Post-IRA, the global renewable energy developer is moving forward development projects in the U.S., which increases the growth prospects of its renewable development businesses.
Brookfield Renewable Partners, a Canadian-listed renewable energy developer, reported a record year of growth in 2022, with funds from operations (FFO) of $1.005 billion, or $1.56 per unit for 2022, representing an 8% increase on a per unit basis over 2021. The global renewables power developer posted a strong $4.71 billion of 2022 revenue, a 15% increase over 2021.
In 2022, Brookfield Renewable increased the scale of renewable development activities, nearly doubling its renewables pipeline from 62 GW in 2021 to almost 110 GW today. In 2022 alone, the company commissioned approximately 3.5 GW of capacity, including completing the massive 850 MW Shepherds Flat wind repowering project.
The company’s wind and solar segments generated a combined $579 million of FFO. The company continues to benefit from the contributions from recent acquisitions, Scout Clean Energy, Standard Solar and Urban Grid, and diversification of its generation fleet, underpinned by long duration power purchase agreements.
“2022 was another successful year, continuing our track record of double-digit average annual FFO growth for more than a decade and executing on our growth initiatives, increasing our renewable power presence in all our core markets and expanding into transition investments”, said Connor Teskey, chief executive officer of Brookfield Renewable.
In renewable development, Brookfield Renewable invested $6.4 billion (approximately $1.4 billion net to Brookfield Renewable) of capital through both organic initiatives as well as acquiring new project development platforms. The developer continues to expand its U.S. market presence, with 74 GW of assets in operations and development.
On the back of the Inflation Reduction Act and strong corporate demand, the company is moving development projects forward in the U.S., which increases the growth prospects of its renewable development businesses.
Other 2022 highlights include:
- Advancing key commercial priorities including securing contracts for over 11,000 GWh per year of generation, partnering with the global corporate purchasers of clean power.
- Accelerating development activities, commissioning 3.5 GW of new projects expected to contribute $45 million of FFO on an annual run-rate basis. Executed on our 19 GW under construction and advanced stage pipeline, which, along with its sustainable solutions pipeline, is expected to contribute $235 million of FFO annually to Brookfield Renewable once commissioned.
- Maintained a strong balance sheet and executed approximately $10 billion of financings, with liquidity standing at $3.7 billion, while continuing to minimize exposure to floating interest rates or near-term maturities.
- Completed or advacing up to $4.6 billion (approximately $1.6 billion net to Brookfield Renewable) of asset recycling activities.
In December, Brookfield Renewable portfolio company Luminace acquired a 21.6 MW portfolio of community solar projects in Maine from EDF Renewables North America. The portfolio includes Overlook Solar (7.2 MW) in Bristol, Tower Solar (7.2 MW) in Embden, Maine, and Green Mile Solar (7.2 MW) in Woolwich. The projects are estimated to reach commercial operation this year.
Brookfield Renewable operates one of the largest global portfolios of hydroelectric, wind, utility-scale solar and storage facilities, with 25.4 GW of installed capacity. Brookfield Renewable is the flagship listed renewable power company of Brookfield Asset Management, a global asset manager with $800 billion of assets under management.
Brookfield Renewable’s shares traded at $28.57 per share yesterday, down 12.9% from $32.80 per share a year ago, with a current market capitalization of $10.5 billion.
