Brookfield Corporation: Annual Report for Fiscal Year Ending December 31, 2024 (Form 20-F)

OPERATING AND FINANCIAL REVIEW AND PROSPECTS

5.A OPERATING RESULTS

Basis of Presentation

The financial statements of Brookfield Renewable Corporation ("our company") are prepared in accordance with IFRS as issued by the IASB, which require estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the amounts of revenue and expense during the reporting periods.

Certain comparative figures have been reclassified to conform to the current year's presentation.



						Page 80

Organization of Management's Discussion and Analysis


PART 1 - Overview

PART 2 - Financial Performance Review on Consolidated Information

PART 3 - Additional Consolidated Financial Information
Summary consolidated statements of financial position
Related party transactions

PART 4 - Financial Performance Review on Proportionate Information
Proportionate results for the years ended December 31, 2024 and 2023
Proportionate results for the years ended December 31, 2023 and 2022
Reconciliation of non-IFRS measures

PART 5 - Liquidity and Capital Resources
Available liquidity
Dividend Policy
Borrowings
Capital Expenditures


PART 5 - Liquidity and Capital Resources Continued
Consolidated statements of cash flows
Shares outstanding
Contractual obligations
Off-statement of financial position arrangements

PART 6 - Selected Annual and Quarterly Information
Historical operational and financial information
Summary of historical quarterly results
Proportionate results for the fourth quarter
Reconciliation of non-IFRS measures - fourth quarter

PART 7 - Business Risks and Risk Management
Risk management and financial instruments

PART 8 - Critical Estimates, Accounting Policies and Internal Controls

PART 9 - Presentation to Stakeholders and Performance Measurement



						Page 81

PART 1 - OVERVIEW

BUSINESS OVERVIEW

BEPC is a Canadian corporation incorporated on October 3, 2024 under the laws of British Columbia. Our company was established by Brookfield Renewable to be an alternative investment vehicle for investors who prefer owning securities through a corporate structure. While our operations are primarily located in the United States, Brazil, Colombia, and Europe, shareholders will, on economic terms, have exposure to all regions BEP operates in as a result of the exchange feature attaching to the Class A exchangeable subordinate voting shares ("BEPC exchangeable shares"), whereby BEPC will have the option to meet an exchange request by delivering cash or non-voting limited partnership units of BEP ("LP units").

The BEPC exchangeable shares of our company are structured with the intention of being economically equivalent to the LP units. We believe economic equivalence is achieved through identical dividends and distributions on the BEPC exchangeable shares and the LP units and each BEPC exchangeable share being exchangeable at the option of the holder for one LP unit at any time. Given the economic equivalence, we expect that the market price of the BEPC exchangeable shares will be significantly impacted by the market price of the LP units and the combined business performance of our company and Brookfield Renewable as a whole. In addition to carefully considering the disclosure made in this document, shareholders are strongly encouraged to carefully review the partnership's periodic reporting. The partnership is required to file reports, including annual reports on Form 20-F, and other information with the United States Securities and Exchange Commission (the "SEC"). The partnership's SEC filings are available to the public from the SEC's website at https://www.sec.gov. Copies of documents that have been filed with the Canadian securities authorities can be obtained at https://www.sedarplus.ca. Information about the partnership, including its SEC filings, is also available on its website at https://bep.brookfield.com. The information found on, or accessible through https://bep.brookfield.com is not incorporated into and does not form a part of this MD&A.

Our company, Brookfield Renewable Holdings Corporation ("BRHC"), our subsidiaries and Brookfield Renewable, (together our "Group"), target a total return of 12% to 15% per annum on the renewable assets that we own, measured over the long-term. Our group intends to generate this return from cash flows from our operations plus growth through investments in upgrades and expansions of our asset base, as well as acquisitions and capital recycling initiatives. Brookfield Renewable determines its distributions based primarily on an assessment of its operating performance. Our group uses Funds From Operations ("FFO") to assess operating performance which can be used on a per unit basis as a proxy for future distribution growth over the long-term. For further details, see the "Performance Disclosures" section of this MD&A.

The Arrangement

On December 24, 2024, the partnership, BRHC, and the company completed an arrangement (the "Arrangement"), pursuant to which 1505127 B.C. Ltd. (which was renamed Brookfield Renewable Corporation) became the "successor issuer" (as defined in NI 44-101) to the former BEPC, which was renamed Brookfield Renewable Holdings Corporation and BRHC's class A exchangeable subordinate voting shares were delisted. The purpose of the Arrangement was to allow BEPC to maintain the benefits of its business structure, while addressing proposed amendments to the Income Tax Act (Canada) that were expected to result in additional costs to the company if no action was taken. In connection with the Arrangement, among other things, (i) holders of class A exchangeable subordinate voting shares of BRHC, other than Brookfield, received BEPC exchangeable shares in exchange for their class A exchangeable subordinate voting shares of BRHC on a one-for-one basis; (ii) Brookfield transferred their class A exchangeable subordinate voting shares of BRHC to BEPC in exchange for class A.2 exchangeable shares on a one-for-one basis; (iii) the class A exchangeable subordinate voting shares of BRHC were delisted; (iv) the exchangeable shares of BEPC were listed on the NYSE and the TSX; (v) the partnership transferred 55 class B shares of BRHC to BEPC in exchange for 55 class B shares of BEPC; and (vi) 43,605 class B shares of BEPC were issued to the partnership in exchange for $1 million. The class A.2 exchangeable shares are exchangeable by Brookfield into BEPC exchangeable shares (subject to an ownership cap that limits the exchange by Brookfield of class A.2 exchangeable shares such that exchanges by Brookfield may not result in Brookfield



						Page 82

owning 9.5% or more of the aggregate fair market value of all issued and outstanding shares of BEPC) or LP units on a one-for-one basis.



						Page 83

PART 2 - FINANCIAL PERFORMANCE REVIEW ON CONSOLIDATED INFORMATION

The following table reflects key financial data for the year ended December 31:


(MILLIONS, EXCEPT AS NOTED)	2024		2023		2022
Revenues	$	4,142	$	3,967	$	3,778
Direct operating costs	(1,767)		(1,466)		(1,174)
Management service costs	(106)		(88)		(169)
Interest expense	(1,667)		(1,258)		(1,032)
Depreciation	(1,262)		(1,342)		(1,179)
Remeasurement of interests held in BRHC by the partnership	58		-		-
Remeasurement of BEPC exchangeable and BRHC class A.2 exchangeable shares	61		-		-
Remeasurement of exchangeable and class B shares of BRHC	574		(106)		1,800
Income tax expense	(167)		(73)		(118)
Net income	433		308		1,850
	Average FX rates to USD
€	0.92		0.92		0.95
R$	5.39		4.99		5.16
COP	4,071		4,328		4,253

Current Year Variance Analysis (2024 vs 2023)

Revenues totaling $4,142 million represents an increase of $175 million compared to prior year due to the growth of our business, inflation escalation on contracted generation and high asset availability. Recently acquired and commissioned facilities contributed 4,107 GWh of generation and $156 million of revenues, which was partly offset by recently completed asset sales that reduced generation by 2,572 GWh and revenues by $167 million. On a same store, constant currency basis, revenues increased by $155 million as the benefits from inflation escalation on our contracted generation in Brazil and Colombia were offset by lower resources at our hydroelectric portfolios.

The strengthening of the Colombian peso relative to the U.S. dollar compared to the prior year was partially offset by the relative weakening of the Brazilian real, increasing revenues by $31 million, offset by a $36 million unfavorable foreign exchange impact on our operating and interest expenses.

Direct operating costs totaled $1,767 million, representing an increase of $301 million compared to prior year due to additional costs from our recently acquired and commissioned facilities, higher power purchases in Colombia, which are passed through to our customers and the above noted foreign exchange fluctuations partly offset by our recently completed asset sales.

Management service costs totaled $106 million representing an increase of $18 million compared to prior year.

Interest expense totaling $1,667 million represents an increase of $409 million compared to prior year due to recent acquisitions, financing initiatives to fund development activities, the re-classification of distributions on the BRHC Class C shares as interest expense due to their treatment as a liability as a result of the Arrangement, and the above noted foreign exchange fluctuations.

Remeasurement of shares classified as financial liabilities resulted in a $693 million gain compared to a $106 million loss in the prior year due to the movement in the LP unit and BEPC exchangeable share price during the periods.

Depreciation expense totaling $1,262 million represents a decrease of $80 million compared to prior year due to asset sales.

Net income totaling $433 million represents an increase of $125 million over the same period in the prior year due to the above noted items, offset by other income relating to non-recurring items that benefited the prior year.



						Page 84

Prior Year Variance Analysis (2023 vs 2022)

Revenues totaling $3,967 million represents an increase of $189 million over the same period in the prior year due to the growth of our business and higher realized prices. Recently acquired and commissioned facilities contributed 2,833 GWh of generation and $163 million of revenues, which was partly offset by recently completed asset sales that reduced generation by 1,134 GWh and revenues by $89 million. On a same store, constant currency basis, revenues increased by $92 million as the benefits from higher realized prices across most markets on the back of inflation escalation and commercial initiatives were partially offset by lower hydrology at our Colombian hydroelectric assets and lower average revenue per MWh at our European wind and solar assets as a result of adjustments to the regulated price earned in Spain that decreased revenue in the short term but has no impact on the value of the asset given the regulatory construct.

The weakening of the U.S. dollar relative to the prior year across most currencies increased revenues by $23 million, offset by a $28 million unfavorable foreign exchange impact on our operating and interest expenses.

Direct operating costs totaling $1,466 million, represents an increase of $292 million compared to prior year due to additional costs from our recently acquired and commissioned facilities and higher power purchases in Colombia, which are passed through to our customers, partly offset by our recently completed asset sales and the above noted strengthening of the U.S. dollar.

Management service costs totaling $88 million represent a decrease of $81 million over the same period in the prior year.

Interest expense totaling $1,258 million represents an increase of $226 million over the same period in the prior year due to growth in our portfolio and upfinancings completed in the prior year at our North American and South American hydroelectric assets to fund the growth of our business.

Remeasurement of BEPC exchangeable shares resulted in a $106 million loss compared to a $1,800 gain in the prior year due to the movement in the LP unit price during the periods.

Depreciation expense totaling $1,342 million represents an increase of $163 million over the same period in the prior year due to the growth of our business.

Net income totaling $308 million represents a decrease of $1,542 million over the same period in the prior year due to the above noted items, other income relating to non-recurring income and a gain on sale of non-core wind assets.



						Page 85

PART 3 - ADDITIONAL CONSOLIDATED FINANCIAL INFORMATION

SUMMARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

The following table provides a summary of the key line items on the audited annual consolidated statements of financial position as at December 31:


(MILLIONS)	December 31, 2024	December 31, 2023
Current assets	3,114	3,298
Equity-accounted investments	753	644
Property, plant and equipment, at fair value	38,696	44,038
Total assets	44,129	49,421
Non-recourse borrowings	13,775	16,072
Deferred income tax liabilities	6,493	5,819
Interests held in BRHC by Brookfield Renewable	4,432	-
BEPC exchangeable and class A.2 exchangeable shares	4,168	-
Exchangeable and class B shares of BRHC	-	4,721
Total equity in net assets	12,108	17,129
Total liabilities and equity	44,129	49,421
	FX rates to USD
€	0.97	0.91
R$	6.19	4.84
COP	4,409	3,822

Property, plant and equipment

Property, plant and equipment totaled $38.7 billion as at December 31, 2024 compared to $44.0 billion as at December 31, 2023, representing a decrease of $5.3 billion. Our continued investments in the development of power generation assets and our sustaining capital expenditure increased property, plant and equipment by $0.8 billion. Our annual revaluation which recognized the benefit of higher power prices across select markets and the expected growth in demand for renewable power increased property, plant and equipment by $3.1 billion. The increases were offset by dispositions and assets classified as held for sale that decreased property, plant and equipment by $1.2 billion, the strengthening of the U.S. dollar versus most currencies that decreased property plant and equipment by $2.5 billion and depreciation expense that reduced property, plant and equipment by $1.3 billion. During the year we also transferred our 100% interest in a portfolio of 5,900 MW operating and under construction assets, with a 6,100 MW development pipeline in the U.S. to a subsidiary of Brookfield Renewable, which reduced property, plant and equipment by $4.1 billion.

See Note 12 - Property, plant and equipment, at fair value in our audited annual consolidated financial statements for information on the revaluation assumptions used and sensitivity analysis.

Shares classified as financial liability

Prior to the Arrangement, class C shares were classified as financial liabilities due to their cash redemption feature, however they met certain qualifying criteria and were presented as equity instruments given the narrow scope presentations existing in IAS 32. Following the Arrangement and upon consolidation of BRHC into our company, the class C shares are now presented as financial liabilities as Interests held in BRHC at a value of $4,432 million.



						Page 86

As a result of the Arrangement, holders of the BRHC exchangeable shares, other than Brookfield, received our company's exchangeable shares in exchange for their BRHC exchangeable shares on a one-for-one basis and Brookfield transferred their exchangeable shares of BRHC to our company in exchange for class A.2 shares on a one-for-one basis. The exchangeable shares and class A.2 exchangeable shares, upon consolidation into our company, are classified as liabilities at a value of $4,168 million.

RELATED PARTY TRANSACTIONS

Our company's related party transactions are in the normal course of business, are recorded at the exchange amount, and are primarily with the partnership and Brookfield.

Since inception, our parent company has had a Master Services Agreement with Brookfield. The Master Services Agreement was amended in connection with the completion of the Arrangement to include, among other things, BEPC as a service recipient.

Our company sells electricity to Brookfield through a single long-term PPA across our New York hydroelectric facilities.

In 2011, on formation of Brookfield Renewable, Brookfield transferred certain development projects to subsidiaries of our company for no upfront consideration but is entitled to receive variable consideration on commercial operation or sale of these projects. These projects have been transferred to our company as part of the special distribution.

Our company has entered into voting agreements with Brookfield and the partnership, whereby our company gained control of the entities that own certain renewable power generating facilities in the United States and Brazil, as well as TerraForm Power. Our company has also entered into a voting agreement with its consortium partners in respect of the Colombian business. The voting agreements provide our company the authority to direct the election of the Boards of Directors of the relevant entities, among other things, and therefore provide our company with control. Accordingly, our company consolidates the accounts of these entities.

Our company may participate with institutional partners in Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV, Brookfield Infrastructure Fund V, Brookfield Infrastructure Income Fund, Brookfield Global Transition Fund I, Brookfield Global Transition Fund II, and Brookfield Infrastructure Debt Fund ("Private Funds"), each of which is a Brookfield sponsored fund, and in connection therewith, our company, together with our institutional partners, has access to financing using the Private Funds' credit facilities.

From time to time, in order to facilitate investment activities in a timely and efficient manner, our company will fund deposits or incur other costs and expenses (including by use of loan facilities to consummate, support, guarantee or issue letters of credit) in respect of an investment that ultimately will be shared with or made entirely by Brookfield sponsored vehicles, consortiums and/or partnerships (including private funds, joint ventures and similar arrangements), our company, or by co-investors.

Brookfield has provided a $400 million committed unsecured revolving credit facility maturing in December 2029 and the draws bear interest at the Secured Overnight Financing Rate ("SOFR") plus a margin. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield. Brookfield may from time to time place funds on deposit with the company which are repayable on demand including any interest accrued. There were nil funds placed on deposit with the company as at December 31, 2024 (December 31, 2023: nil). The interest expense on the Brookfield revolving credit facility and deposit for the year ended December 31, 2024 totaled nil (2023: nil and 2022: nil).

On March 26, 2024, as part of normal course organizational structuring initiatives of our group, the company transferred 100% of its interest in a portfolio of 5,900 MW of operating and under construction assets, with a 6,100 MW development pipeline in the U.S. to a subsidiary of the partnership, for a nominal amount of consideration, to achieve the optimal holding structure for tax purposes. As a result of the disposition, the company derecognized $4.5 billion of total assets, $3.2 billion of total liabilities and $1.3 billion of non-controlling interest from the consolidated statements of financial position. This resulted in a loss on disposition of $63 million recognized within contributed surplus in the consolidated statements of changes in equity.



						Page 87

In connection with the Arrangement, the company entered into two deposit agreements with one or more subsidiaries of the partnership, one as depositor or lender and one as depositee or borrower. Each deposit agreement contemplates potential deposit arrangements pursuant to which the parties thereunder would mutually agree to deposit funds thereunder from time to time on a demand basis at a specified rate of interest. Additionally, the company, as borrower, entered into a credit agreement with a subsidiary of the partnership, as lender, pursuant to which the subsidiary of the partnership established a revolving credit facility in the aggregate principal amount of $150 million in favour of the company.

The credit agreement has a ten-year term, subject to automatic one-year extensions occurring annually unless terminated by the lender.

From time to time Brookfield Wealth Solutions and its related entities may participate in capital raises undertaken by the company. Brookfield Wealth Solutions frequently participates alongside market participants at market rates and as at December 31, 2024, $13 million of non-recourse borrowings (2023: $14 million) were due to Brookfield Wealth Solutions. As at December 31, 2024, the company had $58 million (2023: $184 million) of borrowings from Brookfield Wealth Solutions classified as due to related party. Subsidiaries of Brookfield Wealth Solutions may from time to time decide to participate in the company's equity offerings.

In addition, our company has executed, amended, or terminated other agreements with the partnership and Brookfield that are described in Note 27 - Related party transactions in our audited consolidated financial statements. For a description of certain of our agreements with Brookfield and the partnership, please see Item 7.B "Related Party Transactions" in our Form 20-F for the annual period ended December 31, 2024.



						Page 88

The following table reflects the related party agreements and transactions in the audited annual consolidated statements of income (loss), for the year ended December 31:


(MILLIONS)	2024		2023		2022
Revenues
Power purchase and revenue agreements	$	68	$	10	$	72

Other income
Interest income	$	42	$	29	$	9
Distribution income	3		7		-
	$	45	$	36	$	9

Direct operating costs
Energy purchases	$	(27)	$	(19)	$	(22)
Energy marketing fee & other services	(2)		(2)		(7)
	$	(29)	$	(21)	$	(29)

Interest expense
Borrowings and distributions	$	(462)	$	(140)	$	(94)

Other
Other related party services (expense) income	$	(5)	$	3	$	(4)
Financial instrument gain	2		9		4
	$	(3)	$	12	$	-

Management service costs	$	(106)	$	(88)	$	(169)



						Page 89

The following table reflects the impact of the related party agreements and transactions on the consolidated statements of financial position as at December 31:


(MILLIONS)	Related party	2023		2022
Current assets
Due from related parties
Amounts due from	Brookfield	$	30	$	39
	The partnership	1,363		1,366
	Equity-accounted investments and other	11		22
		$	1,404	$	1,427

Non-current assets
Financial instrument assets	Brookfield	$	-	$	170

Due from related parties
Amounts due from	Equity-accounted investments and other	$	9	$	9

Current liabilities
Due to related parties
Amounts due to	Brookfield	$	34	$	26
	The partnership	480		238
	Brookfield Wealth Solutions and associates	24		184
	Equity-accounted investments and other	6		8
		544		456

Non-current liabilities
Due to related parties
Amounts due to	Brookfield	$	53	$	79
	The partnership	452		850
	Brookfield Wealth Solutions and associates	34		-
	Equity-accounted investments and other	2		1
		$	541	$	930

Non-recourse borrowings	Brookfield Wealth Solutions and associates	$	13	$	14



						Page 90

PART 4 - FINANCIAL PERFORMANCE REVIEW ON PROPORTIONATE INFORMATION

SEGMENTED DISCLOSURES

Segmented information is prepared on the same basis that our company's chief operating decision maker, which we refer to as "CODM", manages our company, evaluates financial results, and makes key operating decisions. See "Part 9 - Presentation to Stakeholders and Performance Measurement" for information on segments and an explanation on the calculation and relevance of proportionate information.

PROPORTIONATE RESULTS FOR THE YEAR ENDED DECEMBER 31

The following chart reflects the generation and summary financial figures on a proportionate basis for the year ended December 31:


	(GWh)		(MILLIONS)
	Renewable Actual Generation		Revenues				Adjusted EBITDA(1)				Funds From Operations(1)
	2024	2023	2024		2023		2024		2023		2024		2023
Hydroelectric	13,368	14,449	$	1,189	$	1,212	$	684	$	787	$	434	$	504
Wind	2,848	1,728	223		152		246		138		190		108
Utility-scale solar	1,636	1,261	238		165		237		146		169		94
Distributed energy & sustainable solutions	939	886	124		125		82		101		57		80
Corporate	-	-	-		-		50		15		(56)		(70)
Total	18,791	18,324	$	1,774	$	1,654	$	1,299	$	1,187	$	794	$	716

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.



						Page 91

HYDROELECTRIC OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for hydroelectric operations for the year ended December 31:


(MILLIONS)	2024		2023
Revenue	$	1,189	$	1,212
Other income	33		51
Direct operating costs	(538)		(476)
Adjusted EBITDA(1)	684		787
Interest expense	(229)		(261)
Current income taxes	(21)		(22)
Funds From Operations	$	434	$	504

Generation (GWh) - actual	13,368		14,449
Average revenue per MWh(2)	80		78

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

(2)Average revenue per MWh was adjusted to net the impact of power purchases and any revenue with no corresponding generation.

Funds From Operations at our hydroelectric business was $434 million versus $504 million in the prior year as the benefit of higher average revenue per MWh at our Colombia hydroelectric facilities due to inflation indexation and recontracting initiatives was offset by unfavorable hydrology conditions.

WIND OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for wind operations for the year ended December 31:


(MILLIONS)	2024		2023
Revenue	$	223	$	152
Other income	106		33
Direct operating costs	(83)		(47)
Adjusted EBITDA(1)	246		138
Interest expense	(47)		(28)
Current income taxes	(9)		(2)
Funds From Operations	$	190	$	108

Generation (GWh) - actual	2,848		1,728

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our wind business was $190 million versus $108 million in the prior year due to the benefit from newly acquired and commissioned facilities and gains related to the sale of a European development portfolio.



						Page 92

UTILITY-SCALE SOLAR OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for utility-scale solar operations for the year ended December 31:


(MILLIONS)	2024		2023
Revenue	$	238	$	165
Other income	66		23
Direct operating costs	(67)		(42)
Adjusted EBITDA(1)	237		146
Interest expense	(68)		(50)
Current income taxes	-		(2)
Funds From Operations	$	169	$	94

Generation (GWh) - actual	1,636		1,261

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our utility-scale solar business was $169 million versus $94 million in the prior year due to the benefits of growth in our business and and gains related to the sale of a European development portfolio.

DISTRIBUTED ENERGY & SUSTAINABLE SOLUTIONS OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for distributed energy & sustainable solutions for the year ended December 31:


(MILLIONS)	2024		2023
Revenue	$	124	$	125
Other income	8		18
Direct operating costs	(50)		(42)
Adjusted EBITDA(1)	82		101
Interest expense	(24)		(21)
Current income taxes	(1)		-
Funds From Operations	$	57	$	80

Generation (GWh) - actual	939		886

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our distributed energy & sustainable solutions business was $57 million versus $80 million in the prior year as the benefits from stronger generation was offset by lower contributions from our pumped storage business as the prior year benefited from higher grid stability prices.



						Page 93

PROPORTIONATE RESULTS FOR THE YEAR ENDED DECEMBER 31, 2023 AND 2022

The following chart reflects the generation and summary financial figures on a proportionate basis for the year ended December 31:


	(GWh)		(MILLIONS)
	Renewable Actual Generation		Revenues				Adjusted EBITDA(1)				Funds From Operations(1)
	2023	2022	2023		2022		2023		2022		2023		2022
Hydroelectric	14,449	14,567	$	1,212	$	1,095	$	787	$	713	$	504	$	504
Wind	1,728	1,872	152		176		138		132		108		101
Utility-scale solar	1,261	870	165		167		146		165		94		114
Distributed energy & sustainable solutions	886	753	125		146		101		84		80		64
Corporate	-	-	-		-		15		(5)		(70)		(171)
Total	18,324	18,062	$	1,654	$	1,584	$	1,187	$	1,089	$	716	$	612

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.



						Page 94

HYDROELECTRIC OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for hydroelectric operations for the year ended December 31:


(MILLIONS)	2023		2022
Revenue	$	1,212	$	1,095
Other income	51		44
Direct operating costs	(476)		(426)
Adjusted EBITDA(1)	787		713
Interest expense	(261)		(175)
Current income taxes	(22)		(34)
Funds From Operations	$	504	$	504

Generation (GWh) - actual	14,449		14,567
Average revenue per MWh(2)	78		72

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

(2)Average revenue per MWh was adjusted to net the impact of power purchases and any revenue with no corresponding generation.

Funds From Operations at our hydroelectric business was $504 million versus $504 million in the prior year as the benefit of higher average revenue per MWh due to inflation indexation on our contracted generation, favorable hydrology conditions in the United States and Brazil were offset by lower resources in Colombia as the prior year benefited from well above LTA conditions and higher interest expense due to financing initiatives completed to fund growth.

WIND OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for wind operations for the year ended December 31:


(MILLIONS)	2023		2022
Revenue	$	152	$	176
Other income	33		10
Direct operating costs	(47)		(54)
Adjusted EBITDA(1)	138		132
Interest expense	(28)		(29)
Current income taxes	(2)		(2)
Funds From Operations	$	108	$	101

Generation (GWh) - actual	1,728		1,872

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our wind business was $108 million versus $101 million in the prior year primarily due to the benefits from our newly acquired and commissioned facilities, inflation indexation on our contracted generation, and gains on sale of non-core assets and the partial sale of certain North American development assets, partially offset by lower resources and lower prices earned by our Spanish assets as a result of adjustments to the regulated price that decreased revenues in the short term but has no impact on value given the regulatory construct.



						Page 95

UTILITY-SCALE SOLAR OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for utility-scale solar operations for the year ended December 31:


(MILLIONS)	2023		2022
Revenue	$	165	$	167
Other income	23		37
Direct operating costs	(42)		(39)
Adjusted EBITDA(1)	146		165
Interest expense	(50)		(50)
Current income taxes	(2)		(1)
Funds From Operations	$	94	$	114

Generation (GWh) - actual	1,261		870

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our utility-scale solar business was $94 million versus $114 million in the prior year as the benefits from newly acquired and commissioned facilities was more than offset by lower generation on a same store basis and lower average revenue per MWh due to adjustments to the regulated price earned by our Spanish assets that decreased revenues in the short term but has no impact on value given the regulatory construct.

DISTRIBUTED ENERGY & SUSTAINABLE SOLUTIONS OPERATIONS ON A PROPORTIONATE BASIS

The following table presents our proportionate results for distributed energy & sustainable solutions for the year ended December 31:


(MILLIONS)	2023		2022
Revenue	$	125	$	146
Other income	18		8
Direct operating costs	(42)		(70)
Adjusted EBITDA(1)	101		84
Interest expense	(21)		(20)
Funds From Operations	$	80	$	64

Generation (GWh) - actual	886		753

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.

Funds From Operations at our distributed energy & sustainable solutions business was $80 million versus $64 million in the prior year as the benefits from stronger resources were partly offset by a decrease in average revenue per MWh due to generation mix and lower grid stability prices at our pumped storage facility driven by lower pricing volatility.



						Page 96

RECONCILIATION OF NON-IFRS MEASURES

The following table reconciles the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the year ended December 31, 2024:



(MILLIONS)	Hydroelectric		Wind		Utility-scale Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	370	$	55	$	16	$	(33)	$	25	$	433
Add back or deduct the following:
Depreciation	518		367		287		90		-		1,262
Deferred income tax expense	9		12		31		7		8		67
Foreign exchange and financial instrument gain	(131)		(73)		(32)		(2)		-		(238)
Other(1)	(39)		18		(18)		(33)		(18)		(90)
Dividends on BEPC exchangeable, class A.2 exchangeable shares and exchangeable shares of BRHC(2)	-		-		-		-		549		549
Remeasurement of interests held in BRHC by the partnership	-		-		-		-		(58)		(58)
Remeasurement of BEPC exchangeable and class A.2 exchangeable shares	-		-		-		-		(61)		(61)
Remeasurement of exchangeable and class B shares of BRHC	-		-		-		-		(574)		(574)
Management service costs	-		-		-		-		106		106
Interest expense(2)	625		231		201		47		14		1,118
Current income tax expense	70		10		13		6		1		100
Amount attributable to equity accounted investments and non-controlling interests(3)	(738)		(374)		(261)		-		58		(1,315)
Adjusted EBITDA attributable to the company	$	684	$	246	$	237	$	82	$	50	$	1,299

(1)Other corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and the company's economic share of foreign currency hedges and other hedges, income earned on financial assets and structured investments in sustainable solutions and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included within Adjusted EBITDA.

(2)Total interest expense of $1,667 million is comprised of Interest expense and Dividends on BEPC exchangeable, class A.2 exchangeable shares and exchangeable shares of BRHC.

(3)Amount attributable to equity accounted investments corresponds to the adjusted EBITDA to the company that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Adjusted EBITDA attributable to non-controlling interest, our company is able to remove the portion of Adjusted EBITDA earned at non-wholly owned subsidiaries that are not attributable to our company.



						Page 97

The following table reconciles the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the year ended December 31, 2023:



(MILLIONS)	Hydroelectric		Wind		Utility-scale Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	493	$	116	$	200	$	(2)	$	(499)	$	308
Add back or deduct the following:
Depreciation	542		384		322		94		-		1,342
Deferred income tax (recovery) expense	(8)		(4)		(24)		2		(6)		(40)
Foreign exchange and financial instrument (gain) loss	(140)		(7)		(6)		5		(11)		(159)
Other(1)	31		(162)		(191)		2		11		(309)
Dividends on BEPC exchangeable shares(2)	-		-		-		-		241		241
Remeasurement of BEPC exchangeable and BEPC class B shares	-		-		-		-		106		106
Management service costs	-		-		-		-		88		88
Interest expense(2)	626		137		205		46		3		1,017
Current income tax expense	84		14		12		-		3		113
Amount attributable to equity accounted investments and non-controlling interests(3)	(841)		(340)		(372)		(46)		79		(1,520)
Adjusted EBITDA attributable to the company	$	787	$	138	$	146	$	101	$	15	$	1,187

(2)Total interest expense of $1,258 million is comprised of Interest expense and Dividends on BEPC exchangeable shares.



						Page 98

The following table reconciles the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the year ended December 31, 2022:



(MILLIONS)	Hydroelectric		Wind		Utility-scale Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	368	$	(3)	$	38	$	44	$	1,403	$	1,850
Add back or deduct the following:
Depreciation	502		305		275		97		-		1,179
Deferred income tax (recovery) expense	(69)		55		(8)		7		-		(15)
Foreign exchange and financial instrument loss (gain)	170		(71)		(27)		(3)		(4)		65
Other(1)	66		59		96		17		4		242
Dividends on BEPC exchangeable shares(2)	-		-		-		-		220		220
Remeasurement of BEPC exchangeable and BEPC class B shares	-		-		-		-		(1,800)		(1,800)
Management service costs	-		-		-		-		169		169
Interest expense(2)	474		127		162		44		5		812
Current income tax expense	123		8		2		-		-		133
Amount attributable to equity accounted investments and non-controlling interests(3)	(921)		(348)		(373)		(122)		(2)		(1,766)
Adjusted EBITDA attributable to the company	$	713	$	132	$	165	$	84	$	(5)	$	1,089

(2)Total interest expense of $1,032 million is comprised of Interest expense and Dividends on BEPC exchangeable shares.



						Page 99

The following table reconciles non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Funds From Operations for the year ended December 31:


(MILLIONS, EXCEPT AS NOTED)	2024		2023		2022
Net income	$	433	$	308	$	1,850
Add back or deduct the following:
Depreciation	1,262		1,342		1,179
Foreign exchange and financial instruments (gain) loss	(238)		(159)		65
Deferred income tax expense (recovery)	67		(40)		(15)
Other(1)	(90)		(316)		242
Dividends on BEPC exchangeable, class A.2 exchangeable shares and exchangeable shares of BRHC	549		241		220
Remeasurement of interests held in BRHC by the partnership	(58)		-		-
Remeasurement of BEPC exchangeable and class A.2 exchangeable shares	(61)		-		-
Remeasurement of exchangeable and class B shares of BRHC	(574)		106		(1,800)
Amount attributable to equity accounted investments and non-controlling interest(2)	(496)		(766)		(1,129)
Funds From Operations	$	794	$	716	$	612

(2)Amount attributable to equity accounted investments corresponds to the Funds From Operations that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Funds From Operations attributable to non-controlling interest, our company is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our company.



						Page 100

PART 5 - LIQUIDITY AND CAPITAL RESOURCES

AVAILABLE LIQUIDITY

Our company assesses liquidity on a group-wide basis, consistent with the partnership, because shareholders have exposure to a broader base of renewable investments by virtue of the exchange feature of BEPC exchangeable shares. Our group-wide liquidity consisted of the following:


(MILLIONS)	December 31, 2024		December 31, 2023
Our company's share of cash and cash equivalents	$	255	$	249
Authorized credit facilities(1)	2,450		2,375
	2,705		2,624
Available portion of subsidiary credit facilities	85		104
Brookfield Renewable group liquidity on a proportionate basis	1,530		1,393
Available liquidity	$	4,320	$	4,121

(1)Includes the $1,975 million Subordinated Credit Facilities with the partnership and a $400 million revolving credit facility with Brookfield Corporation.

We operate with sufficient liquidity to enable us to fund growth initiatives, capital expenditures, distributions and withstand sudden adverse changes in economic circumstances or short-term fluctuations in generation. We maintain a strong, investment grade balance sheet characterized by a conservative capital structure, access to multiple funding levers including a focus on capital recycling on an opportunistic basis, and diverse sources of capital. Principal sources of liquidity are cash flows from operations, our credit facilities, upfinancings on non-recourse borrowings and proceeds from the issuance of various securities through public markets.

DIVIDEND POLICY

The BEPC board may declare dividends at its discretion. However, the BEPC exchangeable shares have been structured with the intention of providing an economic return equivalent to the LP units and it is expected that dividends on the BEPC exchangeable shares will be declared at the same time and in the same amount as distributions made on the LP units. In the event dividends are not declared and paid concurrently with a distribution on the LP units, then the undeclared or unpaid amount of such BEPC exchangeable share dividend will accrue and accumulate. Pursuant to the amended and restated equity commitment agreement, the partnership has also agreed not to declare or pay any distribution on the LP units if on such date our company does not have sufficient funds or other assets to enable the declaration and payment of an equivalent dividend on the BEPC exchangeable shares. See Item 7.B "Related Party Transactions - BEPC relationship with the partnership - Equity Commitment Agreement" of our Form 20-F for the annual period ended December 31, 2024. Brookfield Renewable's distributions are underpinned by stable, highly regulated and contracted cash flows generated from operations. Brookfield Renewable's objective is to pay a distribution that is sustainable on a long-term basis and has set its target payout ratio at approximately 70% of Brookfield Renewable's Funds From Operations.

The board of directors of the general partner of Brookfield Renewable approved an over 5% increase in its annual distribution to $1.492 per LP unit, or $0.373 per LP unit quarterly, starting with the distribution paid in March 2025, an increase from $1.42 per LP unit in 2024 (2023: $1.35 per LP unit and 2022: $1.28 per LP unit). This increase reflects the forecasted contribution from Brookfield Renewable's recently commissioned capital projects, as well as the expected cash yield on recent acquisitions net of dispositions. Brookfield Renewable targets a 5% to 9% annual distribution growth in light of growth it foresees in its operations.



						Page 101

BORROWINGS

The composition of debt obligations, overall maturity profile, and average interest rates associated with our borrowings and credit facilities on a proportionate basis as at December 31 is presented in the following table:


	2024					2023
	Weighted-average					Weighted-average
(MILLIONS, EXCEPT AS NOTED)	Interest rate %(1)		Term (years)	Total(1)		Interest rate %(1)		Term (years)	Total(1)
Proportionate non-recourse borrowings(2)
Hydroelectric	6.8	%	6	$	2,939	7.2	%	6	$	3,013
Wind	5.1	%	6	695		6.3	%	10	1,088
Utility-scale solar	5.4	%	10	1,281		5.9	%	14	1,786
Distributed energy & sustainable solutions	4.8	%	8	304		5.6	%	12	312
	6.1	%	7	5,219		6.6	%	9	6,199
Proportionate unamortized financing fees, net of unamortized premiums				(31)					(45)
				5,188					6,154
Equity-accounted borrowings				(104)					(163)
Non-controlling interests and other(3)				8,691					10,081
As per IFRS Statements				$	13,775				$	16,072

(1)Includes cash yields on tax equity.

(2)See "Part 9 - Presentation to Stakeholders and Performance Measurement" for information on proportionate debt.

(3)Includes tax equity adjustments.



						Page 102

The following table summarizes our undiscounted principal repayments, scheduled amortization and interest payable on a proportionate basis as at December 31, 2024:


(MILLIONS)	2025		2026		2027		2028		2029		Thereafter		Total
Debt Principal repayments
Non-recourse borrowings
Hydroelectric	$	271	$	248	$	111	$	74	$	101	$	1,099	$	1,904
Wind	8		1		1		125		76		129		340
Utility-scale solar	13		10		1		107		65		106		302
Distributed energy & sustainable solutions	-		-		26		60		27		44		157
	292		259		139		366		269		1,378		2,703
Amortizing debt principal repayments
Non-recourse borrowings
Hydroelectric	93		108		95		113		223		403		1,035
Wind	34		45		31		30		29		186		355
Utility-scale Solar	71		80		79		77		78		594		979
Distributed energy & sustainable solutions	16		16		13		13		11		78		147
	214		249		218		233		341		1,261		2,516
Total	$	506	$	508	$	357	$	599	$	610	$	2,639	$	5,219
Interest payable(1)
Non-recourse borrowings
Hydroelectric	$	184	$	159	$	137	$	127	$	115	$	254	$	976
Wind	28		31		29		25		18		64		195
Utility-scale Solar	52		54		49		43		35		165		398
Distributed energy & sustainable solutions	12		12		11		9		7		14		65
Total	$	276	$	256	$	226	$	204	$	175	$	497	$	1,634

(1)Represents aggregate interest payable expected to be paid over the entire term of the obligations, if held to maturity. Variable-rate interest payments have been calculated based on estimated interest rates.

We remain focused on refinancing near-term facilities on acceptable terms and maintaining a manageable maturity ladder. We do not anticipate material issues in refinancing our borrowings through 2029 on acceptable terms and will do so opportunistically based on the prevailing interest rate environment.

Proportionate debt is presented to assist investors in understanding the capital structure of the underlying investments of our company that are consolidated in its financial statements but are not wholly-owned. When used in conjunction with Funds from Operations, proportionate debt is expected to provide useful information as to how our company has financed its businesses at the asset-level. The only difference between consolidated debt presented under IFRS and proportionate debt is the adjustment to remove the share of debt of consolidated investments not attributable to our company and the adjustment to include share of debt attributable to the equity-accounted investments of our company. Management utilizes proportionate debt in understanding the capital structure of the underlying investments that are consolidated in its financial statements but are not wholly-owned. Proportionate debt provides useful information as to how our company has financed its businesses at the asset-level and provides a view into the return on the capital that it invests at a given degree of leverage.



						Page 103

CAPITAL EXPENDITURES

We fund growth capital expenditures with cash flow generated from operations, supplemented by non-recourse debt sized to investment grade coverage and covenant thresholds. This is designed to ensure that our investments have stable capital structures supported by a substantial level of equity and that cash flows at the asset level can be remitted freely to our company. This strategy also underpins our investment grade profile.

To fund large scale development projects and acquisitions, we will evaluate a variety of capital sources including proceeds from selling mature businesses, in addition to raising money in the capital markets through equity, debt and preferred share issuances. Furthermore, our company has $2.45 billion of committed revolving credit facilities available for investments and acquisitions, as well as funding the equity component of organic growth initiatives. The facilities are intended, and have historically been used, as a bridge to a long-term financing strategy rather than a permanent source of capital. We believe these capital sources will be sufficient to permit us to deploy the necessary capital for our contractual commitments (see Note 26 - Commitments, contingencies and guarantees in the audited annual consolidated financial statements) and our company's share of anticipated transactions by our group.

CONSOLIDATED STATEMENTS OF CASH FLOWS

The following table summarizes the key items in the audited annual consolidated statements of cash flows for the years ended December 31:


(MILLIONS)	2024		2023		2022
Cash flow provided by (used in):
Operating activities before changes in due to or from related parties and net working capital change	$	752	$	1,218	$	1,405
Change in due to or from related parties	61		(20)		(18)
Net change in working capital balances	(264)		405		(103)
Operating activities	549		1,603		1,284
Financing activities	192		(636)		(402)
Investing activities	(665)		(1,018)		(738)
Foreign exchange (loss) gain on cash	(77)		36		(19)
(Decrease) increase in cash and cash equivalents	$	(1)	$	(15)	$	125

Operating Activities

Cash flows provided by operating activities before changes in due to or from related parties and net working capital changes for the year ended December 31, 2024 totaled $752 million compared to $1,218 million in 2023 and $1,405 million in 2022, reflecting the strong operating performance of our business during the periods.

Financing Activities

Cash flows provided by financing activities totaled $192 million for the year ended December 31, 2024. The strength of our balance sheet and disciplined access to diverse sources of capital enabled us to fund growth as discussed below and allowed us to generate net proceeds of $803 million from non-recourse financings that were offset by repayment of related party financings of $336 million.

Distributions paid during the year to participating non-controlling interest in operating subsidiaries totaled $410 million. Our non-controlling interest contributed capital net of capital returns of $135 million.

Cash flows used in financing activities totaled $636 million for the year ended December 31, 2023. The strength of our balance sheet allowed us to raise proceeds of approximately $3,041 million, including $251 million from equity financing net of transactions fees through a bought deal of BEPC exchangeable shares during the second quarter of 2023. The proceeds raised to fund the growth of our business through the investing activities noted below were offset by the repayment of borrowings. Distributions paid during the year to the partnership and participating non-controlling interest in operating subsidiaries totaling $669 million.



						Page 104

Cash flows used in financing activities totaled $402 million for the year ended December 31, 2022, as the proceeds raised from non-recourse financings and capital contributions from non-controlling interest, net of capital return (totaling $1,204 million) to fund the growth of our business were more than offset by distributions paid during the year to the partnership and participating non-controlling interest in operating subsidiaries totaling $1,364 million.

Investing Activities

Cash flows used in investing activities totaled $665 million for the year ended December 31, 2024. Our continued investment in property, plant and equipment, including the construction and development of wind, solar and storage development projects in the U.S.and Brazill totaled $949 million for the year ended December 31, 2024. We also invested $685 million into our structured investments and equity accounted investments including acquiring a 67% interest in an eFuels facility in the U.S. that will be capable of producing 500 barrels per day.

Our capital recycling initiatives including a portfolio of 63 MW solar assets, 682 MW wind assets, and a 1.6 GW development pipeline in Spain and Portugal, a 30 MW hydroelectric asset in the U.S., a 85 MW portfolio of biomass facilities in Brazil and a 90 MW portfolio of hydroelectric assets in Brazil were offset by cash and cash equivalents transferred alongside our 100% interest in a portfolio of 5,900 MW of operating and under construction assets, with a 6,100 MW development pipeline in the U.S. to a subsidiary of Brookfield Renewable, resulting in proceeds of $982 million for the year ended December 31, 2024.

Cash flows used in investing activities totaled $1,018 million for the year ended December 31, 2023. During the year, we invested $180 million into growth, including a 136 MW portfolio of operating wind assets in Brazil, a fully integrated developer and operator of renewable power assets in the United States with 5,900 MW of operating and under construction assets, with a 6,100 MW development pipeline, and a 60 MW portfolio of operating wind assets in Brazil. Our continued investment in our property, plant and equipment, including 248 MW of wind development projects in Brazil, 200 MW of wind development projects in the U.S. and 60 MW of solar assets in Colombia totaled $1,028 million, partially offset by proceeds of $243 million generated from the sale of non-core wind assets and financial securities for the year ended December 31, 2023.

Cash flows used in investing activities totaled $738 million for the year ended December 31, 2022. Our continued investment in our organic development pipeline and our property, plant and equipment, including the construction of a 1,200 MW utility-scale solar facility in Brazil, was $847 million for the year ended December 31, 2022, which were funded by our financing activities noted above including recycling capital from the sale of a hydroelectric portfolio in Brazil, which closed in the second quarter of 2022 for $92 million.

SHARES AND UNITS OUTSTANDING

Our company's equity interests include BEPC exchangeable shares and class A.2 exchangeable shares held by Brookfield Holders and public shareholders and BEPC class B, BRHC class B and BRHC class C shares held by the partnership. Dividends on each of our BEPC exchangeable shares and class A.2 exchangeable shares are expected to be declared and paid at the same time and in the same amount per share as distributions on each LP unit of the partnership. Ownership of BEPC class B, BRHC class B, and BRHC class C shares will entitle holders to receive dividends as and when declared by our board.

Our company's capital structure is comprised of the following shares:


(SHARES)			December 31, 2024
BEPC exchangeable and class A.2 exchangeable shares(1)			179,640,851
BEPC class B shares			55
BRHC class B shares			110
BRHC class C shares			194,460,874

(1)Includes 144,921,168 (December 31, 2023: 179,651,256) of BEPC exchangeable shares and 34,719,683 (December 31, 2023: nil) of Class A.2 exchangeable shares.



						Page 105

BEPC exchangeable shares and class A.2 exchangeable shares provide the holder, at its discretion, with the right to redeem these shares for cash consideration. The redemption right related to the BEPC exchangeable shares is subject to the company's right, at its sole discretion, to satisfy the redemption request with LP units on a one-for-one basis. Similarly, the redemption right related to class A.2 shares is subject to the company's right, at its sole discretion, to satisfy any such redemption request with BEPC exchangeable shares or LP units, at the election of Brookfield, rather than cash, on a one-for-one basis. For more information, see Item 10.B "Memorandum and Articles of Association - BEPC Exchangeable Shares" of our Form 20-F for the annual period ended December 31, 2024. During the year ended December 31, 2024, our shareholders exchanged 10,675 (2023: 8,465 and 2022: 12,308) BEPC exchangeable shares for an equivalent number of LP units. BEPC class B, BRHC class B and BRHC class C shares are redeemable for cash in an amount equal to the market price of an LP unit. There have been no redemptions of class A.2 exchangeable shares, BEPC class B or BRHC class C shares to date. Due to the exchange feature of the BEPC exchangeable shares and class A.2 exchangeable shares and the cash redemption feature of the BEPC class B, BRHC class B and BRHC class C shares, the BEPC exchangeable shares, class A.2 exchangeable shares, BEPC class B shares, BRHC class B shares and BRHC class C shares are classified as financial liabilities. However, the BEPC class B shares meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentations existing in IAS 32.

During the year ended December 31, 2024, our company declared dividends of $256 million (2023: $241 million and 2022: $220 million) on its outstanding BEPC exchangeable shares and class A.2 exchangeable shares and $293 million (2023: nil) on its outstanding BRHC class C shares. Dividends on our BEPC exchangeable shares, class A.2 exchangeable shares and BRHC class C shares are presented as interest expense in the consolidated financial statements. No dividends were declared on BEPC class B shares and BRHC class B shares during the year.

As at December 31, 2024, Brookfield Holders held a direct and indirect interest of approximately 25% of the company. Brookfield Holders own, directly and indirectly, 10,094,152 BEPC exchangeable shares and 34,719,683 class A.2 exchangeable shares on a combined basis and the remaining BEPC exchangeable shares are held by public investors.

Our company may from time-to-time, subject to applicable law, purchase shares for cancellation in the open market, provided that any necessary approval has been obtained.

In December 2024, the company renewed its normal course issuer bid for its outstanding BEPC exchangeable shares. The company is authorized to repurchase up to 8,982,042 BEPC exchangeable shares, representing 5% of its issued and outstanding BEPC exchangeable shares. The bids will expire on December 17, 2025, or earlier should the company complete its repurchases prior to such date. There were no BEPC exchangeable shares repurchased during the year ended December 31, 2024.

As at the date of this report, Brookfield Holders and the partnership, through their ownership of BEPC exchangeable shares, class A.2 exchangeable shares and BEPC class B shares, hold an approximate 79% voting interest in our company (assuming the maximum permitted number of the class A.2 exchangeable shares held by Brookfield Corporation are converted into BEPC exchangeable shares). Holders of BEPC exchangeable shares, excluding Brookfield Holders, hold an approximate 21% aggregate voting interest in BEPC.

CONTRACTUAL OBLIGATIONS

Please see Note 26 - Commitments, contingencies and guarantees in the audited annual consolidated financial statements, for further details on the following:

•Commitments - Water, land, and dam usage agreements, and agreements and conditions on committed acquisitions of operating portfolios and development projects;

•Contingencies - Legal proceedings, arbitrations and actions arising in the normal course of business, and providing for letters of credit; and

•Guarantees - Nature of all the indemnification undertakings and guarantees to third-parties for certain transactions.



						Page 106

OFF-STATEMENT OF FINANCIAL POSITION ARRANGEMENTS

Our company does not have any off-statement of financial position arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Our company issues letters of credit from its corporate credit facilities for general corporate purposes which include, but are not limited to, security deposits, performance bonds and guarantees for reserve accounts. As at December 31, 2024, letters of credit issued amounted to $1,002 million (2023: $1,135 million).

Two direct and indirect wholly owned subsidiaries of our company have fully and unconditionally guaranteed (i) any and all present and future unsecured debt securities issued by Brookfield Renewable Partners ULC, in each case as to payment of principal, premium (if any) and interest when and as the same will become due and payable under or in respect of the trust indenture under which such securities are issued, (ii) all present and future senior preferred shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as to the payment of dividends when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of BRP Equity, (iii) certain of BEP's preferred units, as to payment of distributions when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of BEP, (iv) the obligations of all present and future bilateral credit facilities established for the benefit of Brookfield Renewable, and (v) notes issued by Brookfield BRP Holdings (Canada) Inc. under its U.S. commercial paper program. BRP Bermuda Holdings I Limited ("BBHI") and BEP Subco Inc. subsidiaries of the company have guaranteed the perpetual subordinated notes issued by Brookfield BRP Holdings (Canada) Inc. These arrangements do not have or are not reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.



						Page 107

PART 6 - SELECTED QUARTERLY AND ANNUAL INFORMATION

HISTORICAL OPERATIONAL AND FINANCIAL INFORMATION RELATED TO THE PARTNERSHIP

As the market price of BEPC exchangeable shares is expected to be significantly impacted by the market price of the LP units and the combined business performance of Brookfield Renewable as a whole, we are providing the following historical operational and financial information regarding Brookfield Renewable. For further details please review the partnership's periodic reporting referenced in the introductory section of this MD&A.


YEAR ENDED DECEMBER 31 (MILLIONS, EXCEPT AS NOTED)	2024		2023		2022
Operational information:
Capacity (MW)	46,211		32,949		25,377
Total generation (GWh)
Long-term average generation	94,339		75,584		63,656
Actual generation	80,842		69,704		63,036
Proportionate generation (GWh)
Actual Renewable generation	30,947		29,082		28,403
Additional financial information:
Net income (loss) attributable to Unitholders	$ (464)		$ (100)		$ (295)
Basic income (loss) per LP unit(1)	(0.89)		(0.32)		(0.60)
Proportionate Adjusted EBITDA(2)	2,408		2,182		2,002
Funds From Operations(2)	1,217		1,095		1,005
Funds From Operations per Unit(2)(3)	1.83		1.67		1.56
Distribution per LP unit(3)	1.42		1.35		1.28
YEAR ENDED DECEMBER 31 (MILLIONS, EXCEPT AS NOTED)	2024		2023		2022
Property, plant and equipment, at fair value	$ 73,475		$ 64,005		$ 54,283
Equity-accounted investments	2,740		2,546		1,392
Total assets	94,809		76,128		64,111
Total borrowings	34,390		29,702		24,850
Deferred income tax liabilities	8,439		7,174		6,507
Other liabilities	15,524		9,273		6,468
Participating non-controlling interests - in operating subsidiaries	26,168		18,863		14,755
General partnership interest in a holding subsidiary held by Brookfield	50		55		59
Participating non-controlling interests - in a holding subsidiary - Redeemable/Exchangeable units held by Brookfield	2,457		2,684		2,892
BEPC exchangeable shares and class A.2 exchangeable shares	2,269		2,479		2,561
Preferred equity	537		583		571
Perpetual subordinated notes	737		592		592
Preferred limited partners' equity	634		760		760
Limited partners' equity	3,604		3,963		4,096
Total liabilities and equity	94,809		76,128		64,111
Debt-to-total capitalization (market value)(4)	40	%	40	%	39	%

(1)For the year ended December 31, 2024, average LP units totaled 285.5 million (2023: 282.4 million and 2022: 275.2 million)

(2)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure, See "Cautionary Statement Regarding Use of Non-IFRS Measures" and "PART 4 - Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures".

(3)Average Units outstanding for the year ended December 31, 2024 totaled 663.6 million (2023: 657.1 million and 2022: 645.9 million), being inclusive of LP units, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and class A.2 exchangeable shares and GP interest.

(4)Based on market values of Preferred equity, Perpetual subordinated notes, Preferred limited partners' equity, and Unitholder equity.



						Page 108

SUMMARY OF HISTORICAL QUARTERLY RESULTS

The following is a summary of unaudited quarterly financial information of our company for the last eight consecutive quarters:


	2024								2023
(MILLIONS)	Q4		Q3		Q2		Q1		Q4		Q3		Q2		Q1
Revenues	$	987	$	1,041	$	989	$	1,125	$	1,066	$	934	$	901	$	1,066
Net income (loss)	945		(664)		(339)		491		(502)		1,370		360		(920)
Net income (loss) attributable to the partnership	761		(674)		(342)		491		(747)		1,340		291		(1,065)



						Page 109

PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED DECEMBER 31, 2024 and 2023

The following chart reflects the generation and summary financial figures of our company on a proportionate basis for the three months ended December 31:


	(GWh)		(MILLIONS)
	Renewable Actual Generation		Revenues				Adjusted EBITDA(1)				Funds From Operations(1)
	2024	2023	2024		2023		2024		2023		2024		2023
Hydroelectric	3,029	3,219	$	272	$	273	$	129	$	173	$	69	$	103
Wind	738	621	61		45		132		29		112		22
Utility-scale Solar	262	362	28		43		57		32		40		19
Distributed energy & sustainable solutions(2)	182	218	25		23		16		24		9		19
Corporate	-	-	-		-		12		1		(31)		5
Total	4,211	4,420	$	386	$	384	$	346	$	259	$	199	$	168

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis.



						Page 110

RECONCILIATION OF NON-IFRS MEASURES

The following table reflects the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the three months ended December 31, 2024:



(MILLIONS)	Hydroelectric		Wind		Utility-scale solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	111	$	151	$	72	$	(30)	$	641	$	945
Add back or deduct the following:
Depreciation	129		72		67		24		-		292
Deferred income tax expense (recovery)	(10)		35		18		16		5		64
Foreign exchange and financial instrument gain	(65)		(32)		(59)		(4)		-		(160)
Other(1)	(36)		31		25		2		1		23
Dividends on BEPC exchangeable, class A.2 exchangeable shares and exchangeable shares of BRHC(2)	-		-		-		-		356		356
Remeasurement of interests held in BRHC by the partnership	-		-		-		-		(58)		(58)
Remeasurement of BEPC exchangeable and class A.2 exchangeable shares	-		-		-		-		(61)		(61)
Remeasurement of exchangeable and class B shares of BRHC	-		-		-		-		(915)		(915)
Management service costs	-		-		-		-		35		35
Interest expense(2)	158		53		56		12		-		279
Current income tax expense	17		2		12		6		-		37
Amount attributable to equity accounted investments and non-controlling interests(3)	(175)		(180)		(134)		(10)		8		(491)
Adjusted EBITDA attributable to the company	$	129	$	132	$	57	$	16	$	12	$	346

(2)Total interest expense of $635 million is comprised of Interest expense and Dividends on BEPC exchangeable, class A.2 exchangeable shares and exchangeable shares of BRHC.



						Page 111



(MILLIONS)	Hydroelectric		Wind		Utility-scale Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	98	$	102	$	159	$	10	$	(871)	$	(502)
Add back or deduct the following:
Depreciation	142		136		87		24		-		389
Deferred income tax recovery	(13)		(45)		(7)		(2)		(2)		(69)
Foreign exchange and financial instrument (gain) loss	(50)		39		(5)		(2)		(12)		(30)
Other(1)	4		(191)		(177)		(19)		-		(383)
Dividends on BEPC exchangeable shares(2)	-		-		-		-		61		61
Remeasurement of BEPC exchangeable and BEPC class B shares	-		-		-		-		816		816
Management service costs	-		-		-		-		(6)		(6)
Interest expense(2)	163		36		52		11		6		268
Current income tax expense	17		8		6		-		3		34
Amount attributable to equity accounted investments and non-controlling interests(3)	(188)		(56)		(83)		2		6		(319)
Adjusted EBITDA attributable to the company	$	173	$	29	$	32	$	24	$	1	$	259

(2)Total interest expense of $329 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.



						Page 112

The following table reconciles non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Funds From Operations for the three months ended December 31:


(MILLIONS, EXCEPT AS NOTED)	2024		2023
Net income (loss)	$	945	$	(502)
Add back or deduct the following:
Depreciation	292		389
Foreign exchange and financial instrument gain	(160)		(30)
Deferred income tax expense (recovery)	64		(69)
Other(1)	23		(383)
Dividends on BEPC exchangeable shares, class A.2 exchangeable shares and exchangeable shares of BRHC	356		61
Remeasurement of interests held in BRHC by the partnership	(58)		-
Remeasurement of BEPC exchangeable and BEPC class B shares	(61)		-
Remeasurement of exchangeable and class B shares of BRHC	(915)		816
Amount attributable to equity accounted investments and non-controlling interest(2)	(287)		(114)
Funds From Operations	$	199	$	168



						Page 113

PART 7 - BUSINESS RISKS AND RISK MANAGEMENT

RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

Management's objectives are to protect our company against material economic exposures and variability of results from various financial risks that include electricity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. These risks are further discussed in Note 5 - Risk management and financial instrumentsin the audited annual consolidated financial statements.

The following table outlines our company's financial risks and how they are managed:


Financial Risk	Description of Risk	Management of Risk
Electricity price	We have exposure to movements in the market price of electricity.	'- Enter into long-term contracts that specify the price at which electricity is sold - Maintain a portfolio of short, medium, and long-term financial contracts to mitigate our exposure to short-term fluctuations in electricity prices - Ensure limits and controls are in place for trading activities - As of December 31, 2024, we had on a proportionate basis approximately 88% of 2025 generation (2023: 88% of 2024 generation) contracted under power purchase agreements and financial contracts excluding Brazil and Colombia. In Brazil and Colombia, on a proportionate basis, we had approximately 80% and 85% of 2025 generation (2023: 93% and 70% of 2024 generation, respectively) contracted under power purchase agreements, respectively. See "Part 4 - Financial Performance Review on Proportionate Information"
Foreign currency	We are exposed to foreign currency risk - including Canadian dollar, Brazilian real, Euro, and Colombian peso - related to operations, anticipated transactions, and certain foreign currency debt.	'- Enter into foreign currency contracts designed to minimize the exposure to foreign currency fluctuations - 50% of cash flow is generated in the United States while Canadian Dollar and Euro exposure, representing 15% of our portfolio cash flow, is proactively managed through foreign currency contracts - Limited foreign currency contracts to hedge our exposure currencies in South America - representing 35% of our portfolio cash flow - due to the high costs of hedging certain currencies. However, these specific exposures are mitigated by the annual inflation-linked escalations in our power purchase agreements



						Page 114


Financial Risk	Description of Risk	Management of Risk
Interest rate	We are exposed to risk on the interest rates of our variable-rate debt.	'- Assets largely consist of long duration physical assets, and financial liabilities consist primarily of long-term fixed-rate debt or floating-rate debt that has been swapped to fixed-rates with interest rate financial instruments to minimize the exposure to interest rate fluctuations - Enter into interest rate contracts to lock-in fixed-rates on certain anticipated future debt issuances and on floating rate debts - Our proportionate floating rate exposure represents 20% of our total debt, after affecting for variable-rate debt that has been hedged through the use of interest rate swaps. Our variable-rate exposure arises primarily from our South American operations, as we have limited opportunities to raise fixed-rate debt or hedge due to the high associated costs
Credit	We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position. We are exposed to credit risk if counterparties to our energy contracts, interest rate swaps, forward foreign exchange contracts and physical electricity and gas transactions as well as trade receivables are unable to meet their obligations.	'- Diverse counterparty base with long standing credit histories - Exposure to counterparties with investment-grade credit ratings - Use of standard trading contracts and other standard credit risk mitigation techniques - As at December 31, 2024, 86% (2023: 92%) of the company's trade receivables were current



						Page 115


Financial Risk	Description of Risk	Management of Risk
Liquidity	We are exposed to liquidity risk for financial liabilities. We are also subject to internal liquidity risk because we conduct our business activities through separate legal entities (subsidiaries and affiliates) and are dependent on receipts of cash from those entities to defray corporate expenses and to make dividend payments to shareholders. Under the credit agreements for subsidiary debt, it is conventional for distributions of cash to our company to be prohibited if the loan is in default (notably for non-payment of principal or interest) or if the entity fails to achieve a benchmark debt service coverage ratio. Refer to Note 17 - Capital Management of the annual audited consolidated financial statements for further disclosures.	'- As at December 31, 2024, available group liquidity was $4.3 billion. Liquidity is comprised of the group's proportionate share of cash and cash equivalents, investments in marketable securities, the available portion of the corporate credit facilities, and share of subsidiary credit facilities. Details of the available portion of credit facilities and debt maturity ladder are included in "PART 5 - Liquidity and Capital Resources" - Effective and regular monitoring of debt covenants and cooperation with lenders to cure any defaults - Target investment grade debt or debt with investment grade characteristics with the ability to absorb volatility in cash flows - Long-term duration of debt instruments and the diversification in maturity dates over an extended period of time - Sufficient cash from operating activities, access to undrawn credit facilities, and possible capital markets financing to fund our operations and fulfill our obligations as they become due - Ensure access to public capital markets and maintain a strong investment grade credit rating



						Page 116

PART 8 - CRITICAL ESTIMATES, JUDGMENTS IN APPLYING ACCOUNTING POLICIES, AND INTERNAL CONTROLS

The audited consolidated financial statements of Brookfield Renewable Corporation as at December 31, 2024 and December 31, 2023 and for each of the years in the three years ended December 31, 2024 are prepared in accordance with IFRS, which require the use of estimates and judgments in reporting assets, liabilities, revenues, expenses and contingencies. In the judgment of management, none of the estimates outlined in Note 1 - Basis of presentation and material accounting policy information in the audited consolidated financial statements are considered critical accounting estimates with the exception of the estimates related to the valuation of property, plant and equipment, financial instruments, deferred income tax liabilities, decommissioning liabilities and impairment of goodwill. These assumptions include estimates of future electricity prices, discount rates, expected long-term average generation, inflation rates, terminal year, the amount and timing of operating and capital costs and the income tax rates of future income tax provisions. Estimates also include determination of accruals, provisions, purchase price allocations, useful lives, asset valuations, asset impairment testing and those relevant to the defined benefit pension and non-pension benefit plans. Estimates are based on historical experience, current trends and various other assumptions that are believed to be reasonable under the circumstances.

In making estimates, management relies on external information and observable conditions where possible, supplemented by internal analysis, as required. These estimates have been applied in a manner consistent with that in the prior year and there are no known trends, commitments, events or uncertainties that we believe will materially affect the methodology or assumptions utilized in this MD&A. These estimates are impacted by, among other things, future power prices, movements in interest rates, foreign exchange volatility and other factors, some of which are highly uncertain, as described in the "Risk Factors" section of our Form 20-F for the annual period ended December 31, 2024. The interrelated nature of these factors prevents us from quantifying the overall impact of these movements on our company's financial statements in a meaningful way. These sources of estimation uncertainty relate in varying degrees to substantially all asset and liability account balances. Actual results could differ from those estimates.

CRITICAL ESTIMATES

Our company makes estimates and assumptions that affect the carrying value of assets and liabilities, disclosure of contingent assets and liabilities and the reported amount of income and other comprehensive income for the year. Actual results could differ from these estimates. The estimates and assumptions that are critical to the determination of the amounts reported in the audited consolidated financial statements relate to the following:

(i)Property, plant and equipment

The fair value of our company's property, plant and equipment is calculated using estimates and assumptions about future electricity prices from renewable sources, anticipated long-term average generation, estimated operating and capital expenditures, future inflation rates and discount rates, as described in Note 12 - Property, plant and equipment, at fair value in our company's audited annual consolidated financial statements. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of our company's property, plant and equipment. See Note 1(u)(iii) - Critical judgments in applying accounting policies - Property, plant and equipment in our company's audited annual consolidated financial statements for further details.

Estimates of useful lives and residual values are used in determining depreciation and amortization. To ensure the accuracy of useful lives and residual values, these estimates are reviewed on an annual basis.

(ii)Financial instruments

Our company makes estimates and assumptions that affect the carrying value of its financial instruments, including estimates and assumptions about future electricity prices, long-term average generation, capacity prices, discount rates, the timing of energy delivery and the elements affecting fair value of the tax equity financings. Non-financial instruments are valued using estimates of future electricity prices which are estimated by considering broker quotes for the years in which there is a liquid market and for the subsequent years the company's best estimate of electricity prices that would allow new entrants into the market. This valuation technique approximates the net present value of future cash flows.



						Page 117

For power purchase agreements accounted for under IFRS 9 ("IFRS 9 PPAs") that have unobservable values, our company determines the fair value of these IFRS 9 PPAs using a discounted cash flow model based on the term of the contract and applies judgements surrounding the inputs used within the valuation model. The valuation model incorporates various inputs and assumptions including future power prices, contractual prices, contractual volumes and discount rates. Future power prices are based on broker quotes from independent sources and for IFRS 9 PPAs with no available broker quotes, future fuel driven merchant prices are incorporated within the model. Contractual prices are stipulated within each individual agreement, contractual volumes are either specified within the agreement or determined using future generation of the power generating assets and discount rate used in the valuation model is the credit adjusted risk free rate. See Note 5 - Risk management and financial instruments in our audited annual consolidated financial statements for more details.

(iii)Deferred income taxes

The audited consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying the temporary differences that relate to each subsidiary. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the audited consolidated statements of financial position dates. Operating plans and forecasts are used to estimate when the temporary difference will reverse based on future taxable income.

(iv) Decommissioning liabilities

Decommissioning costs will be incurred at the end of the operating life of some of the company's assets. These obligations are typically many years in the future and require judgment to estimate. The estimate of decommissioning costs can vary in response to many factors including changes in relevant legal, regulatory, and environmental requirements, the emergence of new restoration techniques or experience at other power generating facilities. Inherent in the calculations of these costs are assumptions and estimates including the ultimate settlement amounts, inflation factors, discount rates, and timing of settlements.

(v) Impairment of goodwill

The impairment assessment of goodwill requires estimation of the value-in-use or fair value less costs of disposal of the cash generating unit or units ("CGUs") or groups of CGUs to which goodwill has been allocated.

CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES

The following are the critical judgments that have been made in applying the accounting policies used in the audited consolidated financial statements that have the most significant effect on the amounts in the audited consolidated financial statements:

(i) Preparation of consolidated financial statements

These consolidated financial statements present the financial position, results of operations and cash flows of our company. Our company exercises judgment in determining whether non-wholly owned subsidiaries are controlled by our company. Our company's judgment included the determination of (i) how the relevant activities of the subsidiary are directed; (ii) whether the rights of shareholdings are substantive or protective in nature; and (iii) our company's ability to influence the returns of the subsidiary.

(ii) Common control transactions

Common control business combinations specifically fall outside of scope of IFRS 3 and as such management has used its judgment to determine an appropriate policy to account for these transactions by considering other relevant accounting guidance that is within the framework of principles in IFRS and that reflects the economic reality of the transactions. The company's policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor's financial statements, and to have the consolidated statements of income (loss), consolidated statements of comprehensive income (loss), consolidated statements of financial position, consolidated statements of changes in equity and consolidated statements of cash flows reflect the results of the combined entities for all periods presented for which the entities



						Page 118

were under the transferor's common control, irrespective of when the combination takes place. Differences between the consideration given and the assets and liabilities received are recorded directly to equity.

(iii) Property, plant and equipment

The accounting policy relating to our company's property, plant and equipment is described in Note 1(i) - Property, plant and equipment and revaluation method in the audited consolidated financial statements of our company. In applying this policy, judgment is used in determining whether certain costs are additions to the carrying amount of the property, plant and equipment as opposed to repairs and maintenance that are expensed when incurred. If an asset has been developed, judgment is required to identify the point at which the asset is capable of being used as intended and to identify the directly attributable costs to be included in the carrying value of the development asset. The useful lives of property, plant and equipment are determined by independent engineers periodically with an annual review by management.

Annually, our company determines the fair value of its property, plant and equipment using a methodology that it has judged to be reasonable. The methodology for hydroelectric assets is generally a twenty-year discounted cash flow model. Twenty years is the period considered reasonable as our company has twenty-year capital plans, and it believes a reasonable third party would be indifferent between extending the cash flows further in the model versus using a discounted terminal value. The methodology for wind, solar and other assets is to align the model length with the expected remaining useful life of the subject assets.

The valuation model incorporates future cash flows from long-term power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. With respect to estimated future generation that does not incorporate long-term power purchase agreement pricing, the cash flow model uses estimates of future electricity prices using broker quotes from independent sources for the years in which there is a liquid market. The valuation of generation not linked to long-term power purchase agreements also requires the development of a long-term estimate of future electricity prices. In this regard the valuation model uses a discount to the all-in cost of construction with a reasonable return to secure energy from a new renewable resource with a similar generation profile to the asset being valued as the benchmark that will establish the market price for electricity for renewable resources.

Our company's long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth by the years 2028 to 2035 in North America, 2030 in Colombia and 2028 in Brazil. The year of new entry is viewed as the point when generators must build additional capacity to maintain system reliability and provide an adequate level of reserve generation with the retirement of older coal-fired plants and rising environmental compliance costs in North America, and overall increasing demand in Colombia and Brazil. For the North American business, the company has estimated a discount to these new-build renewable asset prices to determine renewable electricity prices for hydroelectric, solar and wind facilities. In Brazil and Colombia, the estimate of future electricity prices is based on a similar approach as applied in North America using a forecast of the all-in cost of development.

Terminal values are included in the valuation of hydroelectric assets in North America and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset with consideration of a one-time thirty-year renewal on qualifying hydroelectric assets.

Discount rates are determined each year by considering the current interest rates, average market cost of capital as well as the price risk and the geographical location of the operational facilities as judged by management. Inflation rates are also determined by considering the current inflation rates and the expectations of future rates by economists. Operating costs are based on long-term budgets escalated for inflation. Each operational facility has a twenty-year capital plan that it follows to ensure the maximum life of its assets is achieved. Foreign exchange rates are forecasted by using the spot rates and the available forward rates, extrapolated beyond the period available. The inputs described above to the discounted cash flow model require management to consider facts, trends and plans in making its judgments as to what derives a reasonable fair value of its property, plant and equipment.



						Page 119

(iv) Financial instruments

The accounting policy relating to our company's financial instruments is described in Note 1(n) - Financial instruments in our audited annual consolidated financial statements. In applying the policy, judgments are made in applying the criteria set out in IFRS 9 - Financial instruments ("IFRS 9") to record financial instruments at fair value through profit and loss, fair value through other comprehensive income and the assessments of the effectiveness of hedging relationships.

For commodity derivatives that have unobservable value, our company applies judgements surrounding the inputs used within the valuation model. The valuation model incorporates various inputs and assumptions including forward power prices, contractual prices, contractual volumes and discount rates. Forward power prices are based on broker quotes from independent sources, contractual prices are stipulated within each individual agreement, contractual volumes are either specified within the agreement or determined using future generation of the power generating assets and discount rates are determined by considering the current interest rates, average market cost of capital as well as the price risk and geographical location of the power generating assets as judged by management.

(v) Deferred income taxes

The accounting policy relating to our company's income taxes is described in Note 1(p) - Income taxes in the audited consolidated financial statements of our company. In applying this policy, judgments are made in determining the probability of whether deductions, tax credits and tax losses can be utilized.

NEW ACCOUNTING STANDARDS

International Tax Reform - Amendments to IAS 12 - Pillar Two model rules

The company operates in countries, including Canada, which have enacted new legislation to implement the global minimum top-up tax, effective from January 1, 2024. The company has applied a temporary mandatory relief from recognizing and disclosing deferred taxes in connection with the global minimum top-up tax and will account for it as a current tax when it is incurred. There is no material current tax impact for the year ended December 31, 2024. The global minimum top-up tax is not anticipated to have a significant impact on the financial position of the company.

Amendments to IAS 1 - Presentation of Financial Statements ("IAS 1")

The amendments clarify how to classify debt and other liabilities as current or non-current. The amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2024. The company has assessed the impact of these amendments and have noted no impact to its financial statements.

FUTURE CHANGES IN ACCOUNTING POLICIES

IFRS 18 - Presentation and Disclosure in Financial Statements ("IFRS 18")

In April 2024, the IASB issued IFRS 18, Presentation and Disclosure of Financial Statements. IFRS 18 is effective for periods beginning on or after January 1, 2027, with early adoption permitted. IFRS 18 is expected to improve the quality of financial reporting by requiring defined subtotals in the statement of profit or loss, requiring disclosure about management-defined performance measures, and adding new principles for aggregation and disaggregation of information. The company has not yet determined the impact of this standard on its disclosures.

Amendments to IFRS 9 - Financial Instruments ("IFRS 9") and IFRS 7 - Financial Instruments: Disclosures ("IFRS 7") - Contracts Referencing Nature-Dependent Electricity

The amendments apply only to contracts referencing nature-dependent electricity and clarify the application of the "own-use" requirements, the use of hedge accounting, and adds new disclosure requirements around the effect of these contracts on company financial performance and cash flows. The amendments to IFRS 9 and IFRS 7 apply to annual reporting periods beginning on or after January 1, 2026. The company is currently assessing the impacts of these amendments.

There are currently no other future changes to IFRS with a potential material impact on the company.



						Page 120

SUBSEQUENT EVENTS

Subsequent to year-end, the company, together with its institutional partners, agreed to acquire a diversified operating and development platform in the U.S. with 3.9 GW of operating and under construction renewable power and storage assets and an over 30 GW development pipeline for equity consideration of approximately $950 million (expected $238 million net to the company). The terms of the transaction imply an enterprise value for the portfolio of $1,735 million. The closing of this transaction is expected to occur in the first half of 2025 and is subject to customary closing conditions.

PART 9 - PRESENTATION TO STAKEHOLDERS AND PERFORMANCE MEASUREMENT

PRESENTATION TO PUBLIC STAKEHOLDERS

Actual Generation

For assets acquired, disposed or reached commercial operation during the year, reported generation is calculated from the acquisition, disposition or commercial operation date and is not annualized. Generation on a same store basis refers to the generation of assets that were owned during both periods presented. As it relates to Colombia only, generation includes hydroelectric facilities. Distributed energy & sustainable solutions includes generation from our distributed generation, pumped storage, North America cogeneration and Brazil biomass assets.

Our risk of a generation shortfall in Brazil continues to be minimized by participation in the MRE administered by the government of Brazil. This program mitigates hydrology risk by assuring that all participants receive, at any particular point in time, an assured energy amount, irrespective of the actual volume of energy generated. The program reallocates energy, transferring surplus energy from those who generated an excess to those who generate less than their assured energy, up to the total generation within the pool. Periodically, low precipitation across the entire country's system could result in a temporary reduction of generation available for sale. During these periods, we expect that a higher proportion of thermal generation would be needed to balance supply and demand in the country, potentially leading to higher overall spot market prices.

Voting Agreements with Affiliates

Our company has entered into voting agreements with Brookfield and the partnership, whereby our company gained control of the entities that own certain renewable power generating facilities in the United States and Brazil, as well as TerraForm Power. Our company has also entered into a voting agreement with its consortium partners in respect of our Colombian business. The voting agreements provide our company the authority to direct the election of the boards of directors of the relevant entities, among other things, and therefore provide our company with control. Accordingly, our company consolidates the accounts of these entities.

For entities previously controlled by Brookfield Corporation the voting agreements entered into do not represent business combinations in accordance with IFRS 3, as all combining businesses are ultimately controlled by Brookfield Corporation both before and after the transactions were completed. Our company accounts for these transactions involving entities under common control in a manner similar to a pooling of interest, which requires the presentation of pre-voting agreement financial information as if the transactions had always been in place. Refer to Note 1(u)(ii) - Critical judgments in applying accounting policies - Common control transactions in our audited annual consolidated financial statements for our policy on accounting for transactions under common control.

PERFORMANCE MEASUREMENT

Segment Information

Our operations are segmented by - 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy & sustainable solutions (distributed generation, pumped storage, carbon capture and storage, cogeneration, biomass, and eFuels), and 5) corporate. This best reflects the way in which the CODM reviews results, manages operations and allocates resources.



						Page 121

We report our results in accordance with these segments and present prior period segmented information in a consistent manner. See Note 6 - Segmented information in our audited annual consolidated financial statements.

One of our primary business objectives is to generate stable and growing cash flows while minimizing risk for the benefit of all stakeholders. We monitor our performance in this regard through three key metrics - i) Net Income (Loss), ii) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Adjusted EBITDA"), and iii) Funds From Operations.

It is important to highlight that Adjusted EBITDA and Funds From Operations do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other companies and have limitations as analytical tools. We provide additional information below on how we determine Adjusted EBITDA and Funds From Operations. We also provide reconciliations to Net income (loss). See "Part 4 - Financial Performance Review on Proportionate Information - Reconciliation of Non-IFRS Measures" and "Part 6 - Selected Quarterly and Annual Information - Reconciliation of Non-IFRS measures".

Proportionate Information

Reporting to the CODM on the measures utilized to assess performance and allocate resources has been provided on a proportionate basis. Information on a proportionate basis reflects our company's share from facilities which it accounts for using consolidation and the equity method whereby our company either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a shareholder perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results that can be allocated to shareholders.

Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate basis have been disclosed. Segment revenues, other income, direct operating costs, interest expense, current income taxes, and other are items that will differ from results presented in accordance with IFRS as these items (1) include our company's proportionate share of earnings (loss) from equity-accounted investments attributable to each of the above-noted items, (2) exclude the proportionate share of earnings (loss) of consolidated investments not held by us apportioned to each of the above-noted items, and (3) other income includes but is not limited to our proportionate share of settled foreign currency and other hedges, income earned on financial assets and structured investments in sustainable solutions, monetization of tax attributes at certain development projects and realized disposition gains on non-core assets and on recently developed assets that we have monetized to reflect the economic value created from our development activities as we design, build and commercialize new renewable energy capacity and sell these assets to lower cost of capital buyers which may not otherwise be reflected in our consolidated statements of income.

The presentation of proportionate results has limitations as an analytical tool, including the following:

•The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and

•Other companies may calculate proportionate results differently than we do.

Because of these limitations, our proportionate financial information should not be considered in isolation or as a substitute for our financial statements as reported under IFRS.

Our company does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its financial statements. The presentation of the assets and liabilities and revenues and expenses do not represent our company's legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish our company's legal claims or exposures to such items.

Unless the context indicates or requires otherwise, information with respect to the megawatts ("MW") attributable to our company's facilities, including development assets, is presented on a consolidated basis, including with respect to facilities whereby our company either controls or jointly controls the applicable facility.



						Page 122

Net Income (Loss)

Net income (loss) is calculated in accordance with IFRS.

Net income (loss) is an important measure of profitability, in particular because it has a standardized meaning under IFRS. The presentation of net income (loss) on an IFRS basis for our business will often lead to the recognition of a loss even though the underlying cash flows generated by the assets are supported by strong margins and stable, long-term power purchase agreements. The primary reason for this is that accounting rules require us to recognize a significantly higher level of depreciation for our assets than we are required to reinvest in the business as sustaining capital expenditures.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS measure used by investors to analyze the operating performance of companies.

Our company uses Adjusted EBITDA to assess the performance of our operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash income or loss from equity-accounted investments, distributions to preferred shareholders, preferred limited partnership unit holders, perpetual subordinated noteholders and other typical non-recurring items. Our company adjusts for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. Our company includes other income within Adjusted EBITDA in order to provide additional insight regarding the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in the current period.

Our company believes that presentation of this measure will enhance an investor's ability to evaluate our financial and operating performance on an allocable basis.

Funds From Operations

Funds From Operations is a non-IFRS measure used by investors to analyze net earnings from operations without the effects of certain volatile items that generally have no current financial impact or items not directly related to the performance of the business.

Our company uses Funds From Operations to assess the performance of our company before the effects of certain cash items (e.g. acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g. deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. The company includes other income in order to provide additional insight regarding the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in the current period. In the audited annual consolidated financial statements of our company, the revaluation approach is used in accordance with IAS 16, Property, Plant and Equipment, whereby depreciation is determined based on a revalued amount, thereby reducing comparability with peers who do not report under IFRS as issued by the IASB or who do not employ the revaluation approach to measuring property, plant and equipment. Management adds back deferred income taxes on the basis that they do not believe this item reflects the present value of the actual tax obligations that they expect our company to incur over the long-term investment horizon of our company.

Our company believes that analysis and presentation of Funds From Operations on this basis will enhance an investor's understanding of the performance of the business.

Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada ("REALPAC") and the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). Furthermore, this measure is not used by the CODM to assess our company's liquidity.



						Page 123

Proportionate Debt

Proportionate debt is presented based on the proportionate share of borrowings obligations relating to the investments of our company in various portfolio businesses. The proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Proportionate debt measures are provided because management believes it assists investors and analysts in estimating the overall performance and understanding the leverage pertaining specifically to our company's share of its invested capital in a given investment. When used in conjunction with Proportionate Adjusted EBITDA, proportionate debt is expected to provide useful information as to how our company has financed its businesses at the asset-level. Management believes that the proportionate presentation, when read in conjunction with our company's reported results under IFRS, including consolidated debt, provides a more meaningful assessment of how the operations of our company are performing and capital is being managed.

The presentation of proportionate results has limitations as an analytical tool, including the following:

•Proportionate debt amounts do not represent the consolidated obligation for debt underlying a consolidated investment. If an individual project does not generate sufficient cash flows to service the entire amount of its debt payments, management may determine, in their discretion, to pay the shortfall through an equity injection to Brookfield Renewable Corporation to avoid defaulting on the obligation. Such a shortfall may not be apparent from or may not equal the difference between aggregate Proportionate Adjusted EBITDA for all of the portfolio investments of our company and aggregate proportionate debt for all of the portfolio investments of our company; and

•Other companies may calculate proportionate debt differently.

Because of these limitations, the proportionate financial information of our company should not be considered in isolation or as a substitute for the financial statements of our company as reported under IFRS.



						Page 124

5.B LIQUIDITY AND CAPITAL RESOURCES

See Item 5.A "Operating Results - Liquidity and Capital Resources"

PRICE RANGE AND TRADING VOLUME OF THE BEP UNITS

The BEP units are listed and posted for trading on the NYSE under the symbol "BEP". The following table sets forth the price ranges and trading volumes of the BEP units as reported by the NYSE for the periods indicated, in United States dollars (see Item 4.A "History and Development of the Company-History and Development of Our Business"):


	BEP Units
	High	Low	Volume
	($)	($)
2025
January 1, 2025 - February 21, 2025	24.09	19.92	30,510,906
2024
January 1, 2024 - March 31, 2024	27.47	21.85	27,948,612
April 1, 2024 - June 30, 2024	28.81	19.92	35,115,415
July 1, 2024 - September 30, 2024	28.61	22.76	27,450,632
October 1, 2024 - December 31, 2024	29.56	22.23	32,053,487
2023
January 1, 2023 - March 31, 2023	31.6	25.5	20,360,920
April 1, 2023 - June 30, 2023	32.76	28.57	15,120,812
July 1, 2023 - September 30, 2023	30.32	21.46	23,404,551
October 1, 2023 - December 31, 2023	27.81	25.5	20,360,920
2022
January 1, 2022 - March 31, 2022	41.66	30.93	28,395,267
April 1, 2022 - June 30, 2022	41.95	32.78	18,962,568
July 1, 2022 - September 30, 2022	41.3	30.85	15,205,028
October 1, 2022 - December 31, 2022	32.85	24.13	27,219,586

The BEP units are listed and posted for trading on the TSX under the symbol "BEP.UN". The following table sets forth the price ranges and trading volumes of the BEP units as reported by the TSX for the periods indicated, in Canadian dollars (see Item 4.A "History and Development of the Company-History and Development of Our Business"):



						Page 125


	BEP Units
	High	Low	Volume
	(C$)	(C$)
2025
January 1, 2025 - February 21, 2025	34.49	28.65	15,410,260
2024
January 1, 2024 - March 31, 2024	36.76	29.73	15,114,869
April 1, 2024 - June 30, 2024	39.85	27.55	21,557,712
July 1, 2024 - September 30, 2024	38.67	31.68	19,007,134
October 1, 2024 - December 31, 2024	40.84	32.02	18,832,436
2023
January 1, 2023 - March 31, 2023	42.74	34.74	13,663,336
April 1, 2023 - June 30, 2023	44.13	37.89	9,648,693
July 1, 2023 - September 30, 2023	39.9	29.15	12,267,967
October 1, 2023 - December 31, 2023	37.24	27.43	18,516,932
2022
January 1, 2022 - March 31, 2022	52.98	39.24	20,351,742
April 1, 2022 - June 30, 2022	52.38	42.77	14,555,802
July 1, 2022 - September 30, 2022	53.09	42.24	11,832,868
October 1, 2022 - December 31, 2022	44.81	32.58	21,022,986

5.C RESEARCH AND DEVELOPMENT, PATENTS AND LICENSES, ETC.

None.

5.D TREND INFORMATION

See Item 4.B "Business Overview - Renewable Power Growth Opportunity" to understand our global renewable power drivers, core markets and growth opportunities.

See Item 5.A "Operating Results" for information on the following trend information:

•"- Financial Performance Review on Proportionate Information" (variability of generation);

•"- Liquidity and Capital Resources" (funding of growth initiatives, capital expenditures, distributions and general business purposes); and

•"- Contract Profile" (Funds From Operations).

5.E CRITICAL ACCOUNTING ESTIMATES

See Item 5.A, "Operating Results - Part 8 - Critical Estimates and Accounting Policies".



						Page 126

Attachments

Disclaimer

Brookfield Renewable Corporation published this content on February 28, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on February 28, 2025 at 23:07:24.684.

Are you a professional?

28/02/2025 - Brookfield Corporation: Annual Report for Fiscal Year Ending December 31, 2024 (Form 20-F)

MoneyController also suggests

Immediately check your securities portfolio for free

Finance Forum

MoneyController Advisor

Fund/ETF rankings

You have reached the maximum
number of requests.
You can no longer send.

28/02/2025 - Brookfield Corporation: Annual Report for Fiscal Year Ending December 31, 2024 (Form 20-F)

MoneyController also suggests

Immediately check your securities portfolio for free

Finance Forum

MoneyController Advisor

Fund/ETF rankings

You have reached the maximum number of requests. You can no longer send.

Become Member

€2,99per month

Become Member

€2,99per month

You have reached the maximum
number of requests.
You can no longer send.

Become
Member

Become
Member