Brookfield Renewable Energy Partners LP Annual Report 2019

FY2019 Annual Report · Brookfield Renewable Energy Partners LP

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Our Operations

We invest in renewable assets directly, as well as with institutional partners, joint venture partners and through
other arrangements. Our portfolio of assets has approximately 19,000 MW of capacity and annualized LTA generation
of approximately 56,700 GWh, in addition to a development pipeline of approximately 13,000 MW, making us one of
the largest pure-play public renewable companies in the world. We leverage our extensive operating experience to
maintain and enhance the value of assets, grow cash flows on an annual basis and cultivate positive relations with local
stakeholders. The table below outlines our portfolio as at December 31, 2019:

Hydroelectric

North America

United States ...................................................

Canada ............................................................

Colombia ...........................................................

Brazil .................................................................

Wind

North America

United States ...................................................

Canada ............................................................

Europe................................................................

Brazil .................................................................

Asia....................................................................

Solar

Utility(2)..............................................................
Distributed generation .......................................

Storage(3) ..............................................................
Other(4)..................................................................

River
Systems

Facilities

Capacity
(MW)

LTA(1)
(GWh)

—

136

169

219

102

4,844

4,934

2,885

1,361

4,246

2,732

946

7,924

1,888

482

2,370

1,056

552

660

4,638

2,258

775

3,033

2,698

590

11,982

5,177

17,159

14,485

4,924

36,568

6,898

1,437

8,335

2,436

1,901

1,650

14,322

4,691

1,085

5,776

—

5,274

18,883

56,666

Storage
Capacity
(GWh)

2,523

1,261

3,784

3,703

—

7,487

—

5,220

—

12,707

(1)

(2)

(3)

(4)

LTA is calculated based on our portfolio as at December 31, 2019, reflecting all facilities on a consolidated and an annualized basis from the
beginning of the year, regardless of the acquisition, disposition or commercial operation date. See Item 5.A “Part 9 – Presentation to Stakeholders
and Performance Measurement” for an explanation on our methodology in computing LTA and why we do not consider LTA for our Storage
and Other facilities.
Includes seven solar facilities (91 MW) in South Africa and Asia that have been presented as Assets held for sale.
Includes pumped storage in North America (600 MW) and Europe (2,088 MW) and battery storage in North America (10 MW).
Includes four biomass facilities in Brazil (175 MW), one cogeneration plant in Colombia (300 MW), and one cogeneration plant in North
America (105 MW) and nine fuel cell facilities in North America (10 MW).

The following table presents the annualized long-term average generation of our portfolio as at December 31, 2019

on a consolidated and quarterly basis:

GENERATION (GWh)(1)

Total

Hydroelectric

North America

United States.............................

Canada ......................................

Colombia .....................................

Brazil ...........................................

Wind

North America

United States.............................

Canada ......................................

Europe .........................................

Brazil ...........................................

Asia..............................................

Solar

Utility(2) .......................................

Distributed generation .................

Total ...............................................
(1)

3,404

1,228

4,632

3,316

1,215

9,163

1,906

400

2,306

743

361

368

3,778

922

218

1,140

14,081

3,474

1,508

4,982

3,612

1,228

9,822

1,833

345

2,178

554

423

440

3,595

1,411

344

1,755

15,172

2,178

1,223

3,401

3,535

1,241

8,177

1,352

273

1,625

493

627

454

3,199

1,485

330

1,815

13,191

2,926

1,218

4,144

4,022

1,240

9,406

1,807

419

2,226

646

490

388

3,750

873

193

1,066

14,222

11,982

5,177

17,159

14,485

4,924

36,568

6,898

1,437

8,335

2,436

1,901

1,650

14,322

4,691

1,085

5,776

56,666

LTA is calculated based on our portfolio as at December 31, 2019, reflecting all facilities on an annualized basis from the beginning of the
year, regardless of the acquisition, disposition or commercial operation date. See Item 5.A “Part 9 – Presentation to Stakeholders and Performance
Measurement” for an explanation on our methodology in computing LTA and why we do not consider LTA for our Storage and Other facilities.
Includes seven solar facilities (91 MW) in South Africa and Asia that have been presented as Assets held for sale.

(2)

The following table presents the annualized long-term average generation of our portfolio as at December 31, 2019

on a proportionate and quarterly basis:

GENERATION (GWh)(1)

Total

Hydroelectric

North America

United States.............................

Canada ......................................

Colombia .....................................

Brazil ...........................................

Wind

North America

United States.............................

Canada ......................................

Europe .........................................

Brazil ...........................................

Asia..............................................

Solar

Utility(2) .......................................

Distributed generation .................

Total ...............................................
(1)

2,223

1,007

3,230

798

988

5,016

606

346

952

246

119

105

1,422

198

262

6,700

2,364

1,219

3,583

869

998

5,450

626

307

933

183

141

126

1,383

304

102

406

7,239

1,469

974

2,443

853

1,009

4,305

453

248

701

163

215

129

1,208

315

412

5,925

1,953

959

2,912

969

1,009

4,890

569

365

934

216

172

112

1,434

186

243

6,567

8,009

4,159

12,168

3,489

4,004

19,661

2,254

1,266

3,520

808

647

472

5,447

1,003

320

1,323

26,431

(2)

Statement Regarding Forward-Looking Statements and Use of Non-IFRS Measures
This Annual Report contains forward-looking information within the meaning of U.S. and Canadian securities laws. We may make such statements
in this Annual Report and in other filing with the U.S. Securities and Exchange Commission ("SEC") and with securities regulators in Canada -
see "PART 10 - Cautionary Statements". We make use of non-IFRS measures in this Annual Report - see "Part 10 - Cautionary Statements". This
Annual Report, our Form 20-F and additional information filed with the SEC and with Securities regulators in Canada are available on our website
at https://bep.brookfield.com, on the SEC's website at www.sec.gov or on SEDAR's website at www.sedar.com.

.Letter to Unitholders

2019 was another positive year for the business. We achieved strong performance throughout our operations,
increased margins within recently acquired businesses, and deployed capital in line with our targets. More
importantly, our growth over the past twenty years has enabled us to establish ourselves as one of the largest
renewable power investors and operators globally. This is backed by a multi-decade track record of generating
strong returns across hydro, wind, solar and storage assets. Accordingly, we are very well positioned to
participate in the decarbonization of global electricity grids that will occur over the next 25 to 50 years.

Our capabilities provide communities, governments and the private sector around the world the ability to
accelerate the transition to a greener future. Today, our capacity is approximately 19,000 megawatts of
electricity from renewable resources. This production avoids approximately 27 million tons of carbon dioxide
emissions annually. With our development pipeline, we would create enough carbon free power to displace
an additional 17 million metric tons of carbon dioxide per year. To put this into perspective, just from our
existing fleet today, we displace all of the carbon dioxide emissions generated by London, England each
year. Alternatively, we could displace the amount generated by many energy and technology firms who are
looking to lower their footprint to carbon neutral by 2030 or so.

We are proud that the amount of carbon we avoid is equivalent to removing 6 million vehicles from the road
or planting 450 million trees. We highlight this to you now given the focus many organizations are placing
on reducing carbon dioxide emissions. We think it is useful for our unitholders to consider the impact our
business is already making on communities, businesses, employees and governments when making their
long-term investment decisions. We remain committed to earning a strong compound return for you over
the longer term on a per unit basis, but also remain steadfast in our commitment to be a leader in
decarbonization. This will enable you to earn a good return but also contribute to a better world.

Highlights for the year include:

•

Increased FFO per unit by 13% driven by accretive growth and strong operational performance.
We continue our track record of strong FFO per unit growth, at a 10% annual growth rate since
our strategic combination with Brookfield’s renewable assets in 2011;

• We advanced key commercial priorities and delivered on cost saving initiatives totaling ~$40

million globally on an annualized basis (~$12 million net to BEP);

•

Invested $2 billion ($550 million net to BEP) of equity in nine transactions, including doubling the
size of our Asian and distributed generation businesses, adding a leading global solar developer,
and investing in a hydro portfolio in Canada;

Commissioned 50 megawatts of new capacity, progressed approximately 2,100 megawatts
through construction and advanced-stage permitting, and increased the size of our development
pipeline to approximately 13,000 megawatts;

• Maintained our robust investment grade balance sheet, ended the year with ~$2.7 billion of

available liquidity, and raised approximately $1.4 billion in incremental liquidity through asset
sales and strategic upfinancings; and

•

Announced the creation of a Canadian corporation (BEPC) that will provide investors the
optionality to invest in BEP through either the current partnership or through a corporation, which
is expected to support the expansion of our investor base.

Update on Growth Initiatives

During the fourth quarter, we closed our acquisition of a 50% interest in X-Elio, a leading global solar developer.
With this acquisition, we have significantly enhanced our solar development capabilities adding 972
megawatts of operating assets and almost 6,000 megawatts to our global construction and development
pipeline.

Also, in the fourth quarter, we signed two agreements to acquire 14 solar development projects in Brazil with
428 MW of total capacity for total consideration of $120 million ($30 million net to BEP). Both these transactions
are expected to close in the first quarter of 2020 and represent attractive additions to our business in Brazil
with approximately 2,100 MW of capacity across multiple technologies - hydro, wind and solar. Furthermore,
through our interest in TerraForm Power, we acquired 44 MW of PV solar assets in Spain for $70 million and
signed an agreement to acquire 100 MW of solar CSP assets in Spain, located proximate to TerraForm
Power’s CSP plants, for $115 million, which TerraForm Power expects to close in the first quarter of 2020.

Additionally, in January, we announced a non-binding, all-share proposal to acquire the outstanding shares
of TerraForm Power, other than the 62% owned by us and our institutional partners, at a BEP-to-TERP
exchange ratio of 0.36. We believe this transaction will create significant value for investors in both companies
by simplifying our corporate structure in an immediately accretive transaction which will further strengthen
Brookfield Renewable’s position as one of the largest, public pure-play renewable power companies in the
world.

Operations

In 2019, we generated FFO of $761 million, a 13% increase over the prior year, as the business benefitted
from recent acquisitions, strong operational performance, and execution on margin enhancement initiatives.

During the year, our hydroelectric segment delivered FFO of $720 million, representing a 7% increase over
the prior year. Our storage segment also performed well, generating $27 million of FFO in the year, as our
portfolio continues to provide critical grid-stabilizing ancillary services and backup capacity to increasingly
intermittent grids. During the year, our generation was roughly in-line with the long-term average as we
continue to benefit from the diversity of our fleet. Our priority over the past decade has been to diversify the
business which, over the long-term, mitigates exposure to resource volatility, regional or market disruptions,
and potential credit events. We also continued to execute on key contracting initiatives across all our
businesses.

Our focus in Latin America continues to be on extending the average duration of our power purchase
agreements, which today stands at 10 years in Brazil and 3 years in Colombia, as well as signing contracts
with high-quality, credit-worthy counterparties. Globally, we continue to see increasing value ascribed to the
unique, scale renewable storage capabilities that hydroelectric assets provide to increasingly intermittent
electricity grids. For example, in Colombia we secured ~$3 million of ancillary services revenues, in the
United States, we qualified to receive the highest-tier renewable energy credits for a number of our
hydroelectric assets in the Northeast which will contribute ~$3 million to FFO annually, and in the U.K., our
First Hydro portfolio was the critical link to restarting the grid following a nation-wide blackout in August.

Our wind and solar segments generated a combined $274 million of FFO, representing an 18% increase
over the prior year. These portfolios benefitted from contributions from recent growth initiatives including the
acquisition of two wind portfolios in Asia, and, through our interest in TerraForm Power, a large distributed
generation portfolio in the United States and full-year contributions from Saeta Yield, a scale European wind
and solar portfolio. We also benefitted from executing on opportunistic O&M outsourcing agreements aimed
at de-risking the portfolios owned by TerraForm Power and, where appropriate, delivering cost savings. We
executed on three such agreements across TerraForm Power, and our wind portfolio in Brazil. A common
theme across all these opportunities was attractive availability guarantees and a more comprehensive scope
than what was currently in place. At TerraForm Power, these initiatives will deliver aggregate cost savings
of approximately $30 million ($9 million net to BEP).

Finally, we continued to advance our global greenfield development activities, including progressing 717
megawatts of construction diversified across distributed- and utility-scale solar, wind, storage and hydro in
7 different countries. We are also progressing 1,380 megawatts of advanced-stage projects through final
permitting and contracting, and our total greenfield development pipeline now totals approximately 13,000
megawatts. Of note, during the year, we signed power purchase agreements for three wind repowering
projects in New York and California totaling 220 megawatts, and these projects are expected to be
commissioned in 2021.

Environmental, Social and Governance (ESG) Reporting

We have been owner-operators of long-duration, critical electricity assets for over a century, and therefore
understand that embedding strong ESG practices into our investing and operating activities is essential to
preserving capital, mitigating risk, and creating long-term value. Fundamentally, strong ESG practices drive
further economic value to our business and inherently create higher barriers to entry. As such, we integrate
relevant ESG considerations into our investing and operating strategies. We are therefore proud to announce
that we are publishing our inaugural ESG report, which, among other things, illustrates the on-the-ground
work we do to maintain our social license to operate.

With one of the largest public, pure-play renewable portfolios globally, we are helping to accelerate the
decarbonization of global electricity grids. Additionally, maintaining socially responsible practices - from health
and safety to community relations to biodiversity - is a critical component of successful operations over the
long-term. We operate with the highest ethical standards, conducting our business with integrity and above
compliance with laws and regulations - we aim for best practice everywhere we operate.

ESG and sustainability investing continues to gain momentum globally, with ESG funds expected to rise into
the trillions over the next decade. We believe our portfolio’s inherent environmental attributes, coupled with
our long-standing practices around maintaining a social license to operate provide significant tailwinds to
demand growth for Brookfield Renewable.

Balance Sheet and Liquidity

Our liquidity position remains robust, with ~$2.7 billion of total available liquidity at year-end. During the year,
we executed on key financing and capital raising initiatives aimed at maintaining robust access to capital, a
prudent debt maturity ladder, and a low-risk, investment grade balance sheet.

During the year, we executed on more than $6 billion of financings across the business which allowed us to
raise $1 billion of incremental liquidity to BEP, extend our average debt portfolio duration to 10 years, and
reduce annual interest costs by ~$15 million ($9 million net to BEP). Of note, we continue to advance our
green financing strategy in order to capitalize on growing demand for carbon-free debt products and diversify
our debt investor base.

To date, we have issued six green bonds, at both the corporate- and project-levels, which all together totaled
approximately $2.4 billion. During the fourth quarter, we also closed our first incentive-linked loan as part of
our corporate credit facility that will allow us to reduce our cost of borrowing as we continue to accelerate
the decarbonization of global electricity grids. As demand for sustainability focused investing continues to
grow, we expect green financings and sustainability-linked loans will increasingly become a more prominent
funding lever within our business.

In 2019, we also continued to execute our capital recycling strategy of selling mature, de-risked or non-core
assets to lower cost of capital buyers and redeploying the proceeds into higher yielding opportunities. During
the year, we raised almost $600 million ($365 million net to BEP) through this funding strategy, allowing us
to crystallize an approximate 18% return on our Portuguese and Northern Ireland wind assets and to return
more than two times our capital invested in South Africa.

Distribution Increase
In light of recent growth, strong balance sheet and access to capital, on January 13th, we announced that
our Board of Directors approved our 2020 quarterly distribution and raised it by 5%, bringing our total annual
distribution per unit to $2.17. This increase continues our track record of growing our distribution since our
IPO in 1999 at an annual rate of 6%.

Outlook

Our long-term goal remains, as always, to deliver 12% to 15% long-term total returns on a per unit basis
through the prudent execution of our capital allocation strategy, application of our operating expertise to both
enhance value and de-risk our business, while maintaining an investment grade balance sheet.

On a final note, on behalf of our employees and directors, we would like to express our sincerest appreciation
to our unitholders and many business partners for your contributions to our success. Thank you for your
continued support. We look forward to updating you on our progress in 2020.

Sincerely,

Sachin Shah

Chief Executive Officer

OUR COMPETIVE STRENGTHS

Brookfield Renewable Partners L.P. ("Brookfield Renewable") is a globally diversified, multi-technology, owner

and operator of renewable power assets.

Our business model is to utilize our global reach to acquire and develop high quality renewable power assets below
intrinsic value, finance them on a long-term, low-risk and investment grade basis through a conservative financing
strategy and then optimize cash flows by applying our operating expertise to enhance value.

One of the largest, public pure play renewable businesses globally. Brookfield Renewable has a 20 year track
record as a publicly traded operator and investor in the renewable power sector. Today we have a large, multi-technology
and globally diversified portfolio of pure-play renewable assets that are supported by approximately 3,000 experienced
operators. Brookfield Renewable invests in renewable assets directly, as well as with institutional partners, joint venture
partners and through other arrangements. Our portfolio consists of approximately 19,000 MW of installed capacity
largely across four continents, a development pipeline of approximately 13,000 MW, and annualized long-term average
generation on a proportionate basis of approximately 26,400 GWh.

The following charts illustrate annualized long-term average generation on a proportionate basis:

Source of Energy

Solar
5%

Wind
21%

Hydro
74%

Region

Europe
4%

Latin
America
& Asia
34%

North
America
62%

Stable, diversified and high quality cash flows with attractive long-term value for LP Unitholders. We intend to
maintain a highly stable, predictable cash flow profile sourced from a diversified portfolio of low operating cost, long-
life hydroelectric, wind and solar assets that sell electricity under long-term, fixed price contracts with creditworthy
counterparties. Approximately 95% of our 2020 proportionate generation output is contracted to public power
authorities, load-serving utilities, industrial users or to Brookfield. Our PPAs have a weighted-average remaining
duration of 13 years, on a proportionate basis, providing long-term cash flow visibility.

Strong financial profile and conservative financing strategy. Brookfield Renewable maintains a robust balance
sheet, strong investment grade rating, and access to global capital markets to ensure cash flow resiliency through the
cycle. Our approach to financing is to raise the majority of our debt in the form of asset-specific, non-recourse borrowings
at our subsidiaries on an investment grade basis with no financial maintenance covenants. Approximately 95% of our
debt is either investment grade rated or sized to investment grade. Our corporate debt to total capitalization is 16% and
approximately 80% of our borrowings are non-recourse. Corporate borrowings and non-recourse borrowings each have
weighted-average terms of approximately ten years, with no material maturities over the next five years. Approximately
90% of our financings are fixed rate, and only 5% of our debt in North America and Europe is exposed to changes in
interest rates. Our available liquidity as at December 31, 2019 is approximately $2.7 billion of cash and cash equivalents,
investments in marketable securities and the available portion of credit facilities.

Best-in class operating expertise. Brookfield Renewable has approximately 3,000 experienced operators and over
140 power marketing experts that are located across the globe to help optimize the performance and maximize the

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 1

returns of all our assets. Our expertise in operating and managing power generation facilities span over 100 years and
include full operating, development and power marketing capabilities.

Well positioned for cash flow growth. We are focused on driving cash flow growth from existing operations, fully
funded by internally generated cash flow, including inflation escalations in our contracts, margin expansion through
revenue growth and cost reduction initiatives, and building out our approximately 13,000 MW proprietary development
pipeline at premium returns. While we do not rely on acquisitions to achieve our growth targets, our business seeks
upside through engagement in mergers and acquisitions on an opportunistic basis. We employ a contrarian strategy,
and our global scale and multi-technology capabilities allow us to rotate capital where it is scarce in order to earn strong
risk-adjusted returns. We take a disciplined approach to allocating capital into development and acquisitions with a
focus on downside protection and preservation of capital. In the last five years, we have deployed $3.5 billion in equity
as we have invested in, acquired, or commissioned approximately 12,900 MW across hydroelectric, wind, solar and
storage facilities. Our ability to develop and acquire assets is strengthened by our established operating and project
development teams across the globe, strategic relationship with Brookfield, and our liquidity and capitalization profile.
We have, in the past, and may continue in the future to pursue the acquisition or development of assets through
arrangements with institutional investors in Brookfield sponsored or co-sponsored partnerships.

Attractive distribution profile. We pursue a strategy which we expect will provide for highly stable, predictable
cash flows ensuring a sustainable distribution yield. We target a long-term distribution growth rate in the range of 5%
to 9% annually.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 2

ENVIRONMENTAL, SOCIAL AND GOVERNANCE ("ESG") MANAGEMENT

Introduction

At Brookfield Renewable, we have over 120 years of experience operating critical, long-duration electricity
assets. With this depth of experience comes the understanding that maintaining a social license to operate is central to
preserving capital, mitigating risk, and creating long-term value. Fundamentally, strong ESG practices drive further
economic value to our business and inherently create higher barriers to entry. Most importantly, operating a business
with strong ESG principles is just the right thing to do. As such, we integrate relevant ESG considerations into our
investing and operating strategies. We believe this philosophy creates an inherent alignment of interest between us and
our partners, investors and stakeholders.

As one of the largest owners, operators and investors in renewable power assets globally, we are helping to
accelerate the decarbonization of electricity grids. Our carbon footprint is one of the lowest in the sector, and our annual
generation of 57 terawatt-hours avoids approximately 27 million metric tons of carbon dioxide emissions annually. We
offer public investors access to one of the largest public, pure-play renewable power companies globally. As one of the
largest issuers of green bonds globally, we offer debt investors the ability to invest in our renewable power portfolio
or in assets directly. Finally, we offer customers the ability to procure renewable generation across multiple technologies,
and in 2020, we have nearly 18,000 gigawatt-hours contracted with commercial and industrial customers, power
authorities and utilities alike across all our core regions.

We are key partners to all our stakeholders, and as operators of critical infrastructure, maintaining socially
responsible practices - from health and safety to community relations to environmental protection - is a critical
component of operations. We have a health, safety and environmental incidents culture focused on zero high-risk
incidents, being events that could have resulted in serious injuries to people or severe impacts to our operations or the
environment. We actively engage with community groups that might be affected by our actions to ensure that their
interests, safety and well-being are appropriately integrated into our decision-making, and we use our resources to
contribute directly to projects, non-profit organizations, and recreational and educational programs.

We operate with the highest ethical standards, conducting our business with integrity. We aim for best practice,
not basic compliance. We are also strengthening our practices to ensure that our ESG strategy is scalable by formalizing
additional ESG principles into the strategic planning of each business, and in our regular reporting on ESG initiatives
to our Board of Directors.

As our business grows, our ESG strategy will continue to evolve with it, and we remain focused on identifying
and implementing new processes to continue to identify and track areas for potential improvement. Furthermore, we
recognize that it is important to effectively communicate our ESG initiatives to our investors, because it increasingly
influences their decisions. As such, we are proud to announce that we have published our inaugural ESG report, which
is available on our website, that, among other things, illustrates the on-the-ground work we do to maintain our social
license to operate.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 3

Our ESG Principles

Our ESG Principles are summarized in the following table:

Mitigate the Impact of our
Operations on the Environment

Ensure the Well-Being and Safety
of Employees

Be Good Stewards in the
Communities in Which We Operate

Conduct Business According to the
Highest Ethical and Legal/
Regulatory Standards

ESG in our Investment Process

Environmental Stewardship: Strive to minimize the environmental
impact of our operations and improve our efficient use of resources over
time.
Employee Well-Being: Meet or exceed all applicable labor laws and
standards in jurisdictions where we operate, which includes respecting
human rights, offering competitive wages and implementing non-
discriminatory, fully inclusive hiring practices.
Health & Safety: Aim to have zero high-risk incidents within our
businesses by working towards implementing consistent health and
safety principles across the organization.
Community Engagement: Engage with community groups that might be
affected by our actions to ensure that their interests, safety and well-
being are appropriately integrated into our decision-making.
Philanthropy: Encourage our employees to participate in and give back
to the communities in which we operate.
Governance, Ethics and Fairness: Operate with high ethical standards by
conducting business activities in compliance with applicable legal and
regulatory requirements, and with our Code of Business Conduct and
Ethics.
Transparency: Be accessible to our investors and stakeholders by being
responsive to requests for information and timely in our communication.

To formally incorporate ESG diligence into our investment process, we undertake the following steps for each potential
investment:

1. Due Diligence
•
•

Utilize internal ESG guidelines to define project scope and conduct initial screen of ESG issues
Ensure compliance with ESG standards via a review of publicly available information and
documents requested from the company, followed by site visits when applicable
Determine where to engage third parties with technical and geographical expertise
Identify ESG value-creation opportunities

•
•

Investment Decision

•
•

•

Develop a post-acquisition ESG action plan
Prepare presentation for the Investment Committee that details all material findings from ESG due
diligence
Investment Committee makes investment decision, taking into account the identified ESG factors

3. Ongoing Monitoring

Prioritize and revisit critical issues on an ongoing basis

•
• Work with company management on priorities for ESG-related performance improvements
•
•

Track relevant ESG KPIs
Continually look for ways to create value by improving management of ESG factors

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 4

Our ESG Priorities

Environmental: Providing Sustainable Solutions

We understand that climate change poses a serious threat to communities, businesses and ecosystems around the
world. We are determined to support climate change mitigation throughout our operations, and we are working to ensure
that we continue to be well positioned for the opportunities that are expected to arise from the transition to a low-carbon
economy. We are taking steps to understand the potential physical effects of climate change on our portfolio, and, at
the same time, we have initiatives underway to preserve our low carbon footprint and measure the impact of climate
change within our business that follow a three-pronged approach:

1. Offer solutions to support the decarbonization of the world: The global economy is in the early stages of
a transformation from reliance on fossil fuel-related energy sources to a low-carbon economy. At Brookfield
Renewable, we actively work to continue to position the business to be a meaningful participant in the
decarbonization of the globe.

2. Measure, reduce, and avoid greenhouse gas ("GHG") emissions: We measure our GHG emissions with a
focus on reporting avoided emissions, meaning GHG emissions that would have been produced had our
electricity been sourced from non-renewable fossil fuels. Our portfolio's annual generation avoids
approximately 27 million metric tons of carbon dioxide emissions annually, which is equivalent to:

◦
◦
◦
◦
◦

6 million vehicles removed from the road annually
9 million tons of waste recycled instead of landfilled
5 million homes' electricity use for one year
450 million trees planted
Nearly all of London, England's emissions in one year

We continue to conduct an inventory of our scope 1 and 2 GHG emissions measurement for our global
businesses. In 2019, we added measurement of our Scope 3 emissions, focused on Scope 3 emissions generated
from business travel - specifically, air travel - as this is the most significant Scope 3 emission source in our
business. We estimate total Scope 1 and Scope 2 emissions of 229,423 metric tons of carbon dioxide equivalent
(“CO2e”) with a gross intensity of 5.45 kg CO2e per megawatt hour, and Scope 3, Category 6 emissions of
1,177 metric tons of CO2e, confirming our position as one of the lowest GHG emitters among comparable
global electricity generation companies.

3. Conduct climate change risk assessments: As a renewable energy business, we are aware that our assets
may be adversely impacted by climate change. We therefore monitor climate risks as part of our overall risk
assessments.

Additionally, Brookfield Renewable has issued $2.6 billion in corporate and project-level green financings, and a
sustainability-linked loan, since 2017. In 2019, we issued a C$600 million corporate green bond and, in 2020, we also
closed our first incentive-linked corporate revolving credit facility for $50 million and completed our inaugural green
perpetual preferred LP unit issuance for $200 million. Our project-level green bonds received E-1 Green Evaluation
scores from S&P, the highest on its scale, citing Brookfield Renewable’s environmental stewardship, commitment to
renewable power and use of proceeds towards renewable power generation. The growing green financing market allows
investors to participate in the financing of sustainable products and initiatives, and we plan on continuing to participate
in additional green financings.

Social: Building Trust

Proactively engaging with communities is integral to our operations as it creates an alignment of values and earns
us our social license to operate. We cultivate local relationships by directly engaging with communities, often through
in-person meetings with landowners, business owners, recreational organizations and NGOs. We also contribute to
community projects, non-profit organizations, local tourism, and recreational and educational programs. In 2019, we
partnered with a variety of local organizations, with a focus on key areas such as support for economic development,
education and research, health, well-being, quality of life, environment impact mitigation, and project conversation.
Further, during the year, we contributed almost $6 million in charitable donations across over 500 charitable
organizations.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 5

As owners and operators of critical electricity infrastructure assets, managing the health and safety of our employees
and all the people who access our facilities is our top priority. We take a proactive approach that goes well beyond
minimum regulatory requirements to ensure we are protecting our stakeholders. We have a comprehensive health and
safety training program in which all employees and contractors must participate. We also have a zero high-risk incidents
culture, which is outcome versus event driven, meaning our policies, training and investigations are focused on managing
potential high-risk incidents.

Our talent management approaches focus on creating opportunities and supporting our employees in unlocking
their full potential. We focus on diversity and inclusion from the recruitment stage, through leadership training programs,
our comprehensive compensation and benefits packages, and our policies and procedures. We leverage the benefits of
diversity by upholding an inclusive environment that encourages contributions from all individuals and provides equal
development and advancement opportunities. We also provide opportunities and promote success for our female
employees. At Brookfield Renewable, 50% of our executive management team and 33% of our Board of Director's
independent members are women.

Governance: Building a Business Responsibly

We operate with the highest ethical standards, conducting our activities with honesty and integrity and in
compliance with laws and regulations. We work to maintain sound governance practices to promote the accountability
of our company and ongoing investor confidence. This involves a continual review of how evolving legislation,
guidelines and best practices should be reflected in our approach. Our governance policy framework for operating
businesses in which we have a controlling interest includes several noteworthy components, and we ensure that our
employees adhere to these high standards:

•

Code of Business Conduct and Ethics
Each operating business is required to adopt our Code of Business Conduct and Ethics or ensure that existing
practices are consistent with it and equal in substance. Each of our employees is also required to certify
compliance with the Code of Business Conduct and Ethics annually.
Anti-bribery and corruption (ABC) policy
We have a zero-tolerance approach to bribery, including facilitation payments, and we require that our operating
businesses adopt equally stringent ABC policies. Each employee is required to complete annual ABC training.
Ethics hotline
We require every operating business to have a whistle-blower hotline in operation less than a month after
acquisition. We also take measures to ensure that every employee is aware of the existence and purpose of the
hotline.
Conflicts of interest policy
As part of our obligation to act in the best interest of our investors, we adhere to a rigorous conflict of interest
policy. Each potential investment is screened for possible conflicts and, if they are identified, they are elevated
for review to the Brookfield Conflicts Committee, which is overseen by several senior executives and the
Chief Compliance Officer of Brookfield, prior to execution of the transaction.
Personal trading policy
We maintain a stringent personal trading policy. Employees who are actively involved in recommending or
making investment decisions on an ongoing basis, as well as their family members living in the same household,
are restricted from being involved in trading with any non-Brookfield Renewable equity securities. This trading
policy exceeds the standard legal requirements, which mandate only preclearance of employees’ trades.

We integrate ESG into our decision-making, processes and management systems. From our Board of Directors
to the CEOs of our operating businesses and the executives on the ESG Steering Committee, there is full engagement
of our leadership in the implementation of our sustainability program.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 6

Management’s Discussion and Analysis
For the year ended December 31, 2019

This Management’s Discussion and Analysis for the year ended December 31, 2019 is provided as of February 28, 2020. Unless the context indicates
or requires otherwise, the terms “Brookfield Renewable”, “we”, “us”, and “our” mean Brookfield Renewable Partners L.P. and its controlled entities.
The ultimate parent of Brookfield Renewable is Brookfield Asset Management Inc. (“Brookfield Asset Management”). Brookfield Asset Management
and its subsidiaries, other than Brookfield Renewable, are also individually and collectively referred to as “Brookfield” in this Management’s
Discussion and Analysis.

Brookfield Renewable’s consolidated equity interests include the non-voting publicly traded limited partnership units (“LP Units”) held by public
unitholders and Brookfield, redeemable/exchangeable partnership units held by Brookfield (“Redeemable/Exchangeable partnership units”) in
Brookfield Renewable Energy L.P. (“BRELP”), a holding subsidiary of Brookfield Renewable, and general partnership interest (“GP interest”) in
BRELP held by Brookfield. Holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units will be collectively referred to
throughout as “Unitholders”, “Units”, or as “per Unit”, unless the context indicates or requires otherwise. The LP Units and Redeemable/Exchangeable
partnership units have the same economic attributes in all respects. See – “Part 8 - Presentation to Stakeholders and Performance Measurement”.

Brookfield Renewable’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the
International Accounting Standards Board (“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.

References to $, C$, €, R$, £, COP and ZAR are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, British pounds sterling,
Colombian pesos and South African Rand, respectively. Unless otherwise indicated, all dollar amounts are expressed in U.S. dollars.

For a description on our operational and segmented information and for the non-IFRS financial measures we use to explain our financial results see
“Part 8 - Presentation to Stakeholders and Performance Measurement”. For a reconciliation of the non-IFRS financial measures to the most comparable
IFRS financial measures, see “Part 4 - Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures”. This
Management’s Discussion and Analysis contains forward looking information within the meaning of U.S. and Canadian securities laws. Refer to –
“Part 9 - Cautionary Statements” for cautionary statements regarding forward-looking statements and the use of non-IFRS measures. Our Annual
Report and additional information filed with the Securities Exchange Commission (“SEC”) and with securities regulators in Canada are available
on our website (https://bep.brookfield.com), on the SEC’s website (www.sec.gov), or on SEDAR (www.sedar.com).

Organization of the Management’s Discussion and Analysis

PART 1 – 2019 Highlights

PART 2 – Financial Performance Review on
Consolidated Information

PART 3 – Additional Consolidated Financial
Information

Summary consolidated statements of financial
position

Related party transactions

Equity

PART 4 – Financial Performance Review on
Proportionate Information

Proportionate results for the years ended December
31, 2019 and 2018

Proportionate results for the years ended December
31, 2018 and 2017

Reconciliation of non-IFRS measures

Contract profile

PART 5 – Liquidity and Capital Resources

Capitalization
Available liquidity
Borrowings

32
32
33

PART 5 – Liquidity and Capital Resources
Continued

Consolidated statements of cash flows

Shares and units outstanding

Dividends and distributions

Contractual obligations

Off-statement of financial position arrangements

PART 6 - Selected Annual and Quarterly
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

PART 10 – Cautionary Statements

40
41

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 7

PART 1 – 2019 HIGHLIGHTS

YEAR ENDED DECEMBER 31

(MILLIONS, EXCEPT AS NOTED)

Operational information

2019

2018

Capacity (MW) ........................................................................................................................

18,883

17,419

Total generation (GWh)

Long-term average generation ..............................................................................................

Actual generation ..................................................................................................................

Proportionate generation (GWh)

Long-term average generation ..............................................................................................

Actual generation ..................................................................................................................

Average revenue ($ per MWh)..............................................................................................

Selected financial information(1)
Net income (loss) attributable to Unitholders.......................................................................... $
Basic income (loss) per LP Unit(1) ...........................................................................................
Consolidated Adjusted EBITDA(2) ..........................................................................................
Proportionate Adjusted EBITDA(2)..........................................................................................
Funds From Operations(2) ........................................................................................................
Funds From Operations per Unit(1)(2) .......................................................................................
Distribution per LP Unit ..........................................................................................................
(1)

53,926

52,560

26,189

26,038

(59) $

(0.19)

2,339

1,444

761

2.45

2.06

51,971

52,056

25,844

25,753

0.13

2,223

1,323

676

2.16

1.96

(2)

For the year ended December 31, 2019, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 311.2
million (2018: 312.6 million). The actual units outstanding at December 31, 2019 were 311.3 million (2018: 311.1 million).
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”.

AS AT DECEMBER 31

(MILLIONS, EXCEPT AS NOTED)

Liquidity and Capital Resources

December 31, 2019

December 31, 2018

Available liquidity.................................................................................................. $

Debt to capitalization - Corporate..........................................................................

Debt to capitalization - Consolidated.....................................................................

Borrowings non-recourse to Brookfield Renewable on a proportionate basis ......
Floating rate debt exposure on a proportionate basis(1) .........................................
Corporate borrowings

Average debt term to maturity.............................................................................

Average interest rate............................................................................................

Subsidiary borrowings on a proportionate basis

Average debt term to maturity.............................................................................

Average interest rate............................................................................................

2,695
16%

32%

77%

10 years

4.1%

10 years

5.1%

1,974

15%

32%
75%

7 years

4.4%

10 years

5.4%

(1)

Excludes 7% (2018: 7%) floating rate debt exposure of certain foreign regions outside of North America and Europe due to the high cost of
hedging associated with those regions.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 8

Operations

Funds From Operations increased to $761 million or $2.45 on a per unit basis, representing a 13% increase from the

prior year.

•

Growth in our businesses, including the investment of 813 MW of hydroelectric assets in Canada, 410 MW of
operating wind assets in Asia and 322 MW of recently constructed distributed generation solar in the United States;

Higher realized prices, on the back of inflation indexation of our contracts and re-contracting initiatives;

Realization of costing-saving initiatives across our business totaling $12 million;

Total generation for the year was in line with long-term average

After deducting non-cash depreciation, net loss attributable to Unitholders was $59 million or $0.19 per LP Unit, compared

to net income attributable to Unitholders of $42 million or $0.13 per LP Unit in the prior year.

Continued to focus on extending our contract profile as we completed the following:

•

In Colombia, we entered into 52 new contracts to deliver 764 GWh/year, including individual contracts with up to
ten years in duration; and

In Brazil, we entered into 26 new contracts to deliver 846 GWh/year, including individual contracts with up to six
years in duration

Liquidity and Capital Resources

Strengthened our balance sheet and increased financial flexibility.

•

Available liquidity of $2.7 billion that includes a $50 million, sustainability linked, corporate credit facility

Extended our corporate debt maturity profile and secured diverse sources of capital by executing on $6.3 billion of
financings and $571 million ($366 million net to Brookfield Renewable) of capital recycling initiatives

◦

Secured over $4.8 billion of non-recourse financings, reducing our weighted average cost of borrowing
to 5.1%

Issued C$175 million ($131 million) of Preferred Units in the first quarter and completed one of the largest
corporate green bond financing in Canada - C$600 million ($454 million) with up to 30-year terms

TerraForm Power completed a $250 million equity offering of its Class A common shares concurrent with
a $50 million private placement with Brookfield Renewable and issued $700 million of senior notes

Growth and Development

In March 2019, we, together with our institutional partners, agreed to invest C$750 million (C$188 million net to
Brookfield Renewable) in 7% convertible securities of TransAlta, the largest power producer in Alberta, Canada. The
investment will occur in two tranches; C$350 million was funded at initial closing in May 2019, and C$400 million is expected
to be funded in October 2020. The convertible securities include the option to convert into up to a 49% interest in TransAlta’s
813 MW portfolio of high quality hydroelectric assets in Alberta commencing in 2025, based on a valuation multiple equal
to 13 times the average annual EBITDA of the portfolio over the three years prior to conversion. We also agreed, together
with our institutional partners, subject to certain terms and conditions, to increase our ownership of TransAlta common shares
to 9%. Brookfield Renewable is expected to hold a 25% interest.

In December 2019, we, together with our institutional investors, completed a 50-50 joint venture in respect of X-Elio,
a global company specializing in the development, design, construction and operation of solar photovoltaic plants
headquartered in Madrid, Spain. Our share of the total consideration was $138 million. X-Elio's diversified portfolio includes
972 MW of operating assets, approximately 1,000 MW assets under construction and a 5,000 MW development pipeline.
Brookfield Renewable has an approximate 12.5% interest in X-Elio.

Through 2019, together with our institutional partners, we completed the acquisition of 410 MW of operating wind assets

in Asia for total consideration of $239 million, with Brookfield Renewable holding a 25% interest.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 9

During 2019, we continued to progress our development pipeline

•

Commissioned 50 MW of development projects (19 MW hydroelectric project in Brazil and 31 MW distributed
generation solar capacity in China)

• We are advancing the construction of 717 MW of hydroelectric, wind, solar (utility and distributed generation) and

pumped storage projects. These projects are expected to be commissioned between 2020 and 2021

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 10

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)

2019

2018

Revenues .................................................................................................................... $

2,980

2,982

Direct operating costs ................................................................................................

(1,012)

(1,036)

Management service costs .........................................................................................

Interest expense – borrowings ...................................................................................

Share of earnings from equity-accounted investment................................................

Foreign exchange and unrealized financial instrument loss ......................................

Depreciation...............................................................................................................

Income tax recovery (expense) ..................................................................................

Net income (loss) attributable to Unitholders............................................................ $

C$...............................................................................................................................
€..................................................................................................................................
R$...............................................................................................................................
COP............................................................................................................................

Current Year Variance Analysis (2019 vs 2018)

(108)

(682)

(33)

(798)

(51)

(80)

(705)

(34)

(819)

(59) $
Average FX rates to USD
1.33
0.89
3.95
3,280

1.30
0.85
3.65
2,956

2017

2,625

(978)

(82)

(632)

(46)

(782)

(88)

(56)

1.30
0.89
3.19
2,951

Revenues totaling $2,980 million for the year ended December 31, 2019 represents a decrease of $2 million over the
prior year. On a same store constant currency basis, revenues increased $130 million, primarily due to higher average realized
prices attributable to the inflation indexation of our contracts, commercial contracting initiatives and higher market prices on
our uncontracted volumes in Colombia which contributed $107 million to revenues. Higher generation contributed to a $23
million increase in revenues relative to the prior year due to above average hydrology conditions in United States during the
first half of the year, partially offset by lower hydrology conditions in Canada. Foreign currency movements negatively
impacted our revenues by $143 million as a result of the strengthening of the United States dollar. Recently acquired and
commissioned facilities contributed 597 GWh and $55 million to revenues which was partially offset by recently completed
asset sales that reduced revenues by 220 GWh and $44 million.

Direct operating costs totaling $1,012 million in 2019 represents a decrease of $24 million over the prior year driven by
cost-savings realized in the year across our businesses and the impact of foreign exchange noted above. This was partially
offset by the operating costs of our recently commissioned and acquired facilities.

Management service costs totaling $108 million in 2019 represents an increase of $28 million over the prior year due

to the growth of our business.

Interest expense - borrowings totaling $682 million in 2019 represents a decrease of $23 million over the prior year due
to the benefit of recent refinancing activities that reduced our average cost of borrowing, lower corporate borrowings and the
foreign exchange movements noted above.

Share of earnings from equity-accounted investments totaling $11 million in 2019 represents a decrease of $57 million

over the prior year due to higher depreciation expense and unrealized hedging losses.

Income tax expense of $51 million represents an increase of $110 million as the prior year benefited from a significant

deferred tax recovery in our Colombian business as a result of the tax legislation that was passed at the end of 2018.

Net loss attributable to Unitholders was $59 million in 2019 compared to a net income attributable to Unitholders of $42

million for the year ended December 31, 2018 due to the above noted items.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 11

Prior Year Variance Analysis (2018 vs 2017)

Revenues totaling $2,982 million for the year ended December 31, 2018 represent an increase of $357 million over the
same period in the prior year. The contributions from the growth in our portfolio, both through our recent acquisitions and
development projects contributed 2,792 GWh or $272 million to our revenues, partially offset by the impact from the sale of
one of our Irish wind facilities in 2017 that contributed $8 million or 75 GWh in the same period of the prior year. The
contributions of our portfolio on a same-store basis increased revenue by $93 million. Higher average realized pricing increased
revenues by $221 million primarily due to higher market prices received from our merchant facilities, the impact of inflation
indexation embedded in our existing contracts and higher capacity revenues in the United States. Lower generation resulted
in a $90 million reduction to revenue due to a return to normal hydrology conditions in New York and Canada where we
experienced generation 15% above long-term average in 2017 and the impact of our decision to store water in our reservoirs
in Colombia in anticipation of higher pricing in the upcoming dry season. The impact of foreign exchange differences resulted
in a net reduction of $38 million to revenues, primarily attributable to the depreciation of the Brazilian reais.

Direct operating costs totaling $1,036 million represent an increase of $58 million driven by the growth in our portfolio
which contributed $56 million to direct operating costs. Excluding one-time cost recoveries of $10 million in the prior year,
operating costs were $5 million higher on a same-store basis as the impact of inflation was mostly offset by the benefit of
our cost-reduction initiatives implemented across our business. The above noted foreign exchange impacts decreased operating
costs by $13 million.

Management service costs totaling $80 million represents a decrease of $2 million due to the lower market capitalization

of our limited partners’ equity relative to the prior year.

Interest expense totaling $705 million represents an increase of $73 million over the prior year due to the growth in our

portfolio, which contributed $96 million of additional interest expense.

Depreciation expense totaling $819 million increased $37 million over the prior year due to growth, offset partially by

the impact of a weakening Brazilian reais against the U.S. dollar.

Net income attributable to Unitholders was $42 million compared to a net loss attributable to Unitholders of $56 million

for the year ended December 31, 2017.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 12

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)

2019

Assets held for sale ........................................................................................................................ $

352

Current assets .................................................................................................................................

Equity-accounted investments .......................................................................................................

Property, plant and equipment, at fair value ..................................................................................

Total assets .....................................................................................................................................

Liabilities directly associated with assets held for sale .................................................................

Corporate borrowings ....................................................................................................................

Non-recourse borrowings...............................................................................................................

Deferred income tax liabilities.......................................................................................................

1,474

1,889

30,714

35,691

137

2,100

8,904

4,537

2018

920

1,961

1,569

29,025

34,103

533

2,328

8,390

4,140

Total liabilities and equity..............................................................................................................

35,691

34,103

Assets held for sale

Assets held for sale totaled $352 million as at December 31, 2019 compared to $920 million as at December 31, 2018.
The $568 million decrease was attributable to the sale of five of the six projects making up our South African wind and solar
portfolio.

As at December 31, 2019, Brookfield Renewable has presented seven solar facilities (91 MW) in Asia and South Africa

as held for sale.

During 2019, Brookfield Renewable also completed the sale of six wind facilities (191 MW) in Europe. These assets

were not included in Assets held for sale at December 31, 2018.

See Note 4 – Disposal of assets and Note 5 – Assets held for sale in our audited annual consolidated financial statements

for additional details.

Property, plant and equipment

Property, plant and equipment totaled $30.7 billion as at December 31, 2019 compared to $29.0 billion as at December 31,
2018. The increase of $1.7 billion in property, plant and equipment was primarily attributable to a $2.0 billion annual revaluation
which recognized the benefit of lower discount rates, continued successful implementation of cost savings and revenue
enhancing initiatives. The acquisition of 410 MW of operating wind capacity in Asia increased property, plant and equipment
by $550 million and capitalized additions relating to the sustaining capital expenditures of our hydroelectric business and our
ongoing construction of development projects increased property, plant and equipment by $218 million. Upon adoption of
IFRS 16 on January 1, 2019, we recognized $145 million of capitalized lease arrangements. These increases were partially
offset by the sale of six operating wind facilities in Europe, resulting in a decrease of $440 million and depreciation expense
associated with property, plant and equipment of $798 million for the year. The strengthening of the Canadian dollar was
mostly offset by the devaluation of the Brazilian real and the Colombian peso against the U.S. dollar, which resulted in a net
increase to property, plant and equipment of $61 million.

See Note 13 – Property, plant and equipment, at fair value in our audited annual consolidated financial statements for

information on the revaluation assumptions used and sensitivity analysis.

Corporate borrowings

Corporate borrowings totaled $2.1 billion as at December 31, 2019 compared to $2.3 billion as at December 31, 2018.
During the year we completed the issuance of one of the largest corporate green bond in Canada – C$300 million ($227

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 13

million) Series 12 medium term notes and C$300 million ($227 million) Series 13 medium term notes – and also repaid the
C$450 ($341 million) Series 7 medium term notes, extending the average corporate term to maturity to 10 years and reducing
the average interest rate to 4.1%. The impact of foreign exchange on our Canadian dollar denominated medium term notes
increased corporate borrowings $81 million as the Canadian dollar strengthened versus the United States dollar. Net repayments
on our credit facility during the period amounted to $422 million.

RELATED PARTY TRANSACTIONS

Brookfield Renewable’s related party transactions are in the normal course of business and are recorded at the exchange

amount. Brookfield Renewable’s related party transactions are primarily with Brookfield Asset Management.

Brookfield Renewable sells electricity to Brookfield through long-term PPAs, or provides fixed price guarantees to
provide contracted cash flow and reduce Brookfield Renewable’s exposure to electricity prices in deregulated power markets.
Brookfield Renewable also benefited from a wind levelization agreement with Brookfield which reduced the exposure to the
fluctuation of wind generation at certain facilities and thus improved the stability of its cash flow. The wind levelization
agreement expired in February 2019.

Brookfield Renewable and Brookfield completed a transaction to internalize all energy marketing capabilities in North
America into Brookfield Renewable. Refer to Note 28 – Related party transactions in our 2018 annual audited consolidated
financial statements for additional details of the energy marketing internalization.

In addition to these agreements, Brookfield Renewable and Brookfield have executed other agreements that are described

in Note 28 – Related party transactions in our audited annual consolidated financial statements.

Brookfield Renewable has also entered into a number of voting agreements with Brookfield whereby Brookfield, as a
managing member of entities related to Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield
Infrastructure Fund III and Brookfield Infrastructure Fund IV, in which Brookfield Renewable holds investments in power
generating operations with institutional partners, agreed to provide to Brookfield Renewable the authority to direct the election
of the Boards of Directors of such entities. As a result, Brookfield Renewable controls and consolidates such investments.

Brookfield Renewable has entered into agreements with Brookfield Americas Infrastructure Fund, Brookfield
Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV and Brookfield Infrastructure
Debt Fund (“Private Funds”), in which they provide Brookfield Renewable with access to short-term financing using the
Private Funds’ credit facilities.

During the year, Brookfield Asset Management extended the maturity of the $400 million committed unsecured revolving
credit facility by one year to December 31, 2020. As at December 31, 2019, there were no draws on the committed unsecured
revolving credit facility provided by Brookfield Asset Management. During the year, Brookfield Asset Management also
placed up to $600 million on deposit with Brookfield Renewable. The funds on deposit have since been paid back in full
prior to December 31, 2019 including any interest that had been accrued. The interest expense on the deposit and draws from
the credit facility for the year ended December 31, 2019 totaled $6 million (2018: $8 million).

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 14

The following table reflects the related party agreements and transactions in the audited annual consolidated statements

of income, for the year ended December 31:

(MILLIONS)

Revenues

2019

2018

2017

Power purchase and revenue agreements................................................................ $

558

535

Wind levelization agreement...................................................................................

559

542

Direct operating costs

Energy purchases..................................................................................................... $

(22) $

(20) $

Energy marketing fee ..............................................................................................
Insurance services(1) ................................................................................................

Interest (expense) income - borrowings..................................................................... $

(20)

(23)

(65) $

(13) $

(108) $

(24)

(25)

(69) $

(8) $

(80) $

Management service costs ......................................................................................... $
(1)

Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield
Renewable. Of the total insurance services paid, $1 million corresponds to brokerage fees paid to the subsidiary of Brookfield Asset Management
for the year ended December 31, 2019 (2018: less than $1 million).

The following table reflects the impact of the related party agreements and transactions on the consolidated balance

sheets as at December 31:

(MILLIONS)

Current assets

Contract asset

Due from related parties

Amounts due from

Non-current assets

Contract asset

Current liabilities

Due to related parties

Amount due to

Related party

2019

2018

Brookfield ....................................................

Equity-accounted investments and other .....

Brookfield ....................................................

Equity-accounted investments and other .....

111

422

Accrued distributions payable on

LP Units and Redeemable/Exchangeable

partnership units

Brookfield ....................................................

Non-current liabilities

Contract liability

Brookfield ....................................................

127

562

601

607

(13)

(24)

(19)

(56)

—

(82)

110

402

101

479

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 15

EQUITY

General partnership interest in a holding subsidiary held by Brookfield

Brookfield, as the owner of the 1% GP interest in BRELP, is entitled to regular distributions plus an incentive distribution
based on the amount by which quarterly LP Unit distributions exceed specified target levels. To the extent that LP Unit
distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent
that LP Unit distributions exceed $0.4225 per LP Unit per quarter, the incentive distribution is equal to 25% of distributions
above this threshold. Incentive distributions of $50 million were declared during the year ended December 31, 2019 (2018:
$40 million).

Preferred limited partners’ equity

During the first quarter of 2019, Brookfield Renewable issued 7,000,000 Class A Preferred Limited Partnership Units,
Series 15 (the “Series 15 Preferred Units”) at a price of C$25 per unit for gross proceeds of C$175 million ($131 million).
The holders of the Series 15 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.75%
for the initial period ending April 30, 2024. Thereafter, the distribution rate will be reset every five years at a rate equal to
the greater of: (i) the five-year Government of Canada bond yield plus 3.94%, and (ii) 5.75%.

The holders of the Series 15 Preferred Units will have the right, at their option, to reclassify their Series 15 Preferred
Units into Class A Preferred Limited Partnership Units, Series 16 (the “Series 16 Preferred Units”), subject to certain conditions,
on April 30, 2024 and on April 30 every five years thereafter. The holders of the Series 16 Preferred Units will be entitled to
receive floating rate cumulative preferential cash distributions equal to the three month Government of Canada Treasury Bill
Rate plus 3.94%.

The Preferred Units do not have a fixed maturity date and are not redeemable at the option of the holders. As at

December 31, 2019, none of the Preferred Units have been redeemed by Brookfield Renewable.

In July 2019, Brookfield Renewable announced that the Toronto Stock Exchange had accepted a notice of its intention
to commence a normal course issuer bid in connection with the outstanding Class A Preferred Limited Partnership Units.
Under this normal course issuer bid, Brookfield Renewable is permitted to repurchase up to 10% of the total public float for
each respective series of its Class A Preference Units. Repurchases were authorized to commence on July 9, 2019 and will
terminate on July 8, 2020, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were
no repurchases of Class A Preferred Limited Partnership units during 2019 in connection with the normal course issuer bid.

During the first quarter of 2020, Brookfield Renewable issued 8,000,000 Class A Preferred Limited Partnership Units,
Series 17 (the “Series 17 Preferred Units”) at a price of $25 per unit for gross proceeds of $200 million. The holders of the
Series 17 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.25%.

Limited partners’ equity

Brookfield Asset Management owns, directly and indirectly 185,727,567 LP Units and Redeemable/Exchangeable
partnership units, representing approximately 60% of Brookfield Renewable on a fully-exchanged basis and the remaining
approximately 40% is held by public investors.

During the year ended December 31, 2019, Brookfield Renewable issued 176,596 LP Units (2018: 289,641 LP Units)

under the distribution reinvestment plan at a total cost of $6 million (2018: $8 million).

In December 2019, Brookfield Renewable terminated its existing normal course issuer bid, which was set to expire on
December 30, 2019, and entered into a new normal course issuer bid in connection with its LP Units. Under the new normal
course issuer bid, Brookfield Renewable is permitted to repurchase up to 8.9 million LP Units, representing approximately
5% of the issued and outstanding LP Units for capital management purposes. The bid will expire on December 30, 2020, or
earlier should Brookfield Renewable complete its repurchases prior to such date. Unitholders may receive a copy of the notice,
free of charge, by contacting Brookfield Renewable. Brookfield Renewable repurchased 20,000 LP Units (2018: 1,856,798
LP Units) on December 28, 2018 on the Toronto Stock Exchange and New York Stock Exchange at a total cost of less than
$1 million (2018: $51 million), which were canceled on January 31, 2019.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 16

PART 4 – FINANCIAL PERFORMANCE REVIEW ON PROPORTIONATE INFORMATION
SEGMENTED DISCLOSURES

Segmented information is prepared on the same basis that Brookfield Renewable’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating
decision maker or “CODM”) manages the business, evaluates financial results, and makes key operating decisions. See Item 5.A “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)

Actual Generation

LTA Generation

Revenues

Adjusted EBITDA

Funds From
Operations

Net Income (Loss)

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

Hydroelectric

North America........................

13,118

13,308

12,238

12,980

Brazil......................................

Colombia................................

3,707

3,096

3,633

3,364

3,996

3,488

3,927

3,482

905

234

237

893

244

216

19,921

20,305

19,722

20,389

1,376

1,353

Wind

North America........................

2,969

2,713

3,556

3,169

Europe ....................................

Brazil......................................

Asia ........................................

904

630

291

677

626

160

996

647

290

764

645

153

4,794

4,176

5,489

4,731

Solar .........................................

Storage & Other......................

Corporate ................................

949

374

—

753

519

—

978

—

724

—

223

375

183

—

219

346

146

—

632

181

144

957

163

274

162

619

173

126

918

157

255

117

(16)

469

150

101

720

171

103

443

142

671

160

150

189

281

(64)

(7)

(64)

279

(18)

(8)

(2)

(260)

(259)

(282)

(260)

Total

26,038

25,753

26,189

25,844

$ 2,021

1,930

$ 1,444

1,323

761

676

(59) $

Brookfield Renewable L.P.

Annual Report

December 31, 2019

Page 17

HYDROELECTRIC OPERATIONS ON PROPORTIONATE BASIS

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

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – LTA ..............................................................................................................

Generation (GWh) – actual............................................................................................................

2019

19,722

19,921

2018

20,389

20,305

Revenue.......................................................................................................................................... $

1,376

1,353

Other income..................................................................................................................................

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

Current income taxes .....................................................................................................................

(451)

957

(210)

(27)

Funds From Operations.................................................................................................................. $

720

Depreciation...................................................................................................................................

Deferred taxes and other ................................................................................................................

(332)

(107)

Net income ..................................................................................................................................... $

281

(456)

918

(232)

(15)

671

(385)

(7)

279

The following table presents our proportionate results by geography for hydroelectric operations for the year ended

December 31:

(MILLIONS, EXCEPT AS
NOTED)

North America

Actual
Generation
(GWh)

Average
revenue
per MWh

Adjusted
EBITDA

Funds From
Operations

Net
Income

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

United States..............

Canada .......................

8,830

4,288

8,245

5,063

Brazil ............................

Colombia ......................

13,118

13,308

3,707

3,096

3,633

3,364

Total..............................

19,921

20,305

393

239

632

181

144

957

360

259

619

173

126

918

287

182

469

150

101

720

252

191

443

142

150

123

189

671

281

279

North America

Funds From Operations at our North American business were $469 million in 2019 versus $443 million in the prior year.
Higher average realized revenue per MWh in Canada due to inflation indexation of our contracts and higher same store
generation due to strong hydrology conditions in the United States (7% above prior year and 10% above long-term average)
more than offset the impact to Funds From Operations from the sale of a 25% interest in certain of our Canadian assets - $24
million and 670 GW.

Net income attributable to Unitholders decreased by $39 million in 2019 over the prior year as the above noted increase

in Funds From Operations was more than offset by higher non-cash accretion expenses on certain energy contracts.

Brazil

Funds From Operations at our Brazilian business were $150 million in 2019 versus $142 million in the prior year. On a
local currency basis, Funds From Operations increased 15% versus the prior year due to the benefit of higher same store
generation, a positive ruling reaffirming the historical generation of our facilities, and growth of our portfolio through
development projects that contributed 63 GWh and $2 million to Funds from Operations. These increases were partially offset
by the weakening of the Brazilian reais versus the U.S. dollar.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 18

Net income attributable to Unitholders increased by $56 million in 2019 over the prior year driven by the above noted
increase in Funds From Operations and lower depreciation expense due to the weakening of the Brazilian reais versus the
U.S. dollar.

Colombia

Funds From Operations at our Colombian business were $101 million in 2019 versus $86 million in the prior year as
we benefited from cost-reduction initiatives and a 20% increase in revenue per MWh due to inflation indexation of our
contracts and re-contracting efforts which were partially offset by generation that was 11% below long-term average as we
stored water in anticipation of higher pricing in the upcoming dry season.

Net income attributable to Unitholders decreased by $15 million in 2019 over the prior year as the above noted increase
in Funds From Operations was more than offset by the impact of a deferred tax recovery as a result of new tax legislation
that benefited the prior year.

WIND OPERATIONS ON PROPORTIONATE BASIS

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

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – LTA ..............................................................................................................

Generation (GWh) – actual............................................................................................................

2019

5,489

4,794

Revenue.......................................................................................................................................... $

375

Other income..................................................................................................................................

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

Current income taxes .....................................................................................................................

(107)

274

(96)

(7)

Funds From Operations.................................................................................................................. $

171

Depreciation...................................................................................................................................

Deferred taxes and other ................................................................................................................

(226)

(9)

Net income ..................................................................................................................................... $

(64) $

2018

4,731

4,176

346

(104)

255

(93)

(2)

160

(180)

(8)

The following table presents our proportionate results by geography for wind operations for the year ended December

31:

Actual
Generation
(GWh)

Average
revenue
per MWh

Adjusted
EBITDA

Funds From
Operations

Net Income
(loss)

(MILLIONS, EXCEPT AS NOTED)

2019

2018

2019

2018

2019

2018

2019

2018

2019

2018

North America.................

United States ................

Canada..........................

Europe.............................

Brazil...............................

Asia .................................

1,897

1,072

2,969

904

630

291

1,613

1,100

2,713

677

626

160

Total ................................

4,794

4,176

105

110

163

157

(44) $

(20)

(64)

(7)

(1)

(17)

(18)

274

255

171

160

(64) $

(8)

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 19

North America

Funds From Operations at our North American business was in-line with prior year at $94 million. The contributions
from growth in our portfolio as a result of increasing our ownership in TerraForm Power and cost-reduction initiatives were
offset by the impact of lower same-store generation relative to the prior year.

Net loss attributable to Unitholders increased by $46 million over the prior year due to higher depreciation as a result

of our increased ownership in TerraForm Power and unrealized hedging losses.

Europe

Funds From Operations at our European business were $48 million versus $38 million in the prior year. The growth of
our portfolio following the commissioning of 51 MW of new wind capacity and a full year contribution from TerraForm
Power's acquisition of Saeta contributed 199 GWh and $13 million to Funds From Operations, net of asset sales. Excluding
an $8 million gain on the sale of a development project in the United Kingdom that benefited the prior year, Funds From
Operations increased $5 million primarily as a result of stronger resource, operating cost savings initiatives, and interest cost
savings due to capital structure optimization.

Net loss attributable to Unitholders decreased by $12 million over the prior year as the above noted increase in Funds

From Operations was more than offset by higher unrealized hedging losses.

Brazil

Funds From Operations at our Brazilian business were $19 million versus $24 million in the prior year as a result of
lower average realized prices due to a commercial initiative that benefited the prior year and the weakening of the Brazilian
reais versus the U.S. dollar.

Net income attributable to Unitholders was consistent with the prior year as the above noted decrease in Funds From
Operations was fully offset by unrealized foreign exchange losses in the prior year and lower depreciation expense due to
the weakening of the Brazilian reais versus the U.S. dollar.

Asia

Funds From Operations and Net income attributable to Unitholders at our Asian wind business were $10 million and $6
million, an increase from $5 million and $4 million, respectively, in the prior year. The increase is primarily due to the
contribution from the acquisition of 410 MW of capacity in Asia during the year ($6 million and 123 GWh). On a same store
basis, our assets continue to perform in line with expectation.

SOLAR OPERATIONS ON PROPORTIONATE BASIS

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

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – LTA ..............................................................................................................

Generation (GWh) – actual............................................................................................................

2019

978

949

Revenue.......................................................................................................................................... $

183

Other income..................................................................................................................................

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

(38)

162

(59)

Funds From Operations.................................................................................................................. $

103

Depreciation...................................................................................................................................

Deferred taxes and other ................................................................................................................

(65)

(33)

Net income ..................................................................................................................................... $

2018

724

753

146

(34)

117

(45)

(40)

Funds From Operations at our solar business increased to $103 million from $72 million in the prior year primarily due
to the contribution from growth in our business, including TerraForm Power's recently acquired 322 MW distributed generation
portfolio and a full-year contribution from our increased ownership in TerraForm Power.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 20

Net income attributable to Unitholders at our solar business was $5 million versus $33 million in the prior year as the
above noted increase in Funds From Operations was more than offset by higher depreciation as we expanded our solar fleet
and unrealized hedging losses.

STORAGE AND OTHER OPERATIONS ON PROPORTIONATE BASIS

The following table presents our proportionate results for storage and other operations for the year ended December 31:

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – actual............................................................................................................

2019

374

2018

519

Revenue.......................................................................................................................................... $

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

Current income taxes .....................................................................................................................

Funds From Operations..................................................................................................................

Depreciation...................................................................................................................................

Deferred taxes and other ................................................................................................................

(46)

(13)

(1)

(23)

(3)

Net income ..................................................................................................................................... $

(36)

(17)

—

(23)

(11)

(2)

Funds From Operations at our storage and other businesses were $27 million versus $32 million in the prior year due to

lower realized capacity prices in the northeast United States and lower generation at our biomass facilities in Brazil.

Net income attributable to Unitholders was $1 million was in line with the prior year.

CORPORATE

The following table presents our results for corporate for the year ended December 31:

(MILLIONS, EXCEPT AS NOTED)

2019

2018

Other income.................................................................................................................................. $

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Management service costs .............................................................................................................

Interest expense..............................................................................................................................
Distributions(1)................................................................................................................................

(23)

(108)

(92)

(70)

Funds From Operations.................................................................................................................. $

(260) $

Deferred taxes and other ................................................................................................................

Net (loss)........................................................................................................................................ $
(1)

Distributions on Preferred Units and Class A Preference Shares.

(22)

(282) $

(23)

(16)

(80)

(99)

(64)

(259)

(1)

(260)

Management service costs totaling $108 million increased $28 million compared to the prior year due to the growth of

our business.

Distributions attributable to Preferred LP Units and Shares increased $6 million compared to the prior year due to the

C$175 million ($131 million) Preferred LP Units issuance completed in the first quarter of 2019.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 21

PROPORTIONATE RESULTS FOR THE YEAR ENDED DECEMBER 31, 2018 AND 2017

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

(GWh)

(MILLIONS)

Actual Generation

LTA Generation

Revenues

Adjusted EBITDA

Funds From
Operations

Net (Loss) Income

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

Hydroelectric

North America........................

13,308

13,942

12,980

13,059

Brazil......................................

Colombia................................

3,633

3,364

3,426

3,683

3,927

3,482

3,874

3,488

893

244

216

945

243

191

20,305

21,051

20,389

20,421

1,353

1,379

Wind

North America........................

2,713

1,765

3,169

2,019

Europe ....................................

Brazil......................................

Asia ........................................

677

626

160

490

278

—

764

645

153

513

245

—

4,176

2,533

4,731

2,777

Solar .........................................

Storage & Other......................

Corporate ................................

753

519

—

328

—

724

—

219

346

146

—

161

—

233

—

619

173

126

918

157

255

117

(16)

665

178

942

119

—

167

(6)

443

142

671

160

486

148

686

—

105

Total .........................................

25,753

23,968

25,844

23,251

$ 1,930

1,679

$ 1,323

1,142

676

581

(259)

(231)

(260)

189

170

279

(18)

(8)

(2)

(3)

186

(15)

—

(5)

(6)

(236)

(56)

Brookfield Renewable L.P.

Annual Report

December 31, 2019

Page 22

HYDROELECTRIC OPERATIONS ON PROPORTIONATE BASIS

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

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – LTA ..............................................................................................................

Generation (GWh) – actual............................................................................................................

2018

20,389

20,305

2017

20,421

21,051

Revenue.......................................................................................................................................... $

1,353

1,379

Other income..................................................................................................................................

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

Current income taxes .....................................................................................................................

(456)

918

(232)

(15)

Funds From Operations.................................................................................................................. $

671

Depreciation...................................................................................................................................

Deferred taxes and other ................................................................................................................

(385)

(7)

Net income ..................................................................................................................................... $

279

(452)

942

(240)

(16)

686

(388)

(112)

186

The following table presents our proportionate results by geography for hydroelectric operations for the year ended

December 31:

(MILLIONS, EXCEPT AS
NOTED)

North America

Actual
Generation
(GWh)

Average
revenue
Per MWh

Adjusted
EBITDA

Funds From
Operations

Net
Income

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

United States ..........

Canada ....................

8,245

5,063

8,030

5,912

13,308

13,942

Brazil.........................

Colombia...................

3,633

3,364

3,426

3,683

Total ..........................

20,305

21,051

355

264

619

173

126

918

360

305

665

178

247

196

443

142

248

238

486

148

115

189

164

170

(3)

942

671

686

279

186

North America

Funds From Operations at our North American business were $443 million in 2018 versus $486 million in the prior year.
While generation was 3% above long-term average, it was 5% below the prior year in which we benefitted from above average
generation (7% above long-term average). Average revenue per MWh was in line with the prior year as the benefit of inflation
indexation of our contracts was offset by the impact of generation mix (generation was highest on lower price contracts). We
also benefited from cost-reduction initiatives.

Net income attributable to Unitholders increased by $19 million in 2018 over the prior year as the above noted decrease
in Funds From Operations was more than offset by savings on deferred income expense as the prior year was impacted by a
one-time deferred tax expense attributable to the impact the U.S. tax reform passed at the end of 2017.

Brazil

Funds From Operations at our Brazilian business was $142 million in 2018 versus $148 million in the prior year. On a
local currency basis, Funds From Operations increased by 5% versus the prior year due to the benefit of higher same-store
generation, higher average revenue per MWh due to inflation indexation of our contracts and the benefit of re-contracting
efforts as well as contribution from development projects. These benefits were more than offset by the weakening of the
Brazilian reais versus the U.S. dollar.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 23

Net income attributable to Unitholders increased by $6 million in 2018 over the prior year as the above noted decrease
in Funds From Operations was more than offset by lower depreciation expense due to the weakening of the Brazilian reais
versus the U.S. dollar.

Colombia

Funds From Operations at our Colombian business was $86 million in 2018 versus $52 million in the prior year as our
cost-reduction initiatives and a 23% increase in revenue per MWh due to inflation indexation of our contracts and re-contracting
efforts were partially offset by generation that was 3% below long-term average as we stored water in anticipation of higher
pricing in the upcoming dry season.

Net income attributable to Unitholders increased by $68 million in 2018 over the prior year due to above noted increase
in Funds From Operations and a deferred tax recovery resulting from the tax legislation that was passed at the end of 2018.

WIND OPERATIONS ON PROPORTIONATE BASIS

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

(MILLIONS, EXCEPT AS NOTED)

Generation (GWh) – LTA ..............................................................................................................

Generation (GWh) – actual............................................................................................................

2018

4,731

4,176

Revenue.......................................................................................................................................... $

346

Other income..................................................................................................................................

Direct operating costs ....................................................................................................................

Adjusted EBITDA .........................................................................................................................

Interest expense..............................................................................................................................

Current income taxes .....................................................................................................................

Funds From Operations..................................................................................................................

(104)

255

(93)

(2)

160

2017

2,777

2,533

233

—

(66)

167

(61)

(1)

105

Depreciation................................................................................................................................... $

(180) $

(122)

Deferred taxes and other ................................................................................................................

Net income ..................................................................................................................................... $

(8) $

The following table presents our proportionate results by geography for wind operations for the year ended December

31:

(MILLIONS, EXCEPT AS
NOTED)

North America

United States...............

Canada ........................

Europe ...........................

Brazil.............................

Asia ...............................

Actual
Generation
(GWh)

Average
revenue
per MWh

Adjusted
EBITDA

Funds From
Operations

Net
Income

2018

2017

2018

2017

2018

2017

2018

2017

2018

2017

1,600

1,113

2,713

677

626

160

658

1,107

1,765

490

278

—

110

—

157

119

—

(3) $

(15)

(18)

255

167

160

105

(8) $

(2)

(15)

—

Total ..............................

4,176

2,533

North America

Funds From Operations at our North American business were $93 million in 2018 versus $74 million in the prior year
due primarily to contribution from our investment in TerraForm Power. On a same store basis, our portfolio performed in
line with the prior year.

Brookfield Renewable Partner L.P.

Annual Report

December 31, 2019

Page 24

Net income attributable to Unitholders decreased by $27 million over the prior year as the above noted increase in Funds

From Operations was more than offset by increased depreciation expense due to growth in the portfolio.

Europe

Funds From Operations at our European business were $38 million in 2018 versus $15 million in the prior year
due primarily to the contributions from TerraForm Power’s acquisition of Saeta during the year and an $8 million gain
on the sale of a development project in the United Kingdom. On a same store basis, improved average revenue per
MWh due to stronger market prices was offset by a decrease in generation due to lower wind resource availability.

Net income attributable to Unitholders increased by $20 million in 2018 over the prior year due primarily to the

above noted increase in Funds From Operations.

Brazil

Funds From Operations at our Brazilian business were $24 million in 2018 versus $16 million in the prior year
due primarily to contribution from our investment in TerraForm Global – $12 million of Funds From Operations and
375 GWh of generation. On a same store basis, higher average revenue per MWh due to re-contracting initiatives was
offset by lower generation as the prior year benefited from above average wind conditions (13% above long-term
average) and the weakening of the Brazilian reais versus the U.S. dollar.

Net income attributable to Unitholders decreased by $10 million in 2018 over the prior year as the above noted
increase in Funds From Operations was more than offset by increased depreciation expense due to growth in the portfolio
and foreign exchange.

Asia

Funds From Operations and Net income attributable to Unitholders at our Asian wind business in 2018 were $5
million and $4 million, respectively. The business is operating in line with expectations following our investment in
TerraForm Global.