Q2 2025 Brookfield Renewable Corp Earnings Call

August 1, 2025

Operator: Thank you for standing by, and welcome to the Brookfield Renewable Q2 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 this session, you'll need to press star 11 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 11 again. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Connor Teskey, CEO. Please go ahead, sir.

Thank you for standing by and welcome to the Brookfield. Renewable, second 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 this session. You'll need to press star 1, 1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue simply press star 1 1 again, as a reminder, today's program is being recorded and now at

Connor Teskey: Thank you, operator. Good morning, everyone, and thank you for joining us for our Q2 2025 conference call.

Like to introduce your host for today's program Conor test Teske CEO. Please go ahead, sir.

Connor Teskey: Thank you, operator. Good morning, everyone, and thank you for joining us for our Q2 2025 conference call. Before we begin, we would like to remind you that a copy of our news release, investor supplement, and letter to unitholders can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For more information, you are encouraged to review our regulatory filings available on SEDAR, EDGAR, and on our website. On today's call, we will provide a review of our Q2 performance.

Thank you, operator.

Connor Teskey: Before we begin, we would like to remind you that a copy of our news release, investor supplement, and letter to unit holders can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For more information, you're encouraged to review our regulatory filings available on CDAR, EDGAR, and on our website. On today's call, we will provide a review of our Q2 performance. Then Wyatt Hartley, Co-President of Brookfield Renewable and head of our North American business, will discuss our recently announced hydro framework agreement with Google and how our strategic operating portfolio and deep capabilities across renewable technologies has positioned us as the partner of choice to the largest buyers of power globally.

Good morning everyone. And thank you for joining us for our second 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.

For more information you to review our regulatory filings available on Cedar Edgar and on our website.

Connor Teskey: Wyatt Hartley, Co-President of Brookfield Renewable and Head of our North American business, will discuss our recently announced Hydro Framework Agreement with Google and how our strategic operating portfolio and deep capabilities across renewable technologies have positioned us as the partner of choice to the largest buyers of power globally. Lastly, Patrick will conclude our remarks by discussing our operating results and the strong financing environment that we are seeing for our business and our assets today. Following our comments, we look forward to taking your questions. We had a successful quarter, delivering strong financial results and executing on our business plans and growth initiatives. Our robust operating results were driven by our large hydro fleet, which is increasingly strategic in the current environment, and the benefits of our development activities, where over the past 12 months, we have commissioned 7.7 gigawatts of new renewable energy capacity globally.

On today's call, we will provide a review of our second quarter performance.

Connor Teskey: Lastly, Patrick will conclude our remarks by discussing our operating results and the strong financing environment that we are seeing for our business and our assets today. Following our comments, we look forward to taking your questions. We had a successful quarter, delivering strong financial results and executing on our business plans and growth initiatives. Our robust operating results were driven by our large hydro fleet, which is increasingly strategic in the current environment, and the benefits of our development activities, where over the past 12 months, we have commissioned 7.7 gigawatts of new renewable energy capacity globally. One highlight in the quarter was the strong results from our nuclear services business, Westinghouse, as the momentum for nuclear power continues to build, with Westinghouse well placed to benefit from continued growth in the sector given its global leadership position.

Brockfield renewable and head of our North American Business. We'll discuss. Our recently announced Hydro framework agreement with Google and how our strategic operating portfolio in deep capabilities across renewable Technologies. Has positioned us as the partner of choice to the largest buyers of power globally.

lastly, Patrick will conclude our remarks by discussing our operating results and the strong financing environment that we are seeing for our business, and our assets today,

following our comments, we look forward to taking your questions.

We had a successful quarter.

Delivering strong financial results and executing, on our business plans, and growth initiatives.

Our robust operating results were driven by our large Hydro Fleet which is increasingly strategic in the current environment.

Connor Teskey: One highlight in the quarter was the strong results from our nuclear services business, Westinghouse, as the momentum for nuclear power continues to build, with Westinghouse well placed to benefit from continued growth in the sector, given its global leadership position. Looking at the broader market, we recently received additional clarity on policy changes in the United States with the signing of the One Big Beautiful Bill. While we have been preparing our business for changes in tax credit eligibility for U.S. renewables projects for some time, we are now in a position to execute with a greater level of confidence. With that, we began deploying a safe harboring strategy that will secure credit eligibility for nearly all of our projects in the United States through to the end of 2029.

And the benefits of our development activities where over the past 12 months we have commissioned 7.7. Gigawatts of new renewable, energy capacity globally.

Connor Teskey: Looking at the broader market, we recently received additional clarity on policy changes in the United States with the signing of the One Big Beautiful Bill. While we have been preparing our business for changes in tax credit eligibility for U.S. renewables projects for some time, we are now in a position to execute with a greater level of confidence. With that, we began deploying a safe harboring strategy that will secure credit eligibility for nearly all of our projects in the United States through to the end of 2029. While doing so, we are staying true to our approach to development, focusing on ensuring we have a strong line of sight on both our costs and revenues for each project, with a particular focus on minimizing the capital at risk while protecting our ability to deliver our target returns.

1 highlight in the quarter was the strong results from our nuclear Services business Westinghouse as the momentum for nuclear power continues to build with. Westinghouse well-placed to benefit from continued growth in the sector given its Global Leadership position.

Looking at the broader Market, we recently received additional Clarity on policy changes in the United States with the signing of the 1, big, beautiful bill.

And while we have been preparing our business for changes in tax credit eligibility, for us Renewables projects, for some time. We are now in a position to execute with a greater level of confidence.

With that.

Connor Teskey: While doing so, we are staying true to our approach to development, focusing on ensuring we have a strong line of sight on both our costs and revenues for each project, with a particular focus on minimizing the capital at risk while protecting our ability to deliver our target returns. Most importantly, the outlook for global and diversified businesses like ours remains exceptionally strong, driven by the most robust energy demand growth we have seen in decades. We continue to see a significant supply-demand imbalance for energy throughout the regions in which we operate, and it is becoming increasingly clear that solving this imbalance will require substantial expansion of many forms of energy generation, but with low-cost, quick-to-market renewables technologies well positioned to provide much of this needed build-out, in addition to other critical technologies that will support grid reliability.

We began deploying a safe harboring strategy that will secure credit eligibility for, nearly all of our projects in the United States through to the end of 2029.

While doing so, we are staying true to our approach to development.

Connor Teskey: Most importantly, the outlook for global and diversified businesses like ours remains exceptionally strong, driven by the most robust energy demand growth we have seen in decades. We continue to see a significant supply-demand imbalance for energy throughout the regions in which we operate, and it is becoming increasingly clear that solving this imbalance will require substantial expansion of many forms of energy generation. But with low-cost, quick-to-market renewables technologies well positioned to provide much of this needed buildout, in addition to other critical technologies that will support grid reliability. Our business is well positioned to help meet this exponential demand and support grid reliability with our over 230-GW pipeline of projects, which includes significant battery storage solutions, our global fleet of operating hydro facilities, and through Westinghouse, our leading nuclear service business.

Focusing on ensuring, we have strong line of sight on both our costs and revenues. For each project with a particular focus on minimizing the capital at risk while protecting our ability to deliver our Target returns.

Most importantly.

The outlook for Global and diversified businesses business. Like ours, remain exceptionally strong.

Driven by the most robust energy demand growth. We have seen in decades,

we continue to see a significant Supply demand imbalance for energy throughout the regions in which we operate.

And it is becoming increasingly clear that solving this imbalance will require substantial expansion of many forms of energy generation.

Connor Teskey: Our business is well positioned to help meet this exponential demand and support grid reliability with our over 230-gigawatt pipeline of projects, which includes significant battery storage solutions, our global fleet of operating hydro facilities, and through Westinghouse, our leading nuclear service business. Turning back to our performance during the quarter, we delivered strong financial results and executed on our commercial initiatives and growth plans, all while maintaining the strength of our balance sheet. We delivered FFO per unit that was up 10% year over year and continue to expect to deliver on our 10% plus FFO per unit growth target for the year. We were successful in advancing our commercial initiatives, securing contracts to deliver an incremental 4,300 gigawatt-hours per year of generation, in addition to signing the Hydro Framework Agreement.

But with low-cost, quick-to-market renewable technologies well positioned to provide much of this needed buildout, in addition to other critical technologies that will support grid reliability.

Connor Teskey: Turning back to our performance during the quarter, we delivered strong financial results and executed on our commercial initiatives and growth plans, all while maintaining the strength of our balance sheet. We delivered FFO per unit that was up 10% year-over-year and continue to expect to deliver on our 10%-plus FFO per unit growth target for the year. We were successful in advancing our commercial initiatives, securing contracts to deliver an incremental 4,300 gigawatt-hours per year of generation, in addition to signing the hydro framework agreement. We progressed our development activities and commissioned approximately 2.1 gigawatts of new renewable energy capacity in the quarter and anticipate bringing on approximately 8 gigawatts in 2025, which will be a record for our business.

Our business is well positioned to meet to help meet this exponential demand and support grid reliability with our over 2003 gigawatt pipeline of projects which include significant battery storage solutions, our Global feed Fleet of operating Hydro facilities. And through Westinghouse are leading nuclear service business.

Turning back to our performance. During the quarter, we delivered strong financial results and executed on our commercial initiatives and growth plans.

All while maintaining the strength of our balance sheet.

We delivered ffo per unit. That was up, 10% year-over-year and continue to expect to deliver on our 10% plus ffo per unit growth, Target for the year,

We were successful in advancing. Our commercial initiatives securing contracts to deliver an incremental 4,300 gigawatt hours per year of generation.

Connor Teskey: We progressed our development activities and commissioned approximately 2.1 gigawatts of new renewable energy capacity in the quarter and anticipate bringing on approximately 8 gigawatts in 2025, which will be a record for our business. We have also continued to execute on our asset recycling initiatives, and since the start of the second quarter, we sold assets for expected proceeds of approximately $1.5 billion, or $400 million net to Brookfield Renewable, all at strong returns. Based on our advanced pipeline, we expect total asset sales proceeds in 2025 to exceed last year, with returns at or above our targets, illustrative of the increasing and recurring nature of asset monetizations as a highly accretive way to fund our future growth. The outlook for our business remains robust, driven by exceptionally strong demand for power that will necessitate the development of all forms of energy.

In addition to signing the hydro framework agreement.

We progressed our development activities and commissioned approximately 2.1. Gigawatts of new renewable energy capacity in the quarter.

And anticipate bringing on approximately 8, gigawatts in 2025, which will be a record for our business.

Connor Teskey: We have also continued to execute on our asset recycling initiatives, and since the start of Q2, we sold assets for expected proceeds of approximately $1.5 billion, or $400 million net to Brookfield Renewable, all at strong returns. Based on our advanced pipeline, we expect total asset sales proceeds in 2025 to exceed last year, with returns at or above our targets, illustrative of the increasing and recurring nature of asset monetizations as a highly accretive way to fund our future growth. The outlook for our business remains robust, driven by exceptionally strong demand for power that will necessitate the development of all forms of energy. With our globally diversified portfolio across hydro, wind, solar, nuclear, and battery storage, we see strong potential to deepen relationships with the world's largest buyers of power, and this gives us confidence that, for our business, the best is yet to come.

We have also continued to execute on our asset recycling initiatives, and since the start of the second quarter, we sold assets for expected proceeds of approximately 1.5 billion dollars or 400 million net to Brookfield Renewable. All that strong returns.

Based on our advanced pipeline, we expect total asset sales proceeds in 2025 to exceed last year, with returns at or above our targets.

Illustrative of the increasing and recurring nature of asset monetisation as a highly accretive way to fund our future growth.

Connor Teskey: With our globally diversified portfolio across hydro, wind, solar, nuclear, and battery storage, we see strong potential to deepen relationships with the world's largest buyers of power, and this gives us confidence that for our business, the best is yet to come. With that, we will now turn it over to Wyatt Hartley to speak to our recently announced Hydro Framework Agreement with Google and how our strategic operating portfolio and deep capabilities across renewables technologies have positioned us as the partner of choice to the largest buyers of power globally.

The outlook for our business remains robust, driven by exceptionally, strong demand for power, that will necessitate the development of all forms of energy.

With our globally Diversified portfolio across Hydro wind solar nuclear and battery storage.

Connor Teskey: With that, we will now turn it over to Wyatt to speak to our recently announced hydro framework agreement with Google and how our strategic operating portfolio and deep capabilities across renewables technologies has positioned us as the partner of choice to the largest buyers of power globally. Thank you, Connor, and good morning, everyone. This past quarter, we reinforced our position as the energy solutions partner of choice to the global technology players, with the signing of a first-of-its-kind agreement with Google to deliver up to 3 gigawatts of hydroelectric capacity across the United States. This framework agreement follows on our landmark framework agreement with Microsoft that we signed last year to deliver over 10.5 gigawatts of renewable energy capacity and is a testament to our unique capabilities while also demonstrating our credibility with the largest buyers of power in the world.

We see strong potential to deepen relationships with the world's largest buyers of power. And this gives us confidence that for our business, The Best Is Yet To Come.

With that.

We will now turn it over to Wyatt to speak to our recently announced Hydro Framework Agreement with Google.

And how our strategic operating portfolio in deep capabilities. Across Renewables Technologies has positioned us as the partner of choice to the largest buyers of power globally.

Wyatt Hartley: Thank you, Connor, and good morning, everyone. This past quarter, we reinforced our position as the energy solutions partner of choice to the global technology players, with the signing of a first-of-its-kind agreement with Google to deliver up to 3 gigawatts of hydroelectric capacity across the United States. This framework agreement follows on our landmark framework agreement with Microsoft that we signed last year to deliver over 10.5 gigawatts of renewable energy capacity and is a testament to our unique capabilities while also demonstrating our credibility with the largest buyers of power in the world.

Wyatt Hartley: Thank you, Connor, and good morning, everyone. This past quarter, we reinforced our position as the energy solutions partner of choice to the global technology players, with the signing of a first-of-its-kind agreement with Google to deliver up to 3 gigawatts of hydroelectric capacity across the United States. This framework agreement follows on our landmark framework agreement with Microsoft that we signed last year to deliver over 10.5 gigawatts of renewable energy capacity and is a testament to our unique capabilities, while also demonstrating our credibility with the largest buyers of power in the world. The agreement is also notable as it reflects a trend in how the hyperscalers are procuring power. Historically, they were focused on contracting new build wind and solar.

Thank you, Connor, and good morning, everyone.

This past quarter, we reinforced our position as the Energy Solutions partner of choice to the global technology players with the sign in of a first of its kind agreement with Google to deliver up to 3, gigawatts of hydroelectric capacity across the United States.

Connor Teskey: The agreement is also notable as it reflects a trend in how the hyperscalers are procuring power. Historically, they were focused on contracting new-build wind and solar. However, in the current environment, we have seen them extend their procurement of power to include hydro and nuclear generation at scale as a complement to their continued strong demand for low-cost and quick-to-market wind and solar. We have already signed the first two contracts under the Google framework agreement for 670MW of capacity from our Holtwood and Safe Harbor facilities in Pennsylvania, securing 20-year contracts that deliver strong all-in prices and provide a near-term path to up-financing, which will generate significant proceeds to deploy into further accretive growth. We also have another 300MW of hydro capacity we are presenting to Google this year that we expect to contract at similarly attractive terms that should provide additional up-financing opportunities.

Wyatt Hartley: The agreement is also notable as it reflects a trend in how the hyperscalers are procuring power. Historically, they were focused on contracting new-build wind and solar. However, in the current environment, we have seen them extend their procurement of power to include hydro and nuclear generation at scale as a complement to their continued strong demand for low-cost and quick-to-market wind and solar. We have already signed the first two contracts under the Google framework agreement for 670MW of capacity from our Holtwood and Safe Harbor facilities in Pennsylvania, securing 20-year contracts that deliver strong all-in prices and provide a near-term path to up-financing, which will generate significant proceeds to deploy into further accretive growth. We also have another 300MW of hydro capacity we are presenting to Google this year that we expect to contract at similarly attractive terms that should provide additional up-financing opportunities.

This framework agreement follows on our Landmark framework agreement with Microsoft that we signed last year to deliver over 10.5 gigawatts of renewable energy capacity, and is a testament to our unique capabilities. While also demonstrating our credibility with the largest buyers of power in the world.

The agreement is also notable as it reflects a trend in how the hyperscalers are procuring power.

Wyatt Hartley: However, in the current environment, we have seen them extend their procurement of power to include hydro and nuclear generation at scale as a complement to their continued strong demand for low-cost and quick-to-market wind and solar. We have already signed the first two contracts under the Google Framework Agreement for 670 megawatts of capacity from our Holtwood and Safe Harbor facilities in Pennsylvania, securing 20-year contracts that deliver strong all-in prices and provide a near-term path to upfinancing, which will generate significant proceeds to deploy into further accretive growth. We also have another 300 megawatts of hydro capacity we are presenting to Google this year that we expect to contract at similarly attractive terms that should provide additional upfinancing opportunities. For the remaining capacity under the framework agreement, we will explore additional contracting opportunities within our existing hydro fleet, as well as to pursue potential new hydro investments.

Historically, they were focused on Contracting new, build wind and solar.

However, in the current environment, we have seen them extend their procurement of power to include hydro and nuclear generation at scale, as a complement to their continued strong demand for low-cost and quick-to-market wind and solar.

We have already signed the first 2 contracts under the Google framework agreement for 670 megawatts of capacity from our Holtwood and safe harbor facilities in Pennsylvania.

Generates significant proceeds to deploy into further, accrete of growth.

Connor Teskey: For the remaining capacity under the framework agreement, we will explore additional contracting opportunities within our existing hydro fleet as well as to pursue potential new hydro investments. Stepping back, as Connor spoke to in his remarks, there is an incredible growth in energy demand that will require an any-and-all solution to deliver the electricity needed in the market. At the same time, there is also an increasing requirement to match the needs of the grid with the right mix of technologies to maintain reliability. In light of this, we continue to expand our capabilities in low-cost wind and solar generation while also placing emphasis on critical technologies that enable and support broader development of these renewables, namely hydro, nuclear, and batteries.

Wyatt Hartley: For the remaining capacity under the framework agreement, we will explore additional contracting opportunities within our existing hydro fleet as well as to pursue potential new hydro investments. Stepping back, as Connor spoke to in his remarks, there is an incredible growth in energy demand that will require an any-and-all solution to deliver the electricity needed in the market. At the same time, there is also an increasing requirement to match the needs of the grid with the right mix of technologies to maintain reliability. In light of this, we continue to expand our capabilities in low-cost wind and solar generation while also placing emphasis on critical technologies that enable and support broader development of these renewables, namely hydro, nuclear, and batteries.

We also have another 300, megawatts of hydro capacity. We are presenting to Google this year that we expect to contract at similarly attractive terms, that should provide additional up financing opportunities.

Wyatt Hartley: Stepping back, as Connor spoke to in his remarks, there is an incredible growth in energy demand that will require an any-and-all solution to deliver the electricity needed in the market. At the same time, there is also an increasing requirement to match the needs of the grid with the right mix of technologies to maintain reliability. In light of this, we continue to expand our capabilities in low-cost wind and solar generation, while also placing emphasis on critical technologies that enable and support broader development of these renewables, namely hydro, nuclear, and batteries. By continuing to grow our capabilities in these technologies, we are further positioning ourselves for large-scale partnerships that deliver on the needs of our customers, while at the same time earning strong risk-adjusted returns in line with our expectations.

For the remaining capacity under the framework agreement. We will explore additional Contracting opportunities within our existing Hydro Fleet as well as to pursue potential new Hydro Investments.

Stepping back as Conor spoke to in his remarks there is an incredible growth in energy demand. That will require an any and all solution to deliver the electricity needed in the market.

At the same time there is also an increasing requirement to match. The needs of the grid with the right mix of Technologies to maintain reliability.

In light of this, we continue to expand our capabilities in low-cost wind and solar generation.

Connor Teskey: By continuing to grow our capabilities in these technologies, we are further positioning ourselves for large-scale partnerships that deliver on the needs of our customers while at the same time earning strong risk-adjusted returns in line with our expectations. Furthering our strategy of growing in critical technologies to provide clean baseload power to support the grid, in July, we reached an agreement to invest up to $1 billion to acquire an approximately 15% incremental stake in our Colombian hydro platform, ISAGEN. This accretive transaction enables us to increase our interest in an irreplaceable fleet of primarily hydro assets that generates 24/7 baseload power and delivers significant, stable, and contracted cash flows. The business generates almost 20% of Colombia's electricity, and we continue to identify opportunities to drive performance improvements by leveraging our commercial relationships, marketing expertise, and building out incremental renewable generation in the country.

Wyatt Hartley: By continuing to grow our capabilities in these technologies, we are further positioning ourselves for large-scale partnerships that deliver on the needs of our customers while at the same time earning strong risk-adjusted returns in line with our expectations. Furthering our strategy of growing in critical technologies to provide clean baseload power to support the grid, in July, we reached an agreement to invest up to $1 billion to acquire an approximately 15% incremental stake in our Colombian hydro platform, ISAGEN. This accretive transaction enables us to increase our interest in an irreplaceable fleet of primarily hydro assets that generates 24/7 baseload power and delivers significant, stable, and contracted cash flows. The business generates almost 20% of Colombia's electricity, and we continue to identify opportunities to drive performance improvements by leveraging our commercial relationships, marketing expertise, and building out incremental renewable generation in the country.

While also placing emphasis on critical technologies that enable and support. Broader development of these Renewables namely Hydro nuclear and batteries.

By continuing to grow our capabilities in these Technologies.

We are further positioning ourselves for large-scale Partnerships that deliver on the need that deliver the needs of our customers. While at the same time, earning strong risk, adjusted returns in line with our expectations

Wyatt Hartley: Furthering our strategy of growing in critical technologies that provide clean baseload power to support the grid, in July, we reached an agreement to invest up to $1 billion to acquire an approximately 15% incremental stake in our Colombian hydro platform, Isahen. This accretive transaction enables us to increase our interest in an irreplaceable fleet of primarily hydro assets that generates 24/7 baseload power and delivers significant stable and contracted cash flows. The business generates almost 20% of Colombia's electricity, and we continue to identify opportunities to drive performance improvements by leveraging our commercial relationships, marketing expertise, and building out incremental renewable generation in the country. The investment is anticipated to be approximately 2% accretive to our FFO in 2026.

Furthering, our strategy of growing in critical Technologies to provide clean base load power to support the grid.

In July, we reached an agreement to invest up to 1 billion dollars to acquire an approximately, 15% incremental stake in our Colombian Hydro platform, Issa hen.

This secretive transaction enables us to increase our interest in a Irreplaceable. Fleet of primarily Hydro assets. That generate 24/7 base, load, power, and delivers, significant stable and contracted cash flows.

The business generates almost 20% of Colombia's electricity and we continue to identify opportunities to drive performance improvements by leveraging our commercial relationships.

Connor Teskey: The investment is anticipated to be approximately 2% accretive to our FFO in 2026. In addition to our growing hydro fleet, we own Westinghouse, which services approximately two-thirds of the world's nuclear power fleet and whose technology is the basis for approximately half the operating nuclear reactors globally, providing us exposure to another critical technology required to meet the needs of today's grid. Beyond Westinghouse's core fuel and reactor services business, Westinghouse provides design and engineering for new-build reactors without taking on certain nuclear-specific new-build risks. The US government recently announced executive orders to significantly grow nuclear capacity in the country, and Westinghouse, as the US nuclear champion with the most advanced utility-scale reactor technology that is operating today, is well positioned to help deliver on these objectives.

Wyatt Hartley: The investment is anticipated to be approximately 2% accretive to our FFO in 2026. In addition to our growing hydro fleet, we own Westinghouse, which services approximately two-thirds of the world's nuclear power fleet and whose technology is the basis for approximately half the operating nuclear reactors globally, providing us exposure to another critical technology required to meet the needs of today's grid. Beyond Westinghouse's core fuel and reactor services business, Westinghouse provides design and engineering for new-build reactors without taking on certain nuclear-specific new-build risks. The US government recently announced executive orders to significantly grow nuclear capacity in the country, and Westinghouse, as the US nuclear champion with the most advanced utility-scale reactor technology that is operating today, is well positioned to help deliver on these objectives.

Marketing expertise and building out incremental renewable generation in the country.

Wyatt Hartley: In addition to our growing hydro fleet, we own Westinghouse, which services approximately two-thirds of the world's nuclear power fleet and whose technology is the basis for approximately half the operating nuclear reactors globally, providing us exposure to another critical technology required to meet the needs of today's grid. Beyond Westinghouse's core fuel and reactor services business, Westinghouse provides design and engineering for new build reactors without taking on certain nuclear-specific new build risks. The U.S. government recently announced executive orders to significantly grow nuclear capacity in the country, and Westinghouse, as the U.S. nuclear champion with the most advanced utility-scale reactor technology that is operating today, is well positioned to help deliver on these objectives. Lastly, in the first quarter, we closed our acquisition of Naoen, which significantly expanded our battery capabilities and made us one of the largest operators and developers of battery storage solutions globally.

The investment is anticipated to be approximately 2%, accretive to our ffo in 2026.

In addition to our growing Hydro Fleet we own Westinghouse, which Services, approximately 2/3 of the world's nuclear power Fleet and whose technology is the basis for approximately half. The operating nuclear reactors globally.

Providing us exposure to another critical technology required to meet the needs of today's grid.

Beyond West, Indian house, core Fuel and reactor Services business,

West in house, provides design, and Engineering for new build reactors without taking on certain nuclear specific new build risks.

Connor Teskey: Lastly, in Q1, we closed our acquisition of Neoen, which significantly expanded our battery capabilities and made us one of the largest operators and developers of battery storage solutions globally. This enhanced the suite of energy solutions we can offer to our customers and is leading to more opportunities across our business, both in terms of M&A opportunities, but also within our existing fleet. Going forward, we will continue to be active investing in the critical technologies that are required to support growing energy demand and the reliability of the grid, in addition to low-cost wind and solar, and expect to expand our partnerships with the largest buyers of power on large-scale framework agreements like the ones we executed with Google and Microsoft to date, as well as on a project-by-project basis.

Wyatt Hartley: Lastly, in Q1, we closed our acquisition of Neoen, which significantly expanded our battery capabilities and made us one of the largest operators and developers of battery storage solutions globally. This enhanced the suite of energy solutions we can offer to our customers and is leading to more opportunities across our business, both in terms of M&A opportunities, but also within our existing fleet. Going forward, we will continue to be active investing in the critical technologies that are required to support growing energy demand and the reliability of the grid, in addition to low-cost wind and solar, and expect to expand our partnerships with the largest buyers of power on large-scale framework agreements like the ones we executed with Google and Microsoft to date, as well as on a project-by-project basis.

The US government recently announced executive orders to significantly grow nuclear capacity in the country and West, inhouse as the US nuclear Champion with the most advanced utility scale reactor technology. That is operating today is well, positioned to help deliver on these objectives.

Wyatt Hartley: This enhanced the suite of energy solutions we can offer to our customers and is leading to more opportunities across our business, both in terms of M&A opportunities, but also within our existing fleet. Going forward, we will continue to be actively investing in the critical technologies that are required to support growing energy demand and the reliability of the grid, in addition to low-cost wind and solar, and expect to expand our partnerships with the largest buyers of power on large-scale framework agreements like the ones we executed with Google and Microsoft to date, as well as on a project-by-project basis. With that, I will pass it on to Patrick Taylor to discuss our operating results and financial position.

Lastly, in the first quarter, we closed our acquisition of nail in which significantly expanded our battery capabilities and made us 1 of the largest operators and developers of battery storage solutions, globally.

This enhanced the suite of Energy Solutions, we can offer to our customers and is leading to more opportunities across our business both in terms of m&a opportunities. But also within our existing Fleet,

Going forward, we will continue to be active.

Investing in the critical technologies that are required to support growing energy demand and the reliability of the grid.

Connor Teskey: With that, I will pass it on to Patrick to discuss our operating results and financial position. Thanks, Wyatt, and good morning to everyone on the call. Our business performed well this quarter, delivering funds from operations of $371 million, or $0.56 per unit, an increase of 10% year-over-year driven by strong hydro generation and execution of our growth initiatives over the past year, which more than offset the impact of asset sales we completed in the last year. Our hydroelectric segment delivered strong growth, with FFO up over 50% from the prior year on strong performance from our US and Colombian fleets, with hydrology that was above the long-term average. The outperformance reflects a rebound from a challenging prior year for hydrology and is in line with our expectation of a reversion to the mean over the long term.

Wyatt Hartley: With that, I will pass it on to Patrick to discuss our operating results and financial position. Thanks, Wyatt, and good morning to everyone on the call. Our business performed well this quarter, delivering funds from operations of $371 million, or $0.56 per unit, an increase of 10% year-over-year driven by strong hydro generation and execution of our growth initiatives over the past year, which more than offset the impact of asset sales we completed in the last year. Our hydroelectric segment delivered strong growth, with FFO up over 50% from the prior year on strong performance from our US and Colombian fleets, with hydrology that was above the long-term average. The outperformance reflects a rebound from a challenging prior year for hydrology and is in line with our expectation of a reversion to the mean over the long term.

In addition to low-cost wind and solar and expect to expand our Partnerships, with the largest buyers of power on large-scale framework agreements. Like the ones we executed with Google and Microsoft to date, as well as on a project by project basis.

With that, I will pass it on to Patrick to discuss our operating results and financial positions.

Patrick Taylor: Thanks, Wyatt, and good morning to everyone on the call. Our business performed well this quarter, delivering funds from operations of $371 million, or $0.56 per unit, an increase of 10% year over year, driven by strong hydro generation and execution of our growth initiatives over the past year, which more than offset the impact of asset sales we completed in the last year. Our hydroelectric segment delivered strong growth, with FFO up over 50% from the prior year on strong performance from our U.S. and Colombian fleets, with hydrology that was above the long-term average. The outperformance reflects a rebound from a challenging prior year for hydrology and is in line with our expectation of a reversion to the mean over the long term.

Thanks Wyatt and good morning to everyone on the call.

Quarter delivering funds from operations, of 371 million, or 56 cents per unit.

An increase of 10% year-over-year driven by strong hydrogenation, and execution of our growth initiatives, over the past year, which more than offset the impact of asset sales. We completed in the last year.

Our hydroelectric, segment delivered, strong growth with ffo up over 50% from the prior year on strong performance from our us and Colombian fleets with hydrology. That was above the long-term average.

Connor Teskey: The strong performance for our hydros bodes well for our overall results in 2025 and going into 2026, given the typical multi-year cycle we see in the hydrology of our fleet. Our wind and solar segments performed well, with FFO essentially flat compared to the prior year, as newly commissioned capacity and the closing of our investment in National Grid's renewables business in the US during the quarter was offset by lower FFO due to asset dispositions and gains on the sale of development assets in the prior year. Our distributed energy, storage, and sustainable solutions segments delivered strong performance, with FFO up almost 40% year-over-year driven by strong results from Westinghouse as the business continues to benefit from the growing global demand for nuclear energy.

Wyatt Hartley: The strong performance for our hydros bodes well for our overall results in 2025 and going into 2026, given the typical multi-year cycle we see in the hydrology of our fleet. Our wind and solar segments performed well, with FFO essentially flat compared to the prior year, as newly commissioned capacity and the closing of our investment in National Grid's renewables business in the US during the quarter was offset by lower FFO due to asset dispositions and gains on the sale of development assets in the prior year. Our distributed energy, storage, and sustainable solutions segments delivered strong performance, with FFO up almost 40% year-over-year driven by strong results from Westinghouse as the business continues to benefit from the growing global demand for nuclear energy.

Patrick Taylor: The strong performance for our hydro bodes well for our overall results in 2025 and going into 2026, given the typical multi-year cycle we see in the hydrology of our fleet. Our wind and solar segments performed well, with FFO essentially flat compared to the prior year, as newly commissioned capacity and the closing of our investment in National Grid's renewables business in the U.S. during the quarter was offset by lower FFO due to asset dispositions and gains on the sale of development assets in the prior year. Our distributed energy, storage, and sustainable solutions segments delivered strong performance, with FFO up almost 40% year over year, driven by strong results from Westinghouse, as the business continues to benefit from the growing global demand for nuclear energy.

The outperformance reflects a rebound from a challenging prior year for hydrology and is in line with our expectation of a reversion to the mean, over the long term.

The strong performance for our Hydro hydros bodes, well for our overall results in 2025 and going into 2026 given the typical multi-year cycle. We see in the hydrology of our Fleet,

Our wind and solar segments performed well with ffo, essentially, flat compared to the prior year as newly, commissioned capacity and the closing of our investment in National Grids Renewables business in the US during the quarter was offset by lower ffo due to asset dispositions and gains on the sale of development Assets in the prior year.

Connor Teskey: Turning to our financial position, we ended the quarter with $4.7 billion of available liquidity across the business, providing strong financial flexibility for the franchise. Our balance sheet continues to be top-tier in the sector, and we remain committed to a prudent financing approach, enabling us to pursue growth opportunistically. In light of the exceptionally robust demand for our assets and businesses we are seeing today in the capital markets, we continue to proactively pull forward financings across our business, including a number of up-financing opportunities. This should provide additional liquidity earlier than expected to fund accretive growth across the franchise. Year to date, we have successfully completed $19 billion of financings across the business, extending maturities and optimizing our capital structure, with a couple of noteworthy financings in the quarter.

Wyatt Hartley: Turning to our financial position, we ended the quarter with $4.7 billion of available liquidity across the business, providing strong financial flexibility for the franchise. Our balance sheet continues to be top-tier in the sector, and we remain committed to a prudent financing approach, enabling us to pursue growth opportunistically. In light of the exceptionally robust demand for our assets and businesses we are seeing today in the capital markets, we continue to proactively pull forward financings across our business, including a number of up-financing opportunities. This should provide additional liquidity earlier than expected to fund accretive growth across the franchise. Year to date, we have successfully completed $19 billion of financings across the business, extending maturities and optimizing our capital structure, with a couple of noteworthy financings in the quarter.

Patrick Taylor: Turning to our financial position, we ended the quarter with $4.7 billion of available liquidity across the business, providing strong financial flexibility for the franchise. Our balance sheet continues to be top tier in the sector, and we remain committed to a prudent financing approach, enabling us to pursue growth opportunistically. In light of the exceptionally robust demand for our assets and businesses we are seeing today in the capital markets, we continue to proactively pull forward financings across our business, including a number of upfinancing opportunities. This should provide additional liquidity earlier than expected to fund accretive growth across the franchise. Year to date, we have successfully completed $19 billion of financings across the business, extending maturities and optimizing our capital structure, with a couple of noteworthy financings in the quarter.

Are distributed, energy, storage and sustainable solution, segments, delivered, strong performance with ffo up, almost 40% year-over-year, driven by strong results from Westinghouse as the business continues to benefit from the growing Global demand for nuclear energy.

Turning to our financial position.

We ended the quarter with 4.7 billion dollars of available liquidity across the business, providing strong financial flexibility for the franchise.

Our balance sheet continues to be top, tier in the sector, and we remain committed to a prudent financing approach. Enabling us to pursue growth opportunistically.

In light of the exceptionally, robust demand for our assets and businesses. We are seeing today in the capital markets. We continue to proactively pull forward financing across our business, including a number of up financing opportunities.

this should provide additional liquidity earlier than expected to fund a creative growth, the franchise

Year to date. We have successfully completed 19 billion dollars of financing across the business extending maturities and optimizing our capital structure.

Patrick Taylor: In June, we were successful in issuing 250 million Canadian of 30-year hybrid notes at the tightest corporate hybrid new issue spread ever in Canada, in an offering that was several times oversubscribed. The issuance aligns with our strategy of conservatively accessing the market to optimize our capital structure as our cash flows increase. Also, during the quarter, we successfully executed Brookfield Renewable Partners' largest-ever project financing, raising 6.3 billion euros for our offshore wind development project in Poland. Lastly, we further demonstrated the strong demand for our high-quality assets, raising a $435 million long-term fixed-rate private placement for a strategic U.S. hydro asset at our lowest spread in five years for this type of financing. This, again, was an offering that was multiple times oversubscribed.

Connor Teskey: In June, we were successful issuing CAD 250 million of 30-year hybrid notes at the tightest corporate hybrid new issue spread ever in Canada, in an offering that was several times oversubscribed. The issuance aligns with our strategy of conservatively accessing the market to optimize our capital structure as our cash flows increase. Also during the quarter, we successfully executed Brookfield Renewable's largest-ever project financing, raising EUR 6.3 billion for our offshore wind development project in Poland. Lastly, we further demonstrated the strong demand for our high-quality assets, raising a $435 million long-term fixed-rate private placement for a strategic U.S. hydro asset at our lowest spread in five years for this type of financing. This, again, was an offering that was multiple times oversubscribed.

Wyatt Hartley: In June, we were successful issuing CAD 250 million of 30-year hybrid notes at the tightest corporate hybrid new issue spread ever in Canada, in an offering that was several times oversubscribed. The issuance aligns with our strategy of conservatively accessing the market to optimize our capital structure as our cash flows increase. Also during the quarter, we successfully executed Brookfield Renewable's largest-ever project financing, raising EUR 6.3 billion for our offshore wind development project in Poland. Lastly, we further demonstrated the strong demand for our high-quality assets, raising a $435 million long-term fixed-rate private placement for a strategic U.S. hydro asset at our lowest spread in five years for this type of financing. This, again, was an offering that was multiple times oversubscribed.

with a couple of noteworthy financings in the quarter,

In June, we were successful issuing. 250 million Canadian of 30-year hybrid notes at the tightest. Corporate hybrid new issue spread ever in Canada. In an offering that was several times over subscribed.

The issuance aligns with our strategy of conservatively accessing. The market to optimize our capital structure as our cash flows increase.

Also, during the quarter, we successfully executed Brookfield, renewable's largest ever project financing raising 6.3 billion euros for our offshore wind development project in Poland.

Lastly, we further demonstrated the strong, demand for our high-quality assets, raising a 435 million long-term fixed rate, private placement for a strategic us Hydro asset at our lowest spread in 5 years for this type of financing.

Patrick Taylor: These financings are indicative of the strong support from lenders for our de-risked infrastructure assets and indicate how our significant access to capital continues to be an enduring competitive advantage. In closing, we remain focused on delivering 12% to 15% long-term total returns for our investors, while remaining disciplined allocators of capital and leveraging our strengths to access unique opportunities in the most attractive technologies and regions. On behalf of the board and management, we thank all our unitholders and shareholders for their ongoing support. We are excited about Brookfield Renewable Partners' future and look forward to updating you on our progress throughout the year, including at our upcoming Investor Day in Toronto on September 25. That concludes our formal remarks for today's call. Thank you for joining us this morning. With that, I'll pass it back to our operator for questions.

Connor Teskey: These financings are indicative of the strong support from lenders for our de-risked infrastructure assets and indicates how our significant access to capital continues to be an enduring competitive advantage. In closing, we remain focused on delivering 12% to 15% long-term total returns for our investors while remaining disciplined allocators of capital and leveraging our strengths to access unique opportunities in the most attractive technologies and regions. On behalf of the board and management, we thank all our unit holders and shareholders for their ongoing support. We are excited about Brookfield Renewables' future and look forward to updating you on our progress throughout the year, including at our upcoming Investor Day in Toronto on 25 September. That concludes our formal remarks for today's call. Thank you for joining us this morning. And with that, I'll pass it back to our operator for questions. Certainly.

Wyatt Hartley: These financings are indicative of the strong support from lenders for our de-risked infrastructure assets and indicates how our significant access to capital continues to be an enduring competitive advantage. In closing, we remain focused on delivering 12% to 15% long-term total returns for our investors while remaining disciplined allocators of capital and leveraging our strengths to access unique opportunities in the most attractive technologies and regions. On behalf of the board and management, we thank all our unit holders and shareholders for their ongoing support. We are excited about Brookfield Renewables' future and look forward to updating you on our progress throughout the year, including at our upcoming Investor Day in Toronto on 25 September. That concludes our formal remarks for today's call. Thank you for joining us this morning. And with that, I'll pass it back to our operator for questions. Certainly.

This again, was an offering that was multiple times over subscribed.

These financings are indicative of the strong support from lenders for our de-risked infrastructure assets.

And indicates how our significant access to Capital continues to be an enduring competitive advantage.

In closing, we remain focused on delivering 12 to 15% long-term total returns for our investors. While remaining disciplined allocators of capital and leveraging, our strengths to access unique opportunities in the most attractive Technologies and regions.

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.

Including at our upcoming investor day in Toronto, on September 25th.

Operator: Certainly. Our first question comes from the line of Nelson Ng from RBC Capital Markets. Your question, please.

Connor Teskey: Our first question comes from the line of Nelson Ng from RBC Capital Markets. Your question, please. Great. Thanks, and congrats on a strong quarter. So this first question is I think it's already well known that there's a big demand for power and a lack of supply. But in light of the results from the recent PJM auction and the high capacity payments, are you able to accelerate the pace of development in that area, or are you making any changes in the US, and are you able to further kind of leverage your footprint in that region? Good morning, and thanks for the question, Nelson. In terms of what we saw recently in the capacity auction in PJM, we would simply say it's indicative of that supply-demand imbalance that we're seeing in most of the regions we operate around the world.

Operator: Our first question comes from the line of Nelson Ng from RBC Capital Markets. Your question, please.

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

Nelson Ng: Great. Thanks, and congrats on a strong quarter. So this first question is I think it's already well known that there's a big demand for power and a lack of supply. But in light of the results from the recent PJM auction and the high capacity payments, are you able to accelerate the pace of development in that area, or are you making any changes in the US, and are you able to further kind of leverage your footprint in that region?

Nelson Ng: Great, thanks, and congrats on a strong quarter. This first question is, I think it is already well known that there is a big demand for power and the lack of supply. But in light of the results from the recent PJM option and the high-capacity payments, are you able to accelerate the pace of development in that area, or are you making any changes in the U.S., and are you able to further kind of leverage your footprints in that region?

Certainly. And our first question comes from the line of Nelson. Aang, from RBC Capital markets your question, please.

Connor Teskey: Good morning, and thanks for the question, Nelson. In terms of what we saw recently in the capacity auction in PJM, we would simply say it's indicative of that supply-demand imbalance that we're seeing in most of the regions we operate around the world.

Connor Teskey: Good morning, and thanks for the question, Nelson. In terms of what we saw recently in the capacity auction in PJM, we would simply say it is indicative of that supply-demand imbalance that we are seeing in most of the regions we operate around the world. Just with the capacity auction that the results get published, it creates a really formal portrayal of a dynamic we have been seeing on the ground in a number of places that we think is going to continue for years to come. In terms of how we leverage our existing position and look to pull things forward, two comments to be made there. Make no mistake, in this market where there is a supply-demand imbalance, the shortage is not capital; the shortage is not demand; the shortage is having available to build projects. We are tackling this three ways.

Are you able to accelerate the uh, pace of development, uh, in that area? Or are you making any changes in uh, in the US and and uh, are you able to further kind of Leverage your Footprints uh, in that region?

Good morning and and and uh, thanks for the question Nelson.

Connor Teskey: Just with the capacity auction, the results get published. It creates a really formal portrayal of a dynamic we've been seeing on the ground in a number of places that we think is going to continue for years to come. In terms of how we leverage our existing position and look to pull things forward, two comments to be made there. Make no mistake, in this market where there is a supply-demand imbalance, the shortage is not capital. The shortage is not demand. The shortage is having available to build projects. We are tackling this three ways. One, everything we can, we are pulling forward as quickly as possible. That has very much been true for a couple of years now, and will look to continue to be true for the foreseeable future.

In terms of what we saw recently in the capacity auction in PGM. We, we would simply say it's indicative of that Supply demand imbalance that we're seeing in most of the regions, um, we operate around the world, um, just with the, the capacity auction that get the results get published it. It creates a, a really formal portrayal of a dynamic we've been seeing on the ground, uh, in a number of places that that we think is going to continue for years to come.

in terms of how we leverage our existing position and and look to pull things forward

Connor Teskey: One, everything we can, we are pulling forward as quickly as possible. That has very much been true for a couple of years now, and we will look to continue to be true for the foreseeable future. Secondly, we will continue to use our M&A capabilities and our access to capital to add more projects and more pipeline in the regions where we are seeing the greatest amount of demand. Thirdly, I would highlight our framework agreements and partnerships with the largest buyers of power around the world, because what those partnerships allow us to do is get a very intimate knowledge of where those buyers of power, where their future needs are. What it does is it gives us a hunting license, if you will, to either develop or acquire with greater confidence in regions where we essentially know there is a backstop level of demand.

2 comments to be made. There make no mistake um in this market where there is a supply demand imbalance. Um the shortage is not Capital, the shortage is not demand. The shortage is having available to build projects and we are tackling this 3 weighs 1. Everything we can. We are pulling forward as quickly as possible that has very much been.

Connor Teskey: Secondly, we will continue to use our M&A capabilities and our access to capital to add more projects and more pipeline in the regions where we are seeing the greatest amount of demand. And then thirdly, I would highlight our framework agreements and partnerships with the largest buyers of power around the world because what those partnerships allow us to do is get a very intimate knowledge of where those buyers of power, where their future needs are. And really what it does is it gives us a hunting license, if you will, to either develop or acquire with greater confidence in regions where we essentially know there is a backstop level of demand.

True for a couple of years now and, and we'll look to continue to be true for the foreseeable future.

uh, secondly, we will continue to use our m&a capabilities and our access to Capital to

Add more projects and more pipeline in the regions where we are seeing the greatest amount of demand.

that's with the largest, um,

Connor Teskey: Therefore, we are already pulling everything forward as fast as possible, but we are looking to use the growth levers as our franchise to look to do more in those markets where we see that supply-demand imbalance persisting in the longer term.

Connor Teskey: And therefore, we're already pulling everything forward as fast as possible, but we're looking to use the growth levers as our franchise to look to do more in those markets where we see that supply-demand imbalance persisting in the longer term. Great. Thanks, Connor. So just to follow up on that, I noticed in your development pipeline that the amount of projects being commissioned in North America in 2025 is, I think, roughly 2.7 gigawatts. That reduces a little bit to 2.4 in 2026, and then it more than doubles to 5.4 gigawatts in 2027. Is that just purely timing, or are there kind of other forces at work in terms of that profile? That's purely timing. Our development pipeline is made up of. I'll start, and if Wyatt wants to add anything, he can.

Nelson Ng: Great. Thanks, Connor. So just to follow up on that, I noticed in your development pipeline that the amount of projects being commissioned in North America in 2025 is, I think, roughly 2.7 gigawatts. That reduces a little bit to 2.4 in 2026, and then it more than doubles to 5.4 gigawatts in 2027. Is that just purely timing, or are there kind of other forces at work in terms of that profile?

Nelson Ng: Great, thanks, Connor. Just to follow up on that, I noticed in your development pipeline that the amount of projects being commissioned in North America in 2025 is, I think, roughly 2.7 gigawatts. That reduces a little bit to 2.4 in 2026, and then it more than doubles to 5.4 gigawatts in 2027. Is that just purely timing, or are there kind of other forces at work in terms of that profile?

Buyers of of power around the world. Because what those Partnerships allow us to do is get a very intimate knowledge of where those buyers of power, where their future needs are and really what it does is it gives us a a hunting license if you will to either develop or acquire with greater confidence in regions where we essentially know, there is a back stop level of demand and and therefore we're already pulling everything forward as as fast as possible. But we're looking to use the the growth, levers as our franchise to look to do more in those markets, where we see that Supply demand imbalance persisting in the longer term.

Great, thanks, Carter. So, just to follow up on that, I noticed in your development pipeline that the amount of projects being commissioned in North America in 2025 is, I think, probably 2.7 gigawatts. That reduces a little bit to 2.4 in 2026, and then it more than doubles to...

Connor Teskey: That's purely timing. Our development pipeline is made up of. I'll start, and if Wyatt wants to add anything, he can.

Connor Teskey: That's purely timing. Our development pipeline is made up of, I'll start, and if Wyatt Hartley wants to add anything, he can, but our pipelines that we produce in our supplemental are really backed by lists of specific projects that have various interconnection and COD dates. Make no mistake, if you were to draw a trend line across our North American region, it is very consistently kind of up and to the right, but the specifics of one year to the next are based on the individual underlying projects and when they're going to come online.

5.4 gigawatts of 2027 is that just purely timing or they're kind of other forces at work uh in terms of that, that profile

Connor Teskey: But our pipelines that we produce in our supplemental are really backed by lists of specific projects that have various interconnection and COD dates. Make no mistake, if you were to draw a trend line across our North America region, it is very consistently kind of up and to the right, but the specifics of one year to the next are based on the individual underlying projects and when they're going to come online. Okay. Got it. And then just one last question. Just based on your discussion with the big tech companies and the big hyperscalers, how do they balance the need for baseload versus intermittent renewable energy?

It that's purely timing. And our development pipeline is is made up of um all all start in if why it wants to add anything he can. But um

Nelson Ng: Okay, got it. Just one last question. Based on your discussion with the big tech companies and the big hyperscalers, how do they balance the need for baseload versus intermittent renewable energy?

Nelson Ng: Got it. And then just one last question. Just based on your discussion with the big tech companies and the big hyperscalers, how do they balance the need for baseload versus intermittent renewable energy?

our pipelines that that that we produce in our supplemental are really backed by lifts of specific projects that have um, you know, various interconnection and and cod dates. I make no mistake. If you were to draw a trend line, um, across our North American region, it is very consistently kind of up and to the right. But the, the specifics of 1 year to the next are, are based on the uh, individual underlying projects and when they're going to come online.

They got it and then just 1 last question. Just based on your your discussion with the big tech companies and the and the big hyperscalers like how do they

Uh, balance the need for baseload versus intermittent renewable energy.

Connor Teskey: The large technology companies are undoubtedly the largest buyers of power and are certainly ones who are adding the incremental marginal demand due to the growth of AI and the growth of the data center fleet around the world, but particularly in the US. And therefore, they, without a doubt, are looking to secure as much generation as possible. And while we often talk about them as a specific industry, the point we would make is the demand's broad-based. It's driven first and foremost by the tech companies, but we're seeing this across all segments of the economy. The second point we would make is we are seeing an absolutely growing sophistication and increased demand for things beyond what I will say pay-as-produce generation. And we absolutely encourage this and think it puts Brookfield in a fantastic situation. We're seeing more demand for 24/7 power.

Connor Teskey: The large technology companies are undoubtedly the largest buyers of power and are certainly ones who are adding the incremental marginal demand due to the growth of AI and the growth of the data center fleet around the world, but particularly in the U.S. Therefore, they, without a doubt, are looking to secure as much generation as possible. While we often talk about them as a specific industry, the point we would make is the demand's broad-based. It's driven first and foremost by the tech companies, but we're seeing this across all segments of the economy. The second point we would make is we are seeing an absolutely growing sophistication and increased demand for things beyond what I will say pay-as-produced generation. We absolutely encourage this and think it puts Brookfield in a fantastic situation. We're seeing more demand for 24/7 power.

The.

Across all segments of the economy.

The second point we would make is we are seeing a, a absolutely growing sophistication.

and a, um,

Connor Teskey: We're increasingly seeing contracts that used to be pay-as-produce generation. Now, the off-takers want the power and the RECs. Increasingly, now we're seeing the contracts include the capacity component that comes with some of these revenues and some of these assets. And all of that plays to our strengths given our diversity across technologies and, in particular, our large flexible operating base that can be mixed with, I'll call it, vanilla wind and solar to meet these evolving demands of the market. So absolutely, it is increasing. We actually encourage it and view it as a very important way that Brookfield Renewable will continue to differentiate itself. Great. Thanks, Connor. I'll leave it there. Thank you. And our next question comes from the line of Sean Stewart from TD Cowen. Your question, please. Thank you. Good morning, everyone. First question, Connor, you touched on feeling pretty good about your U.S.

Connor Teskey: We're increasingly seeing contracts that used to be pay-as-produced generation. Now the off-takers want the power and the recs. Increasingly, now we're seeing the contracts include the capacity component that comes with some of these revenues and some of these assets. All of that plays to our strengths, given our diversity across technologies and, in particular, our large flexible operating base that can be mixed with, I'll call it vanilla wind and solar, to meet these evolving demands of the market. It is absolutely increasing. We actually encourage it and view it as a very important way that Brookfield Renewable will continue to differentiate itself.

And increased demand for things beyond what I will say payers produced generation and and we absolutely encourage this and thinks it puts Brookfield in a fantastic situation. We're seeing more demand for 24/7 power. We're increasingly seeing contracts that used to be pay as produced Generation. Um now the actrice base that can be mixed with.

I'll call it vanilla wind and solar to to meet these evolving demands of the market. So absolutely it is increasing. We actually encourage it and view it as a

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

Very important way that Brookfield Renewable will continue to differentiate itself.

Operator: Thank you. And our next question comes from the line of Sean Stewart from TD Cowen. Your question, please.

Operator: Thank you. Our next question comes from the line of Sean Stewart from TD Cowan. Your question, please.

Alright. Thanks Connor. I'll leave it there.

Sean Stewart: Thank you. Good morning, everyone. First question, Connor, you touched on feeling pretty good about your U.S. pipeline's tax credit eligibility through 2029. And I guess the question is, I suppose that's the read relative to the reconciliation bill. Do you have any thoughts on Trump's executive order and if any potential changes to FIOC criteria might change the parameters of tax credit eligibility for your pipeline?

Sean Stewart: Thank you. Good morning, everyone. First question, Connor Teskey, you touched on feeling pretty good about your U.S. pipeline's tax credit eligibility through 2029. I guess the question is, I suppose that's the read relative to the reconciliation bill. Do you have any thoughts on Trump's executive order and if any potential changes to FEOC criteria might change the parameters of tax credit eligibility for your pipeline?

Thank you. And our next question comes from the line of Sean Stewart, from TD. Cowen your question, please?

Connor Teskey: pipeline's tax credit eligibility through 2029. And I guess the question is, I suppose that's the read relative to the reconciliation bill. Do you have any thoughts on Trump's executive order and if any potential changes to FIOC criteria might change the parameters of tax credit eligibility for your pipeline? So we continue to monitor the review that's ongoing. We feel very comfortable with our position. And perhaps more importantly, if anything unexpected came out of that review, we are extremely confident that we are as well-positioned as anyone else, or best positioned, to leverage our global supply chain and our different relationships to evolve as needed. And we stand here very confidently that we will be able to secure tax credit eligibility for essentially the entirety of our US pipeline out through the end of the decade.

Thank you. Good morning, everyone. Uh, first question, Connor, you touched on feeling pretty good about your U.S. pipeline's tax credit eligibility through 2029. And I guess the question is, I suppose that's the read relative to the reconciliation bill.

Connor Teskey: So we continue to monitor the review that's ongoing. We feel very comfortable with our position. And perhaps more importantly, if anything unexpected came out of that review, we are extremely confident that we are as well-positioned as anyone else, or best positioned, to leverage our global supply chain and our different relationships to evolve as needed. And we stand here very confidently that we will be able to secure tax credit eligibility for essentially the entirety of our US pipeline out through the end of the decade.

Do you have any thoughts on Trump's executive order? And if any potential changes to FIAK criteria might change the parameters of tax credit eligibility for your pipeline?

Connor Teskey: We continue to monitor the review that is ongoing. We feel very comfortable with our position, and perhaps more importantly, if anything unexpected came out of that review, we are extremely confident that we are as well positioned as anyone else or best positioned to leverage our global supply chain and our different relationships to evolve as needed. We stand here very confidently that we will be able to secure tax credit eligibility for essentially the entirety of our U.S. pipeline out through the end of the decade.

so, we

You know.

Monitor the, the, the review that's ongoing. Um, we feel very comfortable with our position. And, and perhaps more importantly, if anything unexpected came out of that review, um, we are extremely confident that that we are, um, as well positioned as anyone else, or, or, or best positioned to leverage our Global supply chain and our different relationships to evolve as needed. And, and we stand here, very confidently that, um, we will be able to, to secure tax credit eligibility. Um,

For essentially the entirety of our pipeline out through the end of the decade.

Connor Teskey: Sean, I do not know if this was part of your question, but after you mentioned we focus on out to 2029, the important thing within our business to recognize is, as we have seen in recent years, due to the supply imbalance we are seeing in the market, we are able to pass through any changes in construction costs up or down, whether that be CapEx costs, whether that be the inclusion or removal of tax credits, whether that be funding costs. We have been able to push that through to the end customer by changing the price of the PPA. We have been able to push through cost decreases as well as cost increases, always while preserving our development margin.

Connor Teskey: Sean, I don't know if this was part of your question, but you mentioned we focus on out to 2029. The important thing within our business to recognize is, as we have seen in recent years, due to the supply imbalance we are seeing in the market, we are able to pass through any changes in construction cost up or down, whether that be CapEx costs, whether that be the inclusion or removal of tax credits, whether that be funding costs. We've been able to push that through to the end customer by changing the price of the PPA. We've been able to push through cost decreases as well as cost increases, always well-preserving our development margin. The one place that we're very, very constructive is because of the visibility out to 2029.

The, the, the, the, uh, Sean. I don't know if this was part of your question, but

After you mentioned, we we focus on out to 2029. Um,

Connor Teskey: The one place that we are very, very constructive is because of the visibility out to 2029, that gives the market and ourselves as a developer more than enough time to include any price increases as needed for projects out more than five years away now. Really what it gives us confidence is within our U.S. business, we will be able to preserve our development margin for the foreseeable future.

Connor Teskey: That gives the market and ourselves as a developer more than enough time to include any price increases as needed for projects out more than five years away now. And really what it gives us confidence is, within our US business, we'll be able to preserve our development margins for the foreseeable future. Thank you for that detail. That's useful. Second question for you, Connor, or for Wyatt. To fulfill the full 3 gigawatts under the Google framework agreement, you touched on it would require some M&A. And I'm wondering if you can speak to the hydro M&A environment in the US right now and how you expect to navigate that opportunity set going forward. So we're actually seeing the hydro market after, I would say, an extended period of inactivity becoming more and more liquid.

The important thing within our business to recognize is as we have seen in recent years, um, there is due to the supply and balance we are seeing in the market, we are able to pass through any changes, uh, in construction costs up or down. Whether that be capex costs, whether that be the inclusion or removal of tax credits, where that that be funding costs. We we've been able to push that through to the End customer by changing the price of the PPA. We've been able to push through cost decreases as well as cost increases always well preserving. Our development margin the 1 place that we're very very constructive is because of the visibility out to 2029 that gives the market and ourselves as a developer more than enough time to include any price increases as needed for projects out uh more than 5 years away now and and really what it gives us confidence is within our

Sean Stewart: Thank you for that detail. That's useful. Second question for you, Connor, or for Wyatt. To fulfill the full 3 gigawatts under the Google framework agreement, you touched on it would require some M&A. And I'm wondering if you can speak to the hydro M&A environment in the US right now and how you expect to navigate that opportunity set going forward.

Sean Stewart: Thank you for that detail. That's useful. Second question for you, Connor, or for Wyatt. To fulfill the full 3 gigawatts under the Google Framework Agreement, you touched on it would require some M&A. I am wondering if you can speak to the hydro M&A environment in the U.S. right now and how you expect to navigate that opportunity set going forward.

Our us business will be able to preserve our development margins for the foreseeable future.

Thank you for that detail. That's that's useful. Um, second question for for you. Connor for Wyatt.

Connor Teskey: So we're actually seeing the hydro market after, I would say, an extended period of inactivity becoming more and more liquid.

To to fulfill the the full 3, gigawatts under the um, the Google framework agreement. Um, you touched on it. It would require uh, some m&a and I'm wondering if you can speak to the hydro m&a environment in the US right now and how you expect to navigate, um, that opportunity cycle going forward,

Connor Teskey: We are actually seeing the hydro market, after I would say an extended period of inactivity, becoming more and more liquid. Hydro are scarce assets, but hydro operating capabilities are scarce as well. We have been buyers, owners, and operators of hydros for four decades. I will use the same word again. Our arrangement with Google gives us a hunting license, if you will, to pursue opportunities in hydro when they become available, when they fit the parameters of that framework. We can pursue those opportunities with confidence. One thing we would highlight is there is the opportunity, but not the obligation, to deliver those incremental megawatts. We will continue to be disciplined, but I would say it is certainly another competitive advantage for us as we look to grow our strategy.

so,

we we, um, we're we're actually seeing the hydro, uh, market after uh, um,

Connor Teskey: And obviously, hydro are scarce assets, but also hydro operating capabilities are scarce as well. And we've been buyers, owners, operators of hydros for four decades. And really, I'll use the same word again. What our arrangement with Google does is it gives us a hunting license, if you will, to pursue opportunities in hydro when they become available, when they fit the parameters of that framework. We can pursue those opportunities with confidence. And one thing we would highlight is there is the opportunity but not the obligation to deliver those incremental megawatts. So we will continue to be disciplined. But I would say it's certainly another competitive advantage for us as we look to grow our strategy. Yeah. And Sean, it's Wyatt here. The only thing I would add is, look, with that additional capacity, it could be that it's all fulfilled with our existing fleet.

Wyatt Hartley: Yeah. And Sean, it's Wyatt here. The only thing I would add is, look, with that additional capacity, it could be that it's all fulfilled with our existing fleet.

Wyatt Hartley: It is Wyatt here. The only thing I would add is, look, with that additional capacity, it could be that it is all fulfilled with our existing fleet. We do have that capacity that is available to contract. Really, it is just a matter of is it in the right region that Google would want it as an off-take? So it is not to say that it requires us to do M&A to fulfill it. It is just we have the optionality, right? It is really predicated on meeting the needs of Google and working with them over the next number of years to figure that out. We have the option of the existing fleet or to use it for M&A.

But it's also Hydro operating capabilities are scarce as well. And we've been buyers owners operators of hydrous for 4 decades and really I'll I'll I'll use the same word again. Um, what are arrangement with Google does? Is it gives us a a a hunting license if you will to uh, pursue uh opportunities in Hydro, when they become available, when they fit the parameters of that framework? Um, we can pursue those opportunities, uh, uh, with confidence and, and 1 thing, we would highlight is, um, there is the opportunity, but not the obligation, uh, to deliver those incremental, megawatts. So we will continue to be disciplined, but I would say it's certain competitive Advantage for us as we look to to grow our strategy.

Connor Teskey: We do have that capacity that is available to contract. Really, it's just a matter of is it in the right region that Google would want it as an offtake? So it's not to say that it requires us to do M&A to fulfill it. It's just we have the optionality, right? And it's really predicated on meeting the needs of Google and working with them over the next number of years to figure that out. But we have the option of the existing fleet or to use it for M&A. Got it. Okay. Thanks, Wyatt. That's all I have for now, guys. Thank you. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. Our next question comes from the line of Mark Jarvey from CIBC. Your question, please. Yeah. Good morning, everyone.

Wyatt Hartley: We do have that capacity that is available to contract. Really, it's just a matter of is it in the right region that Google would want it as an offtake? So it's not to say that it requires us to do M&A to fulfill it. It's just we have the optionality, right? And it's really predicated on meeting the needs of Google and working with them over the next number of years to figure that out. But we have the option of the existing fleet or to use it for M&A.

Yeah, and Sean, it's right here. The only thing I would add is um, look like with that additional capacity, it could be that. It's all fulfilled with, with our existing Fleet, we do have that um, capacity that is available to contract really is just a matter of is is it in the right region that that the Google would want it as an offtake? So it's not to say that it it requires us to do m&a, to fulfill it. It's just we we have the optionality, right? And it's really predicated on, meaning the needs of Google and working with them over the next number of years to, to, to figure that out. But we have the option of the existing Fleet

Sean Stewart: Got it. Okay. Thanks, Wyatt. That's all I have for now, guys.

Operator: Got it. Okay, thanks, Wyatt. That's all I have for now, guys. Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. Our next question comes from the line of Mark Jarvey from CIBC. Your question, please.

Or to use it for for m&a.

Operator: Thank you. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone. Our next question comes from the line of Mark Jarvey from CIBC. Your question, please.

Got it, okay. Thanks Wyatt. That's all I have for now, guys.

Thank you.

Mark Jarvi: Yeah. Good morning, everyone.

Nelson Ng: Good morning, everyone. Coming back to the conversation around PJM, the pricing signals are very encouraging. It also represents the fact where it is harder to get assets through the interconnection to improving. I am just thinking how you guys are adapting to some of the challenges in the U.S. market and talking to your large customers. Are you starting to prioritize other regions where transmission, land procurement, ability to build is easier? Are you shifting to places like Texas where some of the gigawatt-scale data center complexes are trying to push forward?

And as a reminder, ladies and gentlemen, if you do have a question at this time, please, press star 1, 1 on your telephone. Our next question comes from the line of Mark jarvey from CIBC your question, please?

Connor Teskey: Just coming back to the conversation around PJM, the pricing signals are very encouraging, but it also represents the fact where it's harder to get assets through the interconnection queue and permitting. So I'm just thinking how you guys are adapting to some of the challenges in the U.S. market and talking to your large customers. Are you starting to prioritize other regions where transmission, land procurement, ability to build is easier? Are you shifting to places like Texas where some of the gigawatt-scale data center complexes are trying to push forward? Hi, Mark. Thanks for the question. If I could perhaps answer back to you, the comment I would say is, we continue; it's not that we're starting. We continue to take into account speed of connection into our development activities and our interactions with our customers. Take a market like PJM.

Mark Jarvi: Just coming back to the conversation around PJM, the pricing signals are very encouraging, but it also represents the fact where it's harder to get assets through the interconnection queue and permitting. So I'm just thinking how you guys are adapting to some of the challenges in the U.S. market and talking to your large customers. Are you starting to prioritize other regions where transmission, land procurement, ability to build is easier? Are you shifting to places like Texas where some of the gigawatt-scale data center complexes are trying to push forward?

Connor Teskey: Hi, Mark. Thanks for the question. If I could perhaps answer back to you, the comment I would say is, we continue; it's not that we're starting. We continue to take into account speed of connection into our development activities and our interactions with our customers. Take a market like PJM.

Connor Teskey: Hi, Mark. Thanks for the question. If I could perhaps answer back to you, the comment I would say is we continue, it is not that we are starting, we continue to take into account speed of connection into our development activities and our interactions with our customers. Take a market like PJM. I know it is a little bit dated now, but we bought a platform, Urban Grid, a number of years ago, purely because it had such preferential interconnection queue positions in an increasingly congested market.

Just coming back to the conversation around PJM, the pricing signals are very encouraging. But it also represents the fact that it's harder to get assets through the internet connection to improve. So, just thinking about how you guys are adapting to some of the challenges in the U.S. market and talking to your large customers, are you starting to prioritize other regions where transmission land procurement ability to build is easier? Like, are you shifting to places like Texas, where some of the gigawatt-scale data center complexes are trying to push forward?

Hi, Mark, thanks for the question. Um,

if, if I could,

Connor Teskey: I know it's a little bit dated now, but we bought a platform, Urban Grid, a number of years ago purely because it had such preferential interconnection queue positions in an increasingly congested market. So I would say it's not a realization of a problem and a reaction to pursue elsewhere. It's a recognition of a dynamic that has been ongoing and will continue to exist and simply including that in both how we grow inorganically through M&A and how we look to develop as we look to meet the growing needs of our customers. It's something we've been doing for years and that we'll continue to do. Make no mistake about it. You can't start a project in some markets right now and expect it to COD for a customer anytime in the near term.

Perhaps, answer back to you. The comment I would say, is we continue? Uh, it's not that we're starting, we continue to take into account, uh, speed of connection, um, into our development activities and our interactions with our customers, uh, take a market like pjm. Um, I know it's a little bit dated now, but, uh, we we bought a platform Urban grid a number

Connor Teskey: So I would say it is not a realization of a problem and a reaction to pursue elsewhere. It is a recognition of a dynamic that has been ongoing and will continue to exist, simply including that in both how we grow inorganically through M&A and how we look to develop as we look to meet the growing needs of our customers. It is something we have been doing for years and that we will continue to do. Make no mistake about it. You cannot start a project in some markets right now and expect it to COD for a customer anytime in the near term.

Of years ago, purely because it had such preferential interconnection queue positions in an increasingly congested market. So I, I would say it. It's not a realization of a problem. In a reaction to pursue elsewhere. It it's a recognition of a dynamic that has been ongoing and will continue to um exist and simply including that in both how we we grow inorganically through m&a and how we look to develop as we we look to meet the growing needs of our customers. Um,

Nelson Ng: On something like the Urban Grid platform, is that something you can continue to lean on, or have you sort of not exhausted, but largely taken advantage of their preferential interconnection queue and siting positions? Or is that a business that continues to create more upside and a competitive advantage in the PJM market for now?

Connor Teskey: Something like the Urban Grid platform, is that something you can continue to lean on, or have you sort of not exhausted but largely taken advantage of their preferential interconnection queue and siting positions? Or is that a business that continues to create more upside and competitive advantage in the PJM market for now? Even less specific to Urban Grid, I think buying businesses and development platforms that take into account and have really good knowledge of how interconnection grids work, how queue positions will be turned into pulling assets out of the ground, those capabilities are recurring. We felt in that example that we were buying an underappreciated asset because of their existing connections, but that and our other platforms continue to add pipeline in the highest value markets across the United States.

Mark Jarvi: Something like the Urban Grid platform, is that something you can continue to lean on, or have you sort of not exhausted but largely taken advantage of their preferential interconnection queue and siting positions? Or is that a business that continues to create more upside and competitive advantage in the PJM market for now?

It's something we've been doing for years and that we'll continue to do. Um, make no mistake about it. You can't start a project in some markets right now and expect it to co for a customer any time in the near term.

Connor Teskey: Even less specific to Urban Grid, I think buying businesses and development platforms that take into account and have really good knowledge of how interconnection grids work, how queue positions will be turned into pulling assets out of the ground, those capabilities are recurring. We felt in that example that we were buying an underappreciated asset because of their existing connections, but that and our other platforms continue to add pipeline in the highest value markets across the United States.

Something like the Urban Grid platform, or is that something you can continue to lean on? Or have you sort of exhausted it? Largely, you know, taking advantage of their preferential interconnection to inciting positions? Or is that a business that continues to create more upside on a competitive advantage in the PGM market for now?

Connor Teskey: Even less specific to Urban Grid, I think buying businesses and development platforms that take into account and have really good knowledge of how interconnection grids work, how queue positions will be turned into pulling assets out of the ground. Those capabilities are recurring. We felt in that example that we were buying an underappreciated asset because of their existing connections, but that and our other platforms continue to add pipeline in the highest value markets across the United States. That's what gives us that pipeline of being able to pull multiple thousand megawatts out of the ground each year. It's really based on decisions and positions that we took years ago.

Even less specific to Urban grid, I think buying businesses uh, and development platforms that take into account a and have really good knowledge of how how interconnection grids work, how how Q uh positions will be. Um,

Um, how Q positions will be turned into pulling assets out of the ground? Um,

Connor Teskey: And that's what gives us that pipeline of being able to pull multiple thousand megawatts out of the ground each year. It's really based on decisions and positions that we took years ago. Okay. Then maybe turning to Europe. It seems like the cost decline on batteries and solars created some tailwinds on the economic case for deployment there. We've heard some other developers ramp up activities. Just with Neoen and other platforms you have in Europe, are you able to grow faster on the organic side, or is M&A something you'd have to look to more in Europe to take advantage of potential economic tailwinds there? The comment about batteries, battery CapEx costs have gone down more than 60% in the last 24 months.

Mark Jarvi: Okay. Then maybe turning to Europe. It seems like the cost decline on batteries and solars created some tailwinds on the economic case for deployment there. We've heard some other developers ramp up activities. Just with Neoen and other platforms you have in Europe, are you able to grow faster on the organic side, or is M&A something you'd have to look to more in Europe to take advantage of potential economic tailwinds there?

Nelson Ng: Okay, turning to Europe, it seems like the cost decline on batteries and solars creates some tailwinds on the economic case for deployment there. We have heard some other developers ramp up activity. With other platforms you have in Europe, are you able to grow faster on the organic side, or is M&A something you would have to look to more in Europe to take advantage of potential economic tailwinds there?

The highest value markets across the United States. And that's what gives us that pipeline of being able to pull multiple thousand megawatts out of the ground each year. Um, it's really based on decisions and and positions that we took uh years ago

Connor Teskey: The comment about batteries, battery CapEx costs have gone down more than 60% in the last 24 months.

And then the turning to Europe um seems like the cost decline on batteries and and solars creates some tail ends on on the economic case for deployment there. We've heard some other developers ramp up activities just with Nao in and other platforms. You have in Europe are you able to you know grow faster in the organic side or is m&a something you'd have to look to more in Europe to take advantage of potential economic Tailwinds. There

Connor Teskey: The comment about batteries, battery CapEx costs have gone down more than 60% in the last 24 months, while at the same time, increasing renewable penetration has created the need for more grid stabilizing services. You have a dynamic where costs are going down at the same time as revenues are going up in almost every market around the world. Therefore, the commercial case, the economic case for batteries is pretty incredible today in most markets we look at. Therefore, across every single development platform at Brookfield, we have implemented a battery strategy over the last 12 months. We are, of course, doing things to supplement that, looking at either battery acquisitions or platforms that do focus on energy storage. That was undoubtedly a key feature of the acquisition of Naoen, which is the largest utility-scale battery developer in the world.

The comment about batteries, um,

Connor Teskey: While at the same time, increasing renewable penetration has created the need for more grid stabilizing services, you have a dynamic where costs are going down at the same time as revenues are going up in almost every market around the world. Therefore, the commercial case, the economic case for batteries is pretty incredible today in most markets we look at. Therefore, across every single development platform at Brookfield, we have implemented a battery strategy over the last 12 months. We are, of course, doing things to supplement that, looking at either battery acquisitions or platforms that do focus on energy storage. And that was undoubtedly a key feature of the acquisition of Neoen, which is the largest utility-scale battery developer in the world.

Battery uh capex costs have gone down more than 60% in the last 24 months. Well at the same time, increasing renewable. Penetration has created the need for more grid stabilizing Services you you have a dynamic where costs are going down at the same time as revenues are going up in almost every market around the world and therefore the, the commercial case, the economic case for batteries.

Connor Teskey: The one point we would highlight about Neoen is, while they are a French company headquartered and we privatized them off the French stock exchange, they are a very global developer in terms of where their operations are. And we're certainly leveraging that to drive organic growth in areas outside of Europe as well. So if you had to say today where you think the best rate of change in terms of growth on batteries can really accelerate development activities or capital deployment activities, how would you rank to the markets that are really starting to lead your focus right now? If I could frame it slightly differently, I think this will be helpful. Batteries are the fastest-growing technology within our platform today. In terms of areas where we are seeing batteries deployed at scale, candidly, I think the U.S. would probably still be number one for us.

Connor Teskey: The one point we would highlight about Naoen is, while they are a French company headquartered and we privatized them off the French stock exchange, they are a very global developer in terms of where their operations are. We are certainly leveraging that to drive organic growth in areas outside of Europe as well.

Mark Jarvi: So if you had to say today where you think the best rate of change in terms of growth on batteries can really accelerate development activities or capital deployment activities, how would you rank to the markets that are really starting to lead your focus right now?

Nelson Ng: So, if you had to say today where you think the best rate of change in terms of growth on batteries can really accelerate development activities or capital deployment activities, how would you rank for the markets that are really starting to lead your focus right now?

Is pretty incredible today, in most markets, we look at and therefore across every single development platform at Brookfield. We have implemented a, a battery uh strategy uh, over the last 12 months. Um, we are, of course, doing things to supplement that looking at either battery Acquisitions or, or platforms that do focus on energy storage and that was undoubtedly. A key feature of, of the acquisition of nail in, which is the largest, uh, utility scale battery developer in the world. Um, the, the 1 point we would highlight about now, when is well, they are a French, uh, company headquartered and they, we, we privatized them off the French Stock Exchange. They are a very Global developer in terms of where their operations are. And we're certainly leveraging that to to drive organic growth in in areas outside of Europe as well.

So, if you had to say today where you think the best rate of change in terms of,

Connor Teskey: If I could frame it slightly differently, I think this will be helpful. Batteries are the fastest-growing technology within our platform today. In terms of areas where we are seeing batteries deployed at scale, candidly, I think the U.S. would probably still be number one for us.

Connor Teskey: If I could frame it slightly differently, I think this will be helpful. Batteries are the fastest growing technology within our platform today. In terms of areas where we are seeing batteries deployed at scale, candidly, I think the U.S. would probably still be number one for us, but we continue to see opportunities in other markets, in particular areas where there's very high irradiation and very high renewables penetration. Parts of the U.S. obviously fit that bill. Australia obviously fits that bill. Places in Europe, storage is increasingly becoming of interest in Southern Europe. The other place that I would highlight is we're actually seeing a growing number of opportunities in the Middle East as well.

Growth in batteries can really accelerate development activities or capital deployment activities. How would you rank the markets that are really starting to lead your focus right now?

If I could frame it slightly differently, I think this will be helpful. Um batteries are the fastest growing technology within our platform today. Um uh in terms of areas where we are seeing uh batteries deployed at scale. Um,

Connor Teskey: But we continue to see opportunities in other markets, in particular areas where there's very high irradiation and very high renewables penetration. So parts of the US obviously fit that bill. Australia obviously fits that bill. Places in Europe, storage is increasingly becoming of interest in southern Europe. The other place that I would highlight is we're actually seeing a growing number of opportunities in the Middle East as well. And given that economic case, would batteries be at the top end of your target IRR range for now? Yeah. Absolutely. Thanks, Sean. It probably won't stay there forever, but right now, the returns on batteries are very attractive. Okay. Thanks, Connor. Thank you. And our next question comes from the line, Mark Strauss from JPMorgan. Your question, please. Yes. Good morning. Thank you very much for taking our questions.

Mark Jarvi: And given that economic case, would batteries be at the top end of your target IRR range for now?

Nelson Ng: Given that economic case with batteries, are we at the top end of your target IRR range for now?

Candidly. I think the US would would probably still be number 1 for us, uh, but we continue to see opportunities in other markets in particular areas where there's very high radiation. Um and and and very high Renewables penetration. Uh, so parts of the US, uh, obviously fit that bill Australia obviously fits that bill um, places in Europe. Uh storage is increasingly becoming in of interest in in southern Europe. Um, the the other place that uh I would highlight is we're actually seeing growing number of opportunities in the Middle East as well.

Connor Teskey: Yeah. Absolutely.

Connor Teskey: Yeah, absolutely.

Mark Jarvi: Thanks, Connor.

And given that economic case with batteries, we have the top end of your target IRR right now.

Nelson Ng: Thanks, Sean.

Connor Teskey: It probably won't stay there forever, but right now, the returns on batteries are very attractive.

Connor Teskey: It probably won't stay there forever, but right now the returns on batteries are very attractive.

Mark Jarvi: Okay. Thanks, Connor.

Nelson Ng: Thanks, Connor.

Operator: Thank you. And our next question comes from the line, Mark Strauss from JPMorgan. Your question, please.

Yeah, absolutely. I I it it probably won't stay there forever but right now the Returns on batteries are are very attractive.

Thanks.

Operator: Thank you. Our next question comes from the line of Mark Strauss from J.P. Morgan. Your question, please.

Mark Strouse: Yes. Good morning. Thank you very much for taking our questions.

Nelson Ng: Yeah, good morning. Thank you very much for taking our questions. I wanted to ask a couple of points on your Safe Harbor business, Connor Teskey. Given the July 7 executive order and potential changes to Safe Harbor, we will find out what Treasury says here in the next couple of weeks, hopefully. I am curious, you talk about you are safe harboring nearly all of your U.S. projects through year-end 2029. Are you able to say how much of that was safe harbored in 2024 and prior? Our understanding is that the potential rule change is going to be for 2025 and beyond Safe Harbors, if there is going to be any change.

Thank you. And our next question comes from the line. Mark Strauss from JP Morgan your question, please.

Connor Teskey: Just, I wanted to ask a couple of points on your Safe Harbor business, Connor. Just, given kind of the 7 July executive order and potential changes to Safe Harbor, we'll find out what Treasury says here in the next couple of weeks, hopefully. I'm curious. You talk about you're safe-harboring nearly all of your US projects through year-end 2029. Are you able to say how much of that was safe-harbored in 2024 and prior? Just, our understanding is that the potential rule change is going to be for 2025 and beyond safe harbors if there's going to be any change. So, kind of breaking that down.

Mark Strouse: Just, I wanted to ask a couple of points on your Safe Harbor business, Connor. Just, given kind of the 7 July executive order and potential changes to Safe Harbor, we'll find out what Treasury says here in the next couple of weeks, hopefully. I'm curious. You talk about you're safe-harboring nearly all of your US projects through year-end 2029. Are you able to say how much of that was safe-harbored in 2024 and prior? Just, our understanding is that the potential rule change is going to be for 2025 and beyond safe harbors if there's going to be any change. So, kind of breaking that down.

Nelson Ng: So kind of breaking that down, and then secondarily, how are you thinking about that in 2025, kind of weighing, spending money now to lock in your credits to the extent that you can maximize that, but on the other hand, not looking to overspend in the event that rule changes are draconian. Thank you.

Connor Teskey: And then secondarily, how are you thinking about that in 2025, kind of weighing spending money now to lock in your credits to the extent that you can maximize that, but on the other hand, not looking to overspend in the event that rule changes are draconian? Thank you. So a few things to unpack there. What I would say is in terms of our Safe Harbor strategy for our US platform, as mentioned, we have an expectation that we will be able to Safe Harbor almost all of it. The vast majority of that is done. I can't tell you specifically as of what date, but the vast majority of it is already completed.

Mark Strouse: And then secondarily, how are you thinking about that in 2025, kind of weighing spending money now to lock in your credits to the extent that you can maximize that, but on the other hand, not looking to overspend in the event that rule changes are draconian? Thank you.

Connor Teskey: So a few things to unpack there. What I would say is in terms of our Safe Harbor strategy for our US platform, as mentioned, we have an expectation that we will be able to Safe Harbor almost all of it. The vast majority of that is done. I can't tell you specifically as of what date, but the vast majority of it is already completed.

You know, spending money now if it's a lock in your credits uh to the to the extent uh that you can maximize that. But on the other hand, not looking to overspend uh in the event that uh rule changes are draconian.

Connor Teskey: A few things to unpack there. What I would say is, in terms of our Safe Harbor strategy for our U.S. platform, as mentioned, we have an expectation that we will be able to safe harbor almost all of it. The vast majority of that is done. I cannot tell you a specific as of what date, but the vast majority of it is already completed. Some of the components of our pipeline where it is not completed are things that maybe do not need safe harboring, i.e., some of our battery projects and things like that, which had more favorable treatment under the latest rules.

Thank you.

Connor Teskey: Some of the components of our pipeline where it's not completed are things that maybe don't need safe-harboring, i.e., some of our battery projects and things like that, which had more favorable treatment under the latest rules. In terms of your comment just around the process used to execute our safe-harboring strategy, the point we would make there is we obviously want to remain very true to our approach of only putting capital in the ground when we can lock in both revenues and costs at the same time. That has served us very well across cycles, and we want to stay true to that. So when we look to execute this safe-harbor strategy, we look to do it first and foremost by using the off-site, on-site physical work test approach and only secondly by pulling forward CapEx.

Connor Teskey: In terms of your comment just around the process used to execute our safe harboring strategy, the point we would make there is we obviously want to remain very true to our approach of only putting capital in the ground when we can lock in both revenues and costs at the same time. That has served us very well across cycles, and we want to stay true to that. When we look to execute this safe harbored strategy, we look to do it first and foremost by using the offsite-onsite physical work test approach, and only secondly by pulling forward CapEx. Therefore, the way we do that only requires a modest amount of CapEx than it otherwise would have. It is, in the grand scheme of our total organic development spend, the cost of safe harboring.

So so a few things to unpack there. Uh, what I would say is um, in terms of uh, our Safe Harbor strategy for um, our us platform as mentioned, we we have an expectation that we will be able to Safe Harbor. Uh, almost all of it. Um, the vast majority of that is done, um, I I can't tell you a specific as of what date, but the vast majority of it is, is already completed and and some of the components of our pipeline where it's not completed, are things that maybe don't need safe harboring, IE some of our battery projects and things like that, um, wi which had more favorable treatment. Um, uh, under the, the, the latest rules, um, the the, the in terms of your comment, just around, um, the the process used, uh, 2 Executive harboring strategy, the point where

we would make there is, is we we obviously

Connor Teskey: Therefore, the way we do that only requires a modest amount of CapEx than it otherwise would have. It's in the grand scheme of our total organic development spend. The cost of safe-harboring the incremental cost of pulling forward CapEx to safe-harbor these projects is not particularly material. Yeah. Very helpful. Thank you. Thank you. And our next question comes from the line of John Winham from UBS. Your question, please. Yeah. Thanks so much for taking the question, Seth. I would just be interested in hearing your thoughts on what the key milestones are over the next year for nuclear development, things we should keep an eye on for the Westinghouse business. Thanks. So in terms of the Westinghouse business and perhaps I'll start and then Wyatt, the developments in the US are certainly the most interesting. So perhaps hand to you.

Want to remain very true to our approach of um, only putting Capital, uh, in the ground. Uh, when we can lock in both both revenues and costs at the same time that has served us very well across cycles. And, and we want to stay true to that. So, when we look to execute this Safe, Harbor strategy, we we look to do it. Um, first and foremost, by using the the off-site on-site, physical work test, uh, approach and and only secondly, but by pulling forward capex and and therefore the way we do that is only requires a modest amount of capex uh than it otherwise would have it. It's

in the grand scheme of our, our

Operator: incremental cost of pulling forward CapEx to safeguard these projects is not particularly material.

Mark Strouse: Yeah. Very helpful. Thank you.

Connor Teskey: Yeah, very helpful. Thank you.

Total organic development spend, the cost of safe harboring, and the incremental cost of pulling forward capex to safe harbor. These projects are not particularly material.

Operator: Thank you. And our next question comes from the line of John Winham from UBS. Your question, please.

Yeah, very helpful. Thank you.

Wyatt Hartley: Thank you. Our next question comes from the line of John Winnham from UBS. Your question, please.

Jon Windham: Yeah. Thanks so much for taking the question, Seth. I would just be interested in hearing your thoughts on what the key milestones are over the next year for nuclear development, things we should keep an eye on for the Westinghouse business. Thanks.

Connor Teskey: Thanks so much for taking the questions, Seth. I would just be interested in hearing your thoughts on what the key milestones are over the next year for nuclear development, things we should keep an eye on for the Westinghouse business. Thanks.

Thank you. And our next question comes from the line of John Winham from UBS. Your question, please.

Connor Teskey: So in terms of the Westinghouse business and perhaps I'll start and then Wyatt, the developments in the US are certainly the most interesting. So perhaps hand to you.

Yeah, thanks so much for taking the question, sir. Um, I would just be interested in hearing your thoughts on what the key Milestones, um, are over the next year. Uh, for a nuclear development things, we should keep an eye on, uh, for the resting House business. Thanks,

Operator: In terms of the Westinghouse business, perhaps I will start and then Wyatt Hartley, the developments in the U.S. are certainly the most interesting. Perhaps I will hand to you. The way to think about our Westinghouse business is when we made the investment, we really think of it as two components. One, it has an existing product, services, and technical capabilities to the existing nuclear operating fleet around the world. That provides incredibly long-term, stable inflation-linked cash flows as nuclear reactors simply run, refuel, refurbish, lifetime extensions, things like that. All of that is, of course, trending in the right direction right now, given the existing nuclear fleet around the world. The new dynamic that has accelerated in the last three to four years is New Build Nuclear.

Connor Teskey: But the way to think about our Westinghouse business is when we made the investment, we really think of it as two components. One, it has an existing product, services, and technical capabilities to the existing nuclear operating fleet around the world. And that provides incredibly long-term, stable, inflation-linked cash flows as nuclear reactors simply run, refuel, refurbish, lifetime extensions, things like that. And all of that is, of course, trending in the right direction right now given the existing nuclear fleet around the world. What is the new dynamic that has accelerated in the last 3 to 4 years is new-build nuclear. And the joy for Westinghouse is it plays an absolute leadership role in that activity as well. That's new build of large reactors, SMRs, or even microreactors as well.

So, in terms of the, the Westinghouse business and and perhaps, I'll, I'll start and then why it um, the the developments in the US are, are certainly the most interesting. So, so perhaps hand to you. But, um, the way to think about our Westinghouse business is is when we made the investment. We we, we really think of it as 2 components 1, it has an existing um product services and Technical capabilities to the existing uh, nuclear operating Fleet around the world and that provides incredibly long-term, stable inflation, link cash flows. Um, a as nuclear reactor simply run, refuel refurbish lifetime extensions, things like that. And, and all of that is, of course, trending in the right direction, right now, given the existing nuclear Fleet around the world.

Operator: The joy for Westinghouse is it plays an absolute leadership role in that activity as well. That is New Build of large reactors, SMRs, or even micro reactors as well. We are seeing around the world governments and corporates increasingly looking to large-scale nuclear to meet their electricity and their baseload demands. In particular, we are seeing that activity most dramatic, I would say, in Europe and the United States. What you saw in our results this quarter is, while the ongoing business, the core services business of Westinghouse is very, very stable and growing, as we do more Westinghouse activities related to the growth of new nuclear, that will provide significant upsides in our financial results as they execute on some of those types of activities. It was certainly growth of new nuclear in Europe that drove the successful outperformance this quarter.

Connor Teskey: And what we're seeing around the world is governments and corporates increasingly looking to large-scale nuclear to meet their electricity and their baseload demands. And in particular, we're seeing that activity most dramatic, I would say, in Europe and the United States. And what you saw in our results this quarter is, while the ongoing business, the core services business of Westinghouse is very, very stable and growing, as we do more Westinghouse activities related to the growth of new nuclear, that will provide significant upsides in our financial results as they execute on some of those types of activities. And it was certainly growth of new nuclear in Europe that drove the successful outperformance this quarter. In terms of key milestones, Wyatt, I'll hand to you.

What is the new Dynamic? That has accelerated, in the last 3, to 4 years, it is new build nuclear. Um, and the joy, uh, for Westinghouse is it plays an absolute leadership role in not activity as well? Uh, that's new build of large reactors, uh, smrs or even micro reactors as well. And what we're seeing around the world is governments and corporates, uh, increasingly looking to large-scale nuclear to meet their electricity and their base load demands. And, and in particular, we're seeing that activity. Most dramatic I would say in Europe, uh, and the United States um and and what you saw in our results, this quarter is well, the ongoing business, the core Services business of Westinghouse is very, very stable. Uh, and growing, as we do more Westinghouse activities related to the growth of new nuclear, that will provide significant upside.

Operator: In terms of key milestones, Wyatt Hartley, I will hand to you. I do think that the one to look for is growth in the United States, as the government has been very vocal about their intention to start the build of 10 new reactors before the end of the decade. With Westinghouse as the U.S. nuclear technology and the global champion, it certainly looks to be on the front foot of that. We would expect that demand to come from both governments and from corporates, which is probably the most notable inflection change we are seeing in the industry. Wyatt Hartley, anything you would add to that?

Connor Teskey: But I do think that the one to look for is growth in the United States as the government has been very vocal about their intention to start the build of 10 new reactors before the end of the decade. With Westinghouse as the U.S. nuclear technology and the global champion, it certainly looks to be on the front foot of that. And we would expect that demand to come from both governments and from corporates, which is probably the most notable inflection change we're seeing in the industry. Wyatt, anything you'd add to that? Look, Connor, I would just reemphasize that last point about the U.S. As Connor mentioned, we're seeing very meaningful demand on a global basis. Westinghouse has made very good progress in Europe as an example where we're advancing projects in Poland. There's very forward momentum in Bulgaria.

Wyatt Hartley: Look, Connor, I would just reemphasize that last point about the U.S. As Connor mentioned, we're seeing very meaningful demand on a global basis. Westinghouse has made very good progress in Europe as an example where we're advancing projects in Poland. There's very forward momentum in Bulgaria.

Connor Teskey: Look, Connor, I would just reemphasize that last point about the U.S. As Connor mentioned, we are seeing very meaningful demand on a global basis. Westinghouse has made very good progress in Europe, as an example, where we are advancing projects in Poland. There is very forward momentum in Bulgaria. We have a project or we have our technology, underlying technologies being used in the Czech Republic. So there is very good progress on a global basis. As Connor mentioned, in the U.S. is where we see a very meaningful focus out of the current administration. Recently, there was an executive order that was issued with the goal of starting construction, as Connor mentioned, on 10 gigawatt scale reactors by the end of the decade. Really where that positions Westinghouse is probably the most credible provider of that underlying technology, it really positions Westinghouse very meaningfully to benefit from that.

Activities. And it would certainly growth of new nuclear, uh, in Europe, uh, that drove this successful outperformance, this quarter. Um, in terms of key Milestones, uh, while it all hand to you, but I do think um, that the 1 to look for is growth in the United States. As the, the government has been, uh, very vocal about their intention to start the build of 10 new reactors. Before the end of the decade with Westinghouse as the US nuclear technology in the global Champion, it certainly looks to be on the front foot of that and and we would expect that demand come from both governments and from corporates, uh, which is probably the the most notable inflection change. We're seeing in the industry, why it anything you'd add to that?

Connor Teskey: We have a project or we have our underlying technology is being used in the Czech Republic. So there is very good progress on a global basis. But as Connor mentioned, in the U.S. is where we see a very meaningful focus out of the current administration. Recently, there was an executive order that was issued with the goal of starting construction, as Connor mentioned, on 10 gigawatt-scale reactors by the end of the decade. And really where that positions Westinghouse is probably the most credible provider of that underlying technology is it really positions Westinghouse very meaningfully to benefit from that. And as you may have seen around the Energy Innovation Summit that was recently held in Pennsylvania where President Trump and the Senator of Pennsylvania attended, the focus around those 10 large-scale gigawatt reactors is critical to the administration's goal of being a leader in AI.

Wyatt Hartley: We have a project or we have our underlying technology is being used in the Czech Republic. So there is very good progress on a global basis. But as Connor mentioned, in the U.S. is where we see a very meaningful focus out of the current administration. Recently, there was an executive order that was issued with the goal of starting construction, as Connor mentioned, on 10 gigawatt-scale reactors by the end of the decade. And really where that positions Westinghouse is probably the most credible provider of that underlying technology is it really positions Westinghouse very meaningfully to benefit from that. And as you may have seen around the Energy Innovation Summit that was recently held in Pennsylvania where President Trump and the Senator of Pennsylvania attended, the focus around those 10 large-scale gigawatt reactors is critical to the administration's goal of being a leader in AI.

Look, Conor. I would just re-emphasize that, that last point about about the US. Um, you know, we, as, as Conor mentioned, we're seeing very meaningful Demand on a global basis. Westinghouse, has made very good progress in Europe, as an example where, uh, we're advancing projects in, uh, in in Poland. Uh, there, there's very forward momentum in Bulgaria. We we have a project or, uh, we, we have, um, our technology underlying Technologies being used in, in the Czech Republic. So, there there is, uh, you know, very good progress on a global basis. But as Conor mentioned in the US is where we see, you know, a, a very meaningful. Uh, uh, Focus out of the, the current, uh,

Connor Teskey: As you may have seen around the Energy Innovation Summit that was recently held in Pennsylvania, where President Trump and the Senator of Pennsylvania attended, the focus around those 10 large-scale gigawatt reactors is critical to the administration's goal of being a leader in AI. From that perspective, the business, as well as the shareholders being both Brookfield and Cameco, our partner in the investment, are working very closely with the various stakeholders. You can imagine that is a mix of government, that is a mix of utilities, as well as the off-takes and primarily the hyperscalers. We are working very meaningfully to be able to bring forward something in the very near term that should give you a sense of what that could translate to in terms of Westinghouse and then the broader benefit to Brookfield. Really appreciate the call. Be well.

Connor Teskey: And so from that perspective, the business as well as the shareholders being both Brookfield and Cameco, our partner in the investment, are working very closely with the various stakeholders. And you can imagine that's a mix of government. That's a mix of utilities as well as the off-takes and primarily of the hyperscalers. But we are working very meaningfully to be able to bring forward something in the very near term that should give you a sense of what that could translate to in terms of Westinghouse and then the broader benefit to Brookfield. Really appreciate the call, Eric. Be well. Thank you. And our next question comes from the line of Jessica Hoyle from Scotiabank. Your question, please. Good morning. Thanks so much for taking my question. So just to start, you touched on this a little bit.

Wyatt Hartley: And so from that perspective, the business as well as the shareholders being both Brookfield and Cameco, our partner in the investment, are working very closely with the various stakeholders. And you can imagine that's a mix of government. That's a mix of utilities as well as the off-takes and primarily of the hyperscalers. But we are working very meaningfully to be able to bring forward something in the very near term that should give you a sense of what that could translate to in terms of Westinghouse and then the broader benefit to Brookfield.

Registration, uh, recently, uh, there was an executive order that was issued where with the goal of starting construction. As Conor mentioned on 10, Gause, scale reactors by the end of the decade and really where where that position is West Enos is is probably the most credible provider of that underlying technology. Is it really positions that uh, Western know is very um, uh meaningfully to to, to benefit from that. Uh, and as you you may have seen in around the energy Innovation Summit. That was recently held in uh, Pennsylvania where, uh, president Trump and the uh, senator of um, Pennsylvania attended. You know, the the the focus around those those um, 10 large scale. Gigawatt reactors is critical to the the administration's goal of, of, of, of of, you know, being a leader in Ai. And so, you know, from from that perspective, the business as long as well as, um, the shareholders being both Brookfield and

Jon Windham: Really appreciate the call, Wyatt. Be well.

And chemo. Our partner in the, in, in, in the investment are working very closely with the various stakeholders, and you can imagine. That's a mix of government. That's a mix of utilities, uh, as well as, uh, the off takes in, in primarily at the hyperscalers, but we are, uh, working very, um, meaningfully to, to be able to bring forward something in the very near term, that would should give you a sense of um, what that could translate to in terms of less Enos. And, and then the broader benefit to Brookfield

Operator: Thank you. And our next question comes from the line of Jessica Hoyle from Scotiabank. Your question, please.

Wyatt Hartley: Thank you. Our next question comes from the line of Jessica Hoyle from Scotiabank. Your question, please.

Really appreciate the call. You're welcome.

Jessica Hoyle: Good morning. Thanks so much for taking my question. So just to start, you touched on this a little bit.

Patrick Taylor: Morning. Thanks so much for taking my questions. Just to start, you touched on this a little bit, but just given the CapEx increases that we are seeing from the tech companies, how have discussions regarding new facilities or contractual frameworks changed in recent months?

On the line of Jessica Hy from Scotia Bank, your question, please?

Connor Teskey: But just given the CapEx increases that we're seeing from the tech companies, how have discussions regarding new facilities or contractual frameworks changed in recent months? Perhaps the thing that is most notable to us, we're going to sound like a broken record, is the numbers, the quantums, and the demand simply continues to go up. But maybe there's two or three things to highlight. One, we're seeing much more increased appetite for new technologies beyond just wind and solar. Our hydro framework is certainly illustrative of that. And no doubt, in relation to the previous question, the conversations around nuclear are certainly accelerating. The other point that is really showing up out of these conversations is the importance that the large tech companies, the hyperscalers, are putting on broader relationships.

Jessica Hoyle: But just given the CapEx increases that we're seeing from the tech companies, how have discussions regarding new facilities or contractual frameworks changed in recent months?

Connor Teskey: Perhaps the thing that is most notable to us, we're going to sound like a broken record, is the numbers, the quantums, and the demand simply continues to go up. But maybe there's two or three things to highlight. One, we're seeing much more increased appetite for new technologies beyond just wind and solar. Our hydro framework is certainly illustrative of that. And no doubt, in relation to the previous question, the conversations around nuclear are certainly accelerating. The other point that is really showing up out of these conversations is the importance that the large tech companies, the hyperscalers, are putting on broader relationships.

Good morning. Uh thanks so much for taking my questions. Uh, so just to start uh you touched on this a little bit but just given the capex increases uh that we're seeing from the tech companies. How have discussions regarding new facilities or uh, contractual Frameworks changed in recent months.

Operator: Perhaps the thing that is most notable to us, we are going to sound like a broken record, is the numbers and the quantums and the demand simply continue to go up. There are two or three things to highlight. One, we are seeing much more increased appetite for new technologies beyond just wind and solar. Our hydro framework is certainly illustrative of that. No doubt, in relation to the previous question, the conversations around nuclear are certainly accelerating. The other point that is really showing up out of these conversations is the importance that the large tech companies, the hyperscalers, are putting on broader relationships. Make no mistake that the procurement of power is now undoubtedly the bottleneck on the critical path to growth for their cloud and AI businesses. They increasingly want to look to de-risk that growth path by partnering with the largest and most capable counterparties.

Per, perhaps, the thing that is most notable to us. It, it, it, we're going to sound like a broken record is, is the numbers in the quantums and the demand, uh, simply continues to go up. Um, but but maybe there's 2 or 3 things to highlight, uh, 1, we're seeing much more, um,

Uh, increased appetite for, uh, new technologies beyond just wind and solar. Our hydro framework is certainly, uh, illustrative of that, and no doubt, um,

in relation to the previous question, the conversations around nuclear are are are certainly accelerating the, the other point that, um,

Connor Teskey: Make no mistake that the procurement of power is now undoubtedly the bottleneck on the critical path to growth for their cloud and AI businesses. They increasingly want to look to de-risk that growth path by partnering with the largest and most capable counterparties. Therefore, when we talk about something like our hydro framework with Google, while the framework in itself is exciting, it is important to recognize that it is simply one component of an increasingly broad and integrated relationship that spans wind, solar. We have retail power agreements with some of the tech companies. Those relationships are becoming much larger and much more integrated. That's probably the biggest change we've seen in recent months. Thanks for that. Then can you talk a little bit about whether the changes in tax credits have altered the M&A market for renewable developers, specifically in the U.S.?

Is really showing up out of these conversations. Is the importance that the, um, large tech companies. The hyperscalers are are putting on broader relationships.

Operator: Therefore, when we talk about something like our hydro framework with Google, while the framework in itself is exciting, it is important to recognize that it is simply one component of an increasingly broad and integrated relationship that spans wind, solar. We have retail power agreements with some of the tech companies. Those relationships are becoming much larger and much more integrated. That is probably the biggest change we have seen in recent months.

Jessica Hoyle: Thanks for that. Then can you talk a little bit about whether the changes in tax credits have altered the M&A market for renewable developers, specifically in the U.S.?

D risk that growth path by partnering with the largest and most capable counterparties. And, and therefore, when we talk about something like our, our Hydro framework with Google, while the framework in itself is exciting, it is important to recognize that it is, simply 1 component of a increasingly Broad and integrated relationship that spans wind solar. Um, we we have retail power agreements with some of the tech companies. Um, the those those relationships are becoming much larger and much more integrated. That's probably the biggest change we've seen in recent months.

Patrick Taylor: Thanks for that. Can you talk a little bit about whether the changes in tax credits have altered the M&A market for renewable developers, specifically in the U.S.?

Thanks for that. Uh, and then can you talk a little bit about whether the the changes in tax credits? Have have altered the m&a market for renewable developers specifically in the US.

Connor Teskey: It's an interesting question because we would highlight that we completed a transaction earlier this year acquiring a platform off National Grid in the United States that we're absolutely thrilled about and really reinforces some of the messages we've been making on this call about buying high-quality developers with advanced pipelines in the key regions around the United States. What's interesting is M&A activity in the U.S. has been a little bit subdued year to date. We would chalk that up mostly just to some of the market noise and uncertainty around the timing of new regulation, tax regimes, executive orders, and reviews. We very much expect there to be a very significant increase in M&A activity within the power space and the renewable power space in the United States over the next 12 months.

Operator: is an interesting question because we would highlight that we completed a transaction earlier this year, acquiring a platform off National Grid in the United States that we are absolutely thrilled about and really reinforces some of the messages we have been making on this call about buying high-quality developers with advanced pipelines in the key regions around the United States. What is interesting is M&A activity in the U.S. has been a little bit subdued year to date. We would chalk that up mostly just to some of the market noise and uncertainty around the timing of new regulation and tax regimes and executive orders and reviews. We very much expect there to be a very significant increase in M&A activity within the power space and the renewable power space in the United States over the next 12 months.

It's an interesting question because we would, we would highlight that. Um, we we completed a transaction earlier this year, um, a acquiring, a platform, um, off National Grid in the United States that that we're absolutely thrilled about and really reinforces some of the messages we've been making on this call about uh buying high quality developers with Advanced pipelines in the key regions uh, around the United States. What's interesting is is m&a activity in the US?

has been a little bit subdued, uh,

Year to date and and we would chalk that up mostly just to some of the market noise and uncertainty around the timing of of, of new. Um,

Uh, regulation and and and tax regimes, and and and executive orders and reviews.

Connor Teskey: We see huge demands for power, which means huge demands for CapEx, which many of the existing platforms very simply don't have access to capital to fund. Therefore, we do see a pretty large pipeline of M&A developing that we are certainly excited to review and participate in when it makes sense for our business. Appreciate the call. Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Connor Teskey for any further remarks. Thank you very much for joining our call and your interest and support of Brookfield Renewable. We look forward to updating you on our Q3 results in three months' time. But hopefully, we'll speak to you at our Investor Day at the end of September. Thank you and have a great day. Thank you, ladies and gentlemen, for your participation in today's conference.

Operator: We see huge demands for power, which means huge demands for CapEx, which many of the existing platforms very simply do not have access to capital to fund. Therefore, we do see a pretty large pipeline of M&A developing that we are certainly excited to review and participate in when it makes sense for our business.

Jessica Hoyle: Appreciate the color.

We very much expect there to be a very significant increase in m&a, activity within the power space in the Renewable Power space in the United States over the next 12 months. Um, we see, huge demands, um, for power, which means huge demands for capex, which many of the existing platforms. Very simply don't have access to Capital to fund and, and therefore we do see, um, a pretty large, uh, pipeline of m&a developing that that we are certainly excited to review and and participate in when it makes sense for our business.

Patrick Taylor: Appreciate the caller.

Appreciate the color.

Operator: Thank you. This does conclude the question-and-answer session of today's program. I'd like to hand the program back to Connor Teskey for any further remarks.

Wyatt Hartley: Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Connor Teskey for any further remarks.

Connor Teskey: Thank you very much for joining our call and your interest and support of Brookfield Renewable. We look forward to updating you on our Q3 results in three months' time. But hopefully, we'll speak to you at our Investor Day at the end of September. Thank you and have a great day.

Thank you. This does conclude the question and answer session of today's program. I'd like to hand the program back to Connor tesy for any further remarks.

Operator: Thank you very much for joining our call and your interest and support of Brookfield Renewable. We look forward to updating you on our Q3 results in three months' time. Hopefully, we will speak to you at our Investor Day at the end of September. Thank you and have a great day.

Operator: Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Wyatt Hartley: Thank you, ladies and gentlemen, for your participation at today's conference. This does conclude the program. You may now disconnect. Good day.

Thank you, uh, very much for, for joining our call and your interest in support of Brookfield Renewable. Uh, we look forward to updating you on our queue Theory results in 3 months time. But hopefully uh we'll speak to you at our uh, investor day at the end of September. Uh, thank you and have a great day.

Connor Teskey: This does conclude the program. You may now disconnect. Good day.

Thank you, ladies and gentlemen for your participation. In today's conference, this does conclude the program. You may now disconnect good day.

Q2 2025 Brookfield Renewable Corp Earnings Call

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