Brookfield Renewable (BEPC) 2 Aug 242024 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Brookfield Renewables Second Quarter 2024 Earnings Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Connor Teskey, Chief Executive Officer. ahead. go Please

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

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

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

regulatory filings are on you encouraged our EDGAR to information, on more and available review our For SEDAR, website.

to Wyatt announced And performance, review excel On operating market. to environment of Neoen. today's provide our and will will acquisition it and results our recently by Then from call, capital differentiated and us positioned will Ed in Bafor discussing lastly, renewables proposed we the of capabilities the a our conclude our access has to call investment current position. second quarter our for how financial speak the team

Following our to questions. remarks, your forward we look taking

The our our well unit year. year. strong and second target and remain quarter, activities benefiting from deliver funds to from start building per for quarter, operations development on business delivered record the our We we to double-digit growth the this FFO positioned on performed well growth the for

markets scale. and the we did further attractive by operating We large cash and enhanced this flows. significant operations in successfully market-leading capital deployed our into leading businesses During complement diversify reach quarter, pipelines our with that further growth opportunities and that adding current development our platforms

billion our activities up deploy, to our committed gigawatts Brookfield of A deployed for business. we and pipeline our and $X quarter. X.X M&A the Renewable. net or almost to new Altogether, approximately progressed capital the also We in billion almost invested commissioned development projects capacity record $X we development in across or successfully

our differentiated with and and a where a at outpacing target capital to a broader capabilities when returns some funding both at demand identifying or is attractive market and renewables for opportunities supply time scarce constructive is data success very is Our is currently function driven executing center by electrification. environment our above paired of access for players. in on This that deliver demand

this, it XXx continues PGM, up for center and market. the and data XXXX consumption delivery. capacity, demand development Data week, XX% industrial for of center a widely to supply we electricity. investment globally just this globally its record that for this houses where electricity of the auction by decade. on and from uses a In auction that significant of last Indicative of end market past market is driving in presence, is This the in indicative hit of the the accelerate and increasing data auction, electrification respectively, top almost and dynamics top have is United for and highs, estimated prices centers to the reach capacity had demand other and States, heating of could XX% unprecedented XXXX

to expected unprecedented the it as over be this trying capacity very years, also than will more for the intensive. is capacity of existing while A carbon half is put retired replace electricity in perspective, XX installed generation next the To truly that global double to undertaking.

globally. and electricity solar Coming are electricity for period the energy sources accounted ago, by perspective, seeing accounted where which this continue, of achievement compares approximately expected years, for demand from the Remarkably, electrification XX last annual over thermal from the to these year replacement consumption almost global has a capacity. X different every driven compound means doubled sustained production staggering at at a of companies, is this consumed of years X.X XX% from decades portion or time. we rate of dynamic it growing as XX% recently trajectory from mix, a technology growth negligible as This a to for and wind

This for technologies has in wind the of in sustained other development these driving energy support level and of helped independent markets for for clean as growth energy growth help returns and chain industrial both digitalization XX%, renewable it the of and solar most customers a XX together resulted forward. years. cost credits sources to these competitiveness commercial policy as We've position demand was has squarely lowest that the with cost of technologies, last in there XX% initial bulk that, while going assets, cost and seen and and the the scaling today are power electrification decreased globally. and supply increased that and respectively, characteristics support and the the features is accelerating from tax such these And

of are side Renewables A are as investment power, of further seeing increasing center the of data power incremental that is permits which it spurring build-out growth of competitive from in chain, even as clean, demand. additional reduces acting low-cost access larger more we costs creating the fact fundamentally for consumption from of scale, an increase demand further supply economies growth. costs reducing further enabler in and with increased and to power results like a businesses, further

a is markets. to and and increase position in basis simply, credibility we on XXX,XXX demand. electricity fuel has and advanced renewables a megawatts which and environment, stands advanced now choice and megawatts our to fleet AI core this power better our continuing land, development status In of This global it as is growing this the power. buyers permitting differentiate which clean XX,XXX large operating of approximately enhancing expansive with the delivering to the partner pipeline for revolution in largest in very large provide constructive pipeline, very clean stage over at are of placed ourselves put projects nobody To interconnection

capabilities development markets. an large in further customers over agreed XXXX. build quarter as technology is with decades adds we future was new secure our where us past and that pipeline deliver agreement XX% acquisition with XXXX this core to for our over for XX.X these capacity up framework to key and commercial that we have a generation these partnerships we In as that with of of in have operating derisk renewable the renewables signed Microsoft, demand our reputation types our contracted like sector, and that activities we position are our near-term Neoen relationships growth, of the clean increasingly to continued enabler diversity Our our assets enhance growing between including quarter, and on new of and supply outpacing we a technologies of This It allowed strong energy have built valuable energy and across buyers. regions. this pipeline, is the gigawatts strong seeing pipeline new industrial

a increased further reductions on of from and market XX% per low-cost services, customers sun scenario stabilizing demand for incremental is benefiting vehicle to penetration last from in terms solution again, potential increasing capital wind electrical in shining scale capital grid increased markets. from revenues when energy for demand and enabling are and of focused into we is this the the solution a storage capacity higher not type select not customers, the power deploying blowing. the demand, seeing out economics further last also in the XX% from are we cost of forward, decade reductions Batteries solar demand resulting growth. for economies and are where in more of X systems, declined batteries similar of are play and Cost cost have or With storage renewables spurring battery Looking and energy years. with for incremental growth by providing in lower the costs, solutions battery the demand

the contracts for operator fixed This quality stream quarter, Inclusive capacity and given of The in XXX attractive the XX-year return awarded revenue high storage risk-adjusted offtaker. megawatts Neoen, from projects profiles battery of we were have Ontario. long-dated grid

megawatts strong also storage targeting XXX began in commissioning half we in returns. expect capacity XXXX of second We Texas, construction very on of where the battery

of these under acquisition, we projects Neoen With capacity. the of with construction and globally closing one operating over storage of gigawatts will be and largest the battery X.X developers development the

to same storage of under operating our capacity. from we X which customers' solutions our clean have significant advantage are a competitive significant enabling which reservoir deployment these low-cost storage increasingly and are meet will business. assets, represent construction almost power critical gigawatts hydro benefiting drivers and as XX/X Including the our pump capacity, have that batteries, needs for the assets, assets demand Alongside of

Ed that, turn to it approaching With we speak to to over how discuss and will of acquisition Neoen. we growth are now our

Connor, and good everyone. Thank you, morning,

scale This and capital by global complex executed to platforms. quarter, experience we several and team, have successfully integrating leveraging access investment acquisitions sourced our

our increased particular, We are that in mind, this of our needs available portfolio were acquisitions is differentiating a execute the at value. further by AI-driven and our scale technology to partners. time business, In and our as breadth to on doing we in With position platform. bring able enabling in guided at there to And servicing good us the funding so, the when acquisitions secure a leader global market, demand. enhancing power less customer-focused

within acquisition business. and value largest listed The is company to by the highlighted quarter our equity power publicly Neoen renewable a which transition billion values at of and our $X.X was the investment proposed date

We the have of the signed an agreement XX% outstanding shares of to acquire company.

an regulatory all-cash customary complete remaining in to we launch for expect XXXX. intend shares we which to we subject approvals, tender is which early offer closing, Following will the

market-leading global underwriting Neoen consistently and profitability across each to existing been have Funding high-quality to in access Nordics. is complements closely pure-play their have for we able a were good business Neoen footprint. enabled existing to platform certainty, pace monitored anchor and our platform and to Neoen solution shareholders. offer best-in-class the compelling us to were differentiators year-over-year. capital we that of we this France, meet secured with in a ambitious our growth, capabilities fully Australia We targets integrated management opportunity and since renewables key really that enabling IPO team global the their And a of XXXX. value, acquire is by that impressed as the positions a

onshore offtake of with through owns diversified flows across on portfolio counterparties. solar, gigawatts and young visible under battery meaningful storage. our energy X of These long-term highly assets and high-quality assets and downside are company investment. operates over cash X contracted core technologies: operating a The protection and or Contributing wind contracts construction

has and each their which the pipeline, gigawatts Neoen early-stage Diversified more than last across advanced through X years. to enhanced same deployment pipeline gigawatt core construction new of track into Neoen's the X growth over of capital intend leading and year more. record been of engine rate the in-house In brings well growing With accelerate strong technologies. Neoen's overwhelmingly of addition, access over pipeline. annual run organic capacity XX has in gigawatts launching per build-out to of we or stage gigawatts of development to XX complementary additional a capabilities, development X always few support those and

for a growing The Neoen's perfectly globally Neoen with portfolio fastest of Neoen's player for strong corporate global clean to pipeline core as capabilities markets. development each are add value immediately power renewables markets. X and the markets with demand us are barriers we addition high and growing solutions. contracting the energy supplement end-to-end our areas entry. can and core corporate top existing of the to some of in our demand seeing capabilities company's makes we capital where local in procurement, its such fit

that we is Neoen storage. in highlight a battery global leader Lastly,

a As which renewables of technology we us we example future and and leverages and technology, of of platform. almost solutions. has to operating integrated diversify of transaction complement a even this that cost partners battery the as increased storage seeing or clean enabler Neoen further tool is complete its allowing the driven by a point pipeline gigawatts and role Neoen key with are about Today, real our more significant energy steep within textbook its Connor our inflection our for X will our of competencies very discussed, under type are excited a construction global penetration. service declines business, core prospects and kit,

that, financial With operating to on pass and it to I'll results discuss our position. Wyatt

morning, good and Ed, everyone. Thanks,

in operating had recent pricing. per remainder we unit. our These positioned FFO year the of strong the FFO up record per million acquisitions year-over-year deliver funds on target. of generated growth development, or from X% all-in results Our unit business a benefited us double-digit quarter, and our as asset the to delivering We our outlook strong from operations for quarter, $X.XX and $XXX have

accelerating. all-in market is the benefit Our demand continues clean from where to in power strong pricing fleet for current hydro

our getting Our outlook distributed recent from is and platform U.K. growth. and America, Sustainable to additions and business benefit Nuclear and perform North in wind from Westinghouse, and stronger. solar Storage benefited meaningful our segments the continue continues India, segments the to Energy Services well Solutions

primarily only driven scale an and technologies. carbon-free We new power the in proven the that exists nuclear fuel improved by seeing baseload long-term outlook upside business, are with at development the business plant for as

increasingly part and electricity demand benefit, we of nuclear generation exceedingly viewed global corporate including growing to position customers, to technology players positioned new technology both is offering. the As leading as solution well leadership given utilities, Westinghouse's for are centralized and

to stands now grow XX advanced and continue at advance We development XXX gigawatts of in with stage. which gigawatts our pipeline, that

of approximately completed, We gigawatts expect which X new FFO. add expect to approximately when of commission we to million this capacity $XX annual incremental year,

annum We are activities years. commissioning the to approximately next annual scaling to gigawatts our our several over up expect per and development grow capacity XX

or We Our were volume in we generating over environment more than $X.X the million of deploy on $XXX invested current with net seeing attractive million multiple a to liquidity capital. at of remains sales to balance to sheet Xx executing recycling Brookfield billion opportunities invest deals on initiatives strong $XXX very successful at asset significant available a proceeds Renewable, signing quarter representing returns. approximately of where risk-adjusted this are our

We and continue number which moving have rightsized we strong a the for to assets power other in see are derisked sales pipeline, of operating a renewable forward. market

sales billion throughout to forward Renewable Brookfield billion asset the providing the our to or expect net as updates of approximately total this further year rest in look generate on activities We and year. proceeds to strong $X returns $X.X from

of almost executing level financing. During the tightening of $X spreads also quarter, billion took we by project advantage on

In a opportunistically XX-year attractive extending We CAD years July, issued financing project XX-year notes cost of continue debt interest debt, million is XX respectively. corporate notes XXX on capital. X.X%, million what of execute X.X% of we and at at refinance of in market. opportunities and XXX issuances our CAD extended constructive profile rates to approximately average The beyond an to level maturities maturity

Board XX% capital our XX% the On of closing, for In we prudently behalf long-term by on shareholders on delivering investors for unitholders focused we to our executing the returns support. remain initiatives. and management, total thank of all operating and delaying our ongoing and

future remarks joining forward for concludes call. in us Renewables you our Brookfield our Day about our at to progress September. for excited and this are you today's That We look Thank on updating Investor formal morning.

pass I'll questions. it our to And operator with that, back for

[Operator Steuart comes Instructions] the Sean TD from line Our first question of of Cowen.

frame. it give Can technology respect you line pipeline like on these gigawatts coming recognizing you factor increasing of incremental is region? as operation? extra and the A guys advanced some XXXX the to we'd incremental gigawatts couple still the in the from acquisitions pipelines And we the QX. revised fall of where of some pipeline growth incremental in If figure. referenced XX of The Neoen from us some projects XX India, to questions. projects MD&A coming context those in sounds opposed sense development short and most South with time Any that in for commercial to from that Australia, of other from Korea of and time

mentioned, which piece that's in of in stage. advanced of a position have meaningfully at [indiscernible]. just site good Sean. where But we our with think we're and point permitting ultimately, the the persists that advanced -- we broadly have did that the securing is pipeline effectively we a ] interconnection was control defining the any as we there those the effectively what the -- that also then review -- as how a quarter, Thanks, it including components, looked land you of And was if each are I advanced well And stage. the finer market is, on at pipeline. overall as advanced acquisitions communicated that [ pipeline was looking also what we Look, did Yes. and increase

of refining it market. seeing of I better peers in what categorizing acquisitions, bit so a mentioned our remarks in as a also from on we mix but And but ultimately, that the providing are so this today, adding during pipeline up was next a the will be we're that also what we're following how there. general have rate, XX gigawatts look insight track with projected investors year. do of of looks around X looking and like advanced a prepared a we're lot in to kind stage that And a that that, run to the couple it align to better deliver that. year But gigawatts be that to into years over ramp on as we our We're we

do meet platform into renewable being strategy complement to referenced power power could midterm company's to have And needs. lots and plans you that by any center thoughts led updated to accelerating needs? the fit Connor to point, on flexible BEP's the how customer data gas-fired

Sean, thanks question. the for

from our representative pipeline use acquire the been years X doing well markets to would we say activity high-quality of of can that operations use that forward. we we looking now. we development in markets can been opportunity that grow to now for ability pipeline seeing platforms to years pipeline today. our that service one to few for what the last that going But add those bring so X demand that to years, continuously add not in very terms strategy, or today as development It's an service high-quality has that customer was that demand to that as and In that core are can QX demand advanced which we can service we've

do being years for by is AI. electrification energy that tech driven by all demand driven as this electricity given And has seeing terms broad-based now transport, electricity mistake, we In this have what electrification it pertains by significant the are driven this to security. energy and factors no been your demand make to and of accelerating question to of the by existing of multiplied going being industry, mix, are that's that demands been those

absolutely going the We demand. gas mix see to order to in service that are in electricity more

of From going is a be Brookfield our perspective, strategy. that to core part not Renewable a

to with of We may wind, continue that a time we've portfolio done battery two the hydro efficient in focus going to solar, the broad-based be we past, From come renewable continue on focus but on technologies. buy are to classes. is gas, or going and generation the asset might as an time, to natural to our

have appreciate the I now. all That's context. I for

Our the Ng of line Markets. RBC from Nelson next Capital question comes with

A quick question batteries. on

a And I become up pending years, looking outpacing over So be storage. at Neoen development with your then much has wind? acquisition, solar just you'll pipeline pipeline the your of your larger development part battery think wrapping

in So perspective like years solar big you maybe think call your X and batteries be like could from picture so, like a a the and or would wind be next, mostly third? it, distant development do pipeline

great Nelson, question.

very I think your a question is astute one. very,

be agnostic deploy best see capital technology the continue returns. risk-adjusted We to we and wherever we'll

production In solar market, terms most and in our with is lowest the as is it's portfolio of electricity within the bulk seeing the largest around increasingly of cost declines markets, the reflected well. broader is that's the and seen, of world, amount why it that form cost growth

absolutely dynamic it you solutions. would now to, the lean most is obviously That I forward. declines of part are given cost energy is into batteries, seems I one and do to batteries provider, going our of, in of all pairing batteries markets, solar the solar very be where are forward, that that would expected the plus can't going strategy markets, say, a recent are lowest clean low-cost but portion cost many certainly and of that deployment with moving service cost think growing in be you right right combination right, large prevalent and a declines the be the it to

elaborate for also the new markets And Thanks on color, seeing where Connor. can you and the opportunities. you're then

Nordics scale. obviously, France, the and Neoen, So entering Australia and your with

any obvious development You South into? there markets I platform other bought in guess, Korea. a, to expand a Are

in enter At we markets unique presence market on the in one Neoen world. market the this of filled to nice in that attributes the renewable where point, have in of map. scale. of It the every focused the a on Is kind not map like around incredibly deal decision and And it in elegantly is now actively think any all to few an filled actually we're We leading at major trying in holes really on one comfortably one holes quite new transaction. powerful would we're this transaction. the

past. opportunistic, expect a we we're we do indication entry patient, going if where where to be if expect we're opposed And only it so maybe to be presence will our will to of as could point But market where be done within so, very of look to very secure we we're grow disciplined. to a if do ourselves in we driven you same vast attractive existing by way and summarize, returns. the that said, in in we enter we region. best we've new I We're being growth into the see regions a the That But to the can wanted regions. we going the do therefore, we be to see majority going be to going new already the in future, future. the And value we have entering it to risk-adjusted think very new an

that. And a follow-up just Okay. on

So of your think just your been has in growing the APAC portfolio very kind looking I quickly. pipeline, development region at

next it's mostly this in in region? and and it's you of pace just year presume capacity at of terms additions I but X/X can Australia, that year, for you color it's think more close a of driving growth bit just looking about China, the your provide I India X/X. to what's

Yes, certainly.

megawatts. been a first It I We it The had highlight, our country growth would it where been top largest India entered market platforms X was To Indian we point. is us one fantastic market which from of we've of renewables platform. XXXX. the one point, that calling we've was level Brookfield and in as platform Brookfield obviously of but Renewable, one extended for the a this appreciate that grown about XXX in time renewables largest market the growing out and for the country, out. in investors new At you that of of the period world. broader that really thing at X seeing of we fastest now is the an our are initial or And of investment

And prudently the That is so done Indian at attractive in the market grown we're what the development very that any things region. very without the of we've returns, missteps. is bulk we've of we've notable done the APAC one of proud in very and increase in

region months. a supplementing is the where development have in secondary But assets we've increased XX done recent it, last, our quarters, The with APAC that platforms transactions, the in had say, X Australia, that we've more in obviously, few next, through projections development Neoen market for and X other years. for substantive to call

line question of from comes with next Our Scotiabank. Jessica Hoyle the

a can sold start, on So of seeing and on the target which more you're some assets this are the what reiterated bit You versus to quarter, looks assets. side it your asset just side? development sale operating you've you like talk little more

you're to seeing sell can assets? talk just dynamics what to So you

a assets be heavily us come into can And risk-adjusted Bear long seen returns, broad assets, attractive unique very bit to oversimplification. opportunities this values. both investors to always provide we've as very well, because two in see also a in here, bit so of as a at sell said at quarters to -- a a perspectives. Thanks, lean we'll since where what of it's capital. time with active is monetize market might from been attractive we detail Jessica. we this at right and recyclers tend a deployment we'll that well market be little but It's we've attractive of now previous Similar

to growth needs. in investing platforms businesses of what is we require been would that are invest certainly lots sector, going we've world, of where or are the for very on are to that entry there points, where value the But that's there capital side focused still situations you huge attractive and value around the equation. going say significant forward increasingly And at in capital in the opportunity are to due

to rates increasing with of decline with strategic now banks return with and call I interest their would Similarly, the market. appetite bid stabilization lending however, in what the the the

very really robust the And high-quality seeing that to assets angle are have seeing or growth cash-generative platforms are assets where at returns. is a we them. We monetize for demand to attractive opportunities that

the of terms forecast about in us for year terms our holding asset the comment of recycling. In

We skepticism, how short said, can going transactions term invest for value would in the the that half say are here. somewhat we're very, And starting very for through value being to That understanding confident in demonstrate you we're in to same near very of of monetize year. that the back and I market. the the

around processes, number in the next us advanced processes we've those that to we come We XXXX. seen demonstrate expectation asset sales that X going expect have a dynamic. or for that fruition are of the to think to given X what monetization in months that's I our comfort demand And gives such to reinforce

coming you just color companies Just technology moving of interest more there similar way? you more your or Microsoft provide front? on deal? and seeing a more then discussions signing on. Appreciate are that with interested the Is other there. framework the companies some And this Can even are on to that detail in what

around like for There the there world because the but frame The answer way exponentially no are important it's question. to is you forecasted at to last renewables years. more for next And growing years than the form increasingly rapid world, and the of in years. XX a renewables that recognize at is point yes. electricity the are in Not rate renewables rather the clean, XX around cheapest any demand recent grow is electricity. We has the doubt the because demand is grown

of short of cost the of. lowest cost market -- the so provider we the increasingly what is form are lowest provider we are commodity And of essentially, a that a a is

asset in we can reach look So cases, it's medium we other in seeing their deal [indiscernible] or commercial short to business some sort the out tech companies term. by are enter to even needs derisk largest framework either buyers power increasingly the to corporate do plans can some into arrangement of long their of to asset and users, we or large broader power see whether industrial or an or the

doubt, we've we've of type Microsoft the simply biggest the of the No out announcement inbounds do corporates impacts the looking from was of similar other seen to received of one transaction arrangements.

next from Bank. Our Merer question comes National with Rupert

little And in give into I'll faces how What's competition overall to outlook the platform the in Australia. it the the What a the fits color over also understand us need I might start deals you development see interest do get I there? in a you Neoen. and the with Can acquired to an plan. you've line? on review Australia. acquisition that

Certainly.

this So large is number subject that a world. around on for regions many approvals in It in is very to jurisdictions. typical the transaction a a business of operates Neoen

We to aware due for us but due be we've order there confirmed, approval. Brookfield's potential to potential. to to that in was other It Australia achieve to existing assets had the We yet knew is need on in the to experiences past are certain undertake measures transactions. that there in interests was

we nothing We it us. process, at and well of are prepared was we'll and the it's have it. to something but known process. from an how very with time to goes us to see very But transaction, surprising is are to working it's through that that here, the deal ongoing It

Neoen called country different in Windlab. terms point other Australia, provinces the Australia a is operates than acquisition developer the this in transaction does. of a in is other of in The It that

working other that an we through the to in similar it. is overlap transactions, can And approval no there's models. process close business So before our

excellent. Okay,

auction? activities your give auction. And auction, results to that from on to you region? what's attractive PJM in upside maybe color Can your that recent BEP the us that an at highlighted and on some update auction exposure the you that contract Secondly,

Certainly.

Wyatt where you if has of demand. been electricity and any would last we've representative often very of several to want focusing feel up jump do growing we're a, with to So countries the scale markets to submarket PJM free been on We specifics, in. I'll please talk and trying the I about for years. larger in a say, start follow what seeing

of number a center concentrations highest been as growth. has and For the technology years, of one company demand identified of data energy PJM

market. our with that We position in are extremely fortunate

solar we have to ago due is apparent market. some exceedingly was the we years have We a did the before electricity large growing have transactions positions to and perhaps that have wind, we in hydro, demand few market, we particularly readily

grid development projects in The high-quality had on XXXX most interconnection PJM position. that very in focused late early being advanced urban of or our notable [indiscernible] a really pipeline transaction that XXXX

market very was nice the over capacity terms auctions, tailwind our recent to to the very growth strong good. surprise has be is of say impact in our This expected expectations. So that business, going us. probably we a be say I them positive next years. been the I would in a that the several a tailwind would on even But this for to

Wyatt is to add that? there anything you'd

to question, finer capacity Yes. the is the year-on-year numbers is roughly to overall Rupert, impact just on from the put million million. to pricing from $XX is where your point to business our a $XX

Now we assets. own roughly X/X of those

of additional the around impact versus to million is of $XX the kind revenue. prior year aggregate So million $XX

Paribas. BNP of the line Moses from Our with next Sutton question comes

great in there's perhaps thoughts potentially thinking players, power generation? big So went the market needed ability inflation. to deeper retail turbulence. is as undercapitalized the In a Any resi on solar. capital my fit mind, of into subsidies to tailwinds. that of a a has there, through longer-term expanding it exposure market to lot I'm It's a seems provider distributed step in Brookfield

years. quickly basis. return find despite in the we growth on that to the entry risk-adjusted huge a a have These opportunities attractive have offshore points trajectory, where markets But X very have the lot these of very that those been recent struggled historically when DG. We're days were getting markets thought Moses. in is on we questions looked other is wind markets, development One investment cautious. resi we at grown been Hi very, and we

not think in very to one been proposition a large then resi. that a versus found in commercial we globally. of residential. we've offshore, U.S., only we focused in value C&I But And very are if On players space, in opposed cautious that we We within but attractive DG and industrial just do the largest we are entirely more that as on with space space, in the certainly players exposure. modest

the just do on as have we to the the in I as won't in out scale doesn't are at settling In equally to done DG terms DG, think resi view we probably offshore offshore we comments here, apply well. we than from both I it would that that say points wind things certainly we in past, and points happened been because importantly, to where that that of has future. something bigger they But would the those some closer about a entry attractive mean markets, if today it the past. resi not of both with you're clear, And haven't be go in making

Our the with of line CIBC. Jarvi from next question comes Mark

Or maybe before appetite to be couple or sales need do deal completed? see substantial? there get completed an do on you of with something over the and you deal larger Would a asset line to the capacity until Neoen's M&A that finish act a

plan would is having We certainly -- pop see we're would two I now. a come position at from such arise. large-scale our -- and positioned acquisitions, we sheet of be different benefit shape And right in no a an larger of I when is This a the up to an influx should execute always matter appetite do they is to perspectives. fortress well this do a say rating balance do such attractive want to opportunity to today. if say such transaction. that those funding there's One is strong I'd credit in great we

-- initiated of when comes number time. would I asset a us is us. in it tends it These a to market of a very lead sales number a So sales, or terms what opportunistic. is and to to coming the months there's lots them of the funding auction be there even through capacity quarters It over to subject we see We say we're little to timing up gives bit comes run flow we've secondly, nature therefore, don't going would to then months, executing of in sales be where very sales. often deploying of investment the somewhat the comfortable asset it sales number growth. our a those of in when processes. sit And to rolling on past. specific totality XX processes asset plan and XX, for of perfectly. the next of Based forward. to today, We're capital, the I But the fruition The the take execute. of tends line and and XX, starting if asset in quarters next

and know then to it. you spot still know it's sell. for being good said you And a able buy Got I

think over few how show in credit the months? larger-sized last interest medium interest a little decline rates activity into expand particularly and couple of processes, bit tight you curious you capital, M&A in here people more to those in the playing seeing are access to Just spreads the are a up the deals,

driving year, they was they that of rates interest up. the the There's on interest were one. tie We've to down, and absolutely. would Yes, question. no That at say comments your The since X stabilized, at beginning and market, we market, stopped accelerated the turned and back noticed things X the market only in weren't that the of we then. had but it's beginning will the going this year, driver rates really things going was think

were And seen beginning question, I we've and Driver assets only four, the XXXX, increase. back financial in year to a the to actually the where dominated to we're institutional calendar have to renewables markets, return rates strategic things as then we're your would accelerated Driver have beginning Those period throughout only increasing lending tying one we was say, to by the X the bid. they're now of year, the across for stabilized, turned appetites. allocations bid the both not but that decline. these period number their a see we two was time, into banks, market of for been three strategic had

would and we So demand to additive be derisked just that for, think platforms. call it, would market assets high-quality and the

taking a view Got short-term here. And maybe it. a bit of

you why hit FFO where the think resources your I still year about the this how you growth the be you that terms of FFO can a portfolio, unit more midyear given per comments Or hitting and have to ability growth played said is that comment per on achieve? are XX% XX% at just year? unit this out your something on normalized basis in in is

So to you Wyatt I'll start want jump in. and if

numbers a worth is one about that seeing, expect year. we is what there's achieve performer strong Etain came probably almost of higher We obviously, tremendous it And there's But very one based achievable. year on do which believe Nino [ -- go. to QX a a a large for consistent noting, There's is this business business our is to and end we're half It's it is nuance us, ], which for El unique to It It very that consistently. in produces very a in QX. business. us. Colombia, the our

broader substandard system. the far that season, reality And the at Nino the that a results higher prices. broader our little a into that has going better got than still QX system ESA that, a year dynamic hydrology bit of the behind end El Nino it, ] caught so for period essentially up hydrology. a system, moderately it ] But in and on versus because [ outperformed to expect. is system we're broader is and a of of But in [ lot much, that, potentially short of actually Colombia the that have business, ESAHIN we're [ XXXX. what whole ] outperformed ESA come expecting because El to catch of now record bit dynamic little we We're has that

to performance see the And then a we in of of of our nuance that business, remainder unwind expect that the throughout little growth So we to year. was QX a a just XX%. the path numbers bit and our

Our next of with Mark JPMorgan. Strouse question from line comes the

Congrats pipeline. advanced this quarter. activity go on to the some I questions stage on just all the wanted to back

kind about said you what appreciating So risk-adjusted returns. of

deals? in derisked some you of to term because pipeline, the historical relatively I is pipeline more fair compared stage maybe are the the that that we Just those had looking mean, at that big your of accretion to compare advanced deal, those deals near deals your how say should the jumps from is -- from or medium-term accretion if it

Sure.

see the you're derisked are going a we greatest the near-term from that specifics of accretion typically these to portfolio. into operating near-term it away getting buying But maybe transactions deals. typically the the portfolio range. individual at of provide high-quality numbers. highest type the end recognized we So assets, our amount Where accretion operating the buy when that is typically return of transaction to probably target should be of when lower that's of our be that's Those

developer, income we're dollars drives it going target a a When the put expect of not development for there whole certainly and capital invested near-term we deliver would obviously, dollars producing or life types and over of become some ground given But those time, might a accretion. less investment, into return to to end the above that of exposure, therefore, buy of investment. in the high underwrite IRR we that period the the over

north example, that FFO. kind of it that's gigawatts those today take probably worlds. And But points additive one. operating with But our the because engine two to to or I'll will about X immediately accelerated begin year of we of gigawatts. thing of Neoen and we've of it's X comes to be big producing at assets you the cherry It gigawatt is deals can that quarter. development under Neoen with look comes per spectrum also as think an the both best X that it's construction this be If the done the that kind about prominent use of picking incredible

buying quarter done So because equity this have the buying of call we've this house that to deals we've net portfolios transactions probably say mass, in that, largest and operating billion I halfway they're terms Renewable. portfolios quarter the a $X deployment between development done dominated both. have Brookfield on it, would

question Mizuho. the line Our of Crowdell with from Anthony comes next

response is bullish the we got this and level focused Jessica's think rules XX we guess, high prices, the time more PJM or Rupert the to has changed you're we just in and signal capacity do building, mean but market? price about was sustained been I really whether different plummeted. that XX, think, I very of seems pricing maybe a If seller I in little from wanted whether I quickly or on a it There capacity another buyer capacity it you was on, follow a get back years, in we auction. question. up, had go a systematic,

that electricity or demand was XX years an over flat a And essentially Thanks, be short-term those the call going way years one let's call when I ago the thing it you I Anthony. ago, in were very good of, that here. versus it, about if X-year-old what discrete future it, was ball X X very therefore, to have question. forecast The demand. could extended driven anomalies, to crystal say, a events is until therefore, say this of that position from It's flat think by, would period electricity anomalies I we different saw markets. unwind that saw don't many that cycle, And we as period could quickly.

would very for next electricity stepping the come of sit it's the XX any that where dynamic level predict different and into we're the to here next And robust years in are time. yes, we way But demand. higher absolutely price in to capacity Can do fundamentals no. auction with prices auction sustained The of while. the is than this it's and that expected there and a more supply simply do more sustained we drive demand for -- environment, we that, think that's because is there stay a one will be increases after accuracy going or is

on That's a quarter. had. I Congrats Great. all good

Grippin UBS. question next William line with comes the from of Our

everybody. appreciate you squeezing it me Thanks, and Great. to here. I'll one keep I just

solar megawatt and step elaborate the mix? to meaningful more a a geographic this average on pretty that change? PPA on And drivers is per price in the or down year-on-year underlying able those legacy you roll-offs Are saw of portfolio, of hour. Just wind we curious some

two there's primary for the drivers. Yes. Thanks question, Will. Look,

to price is is And The first being regulatory reference price, that is under in good a that regulated portfolio that that and adjusted there ultimately, know, own portion that as accordingly. It it's a regime. a market we likely is Spain. you owned of

year-on-year come the price in And did Spain so market down.

less assets, it underlying from Now return but are recognizing period, on and construct no that regulatory given assets. those those meant the of that in we impact the the current revenue has

really just impact. it's So a regulatory

just environment come well. look, the the terms was representative and historical earn down, as solar down to that development we building the business of has both need fleet. through costs than then is, is return come And a similar an PPA And that have acquiring where that's wind have we're piece of in as grown assets acquisition, you revenue, and our price price price in or lower second the of average the

coming just return. the again has as of the regulatory affordable, really our impact and that just down no an fact but then is combination growth has earning it's as that wind equal which we're And that become piece solar in price realizing, on a more Spain, well. return So on

now would the Teskey like Connor for turn to back over closing to I remarks. call

Great. for week Renewable. Cheers, in your third day. next of September. quarter's call great Brookfield everyone, our interest at participation also but today's providing and a earnings, forward you, Day update We Thank you, Thank to of your support at the look and Investment and not only an bye. during on have

for Thank today's you. your does And you call. conference Thank participation. conclude this

disconnect. day. wonderful now have may Everyone, You a