Brookfield Renewable Partners L.P. (BEP) reports that in the three months ended March 31, 2022, funds from operations (FFO) were $243 million, an 18% increase on a normalized basis over the same period in 2021.
Highlights the company reported include:
- Advacing key commercial priorities, securing contracts to deliver over 1,400 GWh of clean energy annually, including 500 GWh to corporate offtakers.
- Continuing to accelerate development activities, executing on a 15,000-MW under-construction and advanced-stage pipeline and expanding the development pipeline to 69,000 MW, as well as plans to submit joint bids with a European partner to build two 750-MW offshore wind projects in the upcoming Dutch subsidy-free tender process.
- Closing or agreeing to invest over $1.6 billion (~$340 million net to BEP) of capital across multiple transaction and regions, including the first investment in carbon capture solutions.
- Progressing on ~$560 million (~$90 million net to BEP) of asset recycling activities, selling non-core and mature assets at strong returns, as well as continuing to accelerate financing activities, maintain a robust financial capacity with close to $4 billion of available liquidity, no material near-term maturities and limited floating rate exposure.
“Our business performed well in the quarter as we delivered solid financial results and executed on several key strategic initiatives, including entering a new decarbonization asset class with an investment in carbon capture solutions,” said Connor Teskey, chief executive officer of BEP. “With decarbonization and energy security firmly established as a priority of global leaders, we are well positioned to deploy capital at accretive returns, leveraging our global reach, operating capabilities and development pipeline to accelerate the build-out of clean energy at scale and drive decarbonization across a growing opportunity set.”
The company finished the quarter with 15,000 MW of construction and advanced-stage projects. These projects are diversified across distributed and utility-scale solar, wind, storage, hydro and green hydrogen in 15 countries and, in total, are expected to contribute almost $150 million in additional annual FFO to the business once completed.
The company’s hydroelectric segment delivered FFO of $164 million during the quarter. BEP said, “Hydropower continues to enhance its status as the premier renewable technology due to its perpetual nature, grid-stabilizing capabilities, and dispatchability. Growing demand for carbon-free baseload generation, in an increasingly constructive pricing environment as more intermittent renewables are added to the grid, is supporting our ability to contract these assets on a long-term basis at attractive all-in prices with built-in inflation escalation. Further, the grid-stabilizing services and storage qualities embedded in large hydros are increasingly valuable in today’s market.”
Throughout this year, BEP said, it will have increasing amounts of hydro capacity across the fleet. Additionally, over the next five years, the ability to recontract almost 5,500 GWh of generation in North America should meaningfully add to BEP’s bottom line.
BEP’s portfolio consists of hydroelectric, wind, solar and storage facilities in North America, South America, Europe and Asia, and totals about 21,000 MW of installed capacity and an about 69,000-MW development pipeline. Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management.
