Brookfield Renewable Partners L.P. Stock

Brookfield Renewable Partners L.P. (Brookfield Renewable) owns a portfolio of renewable power and sustainable solution assets primarily in North America, South America, Europe, and Asia. Brookfield Renewable Partners Limited (BRPL) operates as the general partner of the company.

Brookfield Renewable owns one of the world’s largest, publicly traded, pure-play renewable power platforms. The company invests in renewable power and sustainable solutions assets directly, as well as with institutional partners, joint venture partners and through other arrangements. Across the company’s business, the company leverages its extensive operating experience to maintain and enhance the value of assets, grow cash flows on an annual basis and cultivate positive relations with local stakeholders. The company includes operating assets for which the company has access to a priority growth pipeline that if funded would provide the company the opportunity to own a near-majority share of the business. The company’s global diversified portfolio of renewable power assets, which makes up over 98% of the company’s business, has approximately 25,400 MW of operating capacity and annualized LTA generation of approximately 69,700 GWh and a development pipeline of approximately 110,000 MW.

The company’s sustainable solutions development pipeline includes opportunities to invest in projects with up to 8 million MTPA of CCS, 19 MRFs that would result in 2 million tons of recycled materials and 70 digesters that would produce more than 3 million MMBtu of RNG production capacity annually.

Operations

The company invests in renewable power and sustainable solutions assets directly, as well as with institutional partners, joint venture partners and through other arrangements. The company’s portfolio of assets has approximately 25,400 MW of capacity and annualized LTA generation of approximately 69,700 GWh and a development pipeline of approximately 110,000 MW of renewable power and 8 million MTPA of CCS), making the company one of the largest decarbonization companies in the world. The company leverages its extensive operating experience to maintain and enhance the value of assets, grow cash flows on an annual basis and cultivate positive relations with local stakeholders.

Acquisitions

In January 2022, Brookfield Renewable, together with institutional partners, acquired a 100% interest in a utility-scale solar and storage development business in the United States with a 20 GW development pipeline.

In February 2022, Brookfield Renewable, together with institutional partners, acquired a 100% interest in a utility-scale solar development business in Germany with a 1,700 MW development pipeline. Brookfield Renewable holds a 20% interest.

In February 2022, Brookfield Renewable, together with institutional partners, acquired an initial 16% interest in a DG solar development business in Spain and Mexico with approximately 700 MW of operating and development assets.

In March 2022, Brookfield Renewable, together with institutional partners, acquired an initial 83% interest in a DG solar development business in Chile with 440 MW of operating and development assets. Brookfield Renewable holds a 17% interest.

In September 2022, Brookfield Renewable, together with institutional partners, acquired a 100% interest in a DG solar development business in the United States with 500 MW of operating and under construction assets, and an 1,800 MW development pipeline. Brookfield Renewable has a 20% interest.

In October 2022, Brookfield Renewable, together with institutional partners, formed a partnership with Cameco to acquire 100% of Westinghouse, one of the world’s largest nuclear services businesses, from the company’s affiliate Brookfield Business Partners and its institutional partners. The company together with institutional partners expect to own an aggregate 51% interest (up to 17% net to Brookfield Renewable) with Cameco owning 49%. The transaction is subject to customary closing conditions, with closing expected to occur in the second half of 2023.

In December 2022, Brookfield Renewable, together with institutional partners, acquired a 100% interest in a utility-scale wind and solar development business in the United States with 800 MW of operating wind assets and a pipeline of over 22,000 MW of wind, solar and storage projects. Brookfield Renewable holds a 20% interest.

Asset Sales

In April 2022, Brookfield Renewable, together with institutional partners, sold its 19 MW solar portfolio in Asia.

In June 2022, Brookfield Renewable, together with institutional partners, sold a 100% interest in a 36 MW operating hydroelectric portfolio in Brazil.

In November 2022, the company’s institutional partners agreed to sell a 50% interest in a 378 MW hydroelectric portfolio in the United States. The transaction is subject to customary closing conditions and is expected to close in the first half of 2023.

North American Business

The United States

The company’s principal office in the United States is located in New York, New York. The company’s U.S. National System Control Center is located in Queensbury, New York, and allows for the remote monitoring and control of nearly all of the company’s assets in the country. In the United States, the company has full hydroelectric, wind, solar and battery storage operating capabilities, as well as development and construction oversight expertise.

The majority of the company’s hydroelectric capacity in the United States is located in New York, Pennsylvania and New England. In New York, the company is one of the largest independent power producers with 74 hydroelectric facilities with an aggregate capacity of 711 MW. In Pennsylvania, the company has four hydroelectric facilities with an aggregate capacity of 747 MW. In New England, the company has 47 hydroelectric facilities and one pumped storage facility with an aggregate capacity of 1,317 MW. A number of the company’s U.S. hydroelectric assets have water storage reservoirs that can collectively store approximately 2,500 GWh, or approximately 38% of their annualized long-term average generation. The company also benefits from a 50% joint-venture interest in a 633 MW hydroelectric pumped storage facility located in Massachusetts.

Brookfield Renewable has a geographically diverse portfolio of wind projects located principally in Oregon, Illinois, Texas, New York and New England with an aggregate capacity of over 3,200 MW. The company also has a sizable portfolio of solar assets, including a 500 MW utility-scale portfolio and an approximately 35,600 MW utility-scale solar development pipeline. The company’s utility-scale solar and wind development capabilities were significantly strengthened in 2022 with the acquisition of two national utility-scale wind and solar development platforms. Complementing the company’s utility-scale solar portfolio is the company’s approximately 1,400 MW operating DG portfolio, which is one of the largest commercial and industrial distributed generation portfolios in the United States, and benefits from dedicated development teams who are advancing an over 8,000 MW development pipeline.

The company’s rights to operate its hydroelectric facilities in the United States are secured primarily through long-term licenses from the Federal Energy Regulatory Commission (‘FERC’), the federal agency that regulates the licensing of substantially all hydroelectric power plants in the United States. FERC has oversight of substantially all of the company’s ongoing hydroelectric project operations, including dam safety inspections, environmental monitoring, compliance with license conditions, and the license renewal process. The company’s ability to sell power from certain of its generation facilities, including most of the company’s utility-scale non-hydroelectric facilities, is also subject to the receipt and maintenance of certain approvals from FERC, including the authority to sell power at market-based rates.

Canada

The company’s principal offices in Canada are located in Gatineau, Québec and Toronto, Ontario. The company’s Canadian National System Control Center is located in Gatineau and allows for the remote monitoring and control of all of the company’s assets in the country. In Canada, the company has full hydroelectric, wind and solar operating capabilities, as well as development and construction oversight expertise. The company has experienced positive relations with the company’s unionized work force in Canada. The company provides finance, IT and payroll services to the company’s businesses both in Canada and the United States, of which none are covered by collective agreements.

The company’s facilities are principally situated in Québec and Ontario – the two largest power markets in Canada – as well as in British Columbia. Most of the company’s Canadian hydroelectric assets are larger utility-scale facilities with water storage reservoirs that can together store approximately 1,300 GWh, or approximately 26% of their annualized long-term average generation.

The company also has 483 MW of wind and 54 MW of solar generation capacity located in Ontario and approximately 140 MW of solar development capacity located in Alberta. The company is also advancing various early-stage green hydrogen production development projects in Quebec, British Columbia and Newfoundland and Labrador.

The company holds a variety of long-term waterpower licenses issued by the provinces where the company’s operations are situated. These waterpower licenses permit the company to use land, water and waterways for the generation of electricity. These licenses also contain terms that deal with water management, land use, public safety, recreation and the environment. At the end of the license period, license holders can apply to have their licenses renewed.

European Business

The principal office of the company’s European operations is located in London, in the U.K. The company’s European business employs approximately employees comprising operating, finance, project development, market research, power marketing and support functions.

Spain and Portugal

The company’s Spanish business has 538 MW of wind, 350 MW of CSP and 64 MW of conventional solar PV generation capacity. In 2022, the company also acquired a minority equity interest in a DG solar development platform in Spain with approximately 700 MW of operating and development located in assets in Spain and Mexico.

The company’s European business also includes a 144 MW wind portfolio in Portugal.

The United Kingdom

The company’s U.K. business includes a 225 MW Scottish development portfolio, a 10 MW solar facility located in England, and a 25% stake in First Hydro, the U.K.’s largest pumped storage asset. First Hydro manages and operates 2.1 GW of pumped storage facilities at the Dinorwig and Ffestiniog power stations in the Snowdonia region of Wales and represents approximately 75% of the U.K.’s pumped storage capacity and 50% of its hydro capacity.

Italy

In March 2022, Brookfield Renewable, together with institutional partners, acquired an 80 MW solar PV development project in Italy. This is the second project acquired under the framework development agreement signed in 2021 pursuant to which a developer in Italy will present the company with the opportunity to invest in up to 500 MW of renewable power development opportunities in Italy. The first 47 MW project that the company acquired in 2021 is under development.

Germany

In February 2022, Brookfield Renewable, together with institutional partners, acquired a utility-scale solar development platform in Germany, with an approximately 2,900 MW development pipeline, marking the company’s entry into the German renewables market.

X-Elio

Brookfield Renewable, together with institutional partners, holds a 50% (12.5% net to Brookfield Renewable) interest in X-Elio, a global solar development platform headquartered in Madrid. It employs approximately 223 employees globally across 9 countries, none of which are covered by collective agreements. X-Elio’s diversified portfolio includes 750 MW of operating and approximately 200 MW of under construction assets located in Spain, Mexico, Australia, Japan, Chile, the United States, Italy and Honduras. X-Elio also has an approximate 10,000 MW development pipeline in Spain, Mexico, the United States, Australia, Italy, Chile, Brazil, Colombia and Japan, which includes a mix of advanced and early-stage projects. In 2022, X-Elio also began developing an approximately 500 MW BESS pipeline in Australia and the United States.

Polenergia

Brookfield Renewable, together with institutional partners, holds a 32% (8% net to Brookfield Renewable) interest in Polenergia, a large-scale renewable business in Poland. The investment represents an attractive entry into the offshore wind sector in Europe through its 3,000 MW offshore wind development pipeline, which the company expect to be constructed over the next 5 to 7 years together with the company’s joint venture partner, an experienced offshore wind developer. In April 2022, Brookfield Renewable together with institutional partners, subscribed for additional shares that increased the company’s interest in Polenergia to the 32% (8% net to Brookfield Renewable).

Polenergia’s operating portfolio is consisted of approximately 435 MW of wind generation assets and 36 MW of solar projects, and it continues to progress its approximately 5,400 MW development pipeline, of which 3,000 MW is offshore wind, 900 MW is onshore wind, 1,200 MW is solar PV, and 300 MW is solar DG.

South American Business

Colombia

The company’s 2016 acquisition of Isagen with its institutional partners marked the company’s entry into the Colombian market. The company’s consortium’s ownership interest in Isagen is over 99% of which the company’s share is approximately 22%. The company has experienced positive relations with its unionized work force in Colombia. Isagen's Colombian National System Control Center is also located in Medellin and allows for the remote monitoring and control the company’s hydroelectric assets in the country.

The consortium holds its interest in Isagen through an entity (‘Hydro Holdings’) which is entitled to appoint a majority of the board of directors of Isagen. The general partner of Hydro Holdings is a controlled subsidiary of Brookfield Renewable.

Isagen is Colombia’s third-largest power generation company and owns and operates a 3,308 MW portfolio. This portfolio accounts for approximately 17% of Colombia’s generating capacity and principally consists of large reservoir-based hydroelectric facilities. The hydroelectric assets include the largest reservoir by volume in Colombia and are collectively able to store approximately 24% of their annualized long-term average generation. Isagen’s portfolio also includes approximately 200 MW of near to medium-term hydro and wind development projects.

Isagen owns all of its power generating assets in perpetuity and holds requisite water usage and other rights in respect of each of its assets.

Brazil

The principal office of the company’s Brazil business is located in Rio de Janeiro, which oversees the company’s operations in Brazil, as well as Uruguay and Chile. The company’s Brazilian National System Control Center is also located in Rio de Janeiro and allows for the remote monitoring and control of nearly all of the company’s assets in the country. The company’s business in the country has full hydroelectric, wind, solar and biomass operating capabilities, as well as development and construction oversight expertise. All of the company’s employees in Brazil are covered by collective agreements. The company has experienced positive relations with the company’s unionized work force in Brazil.

In aggregate, the company owns and operates facilities totaling 2,759 MW located in 12 Brazilian states representing approximately 75% of the country’s population and approximately 80% of the economic activity (in GDP terms).

Asia

India

The company’s Indian portfolio consists of 1,003 MW of capacity, consisted of five wind energy facilities with an aggregate capacity of 311 MW and 17 solar facilities with an aggregate capacity of 692 MW. These operating assets are spread across seven Indian states. The company’s most recent addition to the overall capacity was in 2022, when the company commissioned a 445 MW solar power project in the state of Rajasthan which has a long-term offtake agreement with one of India’s largest power utility companies. The company’s near-term development pipeline in the country is 1,300 MW.

China

The company has experienced positive relations with its unionized work force in China. The company’s operating portfolio has grown to over 1,500 MW and includes 915 MW of wind generation capacity and 50 MW of utility-scale solar capacity. Brookfield Renewable also benefits from a 50:50 joint venture with GLP Pte. Ltd., a provider of logistics and owner of industrial facilities, with the purpose of investing in, managing and developing commercial and industrial rooftop solar projects. As of December 31, 2022, the company developed and commissioned approximately 600 MW of rooftop solar projects through this joint venture.

Other Businesses

The company owns and operates 121 MW of wind generation capacity in Uruguay and 101 MW of solar generation capacity in Chile. In December 2021, the company agreed to expand its presence in Chile with the acquisition of an initial 82% interest in a DG development platform with approximately 30 MW of operating and under construction projects. The company employs people in Uruguay and in Chile. In June 2022, the company sold the company’s Malaysian solar portfolio.

Core Markets

The company has focused on North America, Europe, South America and Asia as core markets and the company will continue to focus on using the company’s operating expertise to expand operations in these markets to meet the company’s growth objectives. In addition, the company’s relationship with Brookfield gives the company access to Brookfield’s investment platforms in Australia, India and China, as well as to Brookfield’s more established platforms in South America and Europe, which enhances the company’s ability to source transactions globally.

North America

The United States

In the United States, the company is primarily focused on power markets in the northeast (New York, New England), the mid-Atlantic (including the PJM ISO and north SERC regions) and California. The company is also seeing increasing demand for decarbonization-as-a-service, which the company expects to be a multi-billion opportunity over the next decade, with investment driven by ambitious sustainability targets and as potential customers face pressure to decarbonize through renewable power, electrification and reduced energy consumption.

Canada

In Canada, the company’s operating portfolio is located in Ontario, Québec and British Columbia, provinces that have historically been leaders in the procurement of renewable power.

Europe

Europe is one of the largest renewable energy markets in the world and represents a significant growth opportunity for the company’s business. The company’s investment and growth strategy in Europe focuses on larger, low-sovereign risk markets that have both a record of reliable renewable policies and renewable assets with attractive long-term fundamental value and scarcity attributes.

Spain and Portugal

The company’s regulated Spanish assets benefit from a ‘return on investment’ based regime by which they receive an overall payment equivalent to the costs and initial investment to develop the project plus a reasonable regulated return on investment (7.4% for most of the company’s assets).

Other Markets

Together with the company’s institutional partners the company also owns operating assets in Uruguay and Chile. The company’s entry in 2019, together with the company’s institutional partners, into a 50-50 joint venture in respect of X-Elio has given the company access to a number of new markets. X-Elio's diversified portfolio includes operating and development assets in Mexico, Australia, Italy and Japan, as well as in jurisdictions where the company already have an established presence, such as the United States, Spain, Chile, Brazil and Colombia.

Other Potential Markets

The company is actively monitoring other jurisdictions within or proximate to the company’s core markets, including South Korea, Peru and a number of European jurisdictions, including in Scandinavia and certain parts of Eastern Europe.

Growth Strategy

The company’s growth strategies include acquisitions in new and existing markets; development growth; technology diversification; and investing in decarbonization.

Marketing

In North America, the company’s energy marketing activities are managed and performed by the company’s subsidiaries BRTM in the United States and Evolugen Trading and Marketing LP in Canada.

Intellectual Property

Brookfield Renewable, as licensee, entered into the Licensing Agreement with Brookfield pursuant to which Brookfield granted the company a non-exclusive, royalty-free license to use the name ‘Brookfield’ and the Brookfield logo worldwide. Other than under this limited license, the company does not have a legal right to the ‘Brookfield’ name and the Brookfield logo.

History

The company was founded in 1999. It was formerly known as Brookfield Renewable Energy Partners L.P. and changed its name to Brookfield Renewable Partners L.P. in 2016.