value we created through operational enhancements and the build out of their development function.

Speaker Change: Similarly healthy returns.

Speaker Change: Looking now at our financial position.

Speaker Change: Our balance sheet remains strong and we continue to execute well within our self funding model.

Patrick: Generating three times, our invested capital over a relatively short hold period.

Patrick: We also closed the sale of a 50% interest in shepherds slot, where we executed one of the largest wind repowering projects ever crystallizing significant value.

Speaker Change: We finished the year with $4 3 billion in liquidity, providing us with significant flexibility to deploy capital opportunistically to support the growth of the franchise.

Patrick: Asset recycling will continue as a reliable and consistent way for us to deliver strong returns for our shareholders and generate capital to fund growth.

Speaker Change: During the year, we successfully completed nearly $27 billion in financings opportunistically, extending duration and optimizing our portfolio and capital structure.

Patrick: We expect to build off the strong momentum in 2025, and deliver even larger and more recurring monetization in the future.

Speaker Change: <unk> executing $800 million of up financings to support growth initiatives.

Patrick: Similarly healthy returns.

Speaker Change: With our staggered contract profile. We also have a healthy pipeline of generation coming up for re contracting over the next five years.

Patrick: Looking now at our financial position.

Patrick: Our balance sheet remains strong and we continue to execute well within our self funding model.

Speaker Change: This should create significant additional up financing capacity within this portfolio.

Patrick: We finished the year with $4 3 billion in liquidity, providing us with significant flexibility to deploy capital opportunistically to support the growth of the franchise.

In closing.

Speaker Change: We remain focused on delivering 12% to 15% long term total returns for our investors, while remaining disciplined allocators of capital leveraging our deep funding sources and operational capabilities to enhance and de risk our business.

Patrick: During the year, we successfully completed nearly $27 billion in financings opportunistically, extending duration and optimizing our portfolio and capital structure.

Speaker Change: On behalf of the board and management, we thank all of our unit holders and shareholders for their ongoing support.

Patrick: <unk> executing $800 million of up financings to support growth initiatives.

Speaker Change: We are excited about Brookfield renewable future and look forward to updating you on our progress throughout 2025.

Patrick: With our staggered contract profile. We also have a healthy pipeline of generation coming up for re contracting over the next five years.

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

Patrick: This should create significant additional up financing capacity within this portfolio.

Speaker Change: As a reminder.

Patrick: In closing.

Speaker Change: 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.

Patrick: We remain focused on delivering 12% to 15% long term total returns for our investors, while remaining disciplined allocators of capital leveraging our deep funding sources and operational capabilities to enhance and de risk our business.

Speaker Change: Please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Sean Stewart with TD Cowen.

Patrick: On behalf of the board and management, we thank all of our unit holders and shareholders for their ongoing support we.

Patrick: We are excited about Brookfield renewable future and look forward to updating you on our progress throughout 2025.

Sean Stewart: Thanks, Good morning, everyone, congratulations too wide and Patrick.

Speaker Change: A couple questions Connor with respect to the Microsoft framework agreement.

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

Speaker Change: Referenced exceeding targets and I'm wondering if you can give a little more context, there is that more.

Patrick: 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.

Speaker Change: More capacity potentially being built into that agreement or is it.

Speaker Change: <unk> development timeline.

Speaker Change: Detail you can give us there.

Patrick: Please standby, while we compile the Q&A roster.

Speaker Change: Hi, Sean.

Sean Stewart: Yes, really two things there, obviously that agreement sorry, I shouldn't say obviously.

Sean Stewart: Our first question comes from the line of Sean Stewart with TD Cowen.

Sean Stewart: That agreement is structured to deliver 10, five gigawatts between 2026 and 2030. The first point that we would make is on the back of structuring that agreement in 2024, we expect to deliver.

Speaker Change: Thanks, Good morning, everyone, congratulations too wide and Patrick.

Speaker Change: A couple of questions Connor with respect to the Microsoft framework agreement.

Sean Stewart: Have and will continue to deliver significant capacity to Microsoft ahead of 2026.

Speaker Change: Exceeding targets and I'm wondering if you can give a little more context there is that.

Speaker Change: More capacity potentially being built into that agreement or is it.

Sean Stewart: And Thats, obviously additional to the $10 five that will deliver over the five years in the latter half of the decade, and then secondly, just with the broader growth of our business.

Speaker Change: An expedited development timeline.

Speaker Change: Any detail you can give us there.

Speaker Change: Hi, Sean Yes, really two things there, obviously that agreement sorry, I shouldn't say obviously.

Sean Stewart: In the latter half of the decade, we would say that 10, five gigawatts is increasingly the floor not the ceiling.

Speaker Change: That agreement is structured to deliver 10, five gigawatts between 2026 and 2030. The first point that we would make is on the back of structuring that agreement in 2024, we expect to deliver.

Sean Stewart: We continue to add add to.

Sean Stewart: Development Advanced development pipeline in key data center markets around the world and we are seeing tremendous demand from Microsoft and the other hyperscale.

Speaker Change: And have and will continue to deliver significant capacity to Microsoft ahead of 2026.

Sean Stewart: For that product and as off take the pull those projects out of the ground. So we expect that in those five years will deliver well more than 10 five gigawatts.

Speaker Change: And Thats, obviously additional to the $10 five that will deliver over the five years in the latter half of the decade, and then secondly, just with the broader growth of our business.

Sean Stewart: Thanks for that.

Sean Stewart: And further to that it's been nine months since you announced that that agreement.

Speaker Change: In the latter half of the decade, we would say that 10, five gigawatts is increasingly the floor not the ceiling.

Can you give broader updates on efforts to replicate that that type of framework deal with with other corporates.

Speaker Change: We continue to add.

Sean Stewart: Absolutely and we'd probably frame it in two different ways.

Speaker Change: Development Advanced development pipeline in key data center markets around the world and we are seeing tremendous demand from Microsoft and the other hyperscale for that product and as off take the pull those projects out of the ground. So we expect that in those five years, we'll do.

Sean Stewart: No doubt on the back of that agreement, we are having discussions.

Sean Stewart: We would say with everyone you would expect when it comes to a potential broad based.

Sean Stewart: Power generation agreements, but I think it's important to recognize that those discussions can show up two different ways that are both beneficial for our business.

Speaker Change: Deliver well more than 10 five gigawatts.

Speaker Change: Thanks for that.

Speaker Change: And further to that it's been nine months since you announced that that agreement.

<unk>.

Sean Stewart: What we did with Microsoft as we announced an agreement that we will fill up over time over the five year.

Speaker Change: Can you give broader updates on efforts to replicate that that type of framework deal with with other corporates.

Sean Stewart: Period over which that agreement governance.

Speaker Change: Absolutely and we'd probably frame it in two different ways.

Sean Stewart: The other thing that we can do that is happening real time is we can just.

Speaker Change: No doubt on the back of that agreement, we are having discussions.

Sean Stewart: Do more and more activity with the Hyperscale is on a project by project basis, even outside of a global framework agreement and we are absolutely seeing that in real time across our business, we've delivered more projects and more power to them. In 2024, then 2023 and will deliver more power and projects to the <unk>.

Speaker Change: We would say with everyone you would expect when it comes to potential broad based ad.

Speaker Change: Power generation.

<unk>, but I think it's important to recognize that those discussions can show up two different ways that are both beneficial for our business.

Sean Stewart: Hyper scaler in 2025% in 2024, even absent those agreements. So while we are in discussions and May sign similar framework agreements in the future the demand showing up in our development activities on a project by project basis, regardless.

Speaker Change: <unk>.

Speaker Change: What we did with Microsoft as we announced an agreement that we will fill up over time over the five year period over which that agreement governance.

Speaker Change: The other thing that we can do that's happening real time is we can just.

Speaker Change: Okay. Thanks for that Tom and then just one last one.

Speaker Change: Do more and more activity with the hyperscale or on a project by project basis, even outside of a global framework agreement and we are absolutely seeing that in real time across our business, we've delivered more projects and more power to them. In 2024, then 2023 and will deliver more power and projects to the <unk>.

Sean Stewart: Asset recycling is an ongoing focus for funding.

Sean Stewart: We've seen lots of valuation pressure for public equities, but it sounds like returns for your asset recycling.

Sean Stewart: <unk> have held in just interested in your perspective on how that spread for returns between asset recycling.

Sean Stewart: And organic development could shift.

Speaker Change: Hyper scaler in 2025% in 2024, even absent those agreements. So while we are in discussions and May sign similar framework agreements in the future that demand showing up in our development activities on a project by project basis, regardless.

Sean Stewart: The spreads have been strong for you.

Sean Stewart: Over the last five years and in 2024, but any expectations on how that could shift in the near to midterm.

Sean Stewart: Sean It's a very topical question and we'd come out there's two different ways.

Speaker Change: Okay. Thanks for that Conor and then just one last one.

Sean Stewart: Absolutely one of the themes that debt.

Speaker Change: Asset recycling is an ongoing focus for funding.

Sean Stewart:

Sean Stewart: We're quite strong about in 2024 is a very very strong bifurcation of the market, where there is robust demand and incredible amounts of capital for high quality operating cash generative assets, particularly those that still have a growth angle to them. While there is.

Speaker Change: We've seen lots of valuation pressure for public equities, but it sounds like returns for your asset recycling initiatives have held in just interested in your perspective on how that spread for returns between asset recycling.

Speaker Change: And organic development could shift.

Speaker Change: Spreads have been strong for you.

Sean Stewart: Far less capital available for construction development, the building out and invest ongoing investment in the growth of platforms that bifurcation remains very very strong in the market today.

Over the last five years, and then 2024, but.

Speaker Change: Expectations on how that could shift.

Speaker Change: In the near to midterm.

Sean Stewart: Sean It's a very topical question and we'd come out thats two different ways.

Sean Stewart: As we've referenced in our prepared remarks, we expect our asset recycling activities to continue and we expect to really lean into that bifurcation looking to sell those those high quality cash generated operating derisked assets.

Absolutely one of the themes that debt.

Sean Stewart: We were quite strong about in 2024 is a very very strong bifurcation of the market, where there is robust demand and incredible amounts of capital for high quality operating cash generative assets, particularly those that still have a growth angle to them.

Sean Stewart: The other point that we would highlight that a little bit tangential to your question is there is also a very clear market bifurcation between the demand for exposure to renewables in private markets versus public markets. We continue to see significant private capital.

Sean Stewart: While there is far less capital available for construction development, the building out and invest ongoing investment in the growth of platforms that bifurcation remains very very strong in the market today.

Sean Stewart: NAND.

Sean Stewart: For the renewable power space.

Sean Stewart: The fact that certainly sentiment in the public market since meeker today and given our business model. We absolutely look we'll look to capitalize on that in 2025.

Thanks for that detail Conor that's all I have.

The other point that we would highlight that a little bit tangential to your question is there is also a very clear market bifurcation between the demand for exposure to renewables in private markets versus public markets. We continue to see significant private capital.

Speaker Change: Our next question comes from the line of Nelson <unk> with RBC capital markets.

Speaker Change: Great, Thanks, and congrats whiten and Patrick.

Speaker Change: The first question.

Speaker Change: Sticking with the data center theme.

Speaker Change: With their need for.

Sean Stewart: <unk>.

Sean Stewart: For the renewable power space, Despite the fact that <unk>.

Speaker Change: <unk> power and gas generation.

Speaker Change: Being more in favor generally in the market.

Sean Stewart: Certainly sentiment in the public market since weaker today and given our business model. We absolutely look we'll look to capitalize on that in 2025.

Speaker Change: What is your what are your thoughts in terms of developing or acquiring gas fired generation.

Speaker Change: We used to firm up your portfolio.

Conor: Thanks for that detail Conor that's all I have.

Speaker Change: Thanks Nelson.

Speaker Change: So just.

Speaker Change: Our next question comes from the line of Nelson <unk> with RBC capital markets.

Speaker Change: Thinking macro and then our approach to it.

Speaker Change: We believe that this step change.

Speaker Change: Great, Thanks, and congrats white and Patrick.

Speaker Change: And energy demand is good for all forms of power generation you can use your token phrase any and all of our all of the above the fact of the matter is the fundamental demand for electricity generation is going to lead to to support and growth across a number of <unk>.

Speaker Change: So first question.

Speaker Change: Just sticking with the datacenter theme.

Speaker Change: So with their need for firm power and gas generation.

Speaker Change: Being more in favor generally in the market.

Speaker Change: What is your what are your thoughts in terms of developing or acquiring gas fired generation.

Speaker Change: <unk> technologies, whether that's renewables, whether that's gas whether thats nuclear.

Speaker Change: It'd be used to firm up your portfolio.

Speaker Change: The thing that is very important for us and I think important to highlight on this call is.

Nelson: Thanks Nelson.

Speaker Change: So just.

Speaker Change: Off takers and users of electricity are always going to take as much renewables as they can because it is the cheapest and then they will look to fill out the remainder of their demand with other forms of power generation. So when we think about our business. It's obviously going to continue to be.

Speaker Change: Thinking macro and then our approach to it.

Speaker Change: We believe this step change increase in energy demand is good for all forms of power generation you can use your token phrase any and all of our all of the above.

Speaker Change: Back to the matter is the fundamental demand for electricity generation is going to lead to support and growth across a number of different technologies, whether that's renewables, whether that's gas whether thats nuclear.

Speaker Change: Credibly focused on renewable power.

Speaker Change: We do believe that gas will how the rule.

Speaker Change: In the transition and is going to see greater demand, but.

Speaker Change: But we would only ever considering investing in gas if it would result in the acceleration of the build out of renewables.

Speaker Change: The thing that is very important for us and I think important to highlight on this call is.

Speaker Change: And ultimately reduce the carbon intensity of the broader grid.

Speaker Change: And.

Speaker Change: Further in any such investment we would need to be seeing a more attractive risk adjusted return proposition than what we are seeing in the build out of renewables today, which is among as attractive as we've seen it at any point in history. So.

Speaker Change: Credibly focused on renewable power.

Speaker Change: We do believe that gas will have a role in that transition and is going to see greater demand but.

Speaker Change: Could we potentially invest in some thermals if it came as part of a broader portfolio.

Speaker Change: But we would only ever considering investing in gas if it would result in the acceleration of the build out of renewables.

Speaker Change: We wouldn't rule it out but our business is going to continue to be very focused on renewables, because that's simply where we're seeing the greatest amount of demand growth and the most attractive returns.

Speaker Change: And ultimately reduce the carbon intensity of the broader grid.

Speaker Change: And.

Speaker Change: Great that's great color Conor.

Speaker Change: Next question.

Speaker Change: And your point in terms of renewables being the cheapest form.

Speaker Change: Power, even in the U S, but with all the uncertainty in the U S.

Speaker Change: Can you just talk about how are they looking at your development pipeline you have about I think two gigawatts.

Speaker Change: Sure.

Speaker Change: Projects to be commissioned in 2025 and another three four gigawatts in 2006.

Speaker Change: Could we potentially invest in some thermals if it came as part of our broader portfolio.

Speaker Change: Can you just talk about how some of these contracts are structured.

Speaker Change: Just in terms of risk allocation, if there were any changes to the to the tax subsidies are they essentially pass through or or.

Speaker Change: Great that's great color Conor.

Speaker Change: How are they structured in general.

Speaker Change: Next question I understand your point in terms of renewables being the cheapest form of.

Speaker Change: Sure. So so theres really two important things there one across our business.

Power, even in the U S, but with all the uncertainty in the U S.

Speaker Change: We've always taken an approach.

Speaker Change: Can you just talk about how.

Speaker Change: Only locking in contracts when we can lock in cash.

Speaker Change: Looking at your development pipeline you have about I think two gigawatts.

Speaker Change: Capex revenue, meaning PPA EPC and financing upfront. So so we don't have what we would call basis risk exposure, where we've locked in capex and.

Speaker Change: Projects to be commissioned in 2025 and another three four gigawatts in 2006.

Speaker Change: Can you just talk about how some of these contracts are structured.

Speaker Change: Just in terms of risk allocation, if there were any changes to the.

Speaker Change: Or we've locked in revenue and one of the other variables could change and augment our returns the one.

Speaker Change: The tax subsidies are they essentially pass through or or how.

Speaker Change: One place in your question is a very good one.

Speaker Change: How are they structured in general.

Speaker Change: The one thing that we are seeing in the market right now because this is obviously very topical.

Speaker Change: Sure. So there's really two important things there one across our business.

Speaker Change: But right now in the United States is in many of the Ppas. We are locking in right now if there is a retroactive.

Speaker Change: We've always taken that approach.

Speaker Change: I've only locking in contracts when we can lock in cash.

Speaker Change: Capex revenue, meaning PPA EPC and financing upfront. So we don't have what we would call basis risk exposure, where we've locked in capex and.

Speaker Change: Change or a near term change to things like that.

Speaker Change: The tax credits there are we are increasingly putting adjusters and those ppas to essentially keep our development margins Hall. So that is increasingly becoming I would say market standard and I think it's reflective of a broader dynamic that it.

Speaker Change: Or we've locked in revenue and one of the other variables could change and augment our returns the one.

Speaker Change: One place in your question is a very good one.

Speaker Change: One thing that we are seeing in the market right now because this is obviously very topical.

Speaker Change: It's very simple.

Speaker Change: <unk> take or simply need the power and therefore.

Speaker Change: They're not going to let short term uncertainty stop them from signing contracts and they will ensure and they will do what is necessary to protect the developers in order to pull those projects out of the ground.

Speaker Change: But right now in the United States is in many of the Ppas, we are locking in right now.

Speaker Change: There is a retroactive.

Speaker Change: Change or a near term change to things like the tax credits. There are we are increasingly putting adjusters and those ppas to essentially keep our development margins Hall. So that is increasingly becoming I would say market standard and I think it's <unk>.

Speaker Change: Great. It's good to see that it's essentially a pass through and so one last question you mentioned, the public market versus private market and valuations.

Speaker Change: From your perspective, you've done a lot of acquisitions and developments in the past could you just comment on your capital allocation mix in the past few years compared to.

Speaker Change: Reflective of a broader dynamic that it it's very simple.

Speaker Change: <unk> take or simply need the power and therefore.

Speaker Change: What you see going forward your development pipeline is increasing but obviously with with some of the valuations we've seen in the public market.

Speaker Change: Do you expect to see.

Speaker Change: Do you expect to kind of step up your pace and.

Speaker Change: The acquisition of <unk>.

Speaker Change: Great it's good to see that.

Speaker Change: A public entities are or investments in public entities.

Speaker Change: Essentially pass through and so one last question you mentioned, the the public market versus private market and valuations.

Speaker Change: So.

Speaker Change: Maybe to hit that question.

Speaker Change: Very bluntly and head on.

Speaker Change: From your perspective, you've done a lot of acquisitions and developments in the past could you just comment on your capital allocation mix in the past few years compared to kind of <unk>.

Speaker Change: We expect to be very active this year from a growth perspective, just given one where public market valuations are and to the current market environment very much plays to our favor.

Speaker Change: What you see going forward your development pipeline is increasing but obviously with with some of the valuations we've seen in the public market.

Speaker Change: In that we are fortunate to have a.

Speaker Change: Do you expect to see.

Speaker Change: Yes.

Speaker Change: Do you expect to kind of step up your pace and.

Fortress balance sheet and lots of liquidity and we're seeing tremendous offtake demand.

Speaker Change: And the acquisition of <unk>.

Speaker Change: Public entities or <unk>.

Speaker Change: Investments in public entities.

Speaker Change: In our underlying business and others may not have the capital resources that we have available to.

Speaker Change: So.

Speaker Change: Maybe to hit that question.

Speaker Change: To capitalize on some of the growth opportunities at very attractive value entry points that we're seeing in the market. Today. So we expect 2025 to be another very attractive and very active year.

Speaker Change: Very bluntly and head on.

Speaker Change: Activity for us on the growth front.

Speaker Change: In terms of bias between public and private.

Speaker Change: That's going to be on a case by case basis, and we will allocate capital where we see the best risk adjusted returns.

Speaker Change: A.

Speaker Change: Fortress balance sheet and lots of liquidity and we're seeing tremendous offtake demand in our underlying business and others may not have the capital resources that we have available.

Speaker Change: Execute ability certainly comes into that but based on what we're seeing today public markets do look very very attractive.

Speaker Change: And therefore, we are certainly looking at a number of things in that space.

Speaker Change: Great. Thanks, Carter I'll leave it there.

Speaker Change: Our next question comes from Robert Hope with Scotiabank.

Robert Hope: Good morning, everyone.

Robert Hope: First question is on the development pipeline when we take a look at the build out of renewables in the U S and your pipeline can you help us parse out how much is wind in the near term.

Speaker Change: In terms of bias.

Speaker Change: <unk> public and private.

Speaker Change: That's going to be on a case by case basis, and we will allocate capital where we see the best risk adjusted returns.

Robert Hope: Versus the long term just given it doesn't appear that there is a little bit more uncertainty or perceived uncertainty on windows there in the market.

Speaker Change: Execute ability certainly comes into that but based on what we're seeing today public markets do look very very attractive.

Robert Hope: Youre, absolutely right Robin and I'll start and I can give you the advance these numbers.

Speaker Change: And therefore, we are certainly looking at a number of things in that space.

Robert Hope: Pretty clear, but if you need more specifics we can certainly provide that in terms of our development pipeline over what I would call. The short term about two thirds of it around the world is outside of the United States and that obviously is seeing tremendous corporate demand.

Speaker Change: Great. Thanks, Carter I'll leave it there.

Speaker Change: Our next question comes from Robert Hope with Scotiabank.

Robert Hope: Good morning, everyone.

Robert Hope: And not subject to some of the regulatory uncertainty.

Robert Hope: Net debt.

Robert Hope: <unk>.

Robert Hope: Versus the long term just given it doesn't appear that there is a little bit more uncertainty or perceived uncertainty on windows there in the market.

Robert Hope: He is in the market around.

Robert Hope: More recent executive orders and things like that when we look at what is in the United States somewhere in that call. It 25% to 30% of that is wind. So when we look at our broader portfolio.

Speaker Change: Youre, absolutely right Robin and I'll start and I can give you these and these numbers.

Robert Hope: On.

Robert Hope: Wind in the United States is is a very modest portion of it.

Robert Hope: What I would highlight even beyond that so maybe the summary point there is while there is no doubt some uncertainty, particularly around wind in the United States, We do not expect it to change our growth trajectory.

Robert Hope: And not subject to some of the regulatory uncertainty.

Robert Hope: Debt.

Robert Hope: Is in the market around.

Robert Hope: Or our strategic approach in the short term whatsoever.

Robert Hope: Perhaps the added clarity that we just give.

Robert Hope: Around U S. Wind is we obviously have zero exposure to U S offshore.

Robert Hope: And we have essentially zero exposure to projects on onshore projects on federal lands.

Robert Hope: Wind in the United States is a very modest portion of it what I would highlight even beyond that.

Robert Hope: Almost the entirety of our onshore wind exposure in the U S is on private land there are obviously some concern.

Robert Hope: Maybe the summary point there is while there is no doubt some uncertainty, particularly around wind in the United States, We do not expect it to change our growth trajectory.

Robert Hope: Some uncertainties around federal permitting for onshore wind projects, even if they are on private lands.

Robert Hope: Or our strategic approach in the short term whatsoever.

Robert Hope: And we will be prepared to manage those projects. However, this plays out.

Robert Hope: Perhaps the added clarity that we just give.

Robert Hope: Continue to believe that no government around the world wants to deny its country access to cheap electricity, particularly.

Robert Hope: Around U S. Wind is we obviously have zero exposure to U S offshore.

In this market, where thats a significant competitive advantage. So while there is some short term uncertainty today, given we're entirely on onshore and entirely on private lands, we expect it to get resolved relative.

Robert Hope: And we have essentially zero exposure to projects on onshore projects on federal lands.

Robert Hope: Almost the entirety of our onshore wind exposure in the U S is on private land there are obviously some.

Robert Hope: Relatively quickly and if it doesn't we'll manage through it it's not a material part of our business.

Robert Hope: Some uncertainties around federal permitting for onshore wind projects, even if they are on private lands.

Robert Hope: Alright, I appreciate that.

Speaker Change: And then maybe just keeping with the U S theme in the letter you speak about how there could be potential regulatory changes in the renewable sector in the U S. However.

Robert Hope: And we'll be prepared to manage those projects. However, this plays out.

Speaker Change: Adjustments to policies that have the greatest impact on your business you don't think that those will occur.

Robert Hope: Continue to believe that no government around the world wants to deny its country access to cheap electricity, particularly.

Speaker Change: Can you, maybe just add a little bit more color there like what changes do you think you can see in the U S.

Robert Hope: In this market, where thats a significant competitive advantage. So while there is some short term uncertainty today, given we're entirely on onshore and entirely on private lands, we expect it to get resolved relative.

Speaker Change: It seems to allude that you don't expect ITC or PTC has to change.

Speaker Change: Certainly so the.

Speaker Change: Given that we're not in offshore and our business is heavily focused in the most mature lowest cost technologies and the ones that see the greatest amount of corporate demand.

Robert Hope: Relatively quickly and if it doesn't we'll manage through it it's not a material part of our business.

Robert Hope: Alright, I appreciate that.

Speaker Change: And then maybe just keeping with the U S theme in the letter you speak about how there could be potential regulatory changes in the renewable sector in the U S. However.

Speaker Change: Thing that would impact our business. The most is that a change to the tax credits as you mentioned and obviously, thus far there has been no changes announced to that.

Speaker Change: Adjustments to policies that have the greatest impact on your business you don't think that those will occur.

Speaker Change: Can you, maybe just add a little bit more color there like what changes do you think you can see in the U S.

Speaker Change: The one thing we would highlight is even if there were changes announced.

Speaker Change: These asset classes. These technologies are the cheapest form of electricity by such a wide margin that we would very much expect to be able to pass through.

Speaker Change: It seems to allude that you don't expect ITC or PTC has to change.

Speaker Change: Certainly so the.

Speaker Change: The C. Given that we're not in offshore and our business is heavily focused in the most mature lowest cost technologies and the ones that see the greatest amount of corporate demand.

Speaker Change: The loss of those.

Speaker Change: Tax credits through in the form of a higher PPA price and still preserve our development margins.

Speaker Change: Is very akin to what we've seen over the last two or three years, where we've been able to pass through higher funding costs in the form of a higher PPA and seen no change in the demand.

Speaker Change: Thing that would impact our business. The most is that a change to the tax credits as you mentioned and obviously, thus far there has been no changes announced to that.

Speaker Change: For our offtake so.

Speaker Change: The one thing we would highlight is even if there were changes announced.

Speaker Change: No question. The most important thing to our business is the most relevant thing is those tax credits, but even if there were to be a change to that we would not expect it to change our development margins or our demand.

Speaker Change: These asset classes. These technologies are the cheapest form of electricity by such a wide margin that we would very much expect to be able to pass through the <unk>.

Speaker Change: I appreciate that thank you.

Speaker Change: Loss of those.

Speaker Change: Tax credits through in the form of a higher PPA price and still preserve our development margins.

Speaker Change: Our next question comes from Rupert <unk> with National Bank.

Speaker Change: Is very akin to what we've seen over the last two years or three years, where we've been able to pass through higher funding cost in the form of a higher PPA and seen no change in the demand.

Speaker Change: Hi.

Speaker Change: Sorry, I might have missed that and I think it's my turn Rupert here just wanted to follow up on that last.

Speaker Change: Question, you've talked about the potential to offset the impact from tax credit changes how much exposure do you think you have from tariffs and potential for higher equipment costs or higher steel costs and how are you are you covered off on that.

Speaker Change: For our offtake. So there is no question. The most important thing to our business is the most relevant thing is those tax credits, but even if there were to be a change to that we would not expect it to change our development margins or our demand.

Speaker Change: Rupert It's a fantastic question and Youre right to piggyback on the back of the tax credit question, because it's the same dynamic.

Speaker Change: I appreciate that thank you.

Speaker Change: Our next question comes from Rupert <unk> with National Bank.

Speaker Change: <unk>.

Speaker Change: If you think about what tax credits due to the economics of a renewables project today, they essentially lower the cost of it and that allows us to offer that project at attractive development returns at a lower PPA. If we were to lose the tax credits we would have.

Speaker Change: Hi.

Sorry, I might have missed that.

Speaker Change: <unk> Mitra Rupert here just wanted to follow up on that last.

Speaker Change: To offer a higher PPA to preserve our development returns and we think theres plenty of cushion to do that the same thing is true on tariffs.

Speaker Change: Incremental tariffs are added to equipment.

Speaker Change: Rupert it's.

Rupert Mitra: A fantastic question and Youre right to piggyback on the back of the tax credit question, because it's the same dynamic.

Speaker Change: That is used to build out renewables, we would look to pass that cost through in the form of a higher PPA and again, we will keep coming back to this point the demand what we are seeing fundamentally on the ground with our corporate off take Counterparties is the demand is stronger than ever before.

Rupert Mitra: If you think about what tax credits due to the economics of a renewables project today, they essentially lower the cost of it and that allows us to offer that project at attractive development returns at a lower PPA. If we were to lose the tax credits we.

Speaker Change: And that means there is lots of the capacity that should these things change the economics of a project, we will very simply push it through the PPA price.

Rupert Mitra: Would have to offer a higher PPA to preserve our development returns and we think theres plenty of cushion to do that the same thing is true on tariffs.

Speaker Change: When it comes to potential tariffs. This is something where we feel Brookfield renewable has.

Rupert Mitra: If incremental tariffs are added to equipment.

Speaker Change: A.

Speaker Change: A very material competitive advantage.

Rupert Mitra: That is used to build out renewables, we would look to pass that cost through in the form of a higher PPA and again, we'll keep coming back to this point the demand what we are seeing fundamentally on the ground with our corporate off take Counterparties is the demand is stronger than ever before.

Speaker Change: Over the last number of years, using our centralized procurement across our broader business. We've executed a number of framework agreements with leading manufacturers both domestic in the U S and international which will enable us to source equip.

Rupert Mitra: And that means there is lots of capacity that should these things change the economics of a project, we will very simply push it through the PPA price.

Speaker Change: Equipment from a wide variety of sources such that no matter, how the tariff discussions play out we will be able to maximize our sourcing of equipment from the most tariff preferential areas. So.

Rupert Mitra: When it comes to potential tariffs. This is something where we feel Brookfield renewable has.

Speaker Change: We're obviously following that space closely we do not expect it to change our project economics, and regardless of how the tariffs play out we think our global procurement capabilities.

Rupert Mitra: A.

Rupert Mitra: A very material competitive advantage.

Rupert Mitra: Over the last number of years, using our centralized procurement across our broader business. We've executed a number of framework agreements with leading manufacturers both domestic in the U S and international which will enable us to source equip.

Speaker Change: Ensure that we'll be on the front foot when this market settles.

Speaker Change: Great. Thanks for color and secondly, it will be a follow up on the data center market. So of course, we've seen a lot of market volatility driven by changing expectations for power demand growth from AI. When you talked to your corporate customers like Microsoft how much of the data center growth.

Rupert Mitra: Equipment from a wide variety of sources such that no matter, how the tariff discussions play out we will be able to maximize our sourcing of equipment from the most tariff preferential areas. So.

Speaker Change: You see is driven by expectations for growth in demand from AI versus cloud and crypto and are there any comments you can make on that changing landscape for AI power demand.

We're obviously following that space closely we do not expect it to change our project economics, and regardless of how the tariffs play out we think our global procurement capabilities.

Speaker Change: Yes, so it's a very.

Rupert Mitra: Ensure that we'll be on the front foot when this market settles.

Speaker Change: Very big topic, but I think probably the two most important things. We would say is the biggest step change of the demand that the biggest demand driver that you mentioned there.

Rupert Mitra: Great. Thanks for color and second will be a follow up on the data center market. So of course, we've seen a lot of market volatility driven by changing expectations for power demand growth from AI. When you talk to your corporate customers like Microsoft how much of the data center growth.

Speaker Change: As artificial intelligence Barr Nunn is ahead of clouded is ahead of crypto by miles.

Speaker Change: This is really driven by AI and we expect it to be driven by AI.

Rupert Mitra: <unk> is driven by expectations for growth in demand from AI versus cloud and crypto and are there any comments you can make on that changing landscape for AI power demand.

Speaker Change: For the medium term at a minimum here that obviously lends itself to another question, which is in the last couple of weeks.

Speaker Change: New technologies have come out or been socialized that may be are more energy efficient.

Rupert Mitra: Yes, so it's a very.

Rupert Mitra: Very big topic, but I think probably the two most important things. We would say is the biggest step change of the demand that the biggest demand driver that you mentioned there.

Speaker Change: That's great.

Speaker Change: The important thing that we.

Speaker Change: Highlight from those discussions and those topics, which are early days are two things one the.

Rupert Mitra: Artificial intelligence bar none it is ahead of cloud. It is ahead of crypto by miles.

Speaker Change: The supply demand imbalance.

Speaker Change: So strong right now there is very simply not enough power to support all the AI growth that is forecasted and those forecast would need to come down.

Rupert Mitra: This is really driven by AI and we expect it to be driven by AI.

Rupert Mitra: For the medium term at a minimum here that obviously lends itself to another question, which is in the last couple of weeks.

Speaker Change: Foreseeable amounts for the supply demand imbalance not to be in favor.

Rupert Mitra: New technologies have come out or been socialized that maybe are more energy efficient.

Speaker Change: Power producers, so even with the new technologies the supply demand imbalances still wildly in our favor and then the second thing is any new technology, we expect will become more efficient over time.

Rupert Mitra: That's great.

Rupert Mitra: The important thing that we.

Rupert Mitra: Highlight from those discussions and those topics, which are early days are two things one.

Speaker Change: And the reality of it is if new AI technology to become more efficient.

Rupert Mitra: The supply demand imbalance is so strong right now there is very simply not enough power to support all the AI growth that is forecasted and those forecast would need to come down.

Speaker Change: That means our cost is going to go down and that means they're going to become more prevalent and theyre going to be in demand for more places and it's actually going to lead to faster growth in the sector, which is obviously good for broad based electricity demand as well. So we continue to follow.

Rupert Mitra: Foreseeable amounts for the supply demand imbalance not to be in favor of power producers. So even with the new technologies the supply demand imbalances still wildly in our favor and then the second thing is any new technology, we expect will become more efficient over time.

Speaker Change: All the recent changes, but none of them change. The fact that we see a short medium and potentially long term supply demand imbalanced very much in favor of those that can generate new electricity, especially those that can do it at low cost.

Speaker Change: Great excellent thanks for the color I'll leave it there.

Rupert Mitra: And the reality of it is if new AI technology to become more efficient.

Mark Jarvi: Our next question comes from Mark Jarvi with CIBC.

Rupert Mitra: That means our cost is going to go down and that means they're going to become more prevalent and theyre going to be in demand for more places and it's actually going to lead to faster growth in this sector, which is obviously good for broad based electricity demand as well. So we continue to follow all.

Mark Jarvi: Okay.

Speaker Change: Thanks, Good morning, Ron.

Speaker Change: Maybe just following up on the tariff from the tax credit conversation.

Speaker Change: Dramatically change in terms of what you're hearing around that and then if there isn't adjustments and there is a period of sort of.

Rupert Mitra: All the recent changes, but none of them change. The fact that we see a short medium and potentially long term supply demand imbalance very much in favor of those that can generate new electricity, especially those that can do it at low cost.

Speaker Change: Having to pass that through to customers does that impact.

Speaker Change: Development opportunities for the next couple of years or do you think because of the safe Harbor and things that are already on the go that that'd be more of a sort of a three to five year adjustment period in terms of any delays on projects.

Great excellent thanks for the color I'll leave it there.

Speaker Change: So we'll take those in order.

Speaker Change: Our next question comes from Mark Jarvi with CIBC.

Speaker Change: We're obviously following this situation very closely.

Speaker Change: It would never contend to be able to forecast exactly what this new administration will do at.

Mark Jarvi: Thanks, Good morning, everyone.

Mark Jarvi: Maybe just following up on the tariffs and the tax credit conversation has anything dramatically changed in terms of what you are hearing around that and then if there isn't adjustments and there is a period of sort of.

Speaker Change: At this point they have not said anything about those tax credits.

Speaker Change: Historically, a lot of those have gone to Republican states.

Having to pass that through to customers does that impact <unk>.

Speaker Change: And while they've changed in.

Speaker Change: Issued executive orders on many other things they have not touched the tax credits and we will remain flexible and follow this but I think that's probably our best indicator of what may or may not happen in the future.

Mark Jarvi: Development opportunities for the next couple of years or do you think of the safe Harbor and things that are already on the go.

Mark Jarvi: Would be more of a sort of a three to five year adjustment period in terms of any delays on projects.

Mark Jarvi: So we'll take those in order.

Speaker Change: The next thing we would say is just around the development pipeline.

Mark Jarvi: <unk>.

Mark Jarvi: We're obviously following the situation very closely.

Speaker Change: We've been preparing whether it be through how we're contracting things are how we're procuring equipment we've been preparing.

Mark Jarvi: Would never contend to be able to forecast exactly what this new administration will do.

Mark Jarvi: At this point they have not said anything.

Speaker Change: For a market that could have this type of uncertainty.

Those tax credits.

Speaker Change: I think it's not an unreasonable thing to say that in periods of market uncertainty.

Mark Jarvi: Historically, a lot of those have gone to Republican states.

Mark Jarvi: And while they've changed and issued executive orders on many other things they have not touched the tax credits.

Speaker Change: That often favors.

Speaker Change: Larger players with more capabilities to manage this type of uncertainty and we very much see that playing out for us in 2025, so well.

Mark Jarvi: And we will remain flexible and follow this but I think that's probably our best indicator of what may or may not happen in the future.

Speaker Change: While there might be some very modest disruption to individual projects, it's not going to change our growth trajectory.

Mark Jarvi: The next thing we would say is just around the development pipeline.

Mark Jarvi: <unk>.

Speaker Change: We don't expect.

Mark Jarvi: We've been preparing whether it be through how we're contracting things are how we're procuring equipment we've been preparing.

Speaker Change: We don't expect anything to happen that would materially change what we've outlined in terms of our forecast.

Mark Jarvi: For a market that could have this type of uncertainty.

Speaker Change: Okay, and then just coming back to the Microsoft agreement are you able to share how many megawatts you have signed today and like what's the expected amount of volume you have contracted by the end of this year.

I think it's not an unreasonable thing to say that in periods of market uncertainty.

Mark Jarvi: That often favors.

Speaker Change: Sort of gauge progress through that 10 five gigawatts.

Mark Jarvi: Larger players with more capabilities to manage this type of uncertainty and we very much see that playing out for us in 2025, so well.

Speaker Change: So all.

Speaker Change: We can perhaps follow up later with an exact figure it's important to recognize that the 10 five gigawatt agreement, we have with Microsoft applies to the years of 2026 through 2030, so it actually hasn't even started yet.

Mark Jarvi: While there might be some very modest disruption to individual projects, it's not going to change our growth trajectory.

Mark Jarvi: We don't expect.

Mark Jarvi: We don't expect anything to happen that would materially change what we've outlined in terms of our forecast.

Speaker Change: That does not mean, we are not contracting significant sums of.

Speaker Change: Our new wind and solar capacity with Microsoft even ahead of 2026.

Speaker Change: Okay, and then just coming back to the Microsoft agreement are you able to share how many megawatts you have signed today and like what is the expected amount of volume you have contracted by the end of this year.

Speaker Change: Our one of our largest if not our largest off taker and we continue to do more and more with them.

Mark Jarvi: Sort of gauge progress through that 10 five gigawatts.

Speaker Change: On an ongoing basis, even before that 2026 agreements starts.

Speaker Change: So that.

Speaker Change: So I would say our activity prior to that agreement is already above what we would've expected call. It 18 months ago and as we look to that agreement of 26% to 2030 that five year period, we would expect to exceed the 10 five gigawatts.

Speaker Change: That does not mean, we are not contracting significant sums of.

Speaker Change: Understood and then.

Speaker Change: Carl you mentioned about the fact that there is dislocation between private and public markets and there is some weakness in share prices.

Speaker Change: Our new wind and solar capacity with Microsoft even ahead of 2026.

Speaker Change: Same thing in your own so how do you view your own share price right now in terms of a place to allocate capital and buybacks versus opportunities in other.

Speaker Change: Our one of our largest if not our largest off taker and we continue to do more and more with them.

Speaker Change: Some opportunities.

Speaker Change: On an ongoing basis, even before that 2026 agreements starts.

Certainly in <unk>.

Speaker Change: If we can draw a parallel here.

Speaker Change: The current market feels somewhat similar to <unk>.

Speaker Change: Kind of Q3 2023.

Speaker Change: Which is not that long ago.

Speaker Change: Five quarters.

Speaker Change: 16, 18 months ago and at the time that market sentiment was really down select players, we're seeing very significant headwinds it was dragging the whole sector down.

Speaker Change: Understood and then.

Speaker Change: Carl you mentioned about the fact that there is dislocation between private and public markets and there is some weakness in share prices.

Speaker Change: Same thing in your own so how do you view your own share price right now in terms of a place to allocate capital and buybacks versus opportunities in other.

Speaker Change: And at the time.

Speaker Change: Despite our share price being lower we.

Speaker Change: Some opportunities.

Saw unbelievable fundamentals in our business and we.

Speaker Change: Certainly in <unk>.

Speaker Change: If we can draw a parallel here.

Speaker Change: When we approach that is if we continue to allocate capital into the best opportunities and we continued.

Speaker Change: The current market feels somewhat similar to <unk>.

Speaker Change: To execute on our business plan, we would add a lot of value that would eventually show up in our share price. If you kind of look what's happened in the 15 months or five quarters. Since then or <unk> <unk> per share is up almost 15% and whether it's our development activity our deployment activity are asked.

Speaker Change: Kind of Q3 2023.

Speaker Change: Which is not that long ago.

Speaker Change: Five quarters.

Speaker Change: 16, 18 months ago and at the time that market sentiment was really down select players, we're seeing very significant headwinds it was dragging the whole sector down.

Speaker Change: That recycling activity, that's all up multiples in kind of a 15 or 18 months stretch it feels very very similar again today. So our focus today is absolutely continuing to execute on the same strategy that we have had as we feel it.

Speaker Change: And at the time.

Speaker Change: Despite our share price being lower.

Speaker Change: Saw unbelievable fundamentals in our business and we.

Speaker Change: And we approach that is if we continue to allocate capital into the best opportunities and we continued.

Speaker Change: <unk> incredible value and capture the significant market demand, we are seeing without doubt in this environment and with our shares trading where they are at we will absolutely be looking at doing share buybacks. The same way we did in that time period call. It 15 months ago.

Speaker Change: Okay. Thanks for the time and congratulations everyone.

Speaker Change: Promotions.

Speaker Change: As a reminder to ask a question. Please press star one on your Touchtone phone.

Speaker Change: Our next question comes from the line of William <unk> with UBS.

Speaker Change: Yes.

William: Hi, good morning. Thanks for the time just wanted to see if you could provide a bit more color on some of the comments made in the press release regarding framework agreements with their suppliers to.

William: To what degree are those agreements, enabling you to safe Harbor Your U S development plan as it pertains to the PTC and ITC at that current levels, you've talked about passing higher costs through.

Speaker Change: Okay. Thanks for the time and congratulations everyone on the.

PPA rates, but I would think some of that friction or potential friction could be eliminated with safe harboring. So just trying to understand how youre thinking about that.

Speaker Change: Promotions.

Speaker Change: As a reminder to ask a question. Please press star one on your Touchtone phone.

William: Okay.

Speaker Change: Our next question comes from the line of William <unk> with UBS.

William: Absolutely and the point, we would make here is I think this goes beyond simply framework agreements and I'll drop back too.

Speaker Change: Yes.

Speaker Change: Hi, good morning. Thanks for the time just wanted to see if you could provide a bit more color on some of the comments made in the press release regarding framework agreements with your suppliers.

Speaker Change: I apologize who asked.

Speaker Change: For not remembering who asked the question but.

Speaker Change: Rather than whether or not it's a framework agreement or just our ongoing dialogue with our largest customers.

Speaker Change: To what degree are those agreements, enabling you to safe Harbor Your U S development plan as it pertains to the PTC and ITC at that current levels, you've talked about passing higher costs through.

Speaker Change: On working with them on a project by project basis.

Speaker Change: The point that we were trying to draw out in the press release is the size and scale of our platform.

Speaker Change: PPA rates, but I would think some of that friction or potential friction could be eliminated with safe harboring. So just trying to understand how youre thinking about that.

Speaker Change: There are significant amount of advanced pipeline that is available in the near term to capture this market demand and our really robust access to capital that allows us to grow as much as possible. In this environment is really differentiating us from our peers the value and scale of our platform is more of a.

Speaker Change: Okay.

Speaker Change: Absolutely and the point, we would make here is I think that goes beyond simply framework agreements and I'll drop back too.

Speaker Change: I apologize who asked or.

Speaker Change: We're not remembering who asked the question but.

Speaker Change: Imperative advantage today than any time in history, and we expect that only to grow going forward and therefore, whether it is within a framework agreement or done on a project by project basis, our ability to engage with some of the largest.

Speaker Change: Rather than whether or not it's a framework agreement or just our ongoing dialogue with our largest customers on working with them on a project by project basis.

Speaker Change: The point that we were trying to drive it in the press release is the size and scale of our platform are significant amount of advanced pipeline that is available in the near term to capture this market demand and our really robust access to capital that allows us to grow as much as possible and Thats <unk>.

Speaker Change: Corporate off takers of Green power and yet.

Speaker Change: Incredible unmatched visibility around their demands.

Speaker Change: In the next few years is allowing us to take advantage of some of the activities and value creation initiatives you mentioned.

Speaker Change: The point I'm, making is I don't think we need a framework agreement in order to do that it's more just something we get the benefit of given our large scale relationships with the largest off takers of green power.

Speaker Change: <unk> is really differentiating us from our peers the value and scale of our platform is more of a competitive advantage today than any time in history, and we expect that only to grow going forward and therefore, whether it is within a framework agreement or done on a project by project basis our.

Speaker Change: Yes, I hear I think the question was more focused on you specifically referenced agreements with your.

Speaker Change: Equipment suppliers.

Speaker Change: <unk> to engage with some of the largest.

Speaker Change: Yes, certainly so.

Speaker Change: Corporate off takers of Green power.

Sorry, if I misunderstood.

Speaker Change: Get it.

Speaker Change: On that point.

Speaker Change: Incredible unmatched visibility around their demands in the next few years is allowing us to take advantage of some of the activities and value creation initiatives. You mentioned I guess the point I'm, making is I don't think we need a framework agreement in order to do that it's more just something we get the benefit.

Speaker Change: What we have been doing over the last few years in particular in the U S. Just given the scale of our pipeline there.

Speaker Change: We've negotiated very large.

Speaker Change: Arrangements with them similar to what we do elsewhere around the world we use our scale to ensure that one we're getting best in class pricing and two were essentially near the top of the order list whenever it comes to securing volumes so in an environment where tariffs kicking in.

Speaker Change: Given our large scale relationships with the largest off takers of green power.

Speaker Change: Yes, Hi here I think the question was more focused on you specifically referenced agreements with your.

Speaker Change: The the opportunity to procure domestically in the United States becomes more valuable we will feel very very good about our position given the framework agreements we've secured with domestic manufacturers over the last couple of years.

Speaker Change: Equipment suppliers.

Speaker Change: Yes, certainly so sorry, if I misunderstood.

On that point.

Speaker Change: What we have been doing over the last few years in particular in the U S. Just given the scale of our pipeline there we've negotiated very large.

Speaker Change: Got it I appreciate the color garnering good luck in 2025.

Speaker Change: Arrangements with them similar to what we do elsewhere around the world we use our scale to ensure that one we're getting best in class pricing and to <unk>.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Anthony <unk>.

Speaker Change: With Mizuho.

Hey, good morning, Conor apologies I jumped in a little late so if you've answered this sorry.

Speaker Change: Essentially near the top of the order list whenever it comes to securing volumes, so in an environment, where tariffs kick in and.

Speaker Change: Just are you surprised when we look at the pace of data center announcements and the size of them. It appears that the pace of maybe ppas or contracts to supply electricians. These data centers. It seems like it's not matching up I mean, do you see that and any thoughts of Derek maybe a difference in tenure that the tech company.

Speaker Change: The opportunity to procure domestically in the United States becomes more valuable we will feel very very good about our position given the framework agreements we've secured with domestic manufacturers over the last couple of years.

Speaker Change: When assigned versus what the power generators want to offer.

Speaker Change: Got it I appreciate the color garnering good luck in 2025.

Speaker Change: That.

Speaker Change: You are highlighting a good point, but I think the reason for it is something slightly different if.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Anthony <unk> with Mizuho.

Speaker Change: If we could say this clearly the demand for power is now and it is Amit.

Speaker Change: Hey, good morning, Conor apologies I jumped in a little late so if you've answered this sorry.

Speaker Change: Are you surprised when we look at the pace of data center announcements and the size of them. It appears that the pace of maybe ppas or contracts to supply electricians. These data centers seems like it's not matching up I mean, do you see that and any thoughts of Derek maybe a difference in tenure that the tech companies when assai.

Speaker Change: Completely.

Speaker Change: There is more demand for power than there are ready to build projects.

Speaker Change: And if there were more ready to build projects the large corporate off takers in the large tech companies would be signing them all up to date.

Speaker Change: Issue is there are not enough ready to build projects and thats, because permitting and development that takes time.

Speaker Change: And versus what the power generators want to offer.

That.

That is the bottleneck in the system not demand not the willingness of customers to sign PPA.

Speaker Change: You are highlighting a good point, but I think the reason for it is something slightly different if.

Speaker Change: The thing that that is highlighting is one the supply demand imbalance is going to maintain for a while because permitting and development is a long process. It does take time.

Speaker Change: If we could say this clearly the demand for power is now and it is Amit.

Speaker Change: Completely.

Speaker Change: There is more demand for power than there are ready to build projects.

If you want to capture this demand.

Speaker Change: And therefore, you start developing a project today.

Speaker Change: And if there were more ready to build projects the large corporate off takers in the large tech companies would be signing them all up to date.

Speaker Change: These projects take years and years and years to develop.

Speaker Change: It highlights perhaps the more important point and one we'd love to reiterate which is advanced pipeline that is ready to be contracted and ready to be built is the most valuable thing in the market today.

Speaker Change: Issue is there are not enough ready to build projects and thats, because permitting and development that takes time.

Speaker Change: That is the bottleneck in the system not demand not the willingness of customers to sign PPA.

Speaker Change: The thing that that is highlighting is one the supply demand imbalance is going to maintain for a while because permitting and development is a long process. It does take time.

Speaker Change: And.

Speaker Change: We are fortunate that over the last number of years, we have had a strategy that has been very focused on acquiring large scale advanced pipeline in the largest data center markets around the world.

Speaker Change: If you want to capture this demand.

Speaker Change: And will we be able to meet all the demand of the large hyperscale is absolutely not the demand outweighs the supply, but the advanced pipelines that we've been acquiring over the last two or three or four years, whether it be in the United States or in Western Europe has incredible scarcity value today.

Speaker Change: And therefore, you start developing a project today.

Speaker Change: These projects take years and years and years to develop.

Speaker Change: And that's what's showing up in our development margins, which is which are now at an all time high.

Speaker Change: And.

Speaker Change: Great. Thanks, and this ones we'd want apologies.

Speaker Change: I know you don't enjoy talking about other companies but.

Speaker Change: Plenty others.

Speaker Change: Renewable companies smaller different model, but a yieldco.

Speaker Change: Name change looks like it's really cut back their growth.

Speaker Change: Just curious if that's really just a separate isolated.

Speaker Change: Entity or is that maybe just the structure may be more challenging as we go forward.

Speaker Change: Yeah. So what we would say is I would say all renewables companies.

Speaker Change: And that's what's showing up in our development margins, which is which are now at an all time high.

Speaker Change: Are seeing incredible demand for their product that has broad base that is across the sector everyone can participate in that.

Speaker Change: Great. Thanks, and this one is we had one apologies.

I know you don't enjoy talking about other companies but.

Speaker Change: Some are more well positioned than others to take advantage of that we certainly see ourselves.

Speaker Change: Plenty others.

Speaker Change: Renewable companies smaller different model, but a yieldco.

Speaker Change: Near the top of that list.

Speaker Change: <unk> change looks like it's really cut back their growth.

Speaker Change: Yeah.

Speaker Change: What I think is really important when we think about our business is as we've grown over the last number of years, we're thrilled with the growth we've delivered in our business. The increased cash flows the increase profitability.

Speaker Change: Just curious if that's really just a separate isolated.

Speaker Change: Entity or is that maybe just the structure may be more challenging as we go forward.

Speaker Change: Yes, so what we would say is I would say all renewables companies.

Speaker Change: But there's two things that we're also very proud of that we've done over that timeframe and we very much reiterated that at our Investor day last year, which is one we focused on the most mature lowest risk lowest cost technologies and we've really avoided sectors of the market that are <unk>.

Speaker Change: Are seeing incredible demand for their product that has broad base that is across the sector everyone can participate in that.

Speaker Change: Some are more well positioned than others to take advantage of that we certainly see ourselves.

Speaker Change: The biggest headwinds today and secondly, we've never compromised in terms of our discipline in how we fund our business and well there is incredible tailwind for the renewable sector more broadly there are discrete examples of individual companies.

Speaker Change: Near the top of that list.

Speaker Change: <unk>.

Speaker Change: We are seeing greater headwinds because either of concentrations and in technologies that are out of favor taking too much development risk.

Speaker Change: Or.

Speaker Change: Using more aggressive capital structures, we would say those are discrete.

Speaker Change: And the tailwind for the broader sector are tremendous today, but we feel very fortunate in terms of where we focused our business and the discipline that we've executed across our balance sheet.

Speaker Change: Great. Thanks for taking my questions and congrats Patrick and why its looking forward to work with you.

Speaker Change: That concludes today's question and answer session I would like to turn the call back to <unk> for closing remarks.

Speaker Change: We are seeing greater headwinds because either of concentrations and in technologies that are out of favor taking too much development risk.

Speaker Change: Great well. Thank you everyone for joining our call and for your interest and support of Brookfield renewable.

Speaker Change: Or.

Speaker Change: Look forward to updating you on our progress throughout 2025 have a great day.

Speaker Change: Using more aggressive capital structures, we would say those are discrete.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Great. Thanks for taking my questions and congrats Patrick and why its looking forward to work with you.

Speaker Change: That concludes today's question and answer session I would like to turn the call back to <unk> for closing remarks.

Speaker Change: Great well. Thank you everyone for joining our call and for your interest and support of Brookfield renewable.

Speaker Change: Look forward to updating you on our progress throughout 2025 have a great day.

Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.

Speaker Change: Yes.

Speaker Change: [music].

Speaker Change: Okay.

Speaker Change:

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Yeah.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: Sure.

Speaker Change: Okay.

Speaker Change: [music].

Speaker Change: Good day, and thank you for standing by welcome to the Brookfield Renewable partners fourth quarter 2024 results conference call and webcast.

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

Speaker Change: After the speaker's presentation, there will be a question and answer session.

Speaker Change: To ask a question during the session you will need to press star one one on your telephone.

Speaker Change: You will then hear an automated message advising your hand is raised.

Speaker Change: Withdraw your question. Please press star one again.

Speaker Change: Please be advised that today's conference is being recorded.

Speaker Change: I would now like to hand, the conference over to your Speaker today, Connor Jetski Chief Executive Officer. Please go ahead.

Speaker Change: Okay.

Speaker Change: Thank you operator, and good morning, everyone and thank you for joining us for our fourth quarter 2024 conference call.

Speaker Change: For more information you are encouraged to review our regulatory filings available on SEDAR, Edgar and on our website.

Speaker Change: But we're starting we would like to welcome Patrick Taylor, our newly appointed CFO to the call.

Speaker Change: We're thrilled to have Patrick on the team as we continue to add depth and talent to our leadership group.

Speaker Change: On today's call, we will provide a review of our 2020 for performance and then why it will discuss our growth outlook in the U S and globally.

Speaker Change: And then lastly, Patrick will conclude the call by discussing our operating results.

Speaker Change: Recent asset recycling activities and our financial position.

Speaker Change: Following our prepared remarks, we look forward to taking your questions.

Speaker Change: Okay.

Speaker Change: Now before going through our 2024 results.

Speaker Change: We wanted to comment briefly on the current environment.

Speaker Change: This is driving a significant step change in demand for our product supporting our continued and accelerating growth.

Speaker Change: Simple fact is that the fundamentals for energy have never been better.

Speaker Change: The low cost renewable technologies that we have built our business on are the cheapest form of electricity production and are seeing greater demand than ever before.

Speaker Change: As a result, we believe that low cost renewables, which are readily available to deploy we'll play a leading role in the requirements for any and all increases in generation capacity that we are already seeing unfold.

Speaker Change: With our extensive 200000 megawatt development pipeline, which is highly concentrated in the top data center markets globally.

Speaker Change: Executing our business plan will create significant value in our company and as market sentiment passes we expect to see that translate into the price of our shares.

Speaker Change: The current market dislocation is also presenting significant investment opportunities for us.

Speaker Change: Turning now to our results.

Speaker Change: <unk> 2024 was another record year for our business.

Speaker Change: We delivered our strongest operating and financial results ever and position the business for significant further growth and value creation in the future.

Speaker Change: We delivered 10% <unk> per unit growth year on year as we benefited from our inflation linked and contracted cash flows contributions from acquisitions.

Speaker Change: We exceeded our capital deployment targets investing $12 5 billion and some outstanding businesses, including our investment in global renewable operator and developer Neyland.

Speaker Change: Another record performance and indicative of the incredible supply demand imbalance in favor of our product.

Speaker Change: Okay.

Speaker Change: Yes.

Speaker Change: We also signed a landmark renewable energy framework agreement with Microsoft in May agreeing to deliver 10, five gigawatts of new renewable energy capacity between 2026 and 2030 in the U S and Europe and today, we are on track to not only meet but exceed our delivery targets.

Speaker Change: This agreement will assess Microsoft data center growth and supported investment in AI powered cloud services, which continue to accelerate.

Speaker Change: The global Hyperscale are significantly ramping up investment in their data center infrastructure and are expected to continue to increase investment tremendously through the remainder of the decade.

Speaker Change: Power is increasingly a bottleneck to this planned data center development.

Speaker Change: And we are seeing these businesses ramp up their efforts to secure supply to ensure the delivery of their growth.

Speaker Change: Our agreement with Microsoft is a testament to our differentiated capabilities and we expect to continue to partner with the largest buyers of power going forward.

Speaker Change: This year, we commissioned a record 7000 megawatts of new capacity globally.

Speaker Change: Most seven times the capacity, we brought online just three years ago.

Speaker Change: And with our expanding development capabilities. We are also successfully grown our asset rotation activities.

Speaker Change: Again, this positions us well in the current market okay.

Speaker Change: We have continued to be uncompromising in how we fund our business and our balance sheet remains among the strongest in the sector.

Speaker Change: We executed record financings this past year and finished the year with $4 3 billion of liquidity to Opportunistically fund our growth.

Speaker Change: Since Brookfield renewable with publicly listed in 2011, we have delivered 14 consecutive years of annual distribution growth of at least 5% per year.

Speaker Change: With that.

Speaker Change: We will now turn it over to Wyatt to further discuss our growth outlook in the U S and globally and how we are positioned to capitalize in the current market.

Speaker Change: Okay.

Wyatt: Thank you Conor and good morning, everyone.

Wyatt: And while we see potential for regulatory changes.

We do not expect any material adjustments to the policies that have the greatest impact on our business. As these are large as these largely have bipartisan support.

Wyatt: More important to our business or the current fundamentals for power.

Wyatt: Globally and in the U S. Specifically the demand for electricity continues to accelerate at an incredible rate.

Wyatt: Driven by broad based electrification of major industries, and the global energy grid.

Wyatt: A generational step change in demand for power to drive the AI Revolution.

Wyatt: Yes.

Wyatt: We also expect that supportive fiscal policy in the U S. We will drive further growth and manufacturing data center development and industry in the country, which will in turn drive further electricity demand.

Wyatt: As a result, the growth prospects for low cost mature renewable technologies are better than at any point in history as they play a leading role in any and all increase in generation capacity.

Wyatt: Simply put off takers of power will naturally take as much of the lowest cost solutions renewable before turning to other forms of generation to meet their needs.

Wyatt: As growing energy demand is being met with the Newbuild capacity. It is creating two challenges transmission availability and grid stability.

Wyatt: We see large scale battery systems and distributed generation is increasingly important parts of the solution.

Wyatt: The grid scale batteries being developed today are able to charge with the Sun is shining and when the wind is low end and then discharge power at other times, enabling a more consistent power supplier.

Wyatt: Further by charging wind power's cheap and plentiful and distributed with powers scarce and in demand.

Wyatt: Batteries are increasingly lucrative.

Wyatt: Distributed generation is also able to reduce demand during peak hours and provide backup power with grids are strained.

Wyatt: The modular nature of both these technologies also makes them relatively easy to deploy almost anywhere.

Wyatt: As batteries become more cost effective with cost declined at over 90% of the past decade.

Wyatt: We expect that they will become a significant component of stabilizing the world's transmission grids and supported the accelerated build out of low cost mature renewable technologies.

Wyatt: At the end of 2024, we made our largest investment ever and our renewable power and transitioned business with our investment in <unk>.

Wyatt: A leading global renewable platform with best in class management and market, leading positions in each of France, Australia and the Nordics.

Wyatt: What may not be appreciated is that Mayo and is also a leading global operator and developer of battery energy storage systems and technology that we are increasingly investing in it.

Wyatt: With growing demand lower capital costs and higher potential revenues from stabilizing services.

Wyatt: We are focused on deploying capital into a battery battery energy storage solution in almost all markets.

Wyatt: And with this investment we are one of the largest battery developers globally with 3300 megawatts of operated and under construction under construction capacity, an additional 35000 megawatts in our pipeline.

Wyatt: With the supportive demand backdrop, and the combination of our global scale significant access to capital and our combined operating and development capabilities across multiple suites of technologies, including Hydro wind utility scale solar distributed generation and storage to name a few.

Wyatt: We can deliver differentiated solutions to our customers few others can.

Wyatt: Thereby generating significant value for our shareholders over the long term.

Wyatt: And with that I'll pass it on to Patrick to discuss our operating results recent capital recycling initiatives and financial position.

Patrick Taylor: Thanks, Wyatt and good morning to everyone on the call.

Patrick Taylor: Our business performed well this year delivering record results in the fourth quarter.

Patrick Taylor: We delivered <unk> of $304 million.

Patrick Taylor: Or <unk> 46 per unit up from 38 per unit in the same quarter last year representing.

Patrick Taylor: Representing a 21% increase year on year.

Patrick Taylor: On a full year basis, we delivered <unk> of $1 2 billion.

Patrick Taylor: Our $1 83 per unit up 10% year on year.

Patrick Taylor: Looking now at our segments.

Patrick Taylor: Our hydro electric business generated solid results benefiting from a strong second half of the year from our Colombian business <unk>, helping offset weaker hydrology in North America.

Patrick Taylor: Our wind and solar segments generated record funds from operations, which were up 30% from last year as we benefited from a full year contribution from our recent acquisitions.

Our distributed energy storage and sustainable solutions segments also generated record results up 78% year on year with a full year contribution from Westinghouse, where we continue to see positive momentum.

Patrick Taylor: On the capital recycling front the.

Patrick Taylor: The strong fundamentals for power are benefiting our business as we are able to sell our derisked operating assets and portfolios to lower cost of capital buyers, who are looking for long life real assets delivering reliable cash flows.

Patrick Taylor: Since 2020, we have generated almost $6 billion in proceeds at an average IRR of approximately 22% and a $2 one times multiple on invested capital.

Patrick Taylor: This year, we closed the sale of Scioto, where we realize the significant value we created through operational enhancements and the build out of their development function.

Patrick Taylor: Generating three times, our invested capital over a relatively short hold period.

Patrick Taylor: We also closed the sale of a 50% interest in shepherds slot, where we executed one of the largest wind repowering projects ever crystallizing significant value.

Patrick Taylor: Asset recycling will continue as a reliable and consistent way for us to deliver strong returns for our shareholders and generate capital to fund growth.

Patrick Taylor: We expect to build off the strong momentum in 2025 and deliver even larger and more recurring monetization in the future at similarly healthy returns.

Patrick Taylor: Looking now at our financial position.

Patrick Taylor: Our balance sheet remains strong and we continue to execute well within our self funding model.

Patrick Taylor: We finished the year with $4 3 billion in liquidity, providing us with significant flexibility to deploy capital opportunistically to support the growth of the franchise.

During the year, we successfully completed nearly $27 billion in financings opportunistically, extending duration and optimizing our portfolio as capital structure, including executing $800 million of up financings to support growth initiatives.

Patrick Taylor: With our staggered contract profile. We also have a healthy pipeline of generation coming up for re contracting over the next five years. This should create significant additional up financing capacity within this portfolio.

Patrick Taylor: In closing.

Patrick Taylor: We remain focused on delivering 12% to 15% long term total returns for our investors, while remaining disciplined allocators of capital leveraging our deep funding sources and operational capabilities to enhance and de risk our business.

Patrick Taylor: On behalf of the board and management, we thank all of our unit holders and shareholders for their ongoing support we.

Patrick Taylor: We are excited about Brookfield renewable future and look forward to updating you on our progress throughout 2025.

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

Patrick Taylor: As a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced.

Patrick Taylor: Withdraw your question. Please press star one again.

Patrick Taylor: Please standby, while we compile the Q&A roster.

Speaker Change: Our first question comes from the line of Sean Stewart with TD Cowen.

Sean Stewart: Thanks, Good morning, everyone, congratulations too wide and Patrick.

Speaker Change: A couple questions Connor with respect to the Microsoft framework agreement.

Speaker Change: <unk> exceeding targets and I'm wondering if you can give a little more context there is that.

Speaker Change: More capacity potentially being built into that agreement or is it an expedited development timeline.

Speaker Change: Any detail you can give us there.

Sean Stewart: Hi, Sean Yes, really two things there, obviously that agreement sorry, I shouldn't say obviously.

Sean Stewart: And have and will continue to deliver significant capacity to Microsoft ahead of 2026.

Sean Stewart: In the latter half of the decade, we would say that 10, five gigawatts is increasingly the floor not the ceiling.

Sean Stewart: We continue to add.

Sean Stewart: Development Advanced development pipeline in key data center markets around the world and we are seeing tremendous demand from Microsoft and the other hyperscale for that product and as off take the pull those projects out of the ground. So we expect that in those five years, we will do.

Sean Stewart: Deliver well more than 10 five gigawatts.

Sean Stewart: Thanks for that.

And further to that it's been nine months since you announced that that agreement.

Sean Stewart: Can you give broader updates on efforts to replicate that that type of framework deal with with other corporates.

Sean Stewart: Absolutely and we'd probably frame it in two different ways.

Sean Stewart: No doubt on the back of that agreement, we are having discussions.

Sean Stewart: We would say with everyone you would expect when it comes to potential broad based ad.

Sean Stewart: Power generation.

Sean Stewart: But I think it's important to recognize that those discussions can show up two different ways that are both beneficial for our business.

Sean Stewart: <unk>.

What we did with Microsoft as we announced an agreement that we will fill up over time over the five year peers.

Sean Stewart: Period over which that agreement governance.

Sean Stewart: The other thing that we can do that is happening real time is we can just do.

Sean Stewart: Do more and more activity with the Hyperscale is on a project by project basis, even outside of a global framework agreement and we are absolutely seeing that in real time across our business, we've delivered more projects and more power to them. In 2024, then 2023, and we will deliver more power and projects to the <unk>.

Sean Stewart: <unk> in 2025% in 2024, even absent those agreements. So while we are in discussions and May sign similar framework agreements in the future that demand is showing up in our development activities on a project by project basis, regardless.

Speaker Change: Okay. Thanks for that corner and then just one last one.

Speaker Change: Asset recycling is an ongoing focus for funding.

Speaker Change: The spreads have been strong for you.

Speaker Change: Over the last five years, and then 2024, but.

Speaker Change: Expectations on how that could shift.

Speaker Change: In the near to midterm.

Sean Stewart: Sean It's a very topical question and we'd come out thats two different ways.

Sean Stewart: Absolutely one of the themes that debt.

Sean Stewart: Other point that we would highlight that a little bit tangential to your question is.

Sean Stewart: There is also a very clear market bifurcation between the demand for exposure to renewables in private markets versus public markets. We continue to see significant private capital demand.

Sean Stewart: For the renewable power space.

Speaker Change: By the fact that certainly sentiment in the public markets and sneaker today, given our business model. We absolutely look we'll look to capitalize on that in 2025.

unknown: Thanks for that detail Conor that's all I have.

Speaker Change: Our next question comes from the line of Nelson <unk> with RBC capital markets.

Nelson: Great. Thanks.

Speaker Change: Congrats white and Patrick.

Nelson: So first question.

Sticking with the data center theme.

Nelson: So with their need for firm power and gas generation.

Nelson: Being more in favor generally in the market.

Nelson: <unk> what is your what are your thoughts in terms of developing or acquiring gas fired generation.

Nelson: It would be used to firm up your portfolio.

Nelson: Thanks Nelson.

Nelson: So just.

Nelson: Thinking macro and then our approach to it.

Nelson: We believe this step change increase in energy demand is good for all forms of power generation you can use your token phrase any and all of our all of the above the fact of the matter is the fundamental demand for electricity generation is going to lead to.

Nelson: To support and growth across a number of different technologies, whether that's renewables, whether that's gas whether thats nuclear.

Nelson: The thing that is very important for us and I think important to highlight on this call is.

Nelson: Off takers and users of electricity are always going to take as much renewables as they can because it is the cheapest and then they will look to fill out the remainder of their demand with other forms of power generation. So when we think about our business. It's obviously going to continue to be in.

Nelson: Credibly focused on renewable power.

Nelson: We do believe that gas will have a role in that transition and is going to see greater demand but.

Nelson: But we would only ever considering investing in gas if it would result in the acceleration of the build out of renewables.

Nelson: And ultimately reduce the carbon intensity of the broader grid.

Nelson: And.

Nelson: Further in any such investment we would need to be seeing a more attractive risk adjusted return proposition than what we're seeing in the build out of renewables today, which is among as attractive as we've seen it at any point in history. So.

Nelson: Could we potentially invest in some thermals if it came as part of a broader portfolio.

Nelson: We wouldn't rule it out but our business is going to continue to be very focused on renewables, because that's simply where we're seeing the greatest amount of demand growth and the most attractive returns.

Speaker Change: Great that's great color Conor.

Speaker Change: Next question I understand your point in terms of renewables being the cheapest form of.

Speaker Change: Power even in the U S.

Speaker Change: All of the uncertainty in the U S.

Can you just talk about how are they looking at your development pipeline you have about I think two gigawatts.

Speaker Change: Projects to be commissioned in 2025 and another three four gigawatts in 2006.

Speaker Change: Can you just talk about how some of these contracts are structured.

Speaker Change: Just in terms of risk allocation, if there were any changes to the.

Speaker Change: The tax subsidies or are they essentially pass through or or how are they structured in general.

Speaker Change: Sure. So so theres really two important things there one across our business.

Speaker Change: We've always taken the approach of only locking in contracts when we can lock in.

Speaker Change: Capex revenue, meaning PPA EPC and financing upfront. So so we don't have what we would call basis risk exposure, where we've locked in capex and.

Speaker Change: Or we've locked in revenue and one of the other variables could change and augment our returns the one place in your question is a very good one.

Speaker Change: One thing that we are seeing in the market right now because this is obviously very topical.

Speaker Change: Right now in the United States is in many of the Ppas. We are locking in right now if there is a retroactive.

Speaker Change: James or a near term change to things like the tax credits. There are we are increasingly putting adjusters and those ppas to essentially keep our development margins Hall. So that is increasingly becoming I would say market standard and I think it's Rick.

Speaker Change: <unk> have a broader dynamic that it it's very simple.

Speaker Change: The off takers simply need the power and therefore.

Speaker Change: Great. It's good to see that it's essentially a pass through.

Speaker Change: So one last question you mentioned, the the public market versus private market and valuations.

Speaker Change: From your perspective.

Speaker Change: You've done a lot of acquisitions and developments in the past could you just comment on your capital allocation mix in the past few years compared to kind of what you see going forward. Your development pipeline is increasing but obviously with with some of the valuations we've seen in the public market.

Speaker Change: Do you expect to see.

Speaker Change: Yes.

Speaker Change: Do you expect to kind of step up your pace and.

Speaker Change: And the acquisition of <unk>.

Speaker Change: Public entities are our investments in public entities.

Speaker Change: So.

Speaker Change: Maybe to hit that question.

Speaker Change: Very bluntly and head on.

Speaker Change: In that we are fortunate to have a.

Speaker Change: Fortress balance sheet and lots of liquidity and we're seeing tremendous offtake demand.

Speaker Change: In our underlying business and others may not have the capital resources that we have available to.

Speaker Change: Activity for us on the growth front.

Speaker Change: In terms of bias between public and private.

Speaker Change: That's going to be on a case by case basis, and we will allocate capital where we see the best risk adjusted returns.

Speaker Change: Execute ability.

Speaker Change: Link comes into that but based on what we're seeing today.

Speaker Change: <unk> markets do look very very attractive and therefore, we are certainly looking at a number of things in that space.

Great. Thanks, Scott I'll leave it there.

Robert Hope: Our next question comes from Robert Hope with Scotiabank.

Robert Hope: Good morning, everyone.

Robert Hope: First question is on the development pipeline when we take a look at the build out of renewables in the U S. In your pipeline can you help us parse out how much is wind in the near term.

Robert Hope: Versus the long term just given it doesn't appear that there is a little bit more uncertainty or perceived uncertainty on windows there in the market.

Speaker Change: Youre, absolutely right Robin and I'll start and I can give you the advance these numbers.

Speaker Change: Pretty clear, but if you need more specifics we can certainly provide that in terms of our development pipeline over what I would call. The short term about two thirds of it around the world is outside of the United States and that obviously is seeing tremendous corporate demand.

Speaker Change: And not subject to some of the regulatory uncertainty.

Speaker Change: That.

Speaker Change: <unk>.

Speaker Change: Is in the market around.

Speaker Change: More recent executive orders and things like that when we look at what is in the United States somewhere in that call. It 25% to 30% of that is wind. So when we look at our broader portfolio.

Speaker Change: Wind in the United States is is a very modest portion of it.

Speaker Change: What I would highlight even beyond that.

Speaker Change: Maybe the summary point there is while there is no doubt some uncertainty, particularly around wind in the United States, We do not expect it to change our growth trajectory.

Speaker Change: Or our strategic approach in the short term whatsoever.

Speaker Change: Perhaps the added clarity that we just give.

Speaker Change: Around U S. Wind is we obviously have zero exposure to U S offshore.

Speaker Change: And we have essentially zero exposure to projects on onshore projects on federal lands.

Speaker Change: Almost the entirety of our onshore wind exposure in the U S is on private land there are obviously some concern.

Some uncertainties around federal permitting for onshore wind projects, even if they are on private lands.

Speaker Change: And we will be prepared to manage those projects. However, this plays out.

Speaker Change: Continue to believe that no government around the world wants to deny its country access to cheap electricity, particularly.

Speaker Change: In this market, where thats a significant competitive advantage. So while there is some short term uncertainty today, given we're entirely on onshore and entirely on private lands, we expected to get resolved relatively.

Speaker Change: Relatively quickly and if it doesn't we'll manage through it it's not a material part of our business.

Speaker Change: Alright, I appreciate that.

Speaker Change: And then maybe just keeping with the USA in the letter you speak about how there could be potential regulatory changes in the renewable sector in the U S. However.

Speaker Change: Adjustments to policies that have the greatest impact on your business you don't think that those will occur and what can you maybe just add a little bit more color. There like what changes do you think you can see in the U S.

Speaker Change: It seems to allude that you don't expect ITC or PTC has to change.

Speaker Change: Certainly so the.

Speaker Change: Given that we're not in offshore and our business is heavily focused in the most mature lowest cost technologies and the ones that see the greatest amount of corporate demand.

Speaker Change: Thing that would impact our business. The most is that a change to the tax credits as you mentioned and obviously.

Speaker Change: Thus far there has been no changes announced to that.

Speaker Change: The one thing we would highlight is even if there were changes announced.

Speaker Change: These asset classes. These technologies are the cheapest form of electricity by such a wide margin that we would very much expect to be able to pass through the <unk>.

Speaker Change: Loss of those.

Speaker Change: Tax credits through in the form of a higher PPA price and still preserve our development margins.

Speaker Change: For our offtake so.

Speaker Change: There is no question that the most important thing to our business.

Speaker Change: Relevant thing is those tax credits, but even if there were to be a change to that.

Speaker Change: Would not expect it to change our development margins or our demand.

Speaker Change: I appreciate that thank you.

Speaker Change: Our next question comes from Rupert <unk> with National Bank.

Speaker Change: Hi.

Speaker Change: Sorry, I might've missed that and I think it's maybe Mitra and Rupert here just wanted to follow up on that last.

Speaker Change: Rupert it's a fantastic question and Youre right to piggyback.

Speaker Change: On the back of the tax credit question, because it's the same dynamic.

Speaker Change: If you think about what tax credits due to the economics of renewables project today, they essentially lower the cost of it and that allows us to offer that project at attractive development returns at a lower PPA. If we were to lose the tax credits.

Speaker Change: We would have to offer a higher PPA to preserve our development returns and we think theres plenty of cushion to do that the same thing is true on tariffs if incremental tariffs are added to equipment.

Speaker Change: And that means there is lots of the capacity that should these things change the economics of a project, we will very simply push it through the PPA price.

Speaker Change: When it comes to potential tariffs. This is something where we feel Brookfield renewable has.

Speaker Change: A.

Speaker Change: A very material competitive advantage.

We're obviously following that space closely we do not expect it to change our project economics, and regardless of how the tariffs play out we think our global procurement capabilities.

Speaker Change: Ensure that we'll be on the front foot when this market settles.

Speaker Change: Great. Thanks for the color and second and there will be a follow up on the data center market. So of course, we've seen a lot of market volatility driven by changing expectations for power demand growth from AI. When you talk to your corporate customers like Microsoft how much of the data center growth.

Speaker Change: You see is driven by expectations for growth in demand from AI versus cloud and crypto and is there any comments you can make on that changing landscape for AI power demand.

Speaker Change: Yes, so so it's a very.

Speaker Change: Very big topic, but I think probably the two most important things. We would say is the biggest step change of the demand that the biggest demand driver that you mentioned there.

Artificial intelligence bar none it is ahead of clouded as ahead of crypto by miles.

Speaker Change: This is really driven by AI and we expect it to be driven by AI.

Speaker Change: For the medium term at a minimum here that obviously lends itself to another question, which is in the last couple of weeks.

Speaker Change: New technologies have come out or been socialized that maybe are more energy efficient.

Speaker Change: That's great.

Speaker Change: The important thing that we.

Speaker Change: Highlight from those discussions and those topics, which are early days are two things one.

Speaker Change: The supply demand imbalance is so strong right now there is very simply not enough power to support all the AI growth that is forecasted and those forecast would need to come down.

Speaker Change: Foreseeable amounts for the supply demand imbalance not to be in favor of power producers. So even with the new technologies the supply demand imbalances still wildly in our favor and then the second thing is any new technology, we expect will become more efficient over time.

Speaker Change: And the reality of it is if new AI technology to become more efficient.

Speaker Change: That means our cost is going to go down and that means they're going to become more prevalent and theyre going to be in demand for more places and it's actually going to lead to faster growth in this sector, which is obviously good for broad based electricity demand as well. So we continue to follow all.

Speaker Change: All the recent changes, but none of them change. The fact that we see a short medium and potentially long term supply demand imbalance very much in favor of those that can generate new electricity, especially those that can do it at low cost.

Speaker Change: Great excellent thanks for the color I'll leave it there.

Speaker Change: Our next question comes from Mark Jarvi with CIBC.

Speaker Change: Thanks, Good morning, Ron.

Speaker Change: Maybe just following up on the tariffs and the tax credit conversation has anything dramatically changed in terms of what you're hearing around that and then if there isn't adjustments and there is a period of sort of.

Speaker Change: Having to pass that through to customers does that impact <unk>.

Speaker Change: Development opportunities for the next couple of years or do you think because of the safe Harbor in things that already on the goal that Doug.

Speaker Change: Would be more of a sort of a three to five year adjustment period in terms of any delays on projects.

Speaker Change: So we'll take those in order.

Speaker Change: <unk>.

Speaker Change: We're obviously following this situation very closely.

Speaker Change: Would never contend to be able to forecast exactly what this new administration will do.

Speaker Change: At this point they have not said anything.

Speaker Change: Those tax credits.

Speaker Change: Historically, a lot of those have gone to Republican states.

Speaker Change: And while they've changed in <unk>.

Speaker Change: Issued executive orders on many other things they have not touched the tax credits.

Speaker Change: And we will remain flexible and follow this but I think that's probably our best indicator of what may or may not happen in the future.

Speaker Change: The next thing we would say is just around the development pipeline.

Speaker Change: <unk>.

Speaker Change: We've been preparing whether it be through how we're contracting things are how we're procuring equipment we've been preparing.

Speaker Change: For a market that could have this type of uncertainty.

Speaker Change: I think it's not an unreasonable thing to say that in periods of market uncertainty.

Speaker Change: That often favors.

Speaker Change: Larger players with more capabilities to manage this type of uncertainty and we very much see that playing out for us in 2025, so well.

Speaker Change: Well there might be some very modest disruption to individual projects, it's not going to change our growth trajectory.

Speaker Change: We don't expect it.

Speaker Change: We don't expect anything to happen that would materially change what we've outlined in terms of our forecast.

Speaker Change: So.

Speaker Change: We can perhaps follow up later with an exact figure it's important to recognize that the pinpoint five gigawatt agreement, we have with Microsoft applies to the years of 2026 through 2030, so it actually hasnt even started yet.

Speaker Change: That does not mean, we are not contracting significant sums of our new wind and solar capacity with Microsoft even ahead of 2026.

Speaker Change: One of our largest if not our largest off taker and we continue to do more and more with them.

Speaker Change: On an ongoing basis, even before that 2026 agreements starts.

Speaker Change: I would say our activity prior to that agreement is already above what we would've expected call. It 18 months ago and as we look to that agreement of 26 to 2030 that five year period, we would expect to exceed the 10 five gigawatts.

Speaker Change: Understood and then.

Speaker Change: You mentioned about the fact that there is dislocation between private and public markets and there is some weakness in share prices.

Speaker Change: Same thing in your own so how do you view your own share price right now in terms of a place to allocate capital and buybacks versus opportunities in other.

Speaker Change: The opportunities.

Speaker Change: Certainly in <unk>.

Speaker Change: If we can draw a parallel here.

Speaker Change: The current market feels somewhat similar to <unk>.

Kind of Q3 2023.

Speaker Change: Which is not that long ago.

Speaker Change: Five quarters.

Speaker Change: 16, 18 months ago.

Speaker Change: At the time that market sentiment was really down select players, we're seeing very significant headwinds it was dragging the whole sector down.

Speaker Change: And at the time.

Speaker Change: Our share price being lower we saw unbelievable fundamentals in our business.

Speaker Change: And we.

Speaker Change: The way we approach that is if we continue to allocate capital into the best opportunities and we continued to execute on our business plan, we would add a lot of value that would eventually show up in our share price. If you kind of look what's happened in the 15 months or five quarters since then or <unk>.

Speaker Change: Per share is up almost 15%.

Speaker Change: And whether it's our development activity our deployment activity our asset recycling activity. That's all up multiples in kind of a 15 or 18 months stretch. It feels very very similar again today. So our focus today is absolutely continuing to execute on that.

Speaker Change: Same strategy that we have had as we feel it captures incredible value and capture the significant market demand we are seeing without doubt in this environment and with our shares trading where they are at we will absolutely be looking at doing share buybacks. The same way we did in that time period.

Speaker Change: I would call it 15 months ago.

Speaker Change: Okay. Thanks for the time and congratulations everyone.

Speaker Change: Promotions.

Speaker Change: As a reminder to ask a question. Please press star one one on your Touchtone phone.

William: Our next question comes from the line of William <unk> with UBS.

Speaker Change: Okay.

Speaker Change: What degree are those agreements, enabling you to safe Harbor your U S development mid plans as it pertains to the PTC and ITC at that current levels, you've talked about passing higher costs through.

Speaker Change: PPA rates, but I would think some of that friction or potential friction could be eliminated with safe harboring. So just trying to understand how youre thinking about that.

Speaker Change: Yes.

Speaker Change: Absolutely and the point, we would make here is I think this goes beyond simply framework agreements and I'll drop back too.

Speaker Change: I apologize to ask.

Speaker Change: For not remembering who asked the question but.

Speaker Change: Rather than whether or not it's a framework agreement or just our ongoing dialogue with our largest customers on working with them on a project by project basis.

Speaker Change: The point that we were trying to dry out in the press release is the size and scale of our platform.

Speaker Change: Our significant amount of advanced pipeline that is available in the near term to capture this market demand.

Speaker Change: And our really robust access to capital that allows us to grow as much as possible. In this environment is really differentiating us from our peers the value and scale of our platform is more of a competitive advantage today than any time in history, and we expect that only to grow going forward and therefore, whether.

Speaker Change: It is within a framework agreement or done on a project by project basis, our ability to engage with some of the largest.

Speaker Change: Corporate off takers of Green power and get.

Speaker Change: Given our large scale relationships with the largest off takers of green power.

Speaker Change: Yes, Hi here I think the question was more focused on you specifically referenced agreements with your.

Speaker Change: Equipment suppliers.

Speaker Change: Yes, certainly so so sorry, if I misunderstood on that point.

Speaker Change: What we have been doing over the last few years in particular in the U S is given the scale of our pipeline there we've negotiated very large.

Speaker Change: The the opportunity to procure domestically in the United States becomes more valuable we will feel very very good about our position.

Speaker Change: Framework agreements, we have secured with domestic manufacturers over the last couple of years.

Speaker Change: Got it I appreciate the color color and good luck in 2025.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Anthony <unk> with Mizuho.

Speaker Change: Hey, good morning, Conor apologies I jumped in a little late so if you've answered this sorry.

Speaker Change: You see that and any thoughts of Derek maybe a difference in tenure that the tech companies when assigned versus what the power generators want to offer.

Speaker Change: That.

Speaker Change: You are highlighting a good point, but but.

Speaker Change: I think the reason for it is something slightly different.

Amit: If we could say this clearly the demand for power is now and it is Amit.

Speaker Change: <unk>.

Speaker Change: There is more demand for power than there are ready to build projects.

Speaker Change: And if there were more ready to build projects the large corporate off takers in the large tech companies would be signing them all up to date.

Speaker Change: Issue is there are not enough ready to build projects and thats, because permitting and development that takes time.

Speaker Change: Is the bottleneck in the system not demand not the willingness of customers to sign PPA.

Speaker Change: The thing that that is highlighting is one the supply demand imbalance is going to maintain for a while because permitting and development is a long process. It does take time.

Speaker Change: If you want to capture this demand and therefore, you start developing a project today.

Speaker Change: These projects take years and years and years to develop.

Speaker Change: And.

Speaker Change: And that's what's showing up in our development margins.

Speaker Change: Which are now at an all time high.

Speaker Change: Great. Thanks, and this one we had one apologies.

Speaker Change: No you don't enjoy talking about other companies but.

Speaker Change: Plenty others.

Speaker Change: Renewable companies smaller different model, but a yieldco.

Speaker Change: NIM change looks like it's really cut back their growth.

Speaker Change: Just curious if that's really just a separate isolated.

Speaker Change: Entity or is that maybe just the structure may be more challenging as we go forward.

Speaker Change: Yeah. So what we would say is I would say all renewables companies.

Speaker Change: Are seeing incredible demand for their product that has broad base that is across the sector everyone can participate in that.

Speaker Change: Some are more well positioned than others to take advantage of that.

Speaker Change: We certainly see ourselves.

Speaker Change: Near the top about list.

Speaker Change: The biggest headwinds today and secondly, we've never compromised in terms of our discipline in how we fund our business.

Speaker Change: Well there is incredible tailwind for the renewable sector more broadly there are discrete examples of individual companies that are seeing greater headwinds because either of concentrations in in technologies that are out of favor taking too much development risk.

Speaker Change: Or.

Speaker Change: Using more aggressive capital structures, we would say those are discrete.

Speaker Change: And the tailwind for the broader sector are tremendous today, but we feel very fortunate in terms of where we've focused our business and the discipline that we've executed across our balance sheet.

Speaker Change: Great. Thanks for taking my questions and congrats Patrick and why its looking forward to work with you.

Speaker Change: That concludes today's question and answer session I would like to turn the call back to <unk> for closing remarks.

Speaker Change: Great well. Thank you everyone for joining our call and for your interest and support of Brookfield renewable.

Speaker Change: We look forward to updating you on our progress throughout 2025 have a great day.

Speaker Change: This concludes today's conference call.

Speaker Change: Thank you for participating you may now disconnect.

Q4 2024 Brookfield Renewable Corp Earnings Call

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