Q1 2025 Brookfield Renewable Partners LP Earnings Call

Operator: Good day, and thank you for standing by.

Okay.

Operator: Welcome to the Brookfield Renewables first quarter 2025 results conference call and webcast. At this time, all participants are in listen only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is If you would like to withdraw your question, please press star 11 again.

Speaker Change: Good day, and thank you for standby and welcome to the Brookfield Renewables first quarter 2025 results conference call and webcast. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During the session you will need to press star one on your telephone you will then hear an automated message advising your hand is phrased.

To withdraw your question. Please press star one again please.

Connor Teskey: Please be advised that today's conference is being I'd now like to hand the conference over to your speaker today, Connor Teskey, Chief Executive Officer. Thank you, operator. Good morning, everyone, and thank you for joining us for our first quarter 2025 conference call. Before we begin, we would like to remind you that a copy of our news release, investor supplement, and letter to unit holders can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially.

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 Cheskey Chief Executive Officer. Please go ahead.

Speaker Change: Thank you operator.

Speaker Change: Good morning, everyone and thank you for joining us for our first quarter 2025 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 what 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 more information you're encouraged to review our regulatory filings available on SEDAR Edgar and.

Unknown Executive: For more information, you are encouraged to review our regulatory filings available on CDAR, EDGAR, and on our website.

Speaker Change: On our website.

Connor Teskey: On today's call, we will provide a review of our first quarter performance, and then Hannah Labouchagne, our Global Head of Procurement, will speak to the resiliency of our business and how we are well equipped to navigate the current dynamics of the global supply chain and continue to deliver on our target returns in an evolving environment.

Speaker Change: Right.

Speaker Change: On today's call, we will provide a review of our first quarter performance and then Hannah Lee <unk>, our global head of procurement will speak to the resiliency of our business and how we are well equipped to navigate the current dynamics of the global supply chain and continue to deliver on our target returns and are nimble.

Connor Teskey: Then, Patrick will conclude our remarks by discussing our operating results and financial position.

Speaker Change: Moving environment.

Speaker Change: Patrick will conclude our remarks by discussing our operating results and financial position.

Connor Teskey: Following our comments, we look forward to taking your questions. In light of recently announced tariffs on goods. and the resulting volatility in the market, we want to start by discussing the current environment for the energy sector and how renewables fit into the significant demand for energy globally, as well as how we are placed to extend our leadership position in a rapidly changing landscape. First and foremost, the most important driver for our business continues to be the fundamentals for energy, which remain very strong today, with digitalization and reindustrialization driving accelerating demand that far outpaces supply. We believe that the pace of energy demand growth, the need for baseload power, and Adequate Backup will require an any and all solution to build out the grid.

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

Speaker Change: In light of recently announced tariffs on goods.

Speaker Change: And the resulting volatility in the market, we want to start by discussing the current environment for the energy sector and how renewables fit into the significant demand for energy globally as well as how we are placed to extend our leadership position in a rapidly changing landscape.

Speaker Change: First and foremost the most important driver for our business continues to be the fundamentals for energy, which remains very strong today with digitalization and reindustrialization driving accelerating demand that far outpaces supply.

Speaker Change: We believe that the pace of energy demand growth.

Speaker Change: The need for Baseload power.

Speaker Change: And adequate backup will require in any and all solution to build out the grid.

Connor Teskey: This includes renewables, natural gas, batteries, and nuclear technologies, to name a few. And despite tariffs and the potential impacts on the renewable sector, renewable technologies, particularly onshore wind. solar and batteries represent a critical part of the solution to meet the insatiable demand for energy given their low cost position, their ability to be deployed quickly in almost any region around the world, their mature supply chain, and the fact that they do not depend on imported fuel. Today, we are one of the largest renewable operators and developers globally, diversified across the lowest cost and most mature technologies, and the most attractive geography.

Speaker Change: Includes renewables natural gas batteries and nuclear technologies to name a few.

Speaker Change: And despite tariffs and the potential impacts on the renewable sector.

Speaker Change: <unk> technologies, particularly onshore wind.

Speaker Change: Solar and batteries represent a critical part of the solution to meet the insatiable demand for energy given their low cost position and our ability to be deployed quickly than almost any region around the world.

Speaker Change: Our mature supply chain.

Speaker Change: And the fact that they do not depend on imported fuel.

Speaker Change: Today, we're one of the largest renewable operators and developers globally diversified across the lowest cost and most mature technologies and the most attractive geographies with approximately half our pipeline in North America, and the other half spread across other attractive markets around the world.

Connor Teskey: with approximately half our pipeline in North America and the other half spread across other attractive markets around the world, which mitigates our exposure to regional dynamics, market disruptions, or resource variability. We are well-equipped to navigate near-term supply chain challenges given our scale, global relationships with the largest Tier 1 suppliers, our approach to development, and our commitment and Focus over the past several years to increase purchases from domestic U.S.

Speaker Change: <unk> mitigates, our exposure to regional dynamics market disruptions or resource variability.

Speaker Change: We are well equipped to navigate near term supply chain challenges given our scale global relationships with the largest tier one suppliers.

Speaker Change: Our approach to development.

Speaker Change: And focus over the past several years to increase purchases from domestic U S manufacturers, all of which Hana will discuss in more detail later on the call.

Connor Teskey: manufacturers, all of which Hannah will discuss in more detail later on the call. With the strong underlying demand for power and the superior characteristics of renewables, combined with our relationships with the suppliers in the U.S. and globally, we continue to be very positive on the outlook for the business and our ability to deliver on our growth and return targets for shareholders.

Speaker Change: With the strong underlying demand for power and the superior characteristics of renewables combined with our relationships with the suppliers in the U S and globally, we continue to be very positive on the outlook for the business and our ability to deliver on our growth and return targets for shareholders.

Connor Teskey: Moving to our operating results. Our business had a strong quarter to start the year, performing well. We delivered strong financial results and made significant progress executing on our plans for 2025 and beyond. Adjusting for very strong hydro generation in the first quarter of last year, our FFO per unit was up 15% versus the prior year period. And on an all-in basis, our FFO per unit was up 7% year-over-year. These results reflect the benefit of our diverse, contracted, global fleet of assets, successful commissioning of new capacity, recently closed investments, and the scaling of our normal course capital recycling activity.

Speaker Change: Moving to our operating results.

Speaker Change: Our business had a strong quarter to start the year performing well.

Speaker Change: We delivered strong financial results and made significant progress executing on our plans for 2025 and beyond.

Speaker Change: Adjusting for very strong hydro generation in the first quarter of last year.

Speaker Change: <unk> per unit was up 15% versus the prior year period.

Speaker Change: On an all in basis, our <unk> per unit was up 7% year over year.

Speaker Change: These results reflect the benefit of our diverse contracted global fleet of assets successful commissioning of new capacity recently closed investments.

Speaker Change: And the scaling of our normal course capital recycling activities.

Connor Teskey: We were successful advancing our commercial initiatives as well, including securing contracts to deliver on an incremental 4,500 gigawatt hours per year of generation. We also progress the delivery of projects to Microsoft under our Renewable Energy Framework Agreement and continue to view the initial 10 1⁄2 gigawatts scoped into the agreement as the minimum we will contract under the framework. We expect to continue to partner with global technology players on both a project-by-project basis and via larger framework agreements, given the persistence of the supply-demand imbalance we are seeing globally. We progressed our development activities and commissioned approximately 800 megawatts of renewable energy capacity in the quarter across our platforms, and continue to expect to bring approximately 8 gigawatts online in 2025.

Speaker Change: We were successful advancing our commercial initiatives as well.

Speaker Change: Clothing, securing contracts to deliver on an incremental 4500 gigawatt hours per year of generation.

Speaker Change: We also progressed the delivery of projects to Microsoft under our renewable energy framework agreement and continue to view the initial 10 and a half gigawatts scoped into the agreement as the minimum we will contract under the framework.

Speaker Change: We expect to continue to partner with global technology players on both a project by project basis and by a larger framework agreements given the persistence of the supply demand imbalance, we are seeing globally.

We progressed, our development activities and commissioned approximately 800 megawatts of renewable energy capacity in the quarter across our platforms and continue to expect to bring approximately eight gigawatts online in 2025.

Connor Teskey: over double our run rate of commissioning capacity just three years ago. Another byproduct of the recently announced tariffs is that there are lower public market valuations for renewable energy companies, despite the strong fundamentals for energy demand. With this and the significant capital required to meet energy demand, we are seeing meaningful opportunities for those with access to capital, carve-out capabilities, and development expertise to acquire renewable platforms and assets for value. In the quarter, we committed or deployed $4.6 billion or $500 million net to Brookfield Renewable highlighted by the completion of the privatization of NAOEN and by reaching an agreement to acquire National Grid Renewable.

Speaker Change: Over double our run rate of commissioning capacity just three years ago.

Speaker Change: Another byproduct of the recently announced tariffs is that there are lower public market valuations for renewable energy companies. Despite the strong fundamentals for energy demand.

Speaker Change: With this and the significant capital required to meet energy demand, we are seeing meaningful opportunities for those with access to capital carve out capabilities and development expertise to acquire renewable platforms and assets for about.

Speaker Change: In the quarter, we committed or deployed $4 $6 billion or $500 million net to Brookfield renewable highlighted by the completion of the privatization of neyland and by reaching an agreement to acquire national grid renewables.

Connor Teskey: With our acquisition of NEON, we will drive value creation through the acceleration of their development activities, expecting to double the commissioning cadence from around one gigawatt per year to two. and via the implementation of an asset rotation program, which is already well underway. National Grid Renewables is a fully integrated onshore renewable power operator and developer in the United States with 3.9 gigawatts of operating and under construction assets, a 1 gigawatt construction ready portfolio, and an over 30 gigawatt development pipeline. National Grid's contracted operating portfolio provides strong downside protection, and we see an opportunity to deliver significant value through the development of National Grid's large, high-quality, advanced-stage pipeline.

Speaker Change: With our acquisition of now and we will drive value creation through the acceleration of their development activity is expected to double the commissioning cadence from around one gigawatt per year to chew.

Speaker Change: And by the implementation of an asset rotation program, which is already well underway.

Speaker Change: National grid renewables is a fully integrated onshore renewable power operator and developer in the United States with $3 nine gigawatts of operating and under construction assets a one gigawatt.

Speaker Change: Construction ready portfolio, and then over 30 gigawatt development pipeline.

Speaker Change: National Grid's contracted operating portfolio provides strong downside protection and we see an opportunity to deliver significant value through the development of national Grid's large high quality advanced stage pipeline.

Connor Teskey: similar to the carve-out of Duke Energy's renewables business that we've successfully completed about two years ago. In contrast to the sentiment for renewables in the public markets today, we continue to see a bifurcation from private markets where there continues to be robust demand from private investors for our de-risked operating assets and platforms with advanced projects and highly executable growth opportunities. During the quarter, we closed the sale of our stake in First Hydro and phase one of our India portfolio sale on our expected timelines, generating almost three times our invested capital in 20% investment return. We also reached an agreement to sell an additional 25% stake in Shepherd's Blonde at the same valuation as our previous 50% stake sale, generating almost two times our invested capital and proceeds of approximately $200 million.

Speaker Change: Similar to the carve out of Duke energy is renewables business that we've successfully completed about two years ago.

Speaker Change: In contrast to the sentiment for renewables in the public markets today, we continue to see a bifurcation from private markets, where there continues to be robust demand from private investors for our derisked operating assets and platforms with advanced projects and highly executable growth opportunities.

Speaker Change: During the quarter, we closed the sale of our stake in first hydro.

Speaker Change: And phase one of our India portfolio sale on our expected timelines generating almost three times, our invested capital and 20% investment returns.

Speaker Change: We also reached an agreement to sell an additional 25% stake in shepherds plant at the same valuation as our previous 50% stake sale generating almost two times, our invested capital and proceeds of approximately $200 million.

Connor Teskey: Looking ahead, we remain well positioned to continue to capitalize on the current market bifurcation. acquiring for value as well as monetizing our de-risked renewables platforms and assets to lower cost of capital buyers and in doing so generating strong returns.

Speaker Change: Looking ahead, we remain well positioned to continue to capitalize on the current market bifurcation acquiring.

Speaker Change: Acquiring for value as well as monetizing our derisked renewables platforms and assets to lower cost of capital buyers and in doing so generating strong returns.

Hannah Labouchagne: With that, we will now turn the call over to Hannah to speak to how our business is well equipped to navigate the evolving supply chain and continue to deliver on our growth and return target. Thank you, Connor, and good morning. As Connor mentioned, current sentiment in the public markets for the renewable sector reflects an elevated level of... with investors reacting to tariff announcements and how these duties may impact development. and Cash Flows from Assets.

Speaker Change: With that we will now turn the call over to Hana to speak to how our business is well equipped to navigate the evolving supply chain and it.

Hana: <unk> continued to deliver on our growth and return targets.

Speaker Change: Thank you Conor and good morning, everyone as Conor mentioned current sentiment in the public markets for the renewable sector reflect an elevated level of uncertainty with investors reacting to tariff announcements and how these duties may impact development project returns the pace of development going forward and cash flows from assets operating today.

Hannah Labouchagne: We are of the view that many investors today are not discerning between those in the sector that are diversified and well-positioned to mitigate the potential. It's at times of heightened uncertainty when the benefits of our global diversified operating and development portfolio and its associated global procurement Today we have a diversified global platform approaching 45,000 megawatts of operating that generates high quality, resilient and inflation language. These assets generate a critical resource at the lowest cost in their. and are largely unimpacted. In fact, in an inflationary environment, our operating fleet benefits given the index nature of our regarding our development projects in progress.

Speaker Change: We are of the view that many investors today are not discerning between those in the sector that are diversified and well positioned to mitigate the potential impact.

Speaker Change: Is that or not.

Speaker Change: It's in times of heightened uncertainty when the benefits of our global diversified operating and development portfolio and its associated global procurement network becomes clear.

Speaker Change: Today, we have a diversified global platform approaching 45000 megawatts of operating capacity that generates high quality resilient and inflation linked cash flows.

Speaker Change: These assets generate a critical resource at the lowest cost in their respective markets and are largely uninfected by tariffs in fact in an inflationary environment, our operating fleet benefits given the index nature of our contracted revenue.

Speaker Change: Regarding our development projects in progress today, we are substantially safeguarded against fluctuations in input costs due to our approach to development.

Hannah Labouchagne: We are substantially safeguarded against fluctuations in input costs due to our approach. Our strategy of focusing on minimizing risk by securing our costs while simultaneously locking in our for Investing Meaningful CapEx has us well-positioned to continue delivering.

Speaker Change: Our strategy of focusing on minimizing risk by securing our costs, while simultaneously looking at our cash flow before investing meaningful capex has us well positioned to continue delivering on our target returns.

Hannah Labouchagne: As a result... Most of our projects currently under construction have a fixed price engineering procurement Contracts with Limited Exposure. And for those where we do retain price exposure, we have taken actions to help limit our impact on our return. clauses in our PPA.

Speaker Change: As a result of this approach most of our projects currently under construction have a fixed price engineering procurement and construction contracts with limited exposure to price increases and.

Speaker Change: And for those where we do retain price exposure, we have taken actions to help limit our impact on our returns.

Clauses in our PPA contracts tracks to enable price adjustments.

Hannah Labouchagne: we welcome from the implementation of new tariff. important amount of equipment directly from the country for us development. In the past few years, we have proactively increased consumption of domestic goods in the U.S. through signing of framework agreements with OEMs to support the expansion of domestic suppliers and to minimize the impact of previously enacted tariffs on solar For more information visit www.fema.gov with respect to the recently announced updated tariff rates on several. Part of the U.S.'s Anti-Dumping and Countervailing Investigation. We are of the view that this further supports domestic U.S. and benefits players like ourselves who already have existing relationships with domestic U.S.

Speaker Change: We will win.

Speaker Change: Implementation of new tariffs on China, specifically.

Speaker Change: The real amount of equipment directly from the country for our U S development activities in.

Speaker Change: In the past few years, we have proactively increased consumption of domestic goods in the U S through signing a framework agreements with Oems to support the expansion of domestic suppliers and to minimize the impact of previously enacted tariffs on solar panels manufactured in China.

Speaker Change: With respect to the recently announced updated tariff rates on several southeast Asia countries as part of the U S is antidumping and countervailing investigation on solar panels. We are of the view that this further supports domestic U S investment and benefits players like ourselves, who already have existing relationships with domestic U S manufacturers and the capacity and capabilities to.

Hannah Labouchagne: manufacturers and the capacity and capabilities to adjust our orders and suppliers for a project. Furthermore, across our global business, we expect a positive impact on supply chain availability. where U.S. developers were a meaningful buyer of equipment from Asian suppliers. We could see increasing quantities of equipment available in other geographies in which we operate. As those suppliers look to diversify their customers. And so while the environment continues.

Speaker Change: Just our orders and suppliers for our projects around the world.

Speaker Change: Furthermore, across our global business, we expect a positive impact on supply chain availability and input costs.

Speaker Change: We're a U S developers, where a meaningful buyer of equipment from Asian suppliers, we could see increasing quantities of equipment available in other geographies in which we operate as those suppliers look to diversify their customer base and global players like ourselves could benefit from higher availability and lower pricing.

Patrick: And so while the environment continues to evolve we feel that we are very well positioned to continue to offer the most competitive pricing to our customers to meet growing demand for energy in the U S and across the regions in which we operate extending our leading position as a partner of choice to the largest corporate buyers of power globally with that I'll pass it on to Patrick.

Patrick McHugh: We feel that we are very well positioned to continue to offer the most competitive pricing to our customers to meet growing demand for energy in the US and across Unknown Participant, Unknown Contributor, Unknown Participant, Unknown Participant, Unknown With that, I'll pass it on to Patrick to discuss our operating results. Thanks, Hannah, and good morning to everyone on the call. Our business performed well this quarter. We delivered funds from operations of $315 million or $0.48 per unit. Adjusting for strong hydro generation in the prior year, our FFO per unit increased by 15% year over year this quarter, and on an all-in basis increased 7% per unit year over year.

Patrick: To discuss our operating results and financial position.

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

Patrick: Our business performed well this quarter, we delivered funds from operations of $315 million or <unk> 48 per unit.

Patrick: Adjusting for strong hydro generation in the prior year or <unk> <unk> per unit increased by 15% year over year this quarter.

Patrick: And on an all in basis increased 7% per unit year over year.

Patrick McHugh: Our business continues to exhibit strong cash flow resiliency, with our operating results reflecting our stable and growing cash flows from our operating fleet, which are 90% contracted for approximately 14 years, with revenues 70% indexed to inflation. In addition, we continue to benefit from our growth initiatives and accretive capital recycling activities. Our hydroelectric segment continues to benefit from favorable all in pricing in the current environment, where demand for clean power remains robust. The business delivered solid results and is well-positioned for a strong second quarter in 2025, as solid hydrology and a relatively cold winter in North America has resulted in a healthy snowpack and reservoir levels near the long-term average.

Patrick: Our business continues to exhibit strong cash flow resiliency with our operating results, reflecting our stable and growing cash flows from our operating fleet.

Patrick: Which are 90% contracted for approximately 14 years with revenue, 70% indexed to inflation.

Patrick: In addition, we continue to benefit from our growth initiatives and accretive capital recycling activities.

Patrick: Our hydro electric segment continues to benefit from favorable all in pricing in the current environment, where demand for clean power remains robust.

Patrick: The business delivered solid results and is well positioned for a strong second quarter and 2025 as solid hydrology and a relatively cold winter in North America as a resulted in a healthy snowpack and reservoir levels near the long term average.

Patrick McHugh: We continue to see strong demand for our hydro generation from the traditional utility customers. and increasingly are seeing interest from our corporate partners to procure more power from these assets. With a combined 6,000 gigawatt hours available for recontracting over the next five years alone, coupled with potentially higher levels of inflation, we expect to be able to contract these assets at strong prices, delivering improved cash flows and opportunities for investment grade up financings to support our growth. Our wind and solar segments performed well, benefiting from newly commissioned capacity and the closing of our investments in Naoan and Oersted.

Patrick: We continue to see strong demand for hydro generation from the traditional utility customers and increasingly are seeing interest from our corporate partners to procure more power from these assets.

Patrick: With a combined 6000 gigawatt hours available for re contracting over the next five years alone.

Patrick: Bold with potentially higher levels of inflation, we expect to be able to contract. These assets at strong prices delivering improved cash flows and opportunities for investment grade up financings to support our growth.

Patrick: Our wind and solar segments performed well.

Patrick: Fitting from newly commissioned capacity and the closing of our investments in ne Owen and Austin.

Patrick McHugh: Our distributed energy storage and sustainable solution segments delivered strong performance with FFO more than doubling from the prior year on the back of solid performance and accretive capital recycling. Results from our distributed generation and storage business were positively impacted by the asset improvement programs we have been executing, the continued buildup of our development pipeline, and a gain on the sale of our interest in First Hydro, which we completed in the first quarter. Westinghouse also continues to perform well, benefiting from the growing demand for nuclear power.

Patrick: Our distributed energy storage and sustainable solutions segments delivered strong performance with <unk> more than doubling from the prior year on the back of solid performance and accretive capital recycling.

Patrick: Results from our distributed generation and storage business were positively impacted by the asset improvement programs. We have been executing the continued buildup of our development pipeline and a gain on the sale of our interest in first hydro, which we completed in the first quarter.

Patrick: Westinghouse also continues to perform well benefiting from the growing demand for nuclear power.

Patrick McHugh: Turning to our financial position. Our balance sheet remains best in class, and we ended the quarter with $4.5 billion of available liquidity. providing us with significant flexibility to pursue growth. In March, we opportunistically issued 450 million Canadian dollars of 10-year notes. at our lowest coupon in the past five years and at our tightest new issue spread in almost 20 years. The issuance was consistent with our funding strategy of conservatively accessing the investment-grade corporate debt market as our underlying cash flow grows. Given our strong financial position and the recent volatility in the market, we have been active repurchasing our units, which we see as an accretive use of capital.

Patrick: Turning to our financial position.

Patrick: Our balance sheet remains best in class and we ended the quarter with $4 5 billion of available liquidity providing.

Patrick: Providing us with significant flexibility to pursue growth.

Patrick: In March we Opportunistically issued 450 million Canadian dollars of 10 year notes.

Patrick: At our lowest coupon in the past five years and that our tightest new issue spread in almost 20 years.

Issuance was consistent with our funding strategy of conservatively accessing the investment grade corporate debt market as our underlying cash flow grows.

Patrick: Given our strong financial position and the recent volatility in the market, we have been active repurchasing our units, which we see as an accretive use of capital.

Patrick McHugh: Year to date, we have bought back approximately $35 million worth of units.

Patrick: Year to date, we have bought back approximately $35 million worth of units.

Patrick McHugh: In closing, 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. On behalf of the board and management, we thank all our unit holders and shareholders for their ongoing support. We are excited about Brookfield Renewable's future and look forward to updating you on our progress throughout the year.

Patrick: In closing, we remain focused on delivering 12% to 15% long term total returns for our investors, while remaining disciplined allocators of capital.

Patrick: Bridging our deep funding sources and operational capabilities to enhance and Derisk our business.

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

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

Patrick McHugh: That concludes our formal remarks for today's call. Thank you for joining us this morning.

Patrick: That concludes our formal remarks for today's call.

Operator: With that, I'll pass it back to our operator for questions. Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 118.

Patrick: Thank you for joining us this morning with that I'll pass it back to our operator for questions.

Thank you as a reminder to ask a question. Please press star one wondering your telephone and wait for your name to be announced to withdraw your question. Please press star one again.

Nelson Ng: Our first question comes from the line of Nelson Ng with RBC Capital Markets, your line is now open. Great, thanks, and good morning, everyone. So, Connor and Hannah, you mentioned that you have limited exposure to cost, inflation and tariff. But in the US, can you just talk about the permitting situation? Are you still seeing some delays? And I guess given the strong demand for power in the U.S., are you able to start construction?

Nelson <unk>: Our first question comes from the line of Nelson <unk> with RBC capital markets. Your line is now open.

Nelson: Great. Thanks, and good morning, everyone.

Nelson: So Conor you.

Speaker Change: You mentioned that you have limited exposure to cost inflation and tariffs.

Speaker Change: But in the U S. Can you just talk about the permitting situation are you still seeing some delays in the receipt of federal permits.

Speaker Change: And I guess, given the strong demand for power in the U S. Like are you able to start construction on a number of projects to meet demand.

Connor Teskey: Good morning, Nelson. Thank you for the question. Absolutely right. We see the the impact of the tariff announcements as not material to our business, given what Hannah said, the way that we've procured equipment already for our existing projects and our global procurement programs, our ability to have a multitude of solutions to provide equipment to projects in the future. In terms of permitting, as a reminder to everyone on the call, within the executive orders in the United States, those were largely focused on offshore wind and federal permits for onshore wind on federal lands, of which we have very little if no exposure to either.

Speaker Change: Good morning, Nelson. Thank you for the question.

Speaker Change: Absolutely right.

Speaker Change: See the impact of the tariff announcements as.

Speaker Change: Sure.

Speaker Change: Not material to our business given what Ken has said the the way that we procure.

Speaker Change: Procured equipment already for our existing projects and our global procurement programs, our ability to have a multitude.

Speaker Change: Solutions to to provide equipment to two projects in the future in terms of permitting as a reminder to everyone on the call.

Speaker Change: Within the executive orders in the United States those were largely focused on offshore wind.

Speaker Change: And federal permits for onshore wind.

Speaker Change: On federal lands of which we have.

Connor Teskey: We have no offshore wind exposure and only a de minimis number of our projects are exposed to federal lands. However, even some projects on private lands do require federal permits. You can think of these as FAA permits or certain endangered species permits that are regulated at the federal level. This does mark a very modest portion of our portfolio. U.S. wind is less than 10%. We would put it in the mid-single-digit portion of our development pipeline. Yes, that process is still slower than it was prior to the executive orders, but we are hopeful to see that resolved in the near term.

Speaker Change: Very little if no exposure to either we have no offshore wind exposure.

Speaker Change: And only a de minimis number of our projects are exposed to federal lands.

Speaker Change: However.

Speaker Change: Even some projects on private lands do require federal permits.

Speaker Change: You can think about the FAA permit sort of certain endangered species permits that are regulated at the federal level.

Speaker Change: This does mark a <unk>.

Speaker Change: Very modest portion of our portfolio.

Speaker Change: U S wind.

Speaker Change: It's less than 10%.

Speaker Change: We would put it in kind of the mid single digit portion of our development pipeline.

Speaker Change: Yes.

Speaker Change: Process is still slower than it was prior to the executive orders, but we are hopeful to see that resolved in the near term and it's it's given its relative size. It is not going to have a meaningful impact on our our business or our growth plans either way.

Connor Teskey: Given its relative size, it's not going to have a meaningful impact on our business or our growth plans either way.

Nelson Ng: That's a great color. And then you mentioned Microsoft in the call. So Is Microsoft the only company you have with a framework agreement? And I presume Other offtakers would have Transcripts provided by Transcription Outsourcing, LLC. Unknown Speaker Your willingness or what is your approach to entering into a district? So, Microsoft is certainly our largest framework agreement and it's certainly in a scale that differentiates it from our contracting arrangements with any other individual counterparty. Our approach to contracting our projects is always done with a focus on generating the greatest value for our business and for our shareholders.

Speaker Change: Got it Thats great color and then you mentioned Microsoft in the call. So.

Speaker Change: As Microsoft the only company you have with a framework agreement and I presume.

Speaker Change: Other off takers.

We are interested or in.

Speaker Change: In terms of some form of similar agreements, but can you just talk about.

Speaker Change: Your your willingness or.

Speaker Change: What is your approach to entering into additional framework agreements potentially with other parties.

Speaker Change: Yeah.

Speaker Change: So Microsoft is certainly our largest framework agreement and.

Speaker Change: It's certainly in a scale that that differentiates it from our contracting arrangements with any other individual counter party.

Speaker Change: Our approach to contracting our projects is always done with a focus on generating the greatest value.

Speaker Change: For our business and for our shareholders and the joy of the Microsoft <unk>.

Connor Teskey: And the joy of the Microsoft arrangement in that regard was it allowed us to significantly de-risk such a significant portion of some of our development activities business plans. It allowed us to accelerate the pace of contracting a number of those assets. And the way the framework agreement works, there is no obligation to do that at any sort of price discount. In terms of other type agreements, I would say the inbounds and the interest of different corporate counterparties in doing renewable power framework agreements with Brookfield Renewable has been high. It's been high ever since the Microsoft agreement was announced and has only accelerated in recent months.

Speaker Change: Arrangement in that regard was it allows us to significantly de risks such a significant portion of.

Speaker Change: Some of our development activities business plans it allowed us to accelerate the pace of contracting a number of those assets and the way. The framework agreement works is there is no obligation to do that at any sort of price discount.

Speaker Change: In terms of other type agreements.

Speaker Change: I'd say, the inbound and the interest it.

Speaker Change: Different corporate Counterparties and doing.

Speaker Change: Renewable power framework agreements with Brookfield renewable.

Speaker Change: Has been hot it's been high ever since the Microsoft agreement was announced and has only accelerated in recent months.

Connor Teskey: And as we sit here today, we would suggest that it is probably far more likely than not that we would execute similar type agreements within 2025.

And as we sit here today, we would suggest that.

Speaker Change: It is probably far more likely than not that we would execute similar type agreements within 2025.

Nelson Ng: That's great news, Connor. Just one last question before I turn it over. So I noticed that the... Asia-Pacific Development Pipeline has really grown in the past year. Is that mainly due to the neoline aquifer? and I presume a lot of that growth. Canada, India, Australia, but can you just talk about how each country is developing from your perspective. Is it mostly solar and batteries, or is there a material amount of...

Speaker Change: Okay. That's great news Conor just one last question before I turn it over so I noticed that the <unk>.

Speaker Change: Asia Pacific Development pipeline has really grown in the past year is that mainly due to the new wind acquisition.

Speaker Change: And I presume a lot of that growth is taking place in <unk>.

Speaker Change: China, India, Australia, but can you just talk about.

Speaker Change: How each each country is a developing from your perspective.

Speaker Change: And is it mostly solar and batteries or is there a material amount of wind as well.

Connor Teskey: Sure. So the biggest driver of that change is definitely Neowen. Neowen is a French headquartered company and prior to our privatization, it was listed on the French Stock Exchange. But interestingly, the biggest component of that business is in Australia. Neowen's Australia operation make it the largest renewable power player in the country of Australia. So that is the biggest driver of the significant increase that you are referencing. In terms of what Neowen focuses on in Australia, it actually is a lot of wind and a lot of batteries. And that is because similar to other markets around the world that have a very high degree of solar penetration, there is a premium on those asset classes that offer a differentiated load profile to solar.

Speaker Change: Sure. So the biggest driver of that change is definitely now in.

Speaker Change: Now and is a French headquartered company.

Speaker Change: Prior to our private taste privatization. It was listed on the French stock exchange, but interestingly the biggest component of that business is in Australia.

Speaker Change: <unk>, Australia operation make it the largest renewable power player in the country of Australia. So that that is the biggest driver of the significant increase that you are referencing.

Speaker Change: In terms of what <unk> focus is on in Australia.

Speaker Change: It actually is a lot of wind and a lot of batteries and that is because similar to other markets around the world that have a very high degree of solar penetration there is a premium.

Speaker Change: On those asset classes that offer a differentiated load profile.

Connor Teskey: So while it is diversified across solar, wind and batteries, I would say that the focus of Neowen in Australia is largely on wind and batteries, because that's certainly where the greatest value is for a developer.

Speaker Change: Two solar so well it is diversified across solar wind and batteries I would say that the focus of now and then Australia is largely on wind and batteries, because that's certainly where the greatest value is for a developer.

Connor Teskey: The other thing I would just highlight as a point of context is our business in India is performing very well. Not only in terms of the existing operations and how they're performing, this was illustrated by our very successful sale of some of our mature assets in recent months. But the growth we're seeing within some of our Indian platforms, whether it be Everin, whether it be Cleanmax, has been very strong. And that's also adding to some of the pipeline growth in Asia-Pac that you're referencing. Thank you.

Speaker Change: Other thing I would just highlight as a point of context as are our business in India is performing very well.

Speaker Change: Not only in terms of the.

Speaker Change: Existing operations and how they're performing and this was illustrated by our very successful sale of some of our mature assets.

In recent months, but the growth we're seeing within some of our Indian platforms, whether it be ever and whether it would be clean Max.

Speaker Change: It has been very strong and that's also adding to some of the pipeline growth in Asia Pac that youre referencing.

Cotter: Great. Thanks Cotter.

Sean Steuart: Our next question comes from the line of Sean Steuart with TD Cowen. Your line is now open. Thank you. Good morning, everyone. First question of the the 29.8 gigawatts of advanced stage capacity development activity you have in North America. I imagine most of that is US solar. Can you give us a rough percentage there? And of that What percentage of the solar you're planning to build in the U.S. Is the equipment already secure, costs are locked in? And I appreciate all the commentary around mitigation you guys have.

Speaker Change: Thank you. Our next question comes from the line of Sean Stewart with TD Cowen. Your line is now open.

Sean Stewart: Thank you good morning, everyone.

Sean Stewart: Our first question of the $29 eight gigawatts of advanced stage capacity.

Sean Stewart: Development activity you have in North America.

Sean Stewart: I imagine most of that is U S. Solar can you give us a rough percentage there and of that.

Sean Stewart: What percentage of the solar Youre planning to build in the U S. As the equipment already secure costs are locked in and I. Appreciate all the commentary around mitigation you guys have given.

Connor Teskey: your scale and diversity, but can you give me some perspective on Yeah, sure. So I'll let Patrick crunch some percentages really quickly here while we're talking so we can we can answer that breakdown question for you. But in in terms of our solar pipeline in the United States in terms of what is in an advanced stage, We should leave no doubt here, the absolute vast majority of it has already secured its equipment and has done so under a construct where we're not exposed to the recent tariff announcements. Because of our approach of not locking in.

Sean Stewart: Your scale and diversity, but can you give me some perspective on that front.

Speaker Change: Yeah sure. So I'll, let Patrick Crunch, some percentage has really quickly here what we're talking so we can we can answer that breakdown question for you, but in terms of our.

Speaker Change: Our solar pipeline in the United States in terms of what is in an advanced stage.

Speaker Change: We should leave no doubt here the absolute vast majority of it has already secured.

Speaker Change: Equipment and has done so under a construct where we're not exposed to the recent tariff announcements.

Speaker Change: Because of our approach of not locking in.

Connor Teskey: not locking in revenue contracts until we can also lock in CapEx and that consistent approach about how we de-risk development across our platform, not only in the United States. In terms of what's in our advanced stage pipeline, the vast majority of it is fully secured from an equipment perspective.

Speaker Change:

Speaker Change: Not locking in red.

Speaker Change: Revenue contracts until we can also work in <unk>.

Speaker Change: Capex in that consistent approach about how we derisked development across our platform not only in the United States in terms of what's in our advanced stage pipeline. The vast majority of it is.

Speaker Change: Fully secured from an equipment perspective.

Patrick McHugh: And that percentage you're looking for of solar US, it's about 60%. Thanks for that.

Speaker Change: That percentage Youre looking for a solar U S. It's about 60%.

Speaker Change: Okay.

Sean Steuart: And I want to follow up on Microsoft as well. You know, their call earlier this week, they reiterated a disconnect between data center supply and demand. But they they have canceled or deferred some of their their data center leases and just trying to get a sense of the framework agreement you have with them the 10 and a half gigawatts would any of that be exposed to some of the Data Center activity they might be deferring or canceling. A little bit of context on Please remain on your line, your conference will resume momentarily. Please remain in your line, your conference will resume momentarily.

Speaker Change: Okay, Thanks for that and.

Speaker Change: And I wanted to follow up on Microsoft as well their call earlier. This week. They reiterated a disconnect between data centers to client demand.

Speaker Change: They they have canceled or deferred some of their their data center leases and just trying to get a sense of the framework agreement you have with them the $10 five gigawatts with any of that be exposed to some of the.

Speaker Change: The data center activity, they might be deferring or canceling.

Speaker Change: A little bit of context on that front if you can.

Speaker Change: Okay.

Speaker Change: Please remain on your line your conference will resume momentarily once again. Please many of your line your conference will resume momentarily.

Speaker Change: Please for many your line your conference will resume momentarily once again. Please <unk> your line your conference will resume momentarily.

Speaker Change: Speakers you may resume.

Connor Teskey: Hi there, sorry about that, our line dropped. I believe we got the entirety of the question before the line dropped there. But just in terms of Microsoft and their demand for power in data centers, there's two or three things we would highlight there. One, there have been headlines about them relinquishing certain data center leases and things like that. It's context. That is a very small number of data centers in what is a generationally large build out. The growth that they are seeing in their data center demand is still historic by any perspective. And we are very fortunate to have great interaction with Microsoft given the size of our ongoing relationship.

Speaker Change: Hi, there sorry about that our line dropped out and I believe we got the entirety of the question.

Speaker Change: For the line dropped there.

Speaker Change: But just in terms of Microsoft and their demand for power and data centers. There is two or three things we would highlight there.

Speaker Change: One.

Speaker Change: There have been headlines about.

Speaker Change: And then relinquishing certain data center leases and things like that it's important to put that in context that is a very small number of data centers and what is.

Speaker Change: A generationally large build out the growth.

Speaker Change: And that they are seeing in their data center demand.

Speaker Change: <unk> historic.

Speaker Change: Any perspective.

Speaker Change: And we are very fortunate to have great interaction with Microsoft given.

Speaker Change: <unk>.

Speaker Change: Are the size of our ongoing relationship and we would really just say two things one there their growth.

Connor Teskey: And we would really just say two things. One, their growth continues to be exceptionally robust. Any changes in terms of their demand, we would really just see that as a optimization and a tweaking of their data center needs as they understand their demands for AI going forward. It's really a tweaking around the edges as opposed to any change in trajectory in terms of growth. And therefore, the impact on our framework agreement, nothing. If anything, we probably have more confidence in our arrangement with Microsoft than we did 12 or 15 months ago. As their needs are changing, we like to think there is no platform around the world that is better equipped to adjust with them.

Speaker Change: Continues to be exceptionally robust.

Speaker Change: Any changes in terms of their demand, we would really just see that as a optimizations and a tweaking of their data center needs as they understand their demands for AI.

Speaker Change: Going forward, it's really a tweaking around the edges as opposed to any.

Speaker Change: The change in trajectory in terms of <unk>.

Speaker Change: Growth.

Speaker Change: And therefore, the impact on our framework agreement.

Speaker Change: Nothing.

Speaker Change: If anything.

Speaker Change: We probably have more confidence in our arrangement with Microsoft than we did 12 or 15 months ago as their needs are changing.

Speaker Change: We like to think there is no platform around the world that has that is better equipped to to adjust with them and as such we expect our partnership to only.

Connor Teskey: And as such, we expect our partnership to only grow and increase beyond what was originally announced.

Speaker Change: Grow and increase beyond what was originally announced.

Connor Teskey: The other thing I would perhaps add, and I recognize you didn't ask this question, but whether it's the headlines about Microsoft and tweaking some of their data center demands or whether it was the headlines around DeepSeek earlier this year, it's important to recognize the demand for data centers and the power that is required to support that demand far exceeds any reasonable amount of supply that can be brought online in the short and medium term. The supply demand imbalance is still so robustly in favor of those that can bring on new data center capacity and the power that supports it.

Speaker Change: The other thing I.

Speaker Change: I would perhaps.

Speaker Change: <unk>.

Speaker Change: I recognize you didn't ask this question but.

Speaker Change: Whether it's the headlines about Microsoft and tweaking some of their data center demands or whether it was the headlines around deep seek earlier. This year. It is important to recognize the demand for data centers.

Speaker Change: And the power that is required to support that demand far exceeds any reasonable amount of supply that can be brought online in the short and medium term the supply demand imbalance is still so robustly in favor of those that can bring on new data center capacity in the <unk>.

Connor Teskey: And as such, even if that demand forecast is tweaked, is augmented, even if the growth trajectory was to plateau a little bit lower, the supply demand is still very much in our favor and a very constructive backdrop for our business.

Speaker Change: Power that supports it.

Speaker Change: And as such even if that demand forecast is tweaked is augmented even if it was the.

Speaker Change: The growth trajectory was too to plateau, a little bit lower the supply demand is still very much in our favor and very constructive backdrop for our business.

Sean Steuart: Great context. Thanks very much.

Connor Cheskey: That's great context, thanks, very much Connor.

Robert Hope: Our next question comes from the line of Robert Hope with Scotiabank. Your line is now open. Morning. In the prepared remarks, you noted that there's an increased demand to recontract your hydrocapacity from a variety of buyers. Can you speak to the strategy of how you want to recontract these assets? Could you wait until there's a cluster of uncontracted assets and then group them together? Could you see a period of time where you'd be happy to have them a little bit more merchant in advance of a longer-term contract? It's a great question.

Speaker Change: Thank you.

Robert Hope: Our next question comes from the line of Robert Hope with Scotiabank. Your line is now open.

Robert Hope: Good morning in the prepared remarks, you noted that there is an increased demand to re contract your hydro capacity from a variety of buyers.

Robert Hope: Can you speak to the strategy of how you want to re contract. These assets could you wait until there is a cluster of and contracted assets and then group them together.

Robert Hope: Could you see a period of time, where you'd be happy to have.

Robert Hope: I'm, a little bit more merchant in advance of a longer term contract.

Connor Teskey: And I'll try and answer it, but also perhaps provide some background context. There's a few exciting things happening for us within our hydro portfolio. As Patrick mentioned, we've got a number of hydro contract, hydro facilities coming off contract in the next few years. And if we were very simply just to contract those hydros at current market rates, that's a very significant step up relative to the contracts that are coming to maturity. That's obviously a very positive EBITDA bump for our business. But really where it becomes incredibly accretive is if you lock in a long term contract at a higher rate, it immediately creates a very low cost up financing opportunity for our business and provides a very large injection of capital at attractive rates, let's say give or take 5%, that we can turn around and deploy into new growth and new M&A at 15%.

Robert Hope: It's a great question and I'll try and answer it but also perhaps provide some some background context, there's a few extra.

Robert Hope: Exciting things happening for us within our hydro portfolio.

Robert Hope: As Patrick mentioned, we've got a number of hydro contract hydro facilities coming off contract in the next few years and if we were very simply.

Robert Hope: Just to contract those hydro's at current market rates, that's a very significant step up relative to the contracts that are coming.

Robert Hope: Two maturity, that's obviously, a very positive EBITDA bump for our business, but really where it becomes incredibly accretive as if you lock in a long term contract at a higher rate. It immediately create some very low cost up financing opportunities for our.

Robert Hope: Business and provides a very large injection of capital at attractive rates, let's say give or take 5% that we can turnaround and deploy into new growth and new M&A at 15%.

Connor Teskey: And that is really the incredible value lever that we think is sometimes underappreciated in our business. This isn't just an increase in earnings, it's an increase in earnings that creates an up financing opportunity that allows us to fund our growth at an exceptionally accretive way. In terms of what we're seeing from from hydro contracting, it's not just a more robust price environment in the current market where demand for energy is very high and offtakers are really taking an any and all approach to finding power to support their growth. Interest in our hydros has increased very dramatically in recent years.

Robert Hope: And that is really the incredible value lever that we think is sometimes underappreciated in our business. This isn't just an increase in earnings. It is an increase in earnings that creates enough financing opportunity that allows us to fund our growth at an exceptionally.

Robert Hope: Accretive way.

Robert Hope: In terms of what we're seeing.

Robert Hope: From hydro contracting it's not just a more robust price environment in the current.

Robert Hope: Market.

Robert Hope: Where demand for energy is very high end.

Robert Hope: Off takers are really taking in any and all approach to finding power to support their growth.

Robert Hope: Interest in our hydro has increased very dramatically in recent years.

Connor Teskey: Some of the largest corporate buyers of corporate offtakers of power, three or four years ago they were intensely focused on only wind and solar. What I would say has changed in our business is now those same corporate buyers are very interested in looking at long term contracts from our hydros and that's creating incremental demand. So in terms of how we turn that into execution, it's really no different to what we do elsewhere in our portfolio. We will look to contract those as efficiently and as expeditiously as possible because it pulls forward that really, really attractive up financing opportunity, which is an incredible value lever for our business.

Robert Hope: Some of the largest corporate buyers.

Robert Hope: Corporate off takers of power three or four years ago. They were intensely focused on only wind and solar what I would say has changed in our business is now those same corporate buyers are very interested in looking at long term contracts from from our hydro's and thats, creating incremental demand so.

Robert Hope: In terms of how we turn that into execution.

Robert Hope: It's really no different to what we do elsewhere in our portfolio.

Robert Hope: We will look to contract those.

Robert Hope: As efficiently and as expeditiously as possible because it pulls forward that really really attractive financing opportunity, which is an incredible value lever for our business, but in terms of.

Connor Teskey: But in terms of will we group hydros together or do them individually, that's very much on a case by case basis and will be flexible based on what we're seeing from the market. That's great. Appreciate that.

Robert Hope: Well, we group Hydro's together I do them individually, that's very much on a case by case basis, and we'll be flexible based on on.

Robert Hope: What we're seeing from the market.

Connor Teskey: And then maybe in a different direction. In the prepared remarks, you also mentioned that the weakness in public valuations, and you're seeing increased opportunities to acquire platforms and portfolios of assets. When you take a look at the opportunity set in front of you, are these largely North American centric? Or are you seeing them spread across your geographies as well as modalities? It's a great question. I think it's fair to say what we're seeing in terms of public market opportunities is probably primarily North American focused, but The comment we'd make there is I don't know that that's specifically because, you know, some of the the announcements related to tariffs and stuff is having an outsized impact on North American companies.

Speaker Change: That's great I appreciate that.

Robert Hope: And then maybe in a different direction.

Robert Hope: In the prepared remarks, you also mentioned that the weakness in public valuations and you are seeing increased opportunities to acquire platforms and portfolios of assets. When you take a look at the opportunity set in front of you. You are these largely north American centric or are you seeing them spread across your geographies.

Robert Hope: Geographies as well as modalities.

Robert Hope: It's a great question.

Robert Hope: I think it's fair to say, what we're seeing in terms of public market opportunities is probably primarily north American focused but.

Robert Hope: The comment we would make there is I don't know that that specifically because some of the announcements related to tariffs and stop is having an outsized impact on north American companies.

Connor Teskey: I think the impact those are happening is quite broad based. I think the fact that most of the public market opportunities we see being in North America is a function because that's where most of the public companies are listed. I would say that's probably the bigger driver. What's interesting about the public market opportunity is maybe two or three points of context there. There has absolutely been a trend in recent years around market consolidation. Renewable power development is a very, very capital intensive business. And being entirely predicated on the capital markets to fund consistent and ongoing growth has always been difficult for a number of publicly listed companies.

Robert Hope: The impact those are happening is quite broad based I think the fact that most of the public market opportunities, we see being in North America as a function because that's where most of the public companies are listed.

Robert Hope: I would say that's probably the bigger driver.

Robert Hope: The.

Robert Hope: What's interesting.

Robert Hope: The public market opportunity as maybe two or three points of context there.

Robert Hope: There has absolutely been a trend in recent years around market consolidation and renewable power development is a very very capital intensive business and being entirely predicated on the capital markets to fund consistent and ongoing growth.

Robert Hope: It has always been difficult for a number of publicly listed companies and Thats difficulty has only been enhanced as the public markets have become more volatile and more uncertain, particularly in the last six or 12 months.

Connor Teskey: And that difficulty has only been enhanced as the public markets have become more volatile and more uncertain, particularly in the last six or 12 months. That is no doubt creating an opportunity. I do think that opportunity needs to be counterbalanced by the fact that the uncertainty in the markets is undoubtedly potentially going to push transactions volumes lower for a period of time. However, if those companies that are heavily reliant on the capital markets to fund their growth don't get relief and certainty in the markets by some period of time, they will need to consider strategic alternatives.

Robert Hope: That is no doubt, creating an opportunity I do think that opportunity needs to be counterbalanced by the fact that.

Robert Hope: The uncertainty in the markets is undoubtedly potentially going to push transactions volumes lower for a period of time, however, if those.

Robert Hope: Companies that are heavily reliant on the capital markets to fund their growth don't get relief uncertainty in the markets by some period of time, they will need to consider strategic alternatives and that's where the real opportunity will be.

Connor Teskey: And that's where the real opportunity will be for market participants like us.

Robert Hope: For market participants like us.

Connor Teskey: The only other point I would make on this question is, I think when people hear public market opportunities that they always think of take privates. But Take, for example, the transaction we did with National Grid Renewables, just in Q1. That's a much broader, much bigger publicly traded utility that wasn't getting the appropriate value for its renewables business in its public market valuation. And that's what created an opportunity for us to buy that business. So the current uncertainty and low valuations in public markets creates a number of opportunities, including carve-outs, not only take privates. Thank you.

Robert Hope: The only other point I would make on on this.

Robert Hope: Question is I think when people hear public market opportunities that they always think of take privates.

Robert Hope: But.

Robert Hope: Take for example, the transaction, we did with national grid renewables.

Robert Hope: Just in Q1.

Robert Hope: That's a much broader and much bigger publicly traded utility that wasn't getting the appropriate value of four it's renewables business in its public market valuation and Thats, what created an opportunity for us to buy that business. So.

Robert Hope: The current uncertainty and low valuations and public markets creates a number of opportunities, including carve outs not not only take privates.

Robert Hope: Okay.

Robert Hope: Thank you.

Mark Jarvi: Our next question comes from the line of Mark Jarvi with CIDC. Your line is Thanks.

Speaker Change: Thank you. Our next question comes from the line of Mark Jarvi with CIBC. Your line is now open.

Connor Teskey: Good morning, everyone. Connor, you talked about how well you think you're insulated and can manage some of the tariff risk, but someone ultimately has to bear that cost. How do you feel like the entire ecosystem can manage this, where the vulnerabilities and compilers of power fully absorb the inflationary pressure? Thanks, Mark. And You're absolutely right. And I do think there's There needs to be a situation where money can still be made, of course. And a lot of this does center around the tariff announcements, and in particular, in the United States. And, and there's two points we would make here.

Mark Jarvi: Thanks, Good morning, everyone.

Speaker Change: Carl you talked about how well you think you're insulated and can manage some of the tariff risks someone who ultimately has to bear that cost how do you feel like the entire ecosystem can manage it where the vulnerabilities and combine powerfully absorb inflationary pressures.

Speaker Change: Alright.

Mark Jarvi: Thanks, Mark and.

Mark Jarvi: Youre, absolutely right and I do think there is some.

Mark Jarvi: There needs to be a situation where money can still be made of course and a lot of this does center around the tariff announcements and in particular in the United States and there is two points.

Connor Teskey: The first is, there have been a lot of headlines about the tariffs, and a lot of very large percentages get thrown around. But it's important to ground yourself in the fundamentals. You know, when you look at building a renewables project in the United States, Approximately 50% of the cost of that project is EPC, the majority of which is domestic labor that wasn't subject to a tariff. You know, maybe a third to 40% is equipment and CapEx, only a portion of which is subject to tariffs, and then the rest is other. And therefore, when you look at the potential for these tariff costs to pass through, it's not the triple digits that people suggest in terms of cost increases.

Mark Jarvi: We would make here.

Mark Jarvi: The first is.

Mark Jarvi: There have been a lot of headlines about the tariffs.

Mark Jarvi: And a lot of very large percentages get thrown around but it's important to ground yourself in the fundamentals.

Mark Jarvi: When you look at building, our renewables project in the United States.

Mark Jarvi: Approximately 50% of the cost of that project is EPC. The majority of which is domestic labor that wasn't subject to tariffs, maybe a 3rd% to 40% is is equipment and capex.

Mark Jarvi: Only a portion of which is subject to tariffs and then the rest is other and therefore when you look at the potential for these tariff costs are passed through.

Mark Jarvi: It's not the triple digits that people suggest in terms of cost increases we view it as something more.

Connor Teskey: We view it as something much more marginable and much more manageable, something in the very low double digits, maybe in the teens range. And that will obviously depend differently on different projects and different technologies in different regions. But that is a very manageable increase in CapEx that can be pushed through into the market to end customer in form of offtake. And renewables will still be the cheapest form of bulk electricity. So even with that, that cost increase, we are well inside the other forms of electricity production. And that's what gives us confidence that there will still be very, very strong demand, no impact on demand and no impact on developer margins.

Mark Jarvi: Much more marginal and much more manageable something in the very low double digits, maybe in the teens range.

Mark Jarvi: And if that will obviously depend differently on different projects and different technologies in different regions.

Mark Jarvi: But that is a very manageable increase in capex that can be pushed through into the market to the end customer in form of offtake.

Mark Jarvi: And renewables will still be the cheapest form of bulk electricity, so even with that that cost increase we are well inside the other.

Mark Jarvi: Forms of electricity production and Thats, what gives us confidence that there will still be very very strong demand no impact on demand and no impact on developer margins. The other way that we manage our portfolio is often to put the tariff risk back on the equipment supplier.

Connor Teskey: The other way that we manage our portfolio is often to put the tariff risk back on the equipment supplier. And the important thing to highlight here is, again, focusing on the U.S. market. The U.S. market has been one of the fastest growing, highest margin, and most profitable markets for equipment suppliers in recent memory. And therefore, in that component of, call it the value creation chain, there is certainly some cushion to absorb slightly higher costs as well. But at this point, no increased sort of concern around the health of the supply chain in terms of ability to absorb these costs.

And the important thing to highlight here is again focusing on the U S market.

Mark Jarvi: The U S market has been one of the fastest growing highest margin and most profitable markets for equipment suppliers in recent memory and therefore in that component of call. It the value creation chain. There is certainly some cushion to absorb slightly higher.

Mark Jarvi: Cost as well.

Mark Jarvi: So at this point no increase sort of concern around the health of the supply chain in terms of the ability to absorb these costs at this point.

Connor Teskey: Not at this point, and maybe I'll start and Hannah, if there's anything you'd want to add, when we think about trying to simplify the impact of these tariffs in the announcements, there's two or three things that we think are important to recognize. They will lead to slightly higher costs and slightly higher power prices in the US, but one, we think it's very manageable. That's point one. Point two is the one point that is often overlooked is a lot of the equipment that we use in the United States was already subject to different duties and tariffs before, let's say, the Liberation Day announcements.

Mark Jarvi: Not at this point and maybe I'll start and hand, if there is anything you'd want to add when we think about trying to simplify.

Speaker Change: The impact of.

Mark Jarvi: As.

Mark Jarvi: These tariffs.

Mark Jarvi: Tariffs and the announcements there is two or three things that we think are important to recognize they will lead to slightly higher costs and slightly higher power prices in the U S. But one we think it's very manageable. That's 0.1 0.2 is the one point that is.

Mark Jarvi: Often overlooked is a lot of the equipment that we use in the United States was already subject to different duties and tariffs before let's say the liberation day announcements. So some of the increased.

Connor Teskey: So some of the increased tariffs that were announced, yes, they were increased tariffs, but they were increased tariffs on essentially 0% of our volumes. So they don't actually, they generate a lot of headlines, but they don't have a material impact on our business.

Mark Jarvi: Tariffs that were announced.

Mark Jarvi: Yes, they were increased tariffs, but their increased tariffs on essentially zero percent of our volumes. So they don't actually they generate a lot of headlines, but they don't have a material impact on our business.

Hannah Labouchagne: And then maybe the last point I would make, and this is where Brookfield Renewable, we feel is exceptionally differentiated in a positive way versus Please remain in your line.

Mark Jarvi: And then maybe the last point I would make and this is where Brookfield renewable.

Mark Jarvi: We feel is exceptionally differentiated in a positive way versus.

Hannah Labouchagne: Your conference will resume momentarily.

Speaker Change: Please remain on your line your conference will resume momentarily. Please many of your line your conference will resume momentarily.

Hannah Labouchagne: Please remain in your line.

Hannah Labouchagne: Your conference will resume momentarily. Yes, Hannah.

Speaker Change: Can you hear me.

Hannah Labouchagne: I'll take I'll take over from Connor. Apologies. He lost his his line. I think, you know, two ways in which we're quite differentiated from others. One is we've been pushing a domestic strategy in the US for a Solar has been subject to terrorists for many years, and in particular against Chinese equipment, but along with other geographies as well. And so we've worked really hard at focusing. Strategy that mitigates a significant amount of the terror. And with regards to our current 2025 project, we have already all the primary equipment in the country. Most of the major other incendiary equipments also.

Speaker Change: Yes.

Speaker Change: I'll take I'll take over from Conor I apologize. He lost his line again I think two ways in which we are quite differentiated from others. One is we've been pushing a domestic strategy in the U S. For a long time solar has been subject to tariffs for many years and in particular against Chinese equipment, but along with with other geographies as well and so.

Speaker Change: We've worked really hard at it focusing on that domestic strategy that mitigates a significant amount of the tariff risk that we're seeing right now.

Speaker Change: And with regards to our current 2025 project, we have already all the primary equipment in the country. Most of the major other incendiary equipments also in the country country and then I think thirdly, I would add from a technology point of view one of the big Underappreciated things about renewables is the pace of technology growth.

Hannah Labouchagne: And then I think thirdly, I would add from a technology point of view, one of the big underappreciated things about is the pace of technology. And if you look anywhere else in the world, we've seen massive decreases in CAPEX with regards to that technology. And so as you see the technology improving, there is also some natural cost decreases as a result of those technology improvements. And so there's some room there in terms of technology increases getting offset by tariffs that have.

Speaker Change: And if you look anywhere else in the world, we've seen massive decreases in capex with regards to that technology and so as you see the technology improving there is also some natural cost decreases as a result of those technology improvements and so there's some room there in terms of technology increases getting offset by tariffs.

Speaker Change: It helps mitigate and integrate the technologies as well.

Hannah Labouchagne: Another question is mentioned about Thank you. So first of all, apologies, Patrick and I clearly have a faulty line, we'll get it sorted for next quarter. But this is actually the point I think we were trying to make right before we dropped there.

Speaker Change: Another question is you had mentioned about.

Speaker Change: Potentially positive impact on availability of equipment and input costs outside of the U S can you quantify that.

Speaker Change: Net loss for a while do you think that gets arbitrage in the market from the developer side.

Speaker Change: So.

Speaker Change: First of all apologies, Patrick and I clearly have a faulty line, we will get it sorted for next quarter, but.

Speaker Change: This is actually the point I think we were trying to make it great before we drop there.

Hannah Labouchagne: One of the big benefits of our business where we're unique versus our peers is our globally diversified platform. And what tariffs do is they make acquiring goods from one region of the world from another region of the world more expensive. But that product needs to go somewhere. And therefore, while it might make the cost of goods expensive in more expensive in one region around the world, it equally has an offsetting impact of making costs of goods less expensive in another area around the world. I'll give a very readily available example in the current market due to some of the tariffs that were announced just four or five weeks ago.

Speaker Change: One of the big benefits of our business, where we're unique versus our peers is our globally diversified platform and and what tariffs do is they make.

Speaker Change: Acquiring goods from one region of the world from another region of the world more expensive, but that product needs to go somewhere and therefore, while it might make the cost of goods expense up in in more expensive in one region around the world.

Speaker Change: Equally has an offsetting impact of making cost of goods less expense us in another area around the world I'll give a very readily available example in the current market due to some of the tariffs that were announced just four or five weeks ago.

Hannah Labouchagne: Solar panel costs and equipment costs in India are probably at historic lows. And that is because previously a lot of that equipment produced in India was was exported to the US, but now it's more expensive to do so. So it makes more sense to keep a certain amount of that equipment in country. And we're certainly seeing the benefit of that for for our Indian development pipeline to to address your question. It would be naive and ignorant to suggest that tariffs don't create some inefficiency in the system. The global nature of our business is not a full offset, but I would say it is a very, very material offset.

Speaker Change: Solar panel costs and equipment costs in India are probably at historic lows and that is because previously a lot of that equipment produced in India was was exported to the U S. But now it's more expensive to do so so it makes more sense to keep.

Speaker Change: A certain amount of that equipment in country, and we're certainly seeing the benefit of that for our Indian development pipeline.

Speaker Change: To address your question it would be naive and ignorant to suggest that tariffs don't create some inefficiency in the system.

Speaker Change: The global nature of our business is not a full offset.

Speaker Change: But I would say it is a very very material offset.

Hannah Labouchagne: Okay, thanks for the time, Steve. Thank you.

Speaker Change: Okay. Thanks for the question the time today guys.

Christine Cho: Our next question comes from the line of Christine Cho with Barclays. Your line is now open. Good morning. So I appreciate your comments around, you know, all the tariff stuff and locking in your equipment costs. But can you just go into some detail on how NGATC, your suppliers and PTAs work for the renewable projects. I understand it's going to be different on a project by project basis, but high level, it sounds like you have clauses to pass through. Some change orders you might get on the EPC side or suppliers do higher PTA prices. But is it like within a certain range?

Speaker Change: Thank you. Our next question comes from the line of Christine Cho with Barclays. Your line is now open.

Christine Cho: Good morning.

Christine Cho: So I appreciate your comments around all the tariff stuff and locking in your equipment cost, but can you just go into some detail on how contracts with your EPC your suppliers on Ppas work for the renewable projects I understand it's going to be different on a project by project basis, but high level.

Christine Cho: So it sounds like you have clauses to pass through some change orders you might get on the EPC side, our suppliers do with higher PPA prices, but is it like within a certain range as just easily pass, but if it falls outside that range there needs to be a more in depth negotiation and if so could that delay the timing of your projects.

Connor Teskey: It's just easily passed. But if it falls outside that range, there needs to be a more in-depth Transcript by Transcription Outsourcing, LLC. in the contract. So can you talk?

Christine Cho: Also it sounds like a lot of the contract may have embedded in past tied to raw materials like steel or aluminum, but I sort of got the impression that country specific tariff tariffs such as the one brought on by the reciprocal Paris arent as explicit in the contract. So can you talk about how that works.

Hannah Labouchagne: Christine, welcome to the call. And thank you for the question. I'll start and then I'll hand to Hannah. She is our internal expert on this and is best positioned to speak to the details of how we're seeing this play out in contracts. But from a high level, there's really two different ways that we protect our business. One is, we don't commit to projects unless we can lock in the revenue, the financing, and the CapEx purchase on a fully wrapped de-risk basis all at once, and at which point, we are no longer exposed to changes in the tariffs or changes in the cost of that CapEx.

Christine Cho: Christine and welcome to the call and thank you for the question I'll start and then I'll hand to Hana.

Christine Cho: She is our internal expert on that and is best positioned to speak to the details of how we're seeing this play out in contracts, but from a high level. There is really two different ways that we protect our business. One is we don't commit to projects.

Christine Cho: And last we can lock in the revenue the financing and the Capex purchase.

Christine Cho: On a fully wrap derisked basis, all at once and at which point, we are no longer exposed to changes in the tariffs or changes in the cost of that Capex and that project is largely derisked beyond the construction execution, which we are very happy to take that as one way in which case the tariff risk into that scenario.

Connor Teskey: And that project is largely de-risked beyond the construction execution, which we are very happy to take. That is one way, in which case the tariff risk under that scenario is really left with the supplier. The other way we can de-risk our business is kind of de-risking it using the customer. And in that situation, if under the CapEx arrangement, we absorb the tariff risk with the equipment supplier, what we will look to do is put a PPA adjuster in the offtake agreement such that if tariffs come into play and our cost of construction increases, there is an offsetting increase in the PPA that preserves our development margins and our returns on the project.

Christine Cho: Rio is really left with the supplier the other way we can derisk. Our business is is kind of derisking it using the customer.

Christine Cho: And in that situation if under the Capex arrangement, we absorb the tariff risk with the equipment supplier. What we will look to do is put a PPA adjuster in the off take agreement such that.

Christine Cho: If tariffs come into play.

Christine Cho: Our cost of construction increases there is an offsetting increase in the PPA that preserves our development margins and our returns on the projects. So that's.

Hannah Labouchagne: So that's it from a high level, but perhaps I'll hand to Hannah to speak through some of the specifics. Yeah, sure. So I think a couple of points there. One, with regards to your question about the Unknown Speaker, Unknown Attendee, Unknown Speaker, Unknown Speaker, Unknown Speaker, Unknown Speaker, Announcer For Wind versus everything else. So I would agree with you that typically in wind, you might see specific claws on for example, like steel and aluminum tariffs. The difference being in wind, it has a strong domestic supply chain that's been there for a number of years and most of the components like nacelles and towers are already domestic and so the most material risk you have in terms of price changes are with regard to air supply.

Christine Cho: Thats it from a high level, but perhaps I'll hand to Hannah just speaks through some of the specifics.

Hannah Lee: Yeah sure. So I think a couple of points there one with regards to your question about the country specific tariffs and whether they are incorporated in those clauses.

Hannah Lee: And I think there's a different answer for wind versus everything else. So I would agree with you that typically in wind you might see specific clauses on for example, like steel and aluminum tariffs.

Hannah Lee: The difference being in wind it has a strong domestic supply chain. That's been there for a number of years and most of the components like nacelle and towers are already domestic and so the most material risk you have in terms of price changes are with regards to this deal. So in wind I would say, yes, you're correct that those closet tend to.

Hannah Labouchagne: So in wind, I would say, yes, you're correct that those closets. Contemplate Specific Tariffs. In the remainder of our contracts, it's typically all tariffs and tariff changes from the day of contract signature onwards. With regards to your question over delay, I would say not really. I'd say perhaps in wind, you could see a delay through the renegotiation, but that's why those clauses are so specific in the wind contracts to specifically avoid that. We had one renegotiation. that we resolved with the supplier with a very minimal. and we resolved it within. So I would say our supplier and our supplier relationships are very And we do have a large global footprint with the suppliers.

Speaker Change: Contemplate specific terrorists.

Speaker Change: In the remainder of our contracts, it's typically all tariffs and tariff changes from the day of contract signature onwards, then we would specifically address what happens in those contracts.

Speaker Change: With regards to what Youre question over delay and I would say not really I would say, perhaps in wind you could see a delay through the renegotiation, but thats why those clauses are so specific in the wind contracts to do specifically avoid that.

Speaker Change: We had one renegotiation last week that we resolved with the supplier with a very minimal change and we resolved it within a day and a half so I would say our supplier and our supplier relationships are very strong and we do have a large global footprint with the suppliers. So typically we have orders with them in a variety of geographies and so we are important to them.

Hannah Labouchagne: So typically we have orders with them in a variety of geographies. And so we are important to them in geographies around the world. And despite what might headwind in one geography, they... Unknown Speaker, Unknown Transcript Page PAGE of NUMPAGES an increased amount of cooperation there as we work together to absorb by kind of resource. we've seen really significant speed, excuse me, from the suppliers in the ability.

Speaker Change: Geographies around the world and despite what might.

Speaker Change: Wind in one geography, they still want our business in other geographies and so I think we tend to see an increased amount of cooperation there as we work together to absorb any of that changes.

Speaker Change: By kind of Resourcing, our changing certain pieces of the contract we've seen really significant speed excuse me from the suppliers and the ability to execute on that.

Hannah Labouchagne: That's so helpful. Thank you. And then just my follow On the PPA side, you've mentioned for both tariffs and in the event of an ITC removal or step down that you have adjusted , and the Develop Margin tool. Again, I know it's going to be different on a project by project basis, but can you just sort of give us like a ballpark percentage of how much cushion the PPA prices can go up before the off takers maybe start to push back or some way to Yeah, sure. So so it should You know, most of the adjusters that we've been seeing and we've been executing on more recently have been around tariffs and probably perhaps to a lesser extent tax credits.

Speaker Change: Okay. That's helpful. Thank you.

Speaker Change: Then just my follow up question.

Speaker Change: On the PPA side, you've mentioned for both carrier and India, Bangladesh, ITC removal or step down that you have adjusters and PPA to keep that developed Martin Cole.

Speaker Change: Again, I know, it's going to be dependent on a project by project basis, but can you just sort of give us a ballpark percentage of how much Christian the PPA prices can go up before the off takers may be start to pushback or some way to think about that.

Speaker Change: Yes, sure so so.

Speaker Change: It Shouldnt.

Speaker Change: Yeah.

Speaker Change: Most of the adjusters that we've been seeing in and we've been executing on.

Speaker Change: More recently have been around tariffs and probably perhaps to a lesser extent tax credits.

Connor Teskey: Maybe just to speak about tax credits and the impact on our business. To date, there's been no changes to the tax credit regime in the United States. And as mentioned a few times in the prepared remarks, the thing that is, you know, really shining through about our business right now is our very large installed cash generative, high quality inflation length operating base that really is not subject to any change in those tax credits going forward. And then you get to the point where I think your question was going, which is the most important thing for our business and the ability to continue growing and continue to preserve our development margins is that the very robust fundamental demand for power right now, as long as there is a supply demand mismatch, where there are more off takers looking for power, then there are ready to build projects, we remain quite confident that we will be able to push any direct or indirect increase in construction capex through to the end customer, that could be both in the form of a tariff, or in the form of a reduction of a tax credit.

Speaker Change: Maybe just to speak about.

Speaker Change: Tax credits and the impact on our business.

Speaker Change: To date, there's been no changes to the tax credit regime in the United States.

Speaker Change: As mentioned a few times in the prepared remarks.

Speaker Change: Thing that is.

Speaker Change: Really shining through about our business right now is our very large installed cash generative as high quality inflation linked operating base that they have.

Speaker Change: Really it's not.

Speaker Change: Subject to any change in those tax credits going forward.

Speaker Change: And then you get to the point, where I think your question was going which is the most important thing for our business and the ability to continue growing and continue to preserve our development margins is that the very robust fundamental demand for power right now as long as there is a supply demand Miss.

Speaker Change: Match, where there are more off takers looking for power than there are ready to build projects. We remain quite confident that we will be able to push.

Speaker Change: Any direct or indirect increase in construction capex through to the end customer that that can be both in the form of a tariff or in the form of a reduction.

Connor Teskey: And in terms of how much cushion do we have, I would say more than enough. And this is where I'll tie it back to something Hannah said on a previous question. renewables are not only the cheapest form of bulk electricity production today by a very significant margin, they're getting cheaper than the alternatives on an ongoing basis. So that cushion that we have to push costs through to the end customer or to the suppliers and still be the cheapest form of bulk electricity production is widening year after year, quarter after quarter. And therefore, in any reasonable outcome, we expect that we'll be able to push things through and not see change in our demand or change in our developer return.

Speaker Change: The tax credit and in terms of how much cushion do we have I would say more than enough and this is where I'll tie it back to something Hannah said on a previous question.

Speaker Change: Renewables are not only the cheapest form of bulk electricity production today by a very significant margin theyre getting cheaper than the alternatives on an ongoing basis. So that cushion that we have to push costs through to the end customer or to their suppliers and still be the cheapest form of bulk electricity.

Speaker Change: Production is widening year after year quarter after quarter, and therefore in any reasonable outcome.

Speaker Change: We expect that we'll be able to push things through and not see change in our demand or change in our developer returns.

Benjamin Pham: Thank you.

Connor Teskey: Our next question comes from the line of Benjamin Pham with BMO, your line is now open. Hi, good morning, maybe a couple of questions on the nail and acquisition. I'm just curious what your near term integration priorities are? How do you think the development backlog evolves over the next couple of years? And there's any sort of mature assets or are there mature assets that you might be able to sell and sell in that portfolio? Great question. Thanks, Ben. And you're essentially right on all three accounts.

Speaker Change: Thank you.

Speaker Change: Our next question comes from the line of Benjamin Pham with BMO. Your line is now open.

Benjamin Pham: Hi, Good morning, maybe a couple of questions on the <unk> acquisition I'm, just curious what gear.

Speaker Change: Near term integration priorities are.

Benjamin Pham: And how do you think the development backlog evolves over the next couple of years.

Benjamin Pham: And is there any sort of mature assets are already mature assets, you might be able to salaried and sell in our portfolio.

Benjamin Pham: Great question. Thanks, Ben.

Benjamin Pham: Youre essentially right on all three accounts, but our business plan on nail win.

Connor Teskey: But our business plan on nail when it is pretty, despite the size of the business down the fairway and what you would expect to see with us across other businesses that we acquire. First thing we want to do is we want to provide capital to that business to accelerate its development activities. One thing we felt in our due diligence of the company is it had one of the most attractive, most de-risked and highest value development pipelines we'd seen in the industry. But as a public company, it lacked access to capital to build it out as fast as they could.

Benjamin Pham: It is pretty.

Benjamin Pham: Despite the size of the business down the fairway and what you would expect to see with us across other businesses that we acquire first thing. We wanted to do is we want to provide capital to that business to accelerate.

Benjamin Pham: Development activities, one thing we felt in our due diligence of the company as it had one of the most attractive most derisked and highest value development pipelines, we've seen in the industry, but as a public company it lacked access to capital to build it out as fast as they could.

Connor Teskey: And we want to take the regulators off that business, give the management team access to capital to accelerate that growth. And we're going to look to double the pace of development from about one gigawatt a year to two gigawatts a year within that company. That's point one. So that would be bucket number two. And then the third bucket is one of the unbelievable things about now and if it comes with eight gigawatts of either operating or under construction assets. These are recently built, contracted, high quality assets in very attractive markets around the world. And immediately it is already underway.

Benjamin Pham: And we want to take the regulators off that business give the management team access to capital to accelerate that growth and we're going to look to double.

Benjamin Pham: The pace of development from about one gigawatt a year to two gigawatts a year within that company, that's 0.1 point.

Two I would say is we want to bring <unk> into our broader platform, where it will get some of the benefits of our scale.

Benjamin Pham: That can be helping them with more efficient capital structures, leveraging our financing capabilities more efficient procurement of equipment, leveraging hana and her team and also integrating them into some of our our broad based key accounts with corporate off takes like the Microsoft.

Benjamin Pham: Agreement, so that would be bucket number two.

Benjamin Pham: And then the third bucket is one of the unbelievable things about <unk> is it comes with eight gigawatts of either operating or under construction assets. These are recently built contract bids.

Benjamin Pham: High quality assets in very attractive markets around the world and immediately it is already underway. We will look to begin to sell some of those derisked assets to lower cost of capital buyers and use the proceeds from those sales to reinvest into accretive development.

Connor Teskey: We will look to begin to sell some of those de-risked assets to lower cost of capital buyers and use the proceeds from those sales to reinvest into accretive development and or pay distributions up to Brookfield Renewables.

Benjamin Pham: <unk> paid distributions up to Brookfield renewable so.

Benjamin Pham: So despite the size of the business, I would say it's actually a very similar playbook to what we've executed with our other developers around the world in the past, whether it be Exelio or OnPath or other investments we've made in recent years. Okay, that's great. Sounds, sounds exciting. Maybe on the, you talk about the Microsoft Interest Levels and Data Center Opportunity. How do you think that evolves then? Going forward, from a geographic standpoint, with your discussions with them, is this more of a U.S. thematic, or do you think of it as more of a broader one outside of that?

Benjamin Pham: Despite the size of the business I would say, it's actually a very similar playbook to what we've executed with our other developers around the world in the past whether it be exactly Oh, we're on path or other investments we've made in recent years.

Benjamin Pham: Okay, that's great sounds it sounds exciting.

Speaker Change: Maybe on the you talked about the Microsoft.

Speaker Change: Interest levels in data center opportunity.

Speaker Change: How do you think that.

Speaker Change: Evolves then.

Speaker Change: Going forward our geographics.

Speaker Change: On point with your discussions with them right or is this more of a U S thematic or do you think of it as there's more of a broader one outside of that.

Speaker Change: Okay.

Speaker Change: Certainly in the comment we would make is that it's not so much a geographic tweaking or optimization that theyre doing its more as their AI activities Theyre cloud activities have grown.

Speaker Change: They are themselves becoming.

Connor Teskey: Please remain in your line. Your conference will resume momentarily. Please remain in your line. Your conference will resume momentarily. Unknown Speaker. She may Hi, Ben, we're back. Sorry about that. As we were saying, it's not so much Microsoft is adjusting their geographic demand from our perspective. It's just as they've learned more about their forecasted growth in their AI activities and their cloud activities, they're really learning that they need different types of data centers in different places. Whether it's for cloud, whether it's for learning, whether it's for inference, that determines different types of data centers have different latency needs and different types of data centers have different supply needs.

Speaker Change: Please remain on your line your conference will resume momentarily. Please from any of your line your conference will resume momentarily.

Speaker Change: Speakers you may resume.

Speaker Change: Hi, Ben we're back sorry about that as we were saying it it's not so much Microsoft is adjusting.

Speaker Change: Adjusting their geographic demand from our perspective, it's just as they've learned more about.

Speaker Change: Their forecasted growth in their AI activities in their cloud activities there.

Speaker Change: They are really learning that may need different types of data centers in different places, whether it's for cloud whether it's for learning whether it's for inference that determines different types of data centers have different latency needs and different types of data centers have different supply needs and that really is going to lead to different needs for power.

Connor Teskey: And that really is going to lead to different needs for power in different places within their portfolio. I would say the concentration of build out is still in North America. And after North America, it's Western Europe. But the changes we are seeing are much more modest in terms of different types of plants and different types of data centers and different sizes of data centers. And again, I tie it back to the comment from earlier. We feel very well equipped to complement Microsoft as their needs change. And if anything, their refinement and their optimization is only going to cause the partnership between the two firms to become stronger.

Speaker Change: <unk>.

Speaker Change: In different places within their portfolio I would say the concentration of build out is still in North America and after North America, its western Europe, but the changes we are seeing are much more modest in terms of different types of plants in different different.

Speaker Change: <unk> types of data centers in different sizes of data centers and again I tie it back to the comment from earlier, we feel very well equipped to to complement Microsoft as their needs change and and if anything there theyre refinement in their optimization is only going to cause the partner.

Speaker Change: Shift between the two firms to become stronger.

Connor Teskey: Okay, thanks for may just one quick one more detailed on the segments, sustainable solutions. We'll keep it down to over a year. Can you provide context on what's driving that and that Wessinghouse underwriting projections, are you more or less tracking that still? I'll start on the year over year on the sustainable solution side and then Connor can maybe touch on Westinghouse and what we're seeing there. Last year we had an item with respect to our investment within an Indian business where we were successful in realizing on a premium within one of our sustainable solution financial assets that we have in that business in India and that was what was in the last year.

Speaker Change: Okay.

Speaker Change: One quick one more detailed on the segments sustainable solutions.

Speaker Change: Okay.

Speaker Change: Down year over year can you correct context on what's driving that and that Westinghouse.

Speaker Change: Underwriting projections are you more or less tracking that Phil.

Speaker Change: I'll start on the year over year on a sustainable solution side in the corner can maybe touch on on Westinghouse and what we're seeing there.

Speaker Change: So last year, we had.

On item with respect to.

Speaker Change: Our investment within an Indian business, where we were.

Speaker Change: Successful in realizing on our premium within one of our sustainable solution financial assets that we have in that business in India and that was that was what was in the last year's figures.

Patrick McHugh: And then in terms of Westinghouse, I'm sure as everyone can imagine on this call, we're thrilled with our exposure to Westinghouse. The tailwinds for nuclear get stronger day by day, just one given the electricity demands around the world and nuclear's ability to provide clean, dispatchable baseload power at scale. The added benefit that should not go unrecognized is in all the headlines, nuclear is a key focus of the new US administration and as the leading technology globally in the space, but of US origin, Westinghouse is certainly the beneficiary of that. In terms, the one thing I would highlight is the tremendous demand and growth we are seeing in terms of nuclear isn't actually even showing up in Westinghouse's financials yet.

Speaker Change: And then in terms of Westinghouse I'm sure as everyone can imagine on this call we're thrilled with our exposure to Westinghouse the the tailwind for nuclear.

Speaker Change: Get stronger day by day.

Speaker Change: Just one given the electricity demands around the world and nuclear its ability to provide clean dispatch will baseload power at scale.

Speaker Change: The added benefit that should not go unrecognized is.

Speaker Change: In all the headlines nuclear is a key focus of the new U S administration and as the leading.

Speaker Change: Technology.

Speaker Change: Ah.

Speaker Change: Globally in this space, but.

Speaker Change: Of U S origin, Westinghouse's, certainly the beneficiary of that in terms. The one thing I would highlight is the tremendous demand and growth we are seeing.

Speaker Change: In terms of nuclear isn't actually even showing up in westinghouse's financials, yet the financials are performing well I would say theyre, absolutely tracking to underwriting, but the thing that's exciting for US is the orders that are coming in.

Connor Teskey: The financials are performing well, I would say they're absolutely tracking to underwriting, but the thing that's exciting for us is the orders that are coming in are certainly above what we initially expected and that creates a very positive outlook for financials in future periods. That will take a few years to play out, but it gives us incredible confidence for the foundation and outlook for that business. Thank you.

Speaker Change: Or certainly above what we initially expected and that creates a very positive outlook for financials in.

Speaker Change: Future periods that will take a few years to play out, but it gives us incredible confidence.

Speaker Change: For the foundation and outlook for that business.

Connor Teskey: I would now like to turn the call back over to Connor Teskey for closing remarks. Great. Well, thank you everyone for joining our call today and thank you for your interest and support of Brookfield Renewable.

Speaker Change: Thank you I would now like to turn the call back over to Conor Tusky for closing remarks.

Speaker Change: Great well. Thank you everyone for joining our call today and thank you for your interest and support of Brookfield renewable we look forward to providing you an update on our Q2 call in a few months. Thank you and have a great day.

Operator: We look forward to providing you an update on our Q2 call in a few months. Thank you and have a great day.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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

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