Brookfield Renewable (BEPC) 4 Nov 222022 Q3 Earnings call transcript

Hello, and thank you for standing by. Welcome to the BEP Third Quarter 2022 Results Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions] It is now my pleasure to introduce CEO, Connor Teskey.

operator. you, Thank and third everyone for us joining Good XXXX thank conference our quarter call. on morning you

Before we and begin, a we our would like to our can found release, website. unitholders copy remind news investor to supplement letter be on of you that

want risks we make We may materially. and on future to forward-looking to subject you statements These results call. are remind known statements that also may this and unknown differ

our I you're information the SEDAR, to America review Team On off filings will overview regulatory we on our the on of an business results our on development encouraged acquisition will our of will EDGAR our recent of position. Esper recently States. discussing available Westinghouse provide and in call growth and finish then President discuss will growth For Vice our in financial website. some and Wyatt update call, today's initiatives. more announced provide business an North operating renewables our of the our Investments Nemi, United and in the

funds scale $XXX Following increase initiatives. forward unit, from the your a last had execution We period results both year. to several XX% strong quarter, our million demonstrating of or large look $X.XX questions. great through generated and of taking We our we from a remarks, operations financial growth per the same

key our activities. development and we priorities as commercial well advanced As

one investors number factor. continue the business We We providing a way uniquely attractive with this for of of our value to believe in feel that most positioned, reasons. propositions the is

and around deep for of a operating global the deliver decarbonization customers providing solutions clean assets is world. the business First, to supported platform by diversified flexibility our knowledge and visibility our energy highly

are contracted, we and economic Second, environments. will remain our meaning, resilient throughout all cash inflation-linked flows long-term

capability. attractive growth the this opportunities. lastly, With most balance had quarter. investment the over a access we record decarbonization and return our investment on professionals capital to world regard, capital, sources varied of dedicated strong returns deep And at around provide delivering attractive robust of largest risk-adjusted our XX% to and XXX and on ability the deploy liquidity, In a us execute to Third, differentiated sheet while target. we looking some to XX% have

investments As billion to we Esper the for billion which closed turn to our our transactions X.X regions. Renewable call up This over capital development to renewables or growth leading includes across continued $X secured will Brookfield the of in of discuss. net U.S. various of we to business

good and morning Thank everyone. you, Connor,

to our Connor see continues business significant As growth. mentioned, U.S.

operator several end-to-end XXX Standard million from With strong significant team an in clean solar. and contracted complement the business, proven of will our fully to are gigawatts diversified the of have strong owners management especially country. with we initiatives great integrated that highly of utility-scale development of existing business $XXX key our the and last our and one $XXX a megawatts over with X,XXX pipeline place the the and to a an have of our of XXX valuable leading be power megawatt an megawatts Clean is business for over wind, being and high Brookfield this platforms our XX the investment announced scale signing track integrated leading of closed solar stage additional million nearly operating solar solar megawatts identified XXXX storage generation financing with XX,XXX energy assets. announced million to invest Following which million additional Energy storage. There renewable U.S. Scout and XX,XXX wind, activities. XXX assets pipeline. will attractive of recently Renewable. team at announced purchase additional across of successfully our is and is in positions. acquisitions, or megawatts complementary the to The are markets proven the and on will under of an that and projects to means and place Brookfield the Standard and in the growth We distributor commercialization of megawatts across Solar experience aggregate, business operating in visibility existing acquisition Solar to opportunities storage. Standard interconnection close capabilities. consideration country we development a $XXX largest is business. of a our one pipeline diversified and experienced existing our benefit of market under largest distributed million renewable acquisition procurement significant net to community Will highly total almost portfolio potential Clean solar, Solar to well owner states. almost capabilities management in This to the operators complementary support assets. businesses with megawatts is of Recently, Renewable. execute record is to approximately high-value and event generation There's team clean ability U.S. invest track will construction and $XXX business. we for has power includes now quarter of U.S. In This a a to record wind, be businesses of has wind and a the developing in projects commercial this an the existing both commercial of a high Energy assets. in significantly the Scout XX across and X,XXX operating development Scout delivering of support scale development distributed net with the $X growth part across over stand developer for and energy The significant businesses utility quality pipeline alongside sizable in billion in over capabilities of potential the construction And

development Urban as we our utility impacts the Finally, in Grid not when scale Inflation we important we did is factor quarter as of these it in emphasize Reduction solar platform first to acquired the underwrote that the that Act. well investments,

to it credits which as meaningfully provide in I and investments With Thank will well However firmly Reduction investment tax sector to within to from these meaningful Westinghouse. upside our discuss expansion the These the Inflation and Act benefit will projects, buildout that high-quality of enacted, of time development tax will platforms. over credits solar our call with the businesses. increase in and extension particular of storage as for today. the wind include for turn your these pipelines the accelerate you Connor back development

in it alongside the operates own represents by equity invested our be operators. products as the price with comes Westinghouse therefore proposition, acts suppliers global of and return The acquire for to include security lives where is service and our customer durable along approximately nuclear Cameco, benefit own generation, not a or long-term nuclear partner underpinned for services Not growing those Any credible and amount of critical where a reached approximately are countries $XXX that on does hydro. provider and way of the Renewable commodity, strategic generation. only definitive power business billion a net the for to global XX% it and liabilities Westinghouse The as nuclear the construction from risk, revenues power leader month, to to to the transaction it industry retention significant any total same a electrification contract and generation. XX%. a institutional Esper. plan we XXX% will nuclear services one the to does Westinghouse the chemical remaining power contracted highly fixed highly net nearly partners Last power have the of agreement accidents with cash a nuclear $X.X exposure are the company transaction any take fuel inflation-linked in of XX% as Thanks, is or decarbonization, coming industry. recurring must energy or tailwinds a attractive will business liabilities with that, providing rate. Brookfield they million solar plant that not with nuclear will meaningful zero we same of wind, uranium very and flows risk-adjusted largest

believe Our we baseload hydro investment the key generation, buildout in Westinghouse of be and is generation. power of one clean power along an dispatchable attractive which with point intermittent Wind into complemented solar entry the by facilitating nuclear rapid must be renewables. to technologies

leading generation scale global fleet. around original to services provider benefit the and secular of owner growth to providing to technologies a we clean, both visibility manufacturer of have of the the services the reliable these sources economic mission-critical the transition and products is to half exceedingly power increasing energy of Westinghouse operation fleet. the value is as businesses well and globally, serves global one trends. enabler It grid. the Westinghouse essential from As to hydro key and the largest and of power world positioned equipment continued products the of of the nuclear nuclear

and that need the is announced volume first new plant world. greater significant an its another Westinghouse that was support Given with step Westinghouse from build we achieving been chosen Westinghouse's that our of of Polish perform the across its expected key than reactors power, nuclear to technology. posed country countries than gigawatts nuclear as nuclear of benefit growth have as Westinghouse three decarbonization well. well a government for the is around gigawatts for the clean for XX using compelling between Recently, the towards targets more This positioned and it growing had XXXX exist the independence. and APXXXX and well power as dispatchable energy three reactor economic will more long proposition, XX in announced energy to believe option units as XXXX significant XX extensions project

in in Wyatt of Westinghouse's advanced the energy discuss to results system. our play there generation multi-decade a - and turn decentralized next nuclear as are call operating decarbonized over With increasingly eVinci such growth role technology rollout Lastly, to that, the micro-reactor financial can and growing position. which will technology an we opportunities

Connor. you, Thank

As results we benefited both prices had through and power strong in and earlier mentioned operations growth, continued as strong quarter remarks, global from in the acquisitions. development our

and with to years. maturities No floating even a the level stable average at with resilient our of We credit balance increasingly sheet In with remaining borrowings interest outlook. of access volatile differentiated. remain to XX material an pools becomes project recently our diverse is over with debt to XX% Our excellent rising non-recourse of capital rates near-term only being affirmed in globally our X% more shape BBB+ markets, exposure term rating debt. rate

liquidity over periods during of We giving of billion flexibility have capital financial $X.X significant scarcity. available us

non-recourse of $XXX to financing the billion During business million $X.X up-financing will we and across the quarter, resulting year this over that in secured over close proceeds us.

forward. As maintain both confident an and are can growth of had going quarter Esper this pace we impressive deployment illustrated, Connor for and we

Importantly, very well to this we are growth. fund positioned

As recent portion our more of business. from period to and new a at successfully the increasingly significant Recycling I the in remains we the funded our sources access actively varied of proceeds almost structured prolonged over opportunities growth mentioned, bids have most deep to value for our executed we and is into have current of assets valuable intend mature of capital capital, in levers cases our to are business mature a which take of assets number A we option. strong is within where accretive market. Further, or we our growth one already deployed seeing all advantage have plan.

have $XXX generate approximately of expect also total closed total million recycling capital when initiated We activities that in to - proceeds.

And processes quarters. we valuations, our closing, management, ongoing and concludes position capabilities call. their operator And recycling will some sales are today. than in partner in assets to investing I'll support. a our of the mature in thank our you pass track opportunities clean global believe all that, be and it future us back are energy joining very for coming the us have even behalf for That choice formal We morning. shareholders for providing significant numerous significant to for for launched program Thank our Which unitholders and On remarks the of for the record decarbonization. garnering we attractive questions. and our select Board visibility of power this at for with our they markets. also interest transition capital scale, today's greater as In

Instructions] question the with Thank of you. Our line [Operator Robert Scotiabank. Hope first from comes

Good everyone. morning,

Just pipeline, the on first successful development you've expanding quite question year-to-date the been that on pipeline.

now. down that pipeline? couple longer-term envision bit right replacing next development rush potentially for that could meaningfully do megawatts there's the It you this does in XX,XXX little a service like pipeline. companies here with a of However, entering draw How years gold of seem development

north that Thanks, Rob. has past the XX of in grow that of the Maybe expect acquisitions they I dramatically I large buying that would gigawatts and we made XXX,XXX and Greenfield looking to next it's important that there first well businesses far that to than XX that with more approximately a true with a teams would number foremost, increased pipeline that comments we've period over absolutely couple static place years now I our build megawatts. those such pipelines intend years. XX businesses expect perhaps come a gigawatts development organically of look months, build development not take development would But of we capabilities development to to buy management as years. is when view. have over total and can that when three themselves to the slightly capacity recognize out be we're pipelines in of those They well. three next to do We'll incredible well from businesses, we continue operations. come out three different what's

we continue to forward that see be continue and expect pipeline, grow. to So pulled to

like as Given some doubt, within to significantly capabilities the policies, that that we of no the business. such IRA for our some the the going things, support development And of help comes dynamic. support have are from

success, is, United around just comment, our particularly other States platforms. I The would development the acquiring in make around

to to that think what to is do in as supply capabilities like don't happening access XX that I And that well bring have. back value of do manage we've investors power were at the aren't in we uncertain disruptions we've capital businesses marketing less thought and weren't candidly investors we there of then on maybe bid acquisitions. those in where things quite bear and to all market put demonstrates we returns lot more or and sold markets United the looked of what them. lot months, to at go a on States XX development bidding and we a been you investment XXXX, attractive of discipline same almost used successful work in ability chain for had we positioned through the we a If we like into the competitive number XXXX. perhaps acquire XXXX haven't sophisticated in and were them very maybe that have And And the

thank then just that, your initiatives. Appreciate And you. is maybe on other the second question growth

that bit opportunities arena. has like So are a return on play cash looks but - it what long like investment key of flows, into When disciplined duration transition asset look with business, for? of you looking you're kind are recycling little maybe characterize next pure of the the tenants risk these does will phase duration been growth manner. Westinghouse cast the like said wider and a new evaluating being appear a That contract

what to have underlying Westinghouse directly that of you're the and Part it's lot been reason investing operating look is clean motivated right. to customers to today. our offer needs for scale we business the One, and decarbonization tied correct into businesses the something a really if cash decades. our part of wind look are offer but we by things. a and more initiatives. when energy in smaller, love a question business of clear them to at those there why But acquisition transition great energy ability we growing flows, that the large don't of you're solution asset that we you is sustainable expand and actually the the hydro transition And needs that they also be in three Rob, be solar parallels to classes the absolutely for we've objective to

investing when taken those we've approach the Secondly, in businesses.

leader partner is made our and I it is a out in far more those wind Whether of backed by it's upfront have protection, space would at or while to important put make to sustainable growth level the the us we same the and see way power we where out in to opportunity investments downside of have business renewable months. business allow to a solutions discretion build when those activity space are number classes. grow to we've been capital to contracts carbon have in made. The largest that if we small this really our priority upfront positioned traditional States the with the downside for recent asset asset very one, initial So last investments a they small invest some quarters, strong is do These recognize over investments us still of but two, XX future. single protected the last recycling And long-term right point investments the demonstrated the in sustainable approach deploy the the in capital we've opportunities seen more in are classes build is capture that's the if solutions this in that solar. and of United in acquisition we feel by make we

Thank you. Appreciate that.

And Stewart question from you. Sean line with Thank Securities. our of next the comes TD

focus recycling now? liquidity additional crystallize follow-up morning position Wanted you right Good returns. assets give technology relative accelerating concentrating Can on or on better region bolster where the mature the see you're and you. Thank the with capital initiatives to what to respect comments of on everyone. you to any us opportunities

provides perhaps assets. those have and a which they mature to of platform, organic M&A executed opportunity growing development, our tremendous more answer rapidly assets recycle we're of largely portfolio. our are where through we've those more plan it's and within the assets us whether in constantly solar certainly is wind to business our the platform through adding flexibility or very greatest the simplest see We sale Certainly, we and

under within The pipeline when still portfolio that portfolios we're right getting other development also sell objectives for out recycling, to initial business the growth interest plan next we to be largely Americas Perhaps when a look seen would six in set operating do assets make the operating of capital we're some completed call in that the selling opportunities some the there development characterization nine mix we of opportunities that assets. we some whether would is of the for we're operating and prime the only are or that our also construction asset selling but runway, an to to some recycling and comment, we're seeing capital we receiving look near reemphasize we're inbound there the expect at where now focus that's organic and include on But recycling our or to a months, of expect term. is, We candidates capital basis in we assets. last most that nice in we've of And we interest the the or a of would to other the assets acquired be our is point world. parts going business. has do it global we mature

thanks you you're public any concentrating any private given trends particular focus private versus group on Connor. for on opportunities extended more opportunities. for set latter give focus that on? Can that broader updated opportunity Okay, the you opportunities thoughts M&A the in the on volatility And recently valuation

is - the than space it opportunity public the around it XX was potential months so market higher months question, doubt us in six ago no M&A or today great ago. was set Definitely for

illustrates We've that a actively the in highlighted of recent point we're for that but you've quarters. platforms is dynamic we're had monitoring which that also seeing, space, value acquired number - we another marketing to focus thought our could a value we and in drive power on led procurement that's with development growth where development. recent a more capabilities our and really enhance capabilities focus So

and going seeing operating to we're given that's environment current markets we've would seen seeing a, our and than just in what buy forward. months. be we in is slightly - opportunities see capital to great more assets that space and more And of more think uncertain I flow six to the the volatile more very markets opportunities perhaps it are ebb and in the nine last business public natural

Thanks very context. That's useful That's I much had. Connor. all

Rupert National the our And question comes Bank. from you. with Thank of line Merer next

Hi, everyone. good morning

interconnection the looking on On growth three supply are next Qs evolving the XX build offtakes over support years. out and comment development you're activity to to targets? how you Can gigawatts the those chain

an Certainly, we Managing that so, it topical classify it that's period in impact is of very is of increased disruptions, And managed been projects. quarters business chain we successfully. the the to disruptions. question focus in way something state that our that, either but have it the this CapEx something disruptions something had immune We're increased proud have to supply feel we is to through any it not projects has great entire terms but material number business industry, costs Rupert. to a not had we've of for manage on supply any and through, we've during dedicate we from would are chain impacted or terms now delivering we consistent. of is, quite resource not through walked This our a away remain for on will timeline

end the quarter is many to ability the of to this we in a more that more perhaps the online. the positive world. see more procure light CapEx are around capacity at there markets is beginning tunnel around spin However, coming There easily

logistical we've those job do done point, we to XXXX the And a that's upside Some easing. feel be but than up shipping a for we world be around XXXX better to of nice to around components managing therefore, and our the business. issues appear do great expect this

delivery that online. plus bring that to Another your chain to as megawatts we a don't on XX,XXX expect answer perhaps we short to see, supply disruptions question, risk

competitive see to a fair off-takes access as And and adequate price with do environment the interconnection well? you to

give feel Urban a Do for where asked they make something development this when the made feel that have bought those question that cycle. example earlier that into have our is and Grid. we in is in to are, you and investments, great strong this side interconnection very always of high-value has have we early year that from business, their it actually in been is queue our that under-appreciated market an the ability interconnection secured capitalize this within business particularly investment and secured, taken We terms business position in a and of we've seen into we dramatically had valuable development of, market we account land on an we're development highly Interconnection something stages one scarce the thrilled undervalued life at do And platforms projects cleared and that glad secured. already we to years. we we've PJM. It's the sector something account they were And interconnection queue And make we've it. permits of acquisition is do the ownership benefits or whenever interconnection take on highly they positions position. and grid of

value years today. a now, interconnection your So feel number a we've increasingly proud think yes, into project a all question something across coming and of of it's of we acquisitions industry that's the we've quite our focused been on for across to very that development But the answer we something made. development is component important focus it's

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

line the next James. question you. of Raymond with Quezada from And David comes your Thank

in strategy in I morning it investments couple quarters good ago, places about Maybe like talked question. everyone. accelerating you was just kind deployment first Europe. broader think of renewable And your Germany. of Thanks, question a My a around

terms Just of there you're curious of seen that in seeing what and in projects you've today. momentum market recently advancement

And long-term dynamic, and to focused importance of of on is headlines a way are in one European increased that we really to and in right shock to pertains and a it a the One Renewables permitting renewables. of accelerate dominates the now delivery the power for are European is are Certainly. no working gas across build-out Europe very lot very regions seeing something this heightened solution large very, allow Europe come happening authorities more security. probably the to Where energy to our priorities hard will developer rapid is as energy the the of within zero is build-out the European in low significant as in Europe well, a pipeline. now. in we're and markets, seeing acceleration wind large in is development of its where three net Within most our energy cost with solar solar and the presence Azelio that Spain. of global seeing Europe Polenergia businesses our that build-out which highest also Germany an build-out country. security some actively pulling three right in Sunovis, across and is development is platform that we've of solar European is And which accelerated in its the a forward

we're our as opportunities into So opportunities we're seeing it that account businesses within much and new we very operating review growth taking and M&A as well.

it. from me. more Maybe Excellent, thanks just appreciate that color. Connor, one for

magnitude what And technology. curious I makes opportunity jurisdictions the the for kind Westinghouse that around I'm timeline thoughts guess see you if just have sense technology. of which and with you of Acquisition. micro-reactor would initially On any

Certainly.

upgrades something in to no of well leading last bucket build-out technology growth that large-scale Westinghouse well. existing as for would engineering If So costs capture moves as that the the matter micro-reactors, deferred excited in to other as have about a plants, a benefit it business of energy and in about that and reactors, and providing build-outs. Westinghouse doesn't the customer If clean technology many we to dynamics nuclear life is our to one of Westinghouse that technology And is as as where micro-reactors the reasons pole decentralization which lots are space. within we more obviously same to seen position them love the and the from that nuclear from business, to focus distributed One power lends stage customer-focused our I highlight that can more being generation Westinghouse's directly on demand, that grows we the has parallel more capabilities of exceedingly an is products upside is, as of three micro-reactor to the positioned slightly come recent comes of but reactors poised comes position growth from to excited we've then that that generation the I power smaller being we market has to that. of demand future we certain around renewables for and Westinghouse mean world, pole down in would view end as really be that of and two, advanced extensions new it service as plants in tremendously the itself SMRs as benefit benefit. same view potentially growth lot draw nuclear Westinghouse and that see growing grows, needs well we it away, maybe Westinghouse the five from positioned to and is supplier years years. lots to scale is where that region those contracted

that for I'll turn Connor. thanks Excellent, over. it

And you. William line with Thank UBS. our Grippin the comes next question of from

thank All you right, much. great, very

was attractive what decline the color this question. sharp maybe provide then could the timing that an Just of investment recycled recycling investment given a the seen. on Brookfield. commodity maybe in you made there on U.S. more to earlier, values transaction recent that but Touched hoping could just you my business, I And first in bit the discuss we've

Certainly.

wind material of They developer, to like a this opportunity has is angle. to out. there particular. similar to we the build what not Why and potential the step really facilities, But modular to a dissimilar large on Obviously, facilities, of maybe take back very when an that a development many business base, we existing solar. is asset renewables development has decarbonization recycling investment sorry. a just it, but have So pipeline buy clear recycling dynamics in there

build if only will they assets Now out can once long-term a construction really that secure facilities and long-term them those build flows of they contract those the we out. the cash derisks

very now. the reiterate energy. needs. right whether proposition And the the our to ability very, for secondly, decarbonization we that customers again we once point that figure parallel it's green in quite is that One our match, to investment with So we to have profile our That we're a frankly thing then value customers is are on tough increasingly simply would familiar with. it's happy States think we direct around very United the

well. region. green look has any tough provide If capture, materials want or in that. now we for to that recycled that DG emissions customer can do any opposed an customer a emissions it's of have through on needs use we If as asset carbon a raw Now that can materials that across to abate virgin that are they give we wind, hydro and the focus avenue want to reduce as to type power to materials, it's them has solar, to

same So of these asset for adjusted as that's a investment to servicing we think and about Well, years. number new about it's return really familiar very the executing our business risk on our customers. classes, been profile

just to started Appreciate to come that. environment seeing speak And me, one we're asset just could projects. the terms just renewable And in. to in for prices rate last traditional down reflect that from evaluation broadly you're have energy higher of operating what

Will they've expect on fully Rates to clear stay years. where very but point. private last to Valuations couple this. the be of balanced some can down let's that market valuations provide cemented a we rise have continue for transactions, been and they for will answer come at yet

of taking high-profile and to there been valuations So renewable recent transactions it into we're very to be an argument But I space the in come certainly very would that make that down have tough think date has account. a yet. number

where highlight think when that we would think or is, haven't that versus margin sell, The development of margin we that improvement shrink. we can that seen we where build operating other we or we point buy

bit, the So little contracted decline say operating returns going assets returns power bit of are a up as cause long-term a up development let's a rates interest maybe price even well. if little we amount go proportionate or seeing

capturing recycling still development the margin, we're be to amount So very or way which improvement continues means to a our accretive business. margin of value capital same grow

you Thanks my much. All right. taking Appreciate questions. very

further no questions. showing you. I'm Thank And

I'll for call back remarks. hand the CEO, over with So to closing Connor any Teskey that,

call. QX. appreciate great after support of Brookfield interest and year-end well Have your our to day. the We you look end dialing with results to as in everyone and a Great, thank you forward today's for updating of we always Renewable,

disconnect. concludes call. and conference today's you now Ladies this Thank you may and for gentlemen, participating