Baltej Sidhu

Baltej Sidhu asked about changes in BEP's perspective regarding federal tax credit eligibility for its U.S. development pipeline through 2029 and about valuation trends in private markets for asset rotation, including jurisdictional breakdown.

Answer

Connor Teskey (CEO, BEP) confirmed that BEP has safe-harbored its entire U.S. development pipeline out to 2029 for tax credits. He noted a lack of clarity on FEOC definitions but expects stricter rules to favor large players. Mr. Teskey stated that demand and valuations for high-quality, contracted operating renewables assets are significantly higher in private markets, anticipating accelerated capital recycling in North America, Western Europe, Australia, and India over the next 2-3 quarters.

Baltej Sidhu inquired about any changes in the eligibility of Brookfield Renewable's U.S. development pipeline for federal tax credits, particularly regarding safe harboring and FEOC definitions, and how private market valuations for high-quality operating renewables assets compare to public markets.

Answer

CEO Connor Teskey confirmed that Brookfield Renewable has safe-harbored its entire U.S. development pipeline out to 2029 for tax credits. He noted ongoing monitoring for FEOC definitions, expecting large players like Brookfield Renewable to be favored by stricter rules. He also stated that private market demand and valuations for recently built, contracted, high-quality operating renewables assets are significantly higher than in public markets, leading to accelerated capital recycling activities globally.

Baltej Sidhu inquired about changes in Brookfield Renewable's perspective regarding the eligibility of U.S. development pipeline projects for federal tax credits, specifically concerning safe harboring and FEOC definitions, and how valuations are trending in private markets for renewables assets globally compared to public markets.

Answer

CEO Connor Teskey confirmed that the U.S. development pipeline out to 2029 has been safe-harbored for tax credits. He noted that while FEOC definitions lack clarity, stricter rules would likely favor large players like Brookfield. He also stated that demand and valuations for recently built, contracted, high-quality operating renewables assets are significantly higher in private markets than public, with robust demand expected across North America, Western Europe, Australia, and India for asset recycling.

Baltej Sidhu with National Bank of Canada asked about the eligibility of U.S. development pipeline projects for federal tax credits through 2029, particularly regarding safe harboring and FEOC definitions, and how private market valuations for asset rotation compare to public markets.

Answer

CEO Connor Teskey confirmed the entire U.S. development pipeline is safe-harbored through 2029. He noted ongoing uncertainty around FEOC definitions but expects stricter rules to favor large players. He also highlighted significantly higher demand and valuations for high-quality operating renewables assets in private markets compared to public, anticipating accelerated capital recycling globally.