Enhanced Investments - Financial Portal

Published: 2023-02-28

MANAGEMENT’S RESPONSIBILITY
	Management’s Responsibility for Financial Statements
	The accompanying consolidated financial statements have been prepared by Brookfield Renewable Partners L.P. (“Brookfield Renewable”) management which is responsible for their integrity, consistency, objectivity and reliability. To fulfill this responsibility, Brookfield Renewable maintains policies, procedures and systems of internal control to ensure that its reporting practices and accounting and administrative procedures are appropriate to provide a high degree of assurance that relevant and reliable financial information is produced and assets are safeguarded. These controls include the careful selection and training of employees, the establishment of well-defined areas of responsibility and accountability for performance, and the communication of policies and the code of conduct throughout the company.
	These consolidated financial statements have been prepared in conformity with International Financial Reporting Standards as issued by the International Accounting Standards Board and, where appropriate, reflect estimates based on management’s judgment.
	Ernst & Young LLP, the Independent Registered Public Accounting Firm appointed by the directors of the general partner of Brookfield Renewable, have audited the consolidated financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States) to enable them to express to the partners their opinion on the consolidated financial statements. Their report outlines the scope of their examination and opinion on the consolidated financial statements.
	The consolidated financial statements have been further reviewed and approved by the Board of Directors of the general partner of Brookfield Renewable acting through its Audit Committee, which is comprised of directors who are not officers or employees of Brookfield Renewable. The Audit Committee, which meets with the auditors and management to review the activities of each and reports to the Board of Directors, oversees management’s responsibilities for the financial reporting and internal control systems. The auditors have full and direct access to the Audit Committee and meet periodically with the committee both with and without management present to discuss their audit and related findings.
	Connor Teskey	Wyatt Hartley
	Chief Executive Officer	Chief Financial Officer
	February 28, 2023
			Page 1

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of Brookfield Renewable Partners Limited (General Partner of Brookfield Renewable Partners L.P.) and Partners of Brookfield Renewable Partners L.P.
Opinion on the Consolidated Financial Statements
We have audited the accompanying consolidated statements of financial position of Brookfield Renewable Partners L.P. (“Brookfield Renewable” or the “Partnership”) as of December 31, 2022 and 2021, the related consolidated statements of income (loss), comprehensive income, changes in equity and cash flows for each of the three years in the period ended December 31, 2022, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Partnership at December 31, 2022 and 2021, and its financial performance and its cash flows for each of the three years in the period ended December 31, 2022, in conformity with International Financial Reporting Standards (“IFRSs”) as issued by the International Accounting Standards Board.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the Partnership’s internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated February 28, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
These consolidated financial statements are the responsibility of Brookfield Renewable’s management. Our responsibility is to express an opinion on the Partnership’s consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.
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Revaluation of power generating assets
	Description of the Matter	The Partnership measures power generating assets (classified as property, plant and equipment) using the revaluation method under IAS 16, Property, Plant and Equipment. As at December 31, 2022, property, plant and equipment on the consolidated statement of financial position totaled $54,283 million. Revaluations of property, plant and equipment recognized in the consolidated statement of comprehensive income totaled a gain of $3,745 million and a loss in the consolidated statement of income (loss) of ($40) million for 2022. As discussed in Notes 1(g), 1(r)(i) and 1(s)(iii) and 13 – Property, Plant and Equipment, at Fair Value to the consolidated financial statements, significant estimation and management judgment are involved in assessing the estimates and assumptions regarding the future performance of the power generating assets.
Management applies a dual approach which involves a discounted cash flow model as well as a market evaluation in determining the fair value of the Partnership’s power generating assets. Significant assumptions included within the discounted cash flow models are future electricity prices, terminal value, discount rates, anticipated long-term average generation and estimated operating and capital expenditures.
Auditing the measurement of power generating assets is complex due to the highly judgmental nature of the significant assumptions described above, which required the involvement of specialists. Changes in these assumptions can have a material effect on the fair value of the power generating assets.
	How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s processes in determining the fair value of power generating assets. We tested controls over management’s review of the valuation models, including the controls over the review and approval of all significant assumptions.
To test the fair value of the power generating assets, our audit procedures included, among others, evaluating the Partnership’s valuation methodology, the significant assumptions used, and testing the completeness and accuracy of the underlying data supporting the significant assumptions. For each power generating asset, we analyzed the significant drivers of the change in fair value including the future electricity prices, terminal value and discount rates. With the support of our valuation specialists, we inspected management’s valuation analysis and assessed the estimates of future electricity prices by reference to shorter-term broker price quotes and management’s longer-term market forecasts specific to each region and power generating asset. We also involved our valuation specialists in the evaluation of the terminal value and discount rates which included consideration of benchmark interest rates, geographic location, whether the asset is contracted or uncontracted and type of technology.
For a sample of power generating assets, we performed audit procedures that included, among others, agreeing contracted power prices to executed power purchase agreements and assessing the anticipated long-term average generation through corroboration with third party engineering reports and historical trends. Further, we assessed the estimated operating and capital expenditures by comparison to historical data and corroboration with third party engineering reports. We also tested the computational accuracy of the fair value model.
		Page 3

With the assistance of our valuation specialists for the same samples, we also performed a sensitivity analysis over the future electricity prices, terminal value and discount rates to evaluate the fair value of power generating assets. We also evaluated the fair values using other market-based evidence by comparing the portfolio as a whole to recent similar transactions and by calculating the revenue and EBITDA multiples of the power generating assets and comparing them to multiples of comparable public companies.
Furthermore, we evaluated the adequacy of the Partnership’s disclosures regarding the significant assumptions and sensitivity analysis around the fair value of power generating assets.
Significant utility-scale acquisitions
	Description of the Matter	During 2022, the Partnership completed the acquisitions of a U.S. Solar Portfolio and a U.S. Wind, Solar and Storage Portfolio, for total consideration of $760 million and $1,092 million, respectively. As described in Notes 1(n) and 3 – Acquisitions to the consolidated financial statements, these business combinations are accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the corresponding dates of acquisition.
Auditing the above noted acquisitions is complex given that significant estimation is required in determining the fair value of the power generating assets, tax equity liabilities and commodity derivatives acquired. The significant assumptions related to these estimates include but are not limited to future electricity prices, production tax credits, generation volumes, discount rates, terminal value and operating and capital expenditures. These assumptions are forward looking and could be affected by future economic and market conditions.
	How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s processes in determining the fair value of power generating assets, tax equity liabilities and commodity derivatives acquired. We tested controls over management’s review of the power generating asset, tax equity and commodity derivatives valuation models, including the controls over the review and approval of all significant assumptions.
Our audit procedures included, among others, assessing the significant assumptions described above and testing the completeness and accuracy of the underlying data. For example, we evaluated the estimated generation volumes for a sample of power generating assets by comparing them to available engineering reports and benchmark capacity factors, we also considered industry benchmarks for losses. Further, with the support of our valuation specialists, we inspected management’s valuation analysis and assessed the estimates of future electricity prices by reference to shorter-term broker price quotes and management’s longer-term market forecasts specific to each region and power generating asset. For production tax credit rates, we assessed management’s future projections by comparing against historical escalations. We involved our valuation specialists to assist in evaluating the valuation methodologies and the significant assumptions, including discount rates and terminal values, used in the Partnership’s models, which included consideration of benchmark interest rates, geographic location, contracted or uncontracted assets and type of technology as well as performing sensitivity analysis. Further, we assessed the estimated capital expenditures by comparing forecasts to results of related industry studies, corroborating against recently signed construction contracts and component supply agreements. For operating expenditures, we compared forecasts against industry benchmarks. We also tested the computational accuracy of the fair value model.
		Page 4

Significant distributed generation acquisition
	Description of the Matter	During 2022, the Partnership completed the acquisition of a U.S. distributed
generation portfolio for total consideration of $614 million. As described in Notes
1(n) and 3 – Acquisitions to the consolidated financial statements, this business
combination is accounted for using the acquisition method, and the results of
operations have been included in the consolidated financial statements since the
corresponding date of acquisition.
Auditing the above noted acquisition is complex given that significant estimation is
required in determining the fair value of the distributed generation assets acquired.
The significant assumptions include future electricity prices, discount rates, future
generation volumes and operating and capital expenditures. These assumptions are
forward looking and could be affected by future economic and market conditions.
	How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s processes in determining the fair value of the distributed generation assets acquired. We tested controls over management’s review of the valuation models, including the controls over the review and approval of all significant assumptions.
To test the fair value of the distributed generation assets, our audit procedures included, among others, assessing the significant assumptions described above for a sample of assets and testing the completeness and accuracy of the underlying data. For example, we evaluated the estimated generation volumes for a sample of distributed generation assets by comparing them to historical generation volumes for operational assets and to generation assumptions used for other distributed generation assets within the Partnership’s portfolio in the region for developmental assets. We also compared management’s estimated generation volumes to industry benchmarks. Further, for our sample we compared the future electricity pricing and solar renewable energy credits (SREC) revenue to executed agreements. We assessed the estimated capital expenditures by comparing forecasts to results of related industry studies, corroborating against recently signed construction contracts and component supply agreements. For operating expenditures, we compared forecasts against industry benchmarks. We also tested the computational accuracy of the fair value model. We involved our valuation specialists to assist in evaluating the valuation methodologies and the significant assumptions, including discount rates, used in the Partnership’s models, which included consideration of benchmark interest rates, geographic location as well as performing sensitivity analysis.
	/s/ Ernst & Young LLP
	We have served as Brookfield Renewable’s auditor since 2011.
	Toronto, Canada
	February 28, 2023
		Page 5

INTERNAL CONTROL OVER FINANCIAL REPORTING
Evaluation of Disclosure Controls and Procedures
Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act)), as of the end of the period December 31, 2022. Based on such evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of December 31, 2022, our disclosure controls and procedures are designed at a reasonable assurance level and are effective to provide reasonable assurance that material information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. While disclosure controls and procedures and internal controls over financial reporting were adequate and effective we continue to implement certain measures to strengthen control processes and procedures.
Management’s Report on Internal Control over Financial Reporting
Management of Brookfield Renewable Partners L.P. (“Brookfield Renewable”) is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is a process designed by, or under the supervision of, the Chief Executive Officer and the Chief Financial Officer and effected by the Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board as defined in Regulation 240.13a–15(f) or 240.15d–15(f).
Management assessed the effectiveness of Brookfield Renewable’s internal control over financial reporting as of December 31, 2022, based on the criteria set forth in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). Based on this assessment, management concludes that, as of December 31, 2022, Brookfield Renewable’s internal control over financial reporting is effective. Management excluded from its design and assessment of the internal controls of investments acquired in 2022, which include a 20 GW portfolio of utility-scale solar and energy storage development assets in the United States, a 1.7 GW portfolio of utility-scale solar development assets in Germany, a 437 MW distributed generation portfolio of operating and development assets in Chile, an integrated distributed generation developer with approximately 500 MW of contracted operating and under construction assets, and a 1.8 GW of development pipeline in the United States, and a renewable developer with a portfolio of over 800 MW of operating wind assets and pipeline of over 22 GW in the United States, whose total assets and net assets on a combined basis constitute approximately 5% and 7%, respectively, of the consolidated financial statement amounts as of December 31, 2022 and 1% of revenues for the year then ended.
Brookfield Renewable’s internal control over financial reporting as of December 31, 2022, has been audited by Ernst & Young LLP, the Independent Registered Public Accounting Firm, who also audited Brookfield Renewable’s consolidated financial statements for the year ended December 31, 2022. As stated in the Report of Independent Registered Public Accounting Firm, Ernst & Young LLP expressed an unqualified opinion on the effectiveness of Brookfield Renewable’s internal control over financial reporting as of December 31, 2022.
Connor Teskey	Wyatt Hartley
Chief Executive Officer	Chief Financial Officer
February 28, 2023
		Page 6

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors of Brookfield Renewable Partners Limited (General Partner of Brookfield Renewable Partners L.P.) and Partners of Brookfield Renewable Partners L.P.
Opinion on Internal Control Over Financial Reporting
We have audited Brookfield Renewable Partners L.P.’s (“Brookfield Renewable” or the “Partnership") internal control over financial reporting as of December 31, 2022, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the “COSO criteria”). In our opinion, the Partnership maintained, in all material respects, effective internal control over financial reporting as of December 31, 2022, based on the COSO criteria.
As indicated in the accompanying Management’s Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of the 20 GW portfolio of utility-scale solar and energy storage development assets in the United States, the 1.7 GW portfolio of utility-scale solar development assets in Germany, the 437 MW distributed generation portfolio of operating and developmental assets in Chile, the integrated distributed generation developer with approximately 500 MW of contracted operating and under construction assets, and the 1.8 GW of development pipeline in the United States, and a renewable developer with a portfolio of over 800 MW of operating wind assets and pipeline of over 22 GW in the United States. The aforementioned acquisitions are included in the 2022 consolidated financial statements of the Partnership and constituted approximately 5% and 7% of total and net assets, respectively on a combined basis as of December 31, 2022 and 1% of revenues for the year then ended. Our audit of internal control over financial reporting of the Partnership also did not include an evaluation of the internal control over financial reporting of the aforementioned acquisitions.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the 2022 consolidated financial statements of the Partnership and our report dated February 28, 2023 expressed an unqualified opinion thereon.
Basis for Opinion
Brookfield Renewable’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Partnership’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Partnership in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
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assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
Toronto, Canada
February 28, 2023
	Page 8

BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
AS AT DECEMBER 31(MILLIONS)
	2022	2021
AssetsCurrent assets
Cash and cash equivalents				................................................................................................................	22				998 $	900

Restricted cash						..................................................................................................................................	23				139	153

Trade receivables and other current assets							.......................................................................................	24				1,860	1,683

Financial instrument assets				...............................................................................................................	6				125	60

Due from related parties				...................................................................................................................	30				123	35

Assets held for sale						...........................................................................................................................	5				938	58

					4,183	2,889
Financial instrument assets				..................................................................................................................	6				1,500	262

Equity-accounted investments				.............................................................................................................	21				1,392	1,107

Property, plant and equipment, at fair value							........................................................................................	13				54,283	49,432

Intangible assets						...................................................................................................................................	14				209	218

Goodwill								..............................................................................................................................................	19				1,526	966

Deferred income tax assets				..................................................................................................................	12				176	197
						Other long-term assets				.........................................................................................................................	25				842	796

Total Assets						.........................................................................................................................................	64,111 $	55,867

LiabilitiesCurrent liabilities
Accounts payable and accrued liabilities							.........................................................................................	26				1,086 $	779

Financial instrument liabilities				.........................................................................................................	6				559	400
					Due to related parties				........................................................................................................................	30				588	164

Corporate borrowings				.......................................................................................................................	15				249	—

Non-recourse borrowings				.................................................................................................................	15				2,027	1,818

Provisions						.........................................................................................................................................	29				83	55

Liabilities directly associated with assets held for sale									....................................................................	5				351	6

					4,943	3,222
Financial instrument liabilities				.............................................................................................................	6				1,670	565
					Corporate borrowings				..........................................................................................................................	15				2,299	2,149

Non-recourse borrowings				....................................................................................................................	15				20,275	17,562

Deferred income tax liabilities				.............................................................................................................	12				6,507	6,215

Provisions						............................................................................................................................................ 27, 29	600	718

Other long-term liabilities				....................................................................................................................	28				1,531	1,440

EquityNon-controlling interests
Participating non-controlling interests – in operating subsidiaries										...................................................	16				14,755	12,303

General partnership interest in a holding subsidiary held by Brookfield										.........................................	16				59	59

Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable
units held by Brookfield				................................................................................................................	16				2,892	2,894

BEPC exchangeable shares				.........................................................................................................	16				2,561	2,562

Preferred equity						.................................................................................................................................	16				571	613
							Perpetual subordinated notes				......................................................................................................	16				592	592

Preferred limited partners’ equity				........................................................................................................	17				760	881

Limited partners’ equity				.......................................................................................................................	18				4,096	4,092

Total Equity						........................................................................................................................................	26,286 $	23,996

Total Liabilities and Equity				..............................................................................................................	64,111 $	55,867

The accompanying notes are an integral part of these consolidated financial statements.Approved on behalf of Brookfield Renewable Partners L.P.:
								Patricia Zuccotti			David Mann
								Director			Director
			Page 9

BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF INCOME (LOSS)
YEAR ENDED DECEMBER 31(MILLIONS, EXCEPT AS NOTED)
	2022	2021	2020
Revenues					..................................................................................................	30					4,711 $	4,096 $	3,810

Other income					...........................................................................................	8					136	304	128

Direct operating costs(1)							...........................................................................	9					(1,434)	(1,365)	(1,274)

Management service costs							.......................................................................	30					(243)	(288)	(235)

Interest expense								.......................................................................................	15					(1,224)	(981)	(976)

Share of earnings from equity-accounted investments									............................	21					96	22	27

Foreign exchange and financial instruments gain (loss)									.........................	6					(128)	(32)	127

Depreciation					.............................................................................................	13					(1,583)	(1,501)	(1,367)

Other					........................................................................................................	10					(195)	(307)	(432)

Income tax (expense) recovery
Current					..................................................................................................	12					(148)	(43)	(66)

Deferred					................................................................................................	12					150	29	213

						2	(14)	147
Net (loss) income								.....................................................................................	138 $	(66) $	(45)

Net (loss) income attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries										.......	16					334 $	209 $	180

General partnership interest in a holding subsidiary held by
Brookfield								.........................................................................................	16					92	77	62

Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield									.......................	16					(117)	(135)	(133)

BEPC exchangeable shares							...................................................................	16					(104)	(119)	(49)

Preferred equity								.....................................................................................	16					26	26	25

Perpetual subordinated notes											................................................................	16					29	12	—

Preferred limited partners’ equity											.........................................................	17					44	55	54

Limited partners’ equity							..........................................................................	18					(166)	(191)	(184)

						138 $	(66) $	(45)
Basic and diluted loss per LP unit											...........................................................	(0.60) $	(0.69) $	(0.61)

(1)	Direct operating costs exclude depreciation expense disclosed below.
The accompanying notes are an integral part of these consolidated financial statements.
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BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
YEAR ENDED DECEMBER 31(MILLIONS)
	2022	2021	2020
Net (loss) income					.....................................................................................	138 $	(66) $	(45)

Other comprehensive income that will not be reclassified to net
income
Revaluations of property, plant and equipment							..................................	13					3,745	4,573	4,112

Actuarial gain (loss) on defined benefit plans							....................................	21	30	(1)

Deferred income taxes on above items								...............................................	12					(852)	(1,170)	(934)

Unrealized (loss) gain on investments in equity securities									.................	6					(11)	3	(1)

Equity-accounted investments										............................................................	21					(35)	184	12

Total items that will not be reclassified to net income							............................	2,868	3,620	3,188

Other comprehensive income that may be reclassified to net income
Foreign currency translation										.................................................................	11					(647)	(859)	(840)

Gains (losses) arising during the year on financial instruments
designated as cash-flow hedges								........................................................	6					175	(64)	(27)

Gain (loss) on foreign exchange swaps – net investment hedge									..........	6					63	64	(35)

Reclassification adjustments for amounts recognized in net income	...	6					148	43	(39)

Deferred income taxes on above items								.................................................	12					(87)	(2)	10

Equity-accounted investments										..............................................................	21					(30)	(36)	17

Total items that may be reclassified subsequently to net income									............	(378)	(854)	(914)

Other comprehensive income										..................................................................	2,490	2,766	2,274

Comprehensive income											...........................................................................	2,628 $	2,700 $	2,229

Comprehensive income attributable to:Non-controlling interests
Participating non-controlling interests – in operating subsidiaries												......	16					1,582 $	1,048 $	1,292

General partnership interest in a holding subsidiary held by
Brookfield					.........................................................................................	16					100	89	70

Participating non-controlling interests – in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield									.......................	16					270	444	280

BEPC exchangeable shares										...................................................................	238	394	103

Preferred equity					....................................................................................	16					(16)	30	37

Perpetual subordinated notes										................................................................	29	12	—

Preferred limited partners’ equity										............................................................	17					44	55	54

Limited partners’ equity											..........................................................................	18					381	628	393

						2,628 $	2,700 $	2,229
The accompanying notes are an integral part of these consolidated financial statements.
				Page 11

BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
	Accumulated other comprehensive income	Non-controlling interests
															Participating
																non-
															controlling
														General	interests – in a
												Participating		partnership	holding
					Actuarial								non-	interest in a	subsidiary –
					losses on			Total	Preferred			controlling		holding	Redeemable/
			Limited	Foreign	defined	Cash	Investments	limited	limited		Perpetual	BEPC									interests – in		subsidiary	Exchangeable
YEAR ENDED DECEMBER 31(MILLIONS)			partners’	currency	Revaluation				benefit	flow	in equity	partners’	partners’	Preferred	subordinated	exchangeable									operating	held by	units held by	Total
			equity	translation	surplus				plans	hedges	securities	equity	equity	equity	notes	shares									subsidiaries	Brookfield	Brookfield	equity
Balance, as at December 31, 2021																	.... $ (1,516) $	(842) $											6,494 $	— $	(48) $						4 $	4,092 $	881 $	613 $	592 $	2,562 $								12,303 $		59 $	2,894 $ 23,996

Net income (loss) ..............................			(166)	—																	—	—	—							—	(166)	44	26	29	(104)			334	92	(117)		138
Other comprehensive income (loss)			..	—	(1)																	480	4	67							(3)	547	—	(42)	—	342		1,248		8		387	2,490

Preferred LP Units issued																				.................	—	—											—	—	—						—	—	115	—	—	—									—	—		—	115

Capital contributions (Note 16)																	.........	—	—											—	—	—						—	—	—	—	—	—								2,131		—		—	2,131

Redemption of Preferred LP Units
(Note 17)																					.......................................	—	—											—	—	—						—	—	(236)	—	—	—									—	—		—	(236)

Disposal (Note 4)																					..............................	14	—											(14)	—	—						—	—	—	—	—	—									(75)	—		—	(75)

Distributions or dividends declared			..	(355)	—																	—	—	—							—	(355)	(44)	(26)	(29)	(220)		(1,275)		(100)	(250)		(2,299)

Distribution reinvestment plan																	..........	9	—											—	—	—						—	9	—	—	—	—									—	—		—	9

Other	..................................................			116	(2)																	(143)	—	(2)							—	(31)	—	—	—	(19)			89	—		(22)	17

Change in year																					..................................	(382)	(3)											323	4	65						(3)	4	(121)	(42)	—	(1)	2,452	—	(2)	2,290

Balance, as at December 31, 2022																	.... $ (1,898) $	(845) $											6,817 $	4 $	17 $						1 $	4,096 $	760 $	571 $	592 $	2,561 $								14,755 $		59 $	2,892 $ 26,286

Balance, as at December 31, 2020																	.... $	(988) $	(720) $											5,595 $	(6) $	(39) $						3 $	3,845 $	1,028 $	609 $	— $	2,408 $								11,100 $		56 $	2,721 $ 21,767

Net income (loss) ..............................			(191)	—																	—	—	—							—	(191)	55	26	12	(119)			209	77	(135)		(66)
Other comprehensive income (loss)			..	—	(116)																	938	7	(11)							1	819	—	4 $	—	513			839	12		579	2,766

Issuance of perpetual subordinated
notes																					.............................................	—	—											—	—	—						—	—	—	— $	592	—									—	—		—	592

Capital contributions																				.........................	—	—											—	—	—						—	—	—	— $	—	—								1,121		—		—	1,121

Return of capital																					................................	—	—											—	—	—						—	—	—	— $	—	—									—	—		—	—

Redemption of Preferred LP Units																	....	—	—											—	—	—						—	—	(147)	— $	—	—									—	—		—	(147)

Disposals																					...........................................	38	—											(38)	—	—						—	—	—	— $	—	—								(395)		—		—	(395)

Distributions or dividends declared			..	(335)	—																	—	—	—							—	(335)	(55)	(26) $	(12)	(209)		(810)		(85)	(237)		(1,769)

Distribution reinvestment plan																	..........	9	—											—	—	—						—	9	—	— $	—	—									—	—		—	9

Other	..................................................			(49)	(6)																	(1)	(1)	2							—	(55)	—	— $	—	(31)			239	(1)		(34)	118

Change in year																					..................................	(528)	(122)											899	6	(9)						1	247	(147)	4	592	154								1,203		3		173	2,229

Balance, as at December 31, 2021																	.... $ (1,516) $	(842) $											6,494 $	— $	(48) $						4 $	4,092 $	881 $	613 $	592 $	2,562 $								12,303 $		59 $	2,894 $ 23,996

The accompanying notes are an integral part of these consolidated financial statements.
																Page 12

BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
	Accumulated other comprehensive income (loss)	Non-controlling interests
															Participating
															non-controlling
														General	interests – in a
		Participating												partnership	holding
						Actuarial							non-	interest in a	subsidiary –
						losses on			Total	Preferred	controlling												holding	Redeemable/
			Limited	Foreign					defined	Cash	Investments	limited	limited	BEPC	interests – in												subsidiary	Exchangeable
YEAR ENDED DECEMBER 31(MILLIONS)			partners’	currency	Revaluation					benefit	flow	in equity	partners’	partners’	Preferred	exchangeable	operating	held by	units held by
			equity	translation	surplus	plans	hedges	securities	equity	equity	equity	shares	subsidiaries												Brookfield	Brookfield	Total equity
Balance, as at December 31, 2019																	..................... $ (1,114) $	(700) $				6,422 $	(9) $ (32) $									12 $	4,579 $	833 $	597 $	— $								11,086 $	68 $	3,317 $	20,480

Net income																			.........................................................	(184)	—				—	—	—								—	(184)	54	25	(49)								180	62						(133)	(45)

Other comprehensive income (loss)																	..................	—	(249)				827	—	(6)								5	577	—	12	152								1,112	8						413	2,274

Preferred LP Units issued																						..................................	—	—				—	—	—								—	—	195	—	—								—	—		—				195

LP units purchased for cancellation																	...................	—	—				—	—	—								—	—	—	—	—								—	—		—					—

Capital contributions																						..........................................	—	—				—	—	—								—	—	—	—	—								520	—		—				520

Return of Capital																			................................................	—	—				—	—	—								—	—	—	—	—								(147)	—		—					(147)

Disposal																			.............................................................	17	—				(17)	—	—								—	—	—	—	—								(15)	—		—					(15)

Distributions or dividends declared																	...................	(349)	—				—	—	—								—	(349)	(54)	(25)	(116)								(551)	(70)						(250)	(1,415)

Distribution reinvestment plan																	...........................	6	—				—	—	—								—	6	—	—	—								—	—		—					6
																		Special distribution/TerraForm
Power acquisition																						.........................................	634	280				(1,465)		2	1								(13)	(561)	—	—	2,134								(1,101)	(10)					(462)	—

Other	..................................................................			2	(51)				(172)		1	(2)											(1)	(223)	—	—	287								16	(2)						(164)	(86)

Change in year																			...................................................	126	(20)				(827)		3	(7)								(9)	(734)	195	12	2,408								14	(12)						(596)	1,287

Balance, as at December 31, 2020																	..................... $	(988) $	(720) $				5,595 $	(6) $ (39) $									3 $	3,845 $	1,028 $	609 $	2,408 $								11,100 $	56 $	2,721 $	21,767

The accompanying notes are an integral part of these consolidated financial statements.
																Page 13

BROOKFIELD RENEWABLE PARTNERS L.P.CONSOLIDATED STATEMENTS OF CASH FLOWS
YEAR ENDED DECEMBER 31(MILLIONS)
	2022	2021	2020
Operating activitiesNet income (loss)
					..................................................................................................	138 $	(66) $	(45)

Adjustments for the following non-cash items:
Depreciation					......................................................................................................	13					1,583	1,501	1,367

Unrealized foreign exchange and financial instrument (gain) loss							...................	6					253	122	(134)

Share of earnings from equity-accounted investments								.....................................	21					(96)	(22)	(27)

Deferred income tax recovery									...........................................................................	12					(150)	(29)	(213)

Other non-cash items					.........................................................................................	107	(136)	388

Dividends received from equity-accounted investments								..................................	21					89	78	56

						1,924	1,448	1,392
Changes in due to or from related parties										.............................................................	(19)	2	59

Net change in working capital balances										...............................................................	31					(194)	(716)	(155)

						1,711	734	1,296
Financing activitiesProceeds from medium-term notes
									.......................................................................	15					296	—	570

Repayment of medium-term notes									........................................................................	15					—	—	(304)
										Corporate credit facilities, net									...............................................................................	15				—	—	(299)
										Commercial paper, net					..........................................................................................	15					249	(3)	3

Proceeds from non-recourse borrowings										..............................................................	15					9,547	6,877	3,205

Repayment of non-recourse borrowings										...............................................................	15					(6,310)	(3,678)	(3,408)

Capital contributions from participating non-controlling interests – in
operating subsidiaries											.......................................................................................	16					1,863	1,200	514

Capital repaid to participating non-controlling interests – in operating
subsidiaries					.......................................................................................................	16					(75)	(511)	(147)

Issuance of equity instruments and related costs												.................................................. 16,17,18	115	592	151

Redemption and repurchase of equity instruments	17,18					(252)	(153)	—
Distributions paid:
To participating non-controlling interests – in operating subsidiaries,
													preferred shareholders, preferred limited partners unitholders, and
													perpetual subordinate notes	.........................................................................	16,17					(1,372)	(900)	(628)

To unitholders of Brookfield Renewable or BRELP and shareholders of
													Brookfield Renewable Corporation	.............................................................	16, 18					(915)	(854)	(769)

Borrowings from related party									..............................................................................	1,470	1,188	320

Repayments to related party									.................................................................................	(1,127)	(1,615)	—

						3,489	2,143	(792)
Investing activitiesAcquisitions, net of cash and cash equivalents, in acquired entity
							.......................	3					(2,452)	(1,426)	(105)

Investment in equity-accounted investments										........................................................	21					(236)	(54)	(23)

Investment in property, plant and equipment										.......................................................	13					(2,190)	(1,967)	(447)
												Proceeds from disposal of assets, net of cash and cash equivalents disposed													......	140	827	269

Purchase of financial assets									..................................................................................	(492)	(58)	(445)
											Proceeds from financial assets									..............................................................................	6				70	220	257

Restricted cash and other											......................................................................................	94	(86)	112

						(5,066)	(2,544)	(382)
Foreign exchange (loss) gain on cash									...................................................................	(28)	(35)	14

Cash and cash equivalents increase									......................................................................	106	298	136

Net change in cash classified within assets held for sale								..................................	(8)	(5)	(12)
										Balance, beginning of year									................................................................................	900	607	483

Balance, end of year					..........................................................................................	998 $	900 $	607

Supplemental cash flow information:
Interest paid					.......................................................................................................	1,071 $	870 $	872

Interest received					................................................................................................	37 $	45 $	28

Income taxes paid					..............................................................................................	112 $	71 $	70

The accompanying notes are an integral part of these consolidated financial statements.
				Page 14

BROOKFIELD RENEWABLE PARTNERS L.P.NOTES TO THE AUDITED ANNUAL CONSOLIDATED FINANCIAL STATEMENTS
The business activities of Brookfield Renewable Partners L.P. (“Brookfield Renewable”) consist of owning a portfolio of renewable power and sustainable solution assets primarily in North America, South America, Europe and Asia.					The LP units are traded under the symbol “BEP” on the New York Stock Exchange and under the symbol “BEP.UN” on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 7, Series 13, Series 15, and Series 18 preferred limited partners’ equity are traded under the symbols “BEP.PR.E”, “BEP.PR.G”, “BEP.PR.I”, “BEP.PR.K”, “BEP.PR.M”, “BEP.PR.O”, and “BEP.PR.R”, respectively, on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 17 preferred limited partners’ equity is traded under the symbol “BEP.PR.A” on the New York Stock Exchange. The perpetual subordinated notes are traded under the symbol “BEPH” and “BEPI” on the New York Stock Exchange.
Unless the context indicates or requires otherwise, the term “Brookfield Renewable” means Brookfield Renewable Partners L.P. and its controlled entities, including Brookfield Renewable Corporation (“BEPC”). Unless the context indicates or requires otherwise, the term “the partnership” means Brookfield Renewable Partners L.P. and its controlled entities, excluding BEPC.
Brookfield Renewable’s consolidated equity interests include the non-voting publicly traded limited partnership units (“LP units”) held by public unitholders and Brookfield, class A exchangeable subordinate voting shares (“BEPC exchangeable shares”) of Brookfield Renewable Corporation (“BEPC”) held by public shareholders and Brookfield, redeemable/exchangeable partnership units
					Notes to consolidated financial statements	Page
					1.		Basis of preparation and significant	15
							accounting policies
					2.		Principal subsidiaries	31
					3.		Acquisitions	32
	(“Redeemable/Exchangeable	partnership	units”)	in	4.		Disposal of assets	37
Brookfield Renewable Energy L.P. (“BRELP”), a holding subsidiary of Brookfield Renewable, held by Brookfield, and general partnership interest (“GP interest”) in BRELP held by Brookfield. Holders of the LP units, Redeemable/Exchangeable partnership units, GP interest, and BEPC exchangeable shares will be collectively referred to throughout as “Unitholders” unless the context indicates or requires otherwise. LP units, Redeemable/Exchangeable partnership units, GP interest, and BEPC exchangeable shares will be collectively referred to throughout as "Units", or as "per Unit", unless the context indicates or requires otherwise.					5.		Assets held for sale	38
					6.		Risk management and financial instruments	38
					7.		Segmented information	49
					8.		Other income	55
					9.		Direct operating costs	56
					10.		Other	56
					11.		Foreign currency translation	56
					12.		Income taxes	57
					13.		Property, plant and equipment, at fair value	59
					14.		Intangible assets	62
					15.		Borrowings	63
					16.		Non-controlling interests	68
Brookfield Renewable is a publicly traded limited partnership established under the laws of Bermuda pursuant to an amended and restated limited partnership agreement dated November 20, 2011 as thereafter amended from time to time.
					17.		Preferred limited partners’ equity	74
					18.		Limited partners’ equity	74
					19.		Goodwill	76
					20.		Capital management	76
The registered office of Brookfield Renewable is 73 Front Street, Fifth Floor, Hamilton HM12, Bermuda.					21.		Equity-accounted investments	78
					22.		Cash and cash equivalents	78
					23.		Restricted cash	78
The immediate parent of Brookfield Renewable is its general partner, Brookfield Renewable Partners Limited (“BRPL”). The ultimate parent of Brookfield Renewable is Brookfield Corporation (“Brookfield Corporation”). Brookfield Corporation and its subsidiaries, other than Brookfield Renewable, and unless the context otherwise requires, includes Brookfield Asset Management Ltd (“Brookfield Asset Management”), are also individually and collectively referred to as “Brookfield” in these financial statements.
					24.		Trade receivables and other current assets	79
					25.		Other long-term assets	79
					26.		Accounts payable and accrued liabilities	80
					27.		Provisions	80
					28.		Other long-term liabilities	80
					29.		Commitments, contingencies and guarantees	81
					30.		Related party transactions	83
					31.		Supplemental information	91
					32.		Subsidiary public issuers	92
The BEPC exchangeable shares are traded under the symbol “BEPC” on the New York Stock Exchange and the Toronto Stock Exchange.
						Page 15

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES
(a) Statement of compliance
The consolidated financial statements have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). The accounting policies used in the consolidated financial statements are based on the IFRS applicable as at December 31, 2022, which encompass individual IFRS, International Accounting Standards (“IAS”), and interpretations made by the International Financial Reporting Interpretations Committee (“IFRIC”) and the Standard Interpretations Committee (“SIC”). The policies set out below are consistently applied to all periods presented, unless otherwise noted.
These consolidated financial statements have been authorized for issuance by the Board of Directors of Brookfield Renewable’s general partner, BRPL, on February 28, 2023.
Certain comparative figures have been reclassified to conform to the current year’s presentation.
References to $, C$, €, £, R$, COP, INR, MYR and CNY are to United States (“U.S.”) dollars, Canadian dollars, Euros, British pound, Brazilian reais, Colombian pesos, Indian rupees, Malaysian ringgit and Chinese yuan, respectively.
All figures are presented in millions of U.S. dollars unless otherwise noted.
(b) Basis of preparation
The consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets.
(c) Consolidation
These consolidated financial statements include the accounts of Brookfield Renewable and its subsidiaries, which are the entities over which Brookfield Renewable has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of Brookfield Renewable’s subsidiaries are shown separately in equity in the consolidated statements of financial position.
Brookfield Renewable has entered into a voting agreement with Brookfield, which provides Brookfield Renewable with control of the general partner of BRELP. Accordingly, Brookfield Renewable consolidates the accounts of BRELP and its subsidiaries. In addition, BRELP issued redeemable/exchangeable limited partnership units to Brookfield (“Redeemable/Exchangeable partnership units”), pursuant to which the holder may, at its request, require BRELP to redeem the Redeemable/Exchangeable partnership units for cash consideration. This right is subject to Brookfield Renewable’s right of first refusal which entitles it, at its sole discretion, to elect to acquire all of the Redeemable/Exchangeable partnership units so presented to BRELP that are tendered for redemption in exchange for LP units on a one-for-one basis. As Brookfield Renewable, at its sole discretion, has the right to settle the obligation with LP units, the Redeemable/Exchangeable partnership units are classified as equity of Brookfield Renewable (“Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable Units held by Brookfield”).
Brookfield Renewable has entered into voting agreements with Brookfield, whereby Brookfield Renewable gained control of the entities that own certain renewable power generating operations. Brookfield Renewable has also entered into a voting agreement with its consortium partners in respect of its Colombian operations. These voting agreements provide Brookfield Renewable the authority to direct the election of the Boards of Directors of the relevant entities, among other things, and therefore provide Brookfield Renewable with control. Accordingly, Brookfield Renewable consolidates the accounts of these entities. Refer to Note 30 – Related party transactions for further information.
For entities previously controlled by Brookfield Corporation, the voting agreements entered into do not represent business combinations in accordance with IFRS 3, Business Combinations (“IFRS 3”), as all combining businesses are ultimately controlled by Brookfield Corporation both before and after the transactions were completed. Brookfield Renewable accounts for these transactions involving entities under common control in a manner similar
	Page 16

to a pooling of interest, which requires the presentation of pre-voting agreement financial information as if the transactions had always been in place. Refer to Note 1(s)(ii) – Critical judgments in applying accounting policies – Common control transactions for Brookfield Renewable’s policy on accounting for transactions under common control.
Equity-accounted investments
Equity-accounted investments are entities over which Brookfield Renewable has significant influence or joint arrangements representing joint ventures. Significant influence is the ability to participate in the financial and operating policy decisions of the investee, but without controlling or jointly controlling those investees. Such investments are accounted for using the equity method.
A joint venture is a type of joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the joint venture. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant activities require unanimous consent of the parties sharing control. Brookfield Renewable accounts for its interests in joint ventures using the equity method.
Under the equity method, the carrying value of an interest in an investee is initially recognized at cost and adjusted for Brookfield Renewable’s share of net income, other comprehensive income (“OCI”), distributions by the equity-accounted investment and other adjustments to Brookfield Renewable’s proportionate interest in the investee.
(d) Foreign currency translation
All figures reported in the consolidated financial statements and tabular disclosures to the consolidated financial statements are reflected in millions of U.S. dollars, which is the functional currency of Brookfield Renewable. Each of the foreign operations included in these consolidated financial statements determines its own functional currency, and items included in the financial statements of each subsidiary are measured using that functional currency.
Assets and liabilities of foreign operations having a functional currency other than the U.S. dollar are translated at the rate of exchange prevailing at the reporting date and revenues and expenses at the rate of exchange prevailing at the dates of the transactions during the period. Gains or losses on translation of foreign subsidiaries are included in OCI. Gains or losses on foreign currency denominated balances and transactions that are designated as hedges of net investments in these operations are reported in the same manner.
In preparing the consolidated financial statements of Brookfield Renewable, foreign currency denominated monetary assets and liabilities are translated into the functional currency using the closing rate at the applicable consolidated statement of financial position dates. Non-monetary assets and liabilities denominated in a foreign currency and measured at fair value are translated at the rate of exchange prevailing at the date when the fair value was determined and non-monetary assets and liabilities measured at historical cost are translated at the historical rate. Revenues and expenses are measured in the functional currency at the rates of exchange prevailing at the dates of the transactions with gains or losses included in income.
(e) Cash and cash equivalents
Cash and cash equivalents include cash, term deposits and money market instruments with original maturities of less than 90 days.
(f) Restricted cash
Restricted cash includes cash and cash equivalents, where the availability of funds is restricted primarily by credit and construction agreements.
(g) Property, plant and equipment and revaluation method
Power generating assets are classified as property, plant and equipment and are accounted for using the revaluation method under IAS 16 – Property, Plant and Equipment (“IAS 16”). Property, plant and equipment are initially measured at cost and subsequently carried at their revalued amount, being the fair value at the date of the revaluation, less any subsequent accumulated depreciation and any subsequent accumulated impairment losses.
Brookfield Renewable generally determines the fair value of its property, plant and equipment by using a 20-year discounted cash flow model for the majority of its assets. This model incorporates future cash flows from long-term
	Page 17

power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. The model also includes estimates of future electricity prices, anticipated long-term average generation, estimated operating and capital expenditures, terminal values and assumptions about future inflation rates and discount rates by geographical location. Construction work-in-progress (“CWIP”) is revalued when sufficient information exists to determine fair value using the discounted cash flow method. Revaluations are made on an annual basis as at December 31 to ensure that the carrying amount does not differ significantly from fair value. For power generating assets acquired through business combinations, Brookfield Renewable initially measures the assets at fair value on the acquisition date, consistent with the policy described in Note 1(o) – Business combinations, with no revaluation at year-end in the year of acquisition unless there is external evidence specific to those assets that would indicate the carrying value of the asset has either increased or decreased materially.
Where the carrying amount of an asset increased as a result of a revaluation, the increase is recognized in income to the extent the increase reverses a previously recognized decrease recorded through income, with the remainder of the increase recognized in OCI and accumulated in equity under revaluation surplus and non-controlling interest. When the carrying amount of an asset decreases, the decrease is recognized in OCI to the extent that a balance exists in revaluation surplus with respect to the asset, with the remainder of the decrease recognized in income.
Depreciation on power generating assets is calculated on a straight-line basis over the estimated service lives of the assets, which are as follows:
	Estimated service lives
Dams		....................................................................................................................................................	Up to 115 years

Penstocks		..............................................................................................................................................	Up to 60 years

Powerhouses				........................................................................................................................................	Up to 115 years

Hydroelectric generating units					.............................................................................................................	Up to 115 years

Wind generating units						..........................................................................................................................	Up to 30 years

Solar generating units						..........................................................................................................................	Up to 35 years

Gas-fired cogenerating (“Cogeneration”) units							...................................................................................	Up to 40 years

Other assets				..........................................................................................................................................	Up to 60 years

Costs are allocated to significant components of property, plant and equipment. When items of property, plant and equipment have different useful lives, they are accounted for as separate items (significant components) and depreciated separately. To ensure the accuracy of useful lives and residual values, a review is conducted annually.
Depreciation is calculated based on the fair value of the asset less its residual value. Depreciation commences when the asset is in the location and conditions necessary for it to be capable of operating in the manner intended by management. It ceases at the earlier of the date the asset is classified as held-for-sale and the date the asset is derecognized. An item of property, plant and equipment and any significant component is derecognized upon disposal or when no future economic benefits are expected from its use. Other assets include equipment, buildings and leasehold improvements. Buildings, furniture and fixtures, leasehold improvements and office equipment are recorded at historical cost, less accumulated depreciation. Land and CWIP are not subject to depreciation.
The depreciation of property, plant and equipment in Brazil is based on the duration of the authorization or the useful life of a concession asset. The weighted-average remaining duration at December 31, 2022 is 35 years (2021: 31 years). Since land rights are part of the concession or authorization, this cost is also subject to depreciation.
Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset, and the net amount is applied to the revalued amount of the asset.
Gains and losses on disposal of an item of property, plant and equipment of operating assets are recognized in Other income and Other in the consolidated statements of income (loss), respectively. The revaluation surplus is reclassified within the respective components of equity and not reclassified to net income when the assets are disposed.
								Page 18

(h) Leases
At inception of a contract, Brookfield Renewable assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, Brookfield Renewable assesses whether:
•	the contract specified explicitly or implicitly the use of an identified asset, and that is physically distinct or represents substantially all of the capacity of a physically distinct asset. If the supplier has a substantive substitution right, then the asset is not identified;
•	Brookfield Renewable has the right to obtain substantially all of the economic benefits from use of the asset throughout the period of use; and Brookfield Renewable has the right to direct the use of the asset. Brookfield Renewable has this right when it has the decision-making rights that are most relevant to changing how and for what purpose the asset is used. In rare cases where the decisions about how and for what purpose the asset is used are predetermined, Brookfield Renewable has the right to direct the use of the asset if either:
	◦	Brookfield Renewable has the right to operate the asset (or to direct others to operate the asset in a manner that it determines) throughout the period of use, without the supplier having the right to change those operating instructions; or
	◦	Brookfield Renewable designed the asset in a way that predetermines how and for what purpose it will be used.
At inception or on reassessment of a contract that contains a lease component, Brookfield Renewable allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. However, for the leases of land and buildings in which it is a lessee, Brookfield Renewable has elected not to separate non-lease components and, therefore, accounts for the lease and non-lease components as a single lease component.
Brookfield Renewable recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful lives of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use assets are determined on the same basis as those of property, plant and equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, Brookfield Renewable’s incremental borrowing rate. Generally, Brookfield Renewable uses its incremental borrowing rate as the discount rate.
Lease payments included in the measurement of the lease liability comprise the following:
•	Fixed payments, including in-substance fixed payments;
•	Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date;
•	Amounts expected to be payable under a residual value guarantee; and
•	The exercise price under a purchase option that Brookfield Renewable is reasonably certain to exercise, lease payments in an optional renewable period if Brookfield Renewable is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless Brookfield Renewable is reasonably certain not to terminate early
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in Brookfield
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Renewable’s estimate of the amount expected to be payable under a residual value guarantee, or if Brookfield Renewable changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is remeasured in this way, a corresponding adjustment is made either to the carrying amount of the right-of-use asset or, when the adjustment is a reduction to the right-of-use asset, is recorded in the consolidated statements of income (loss) if the carrying amount of the right-of-use asset has been reduced to nil.
Brookfield Renewable presents right-of-use assets in property, plant and equipment and lease liabilities in other long-term liabilities in the consolidated statements of financial position.
Brookfield Renewable has elected not to recognize right-of-use assets and lease liabilities for short-term leases that have a lease term of twelve months or less and leases of low-value assets. Brookfield Renewable recognizes the lease payments associated with these leases as an expense on a straight-line basis over the lease term.
(i) Goodwill
Goodwill represents the excess of the price paid for the acquisition of an entity over the fair value of the net tangible and intangible assets and liabilities acquired. Goodwill is allocated to the cash generating unit or units (“CGU”) to which it relates. Brookfield Renewable identifies CGU as identifiable groups of assets that are largely independent of the cash inflows from other assets or groups of assets.
Goodwill is evaluated for impairment annually or more often if events or circumstances indicate there may be impairment. Impairment is determined for goodwill by assessing if the carrying value of a CGU, including the allocated goodwill, exceeds its recoverable amount determined as the greater of the estimated fair value less costs of disposal or the value in use. Impairment losses recognized in respect of a CGU are first allocated to the carrying value of goodwill and any excess is allocated to the carrying amount of assets in the CGU. Any goodwill impairment is charged to profit or loss in the period in which the impairment is identified. Impairment losses on goodwill are not subsequently reversed. In the year of a business acquisition, the recoverability of the acquired goodwill is assessed by revisiting the assumptions of the related underwriting model.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of the gain or loss on disposal of the operation.
(j) Asset impairment
At each statement of financial position date, Brookfield Renewable assesses whether for non-financial assets there is any indication that such assets are impaired. This assessment includes a review of internal and external factors which includes, but is not limited to, changes in the technological, political, economic or legal environment in which the entity operates in, structural changes in the industry, changes in the level of demand, physical damage and obsolescence due to technological changes. An impairment is recognized if the recoverable amount, determined as the higher of the estimated fair value less costs of disposal or the discounted future cash flows generated from use and eventual disposal from an asset or CGU is less than its carrying value.
For non-financial assets (including equity-accounted investments), an impairment is recognized if the recoverable amount, determined as the greater of the estimated fair value, less costs to sell, and the discounted future cash flows generated from use and eventual disposal of an asset or CGU, is less than its carrying value. The projections of future cash flows take into account the relevant operating plans and management’s best estimate of the most probable set of conditions anticipated to prevail. Where an impairment loss subsequently reverses, the carrying amount of the asset or CGU is increased to the lesser of the revised estimate of recoverable amount and the carrying amount that would have been recorded had no impairment loss been recognized previously.
(k) Trade receivables and other current assets
Trade receivables and other current assets are recognized initially at fair value, and subsequently measured at amortized cost using the effective interest method, less any provision for expected credit losses.
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(l) Financial instruments
Initial recognition
Under IFRS 9 – Financial Instruments (“IFRS 9”), regular purchases and sales of financial assets are recognized on the trade date, being the date on which Brookfield Renewable commits to purchase or sell the asset. Financial assets are derecognized when the rights to receive cash flows from the financial assets have expired or have been transferred and Brookfield Renewable has transferred substantially all the risks and rewards of ownership.
At initial recognition, Brookfield Renewable measures a financial asset at its fair value. In the case of a financial asset not categorized as fair value through profit and loss (“FVPL”), transaction costs that are directly attributable to the acquisition of the financial asset are included at initial recognition. Transaction costs of financial assets carried at FVPL are expensed in income.
Classification and measurement
Subsequent measurement of financial assets depends on Brookfield Renewable’s business objective for managing the asset and the cash flow characteristics of the asset. There are three measurement categories into which Brookfield Renewable classifies its financial assets:
Amortized cost – Financial assets held for collection of contractual cash flows that represent solely payments of principal and interest are measured at amortized cost. Interest income is recognized as other income in the financial statements, and gains/losses are recognized in income when the asset is derecognized or impaired.
FVOCI – Financial assets held to achieve a particular business objective other than short-term trading are designated at fair value through other comprehensive income (“FVOCI”). For equity instruments designated at FVOCI, there is no recycling of gains or losses through income. Upon derecognition of the asset, accumulated gains or losses are transferred from OCI directly to retained earnings.
FVPL – Financial assets that do not meet the criteria for amortized cost or FVOCI are measured at FVPL. Gains or losses on these types of assets are recognized in income.
Brookfield Renewable assesses on a forward-looking basis the expected credit losses (“ECL”) associated with its assets carried at amortized cost and FVOCI. For trade receivables and contract assets, Brookfield Renewable applied the simplified approach permitted by IFRS 9, which requires expected lifetime losses to be recognized from initial recognition of the asset. The simplified approach to the recognition of ECL does not require entities to track the changes in credit risk; rather, entities recognize a loss allowance at each reporting date based on the lifetime ECL since the date of initial recognition of the asset.
Evidence of impairment may include:
•	Indications that a debtor or group of debtors is experiencing significant financial difficulty;
•	A default or delinquency in interest or principal payments;
•	Probability that a debtor or a group of debtors will enter into bankruptcy or other financial reorganization;
•	Changes in arrears or economic conditions that correlate with defaults, where observable data indicates that there is a measurable decrease in the estimated future cash flows.
Trade receivables and contract assets are reviewed qualitatively on a case-by-case basis to determine if they need to be written off.
ECL are measured as the difference in the present value of the contractual cash flows that are due under contract and the cash flows expected to be received. ECL is measured by considering the risk of default over the contract period and incorporates forward looking information into its measurement.
Financial liabilities are classified as financial liabilities at fair value through profit and loss, amortized cost, or derivatives designated as hedging instruments in an effective hedge. Brookfield Renewable determines the classification of its financial liabilities at initial recognition. Brookfield Renewable’s financial liabilities include accounts payable and accrued liabilities, corporate borrowings, non-recourse borrowings, derivative liabilities, due to related party balances, and tax equity. Financial liabilities are initially measured at fair value, with subsequent measurement determined based on their classification as follows:
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FVPL – Financial liabilities held for trading, such as those acquired for the purpose of selling in the near term, derivative financial instruments entered into by Brookfield Renewable that do not meet hedge accounting criteria, and tax equity are classified as fair value through profit and loss. Gains or losses on these types of liabilities are recognized in income.
Brookfield Renewable owns and operates certain projects in the U.S. under tax equity structures to finance the construction of utility-scale solar and wind projects. Such structures are designed to allocate renewable tax incentives, such as investment tax credits (“ITCs”), production tax credits (“PTCs”) and accelerated tax depreciation, to tax equity investors. Generally, tax equity structures grant the tax equity investors the majority of the project's U.S. taxable earnings and renewable tax incentives, along with a smaller portion of the projects’ cash flows, until a contractually determined point at which the allocations are adjusted (the “Flip Point”). Subsequent to the Flip Point the majority of the project’s U.S. taxable earnings, renewable tax incentives and cash flows are allocated to the sponsor. The Flip Point dates are generally dependent on the underlying projects’ reaching an agreed upon after tax investment return, however, from time to time, the Flip Point dates may be dates specified within the contract. At all times, both before and after the projects’ Flip Point, Brookfield Renewable retains control over the projects financed with a tax equity structure. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position and at each reporting date are remeasured to their fair value in accordance with IFRS 9.
The fair value of the tax equity financing is generally comprised of the following elements:
Elements affecting the fair value of the tax equity financing	Description
		Allocation of PTCs to the tax equity investor are derived
		from the power generated during the period. The PTCs are
Production tax credits (PTCs)		recognized in foreign exchange and financial instrument
		gain (loss) with a corresponding reduction to the tax equity
		liability.
		Under the terms of the tax equity agreements, Brookfield
		Renewable is required to allocate specified percentages of
		taxable losses to the tax equity investor. As amounts are
Taxable loss, including tax attributes such as accelerated tax		allocated, the obligation to deliver them is satisfied and a
depreciation		reduction to the tax equity liability is recorded with a
		corresponding amount recorded within foreign exchange
		and financial instrument gain (loss) on the consolidated
		statements of income (loss).
		Certain of the contracts contain annual production
		thresholds. When the thresholds are exceeded, the tax
Pay-go contributions		equity investor is required to contribute additional cash
		amounts. The cash amounts paid increase the value of the
		tax equity liability.
		Certain of the contracts also require cash distributions to the
Cash distributions		tax equity investor. Upon payment, the tax equity liability is
		reduced in the amount of the cash distribution.
Amortized cost – All other financial liabilities are classified as amortized cost using the effective interest rate method. Gains and losses are recognized in income when the liabilities are derecognized as well as through the amortization process. Remeasurement gains and losses on financial liabilities classified as amortized cost are presented in the consolidated statements of income (loss). Amortized cost is computed using the effective interest method less any principal repayment or reduction. The calculation takes into account any premium or discount on acquisition and includes transaction costs and fees that are an integral part of the effective interest rate. This category includes trade and other payables, dividends payable, interest-bearing loans and borrowings, and corporate credit facilities.
Derivatives and hedge accounting
Derivatives are initially recognized at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period. The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged and the type of hedge relationship designated.
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Brookfield Renewable designates its derivatives as hedges of:
•	Foreign exchange risk associated with the cash flows of highly probable forecast transactions (cash flow hedges);
•	Foreign exchange risk associated with net investment in foreign operations (net investment hedges);
•	Commodity price risk associated with cash flows of highly probable forecast transactions (cash flow hedges); and
•	Floating interest rate risk associated with floating rate debts (cash flow hedges).
At the inception of a hedge relationship, Brookfield Renewable formally designates and documents the hedge relationship to which it wishes to apply hedge accounting and the risk management objective and strategy for undertaking the hedge.
A hedging relationship qualifies for hedge accounting if it meets all of the following effectiveness requirements:
•	There is an ‘economic relationship’ between the hedged item and the hedging instrument;
•	The effect of credit risk does not ‘dominate the value changes’ that result from that economic relationship; and
•	The hedge ratio of the hedging relationship is the same as that resulting from the quantity of the hedged item that Brookfield Renewable actually hedges and the quantity of the hedging instrument that Brookfield Renewable actually uses to hedge that quantity of hedged item.
The fair values of various derivative financial instruments used for hedging purposes and movements in the hedge reserve within equity are shown in Note 6 – Risk management and financial instruments.
When a hedging instrument expires, is sold, is terminated, or no longer meets the criteria for hedge accounting, any cumulative deferred gain or loss and deferred costs of hedging in equity at that time remain in equity until the forecasted transaction occurs. When the forecasted transaction is no longer expected to occur, the cumulative gain or loss and deferred costs of hedging are immediately reclassified to income.
If the hedge ratio for risk management purposes is no longer optimal but the risk management objective remains unchanged and the hedge continues to qualify for hedge accounting, the hedge relationship will be rebalanced by adjusting either the volume of the hedging instrument or the volume of the hedged item so that the hedge ratio aligns with the ratio used for risk management purposes. Any hedge ineffectiveness is calculated and accounted for in income at the time of the hedge relationship rebalancing.
(i) Cash flow hedges that qualify for hedge accounting
The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in the cash flow hedge reserve within equity, limited to the cumulative change in fair value of the hedged item on a present value basis from the inception of the hedge. The gain or loss relating to the ineffective portion is recognized immediately in income, within foreign exchange and financial instruments gain (loss).
Gains and losses relating to the effective portion of the change in fair value of the entire forward contract are recognized in the cash flow hedge reserve within equity. Amounts accumulated in equity are reclassified in the period when the hedged item affects income.
(ii) Net investment hedges that qualify for hedge accounting
Hedges of net investments in foreign operations are accounted for similarly to cash flow hedges. Any gain or loss on the hedging instrument relating to the effective portion of the hedge is recognized in OCI and accumulated in reserves in equity. The gain or loss relating to the ineffective portion is recognized immediately in income within foreign exchange and financial instruments gain (loss). Gains and losses accumulated in equity will be reclassified to income when the foreign operation is partially disposed of or sold.
(iii) Hedge ineffectiveness
Brookfield Renewable’s hedging policy only allows for the use of derivative instruments that form effective hedge relationships. Sources of hedge effectiveness are determined at the inception of the hedge relationship and measured through periodic prospective effectiveness assessments to ensure that an economic relationship exists between the
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hedged item and hedging instrument. Where the critical terms of the hedging instrument match exactly with the terms of the hedged item, a qualitative assessment of effectiveness is performed. For other hedge relationships, the hypothetical derivative method to assess effectiveness is used.
(m) Revenue and expense recognition
The majority of revenue is derived from the sale of power and power related ancillary services both under contract and in the open market, sourced from Brookfield Renewable’s power generating facilities. The obligations are satisfied over time as the customer simultaneously receives and consumes benefits as Brookfield Renewable delivers electricity and related products. Revenue is recorded based upon the output delivered and capacity provided at rates specified under either contract terms or prevailing market rates. The revenue reflects the consideration Brookfield Renewable expects to be entitled to in exchange for those goods or services. Costs related to the purchases of power or fuel are recorded upon delivery. All other costs are recorded as incurred.
Details of the revenue recognized per geographical region and technology are included in Note 7 – Segmented information.
Where available, Brookfield Renewable has elected the practical expedient available under IFRS 15 – Revenue from contracts with customers (“IFRS 15”) for measuring progress toward complete satisfaction of a performance obligation and for disclosure requirements of remaining performance obligations. The practical expedient allows an entity to recognize revenue in the amount to which the entity has the right to invoice such that the entity has a right to the consideration in an amount that corresponds directly with the value to the customer for performance completed to date by the entity.
If the consideration in a contract that does not apply the practical expedient available under IFRS 15 for measuring progress toward complete satisfaction of a performance obligation includes a variable amount, Brookfield Renewable estimates the amount of consideration to which it will be entitled in exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly probable that a significant revenue reversal in the amount of cumulative revenue recognized will not occur when the associated uncertainty with the variable consideration is subsequently resolved.
Brookfield Renewable also sells power and related products under bundled arrangements. Energy, capacity and renewable credits within power purchase agreements are considered to be distinct performance obligations. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied under IFRS 15. Brookfield Renewable views the sale of energy and capacity as a series of distinct goods that is substantially the same and has the same pattern of transfer measured by the output method. Brookfield Renewable views renewable credits to be performance obligations satisfied at a point in time. During the year ended December 31, 2022, revenues recognized at a point in time corresponding to the sale of renewable credits were $263 million (2021: $183 million and 2020: $164 million). Measurement of satisfaction and transfer of control to the customer of renewable credits in a bundled arrangement coincides with the pattern of revenue recognition of the underlying energy generation.
Revenues recognized that are outside the scope of IFRS 15 include realized gains and losses from derivatives used in the risk management of Brookfield Renewable's generation activities related to commodity prices. From time to time, Brookfield Renewable also enters into commodity contracts to hedge all or a portion of its estimated revenue stream when selling electricity to an independent system operated market and there is no PPA available. These commodity contracts require periodic settlements in which Brookfield Renewable receives a fixed-price based on specified quantities of electricity and pays the counterparty a variable market price based on the same specified quantity of electricity. As these derivatives are accounted for under hedge accounting, the changes in fair value are recorded in revenues in the consolidated statements of income (loss). Financial transactions included in revenues for the year ended December 31, 2022 decreased revenues by $146 million (decreased by 2021: 37 million and 2020: $55 million).
Contract Balances
Contract assets – A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If Brookfield Renewable performs by transferring goods or services to a customer before the customer
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pays consideration or before payment is due, a contract asset is recognized for the earned consideration that is conditional.
Trade receivables – A receivable represents Brookfield Renewable’s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due).
Contract liabilities – A contract liability is the obligation to transfer goods or services to a customer for which Brookfield Renewable has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before Brookfield Renewable transfers goods or services to the customer, a contract liability is recognized when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognized as revenue when Brookfield Renewable performs under the contract.
(n) Income taxes
Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of recoveries, based on the tax rates and laws enacted or substantively enacted at the statement of financial position dates. Current income tax assets and liabilities are included in trade receivables and other current assets and accounts payable and accrued liabilities, respectively.
Deferred tax is recognized on taxable temporary differences between the tax basis and the carrying amounts of assets and liabilities. Deferred tax is not recognized if the temporary difference arises from goodwill or from initial recognition (other than in a business combination) of other assets and liabilities in a transaction that affects neither taxable profit nor accounting profit. Deferred income tax assets are recognized for all deductible temporary differences, carry forwards of unused tax credits and unused tax losses, to the extent that it is probable that deductions, tax credits and tax losses can be utilized. The carrying amount of deferred income tax assets is reviewed at each statement of financial position date and reduced to the extent it is no longer probable that the income tax assets will be recovered. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the statement of financial position dates.
Current and deferred income taxes relating to items recognized directly in OCI are also recognized directly in OCI.
(o) Business combinations
The acquisition of a business is accounted for using the acquisition method. The consideration for an acquisition is measured at the aggregate of the fair values, at the date of exchange, of the assets transferred, the liabilities incurred to former owners of the acquired business, and equity instruments issued by the acquirer in exchange for control of the acquired business. The acquired business’ identifiable assets, liabilities and contingent liabilities that meet the conditions for recognition under IFRS 3 – Business combinations (“IFRS 3”), are recognized at their fair values at the acquisition date, except for income taxes which are measured in accordance with IAS 12 – Income taxes (“IAS 12”), share-based payments which are measured in accordance with IFRS 2 – Share-based payment, liabilities and contingent liabilities which are measured under IAS 37 - Provisions, contingent liabilities and contingent assets or IFRIC 21 - Levies and non-current assets that are classified as held-for-sale which are measured at fair value less costs to sell in accordance with IFRS 5 – Non-current assets held for sale and discontinued operations. The non-controlling interest in the acquiree is initially measured at the non-controlling interest’s proportion of the net fair value of the identifiable assets, liabilities and contingent liabilities recognized or when applicable, at the fair value of the shares outstanding.
To the extent that the aggregate of the fair value of consideration paid, the amount of any non-controlling interest and the fair value of any previously held interest in the acquiree exceeds the fair value of the net identifiable tangible and intangible assets acquired, goodwill is recognized. To the extent that this difference is negative, the amount is recognized as a gain in income. Goodwill is not amortized and is not deductible for tax purposes. However, after initial recognition, goodwill will be measured at cost less any accumulated impairment losses. An impairment assessment will be performed at least annually, and whenever circumstances such as significant declines in expected revenues, earnings or cash flows indicate that it is more likely than not that goodwill might be impaired. Goodwill impairment charges are not reversible.
When a business combination is achieved in stages, previously held interests in the acquired entity are re-measured to fair value at the acquisition date, which is the date control is obtained, and the resulting gain or loss, if any, is
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recognized in income. Amounts arising from interests in the acquired business prior to the acquisition date that have previously been recognized in OCI are reclassified to income. Upon disposal or loss of control of a subsidiary, the carrying amount of the net assets of the subsidiary (including any OCI relating to the subsidiary) are derecognized with the difference between any proceeds received and the carrying amount of the net assets recognized as a gain or loss in income.
Where applicable, the consideration for the acquisition includes any asset or liability resulting from a contingent consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in fair values are adjusted against the cost of the acquisition where they qualify as measurement period adjustments. All other subsequent changes in the fair value of contingent consideration classified as liabilities will be recognized in the consolidated statements of income (loss), whereas changes in the fair values of contingent consideration classified within equity are not subsequently re-measured.
(p) Assets held for sale
Assets and disposal groups are classified as held for sale if their carrying amount will be recovered principally through a sale transaction rather than through continuing use. This condition is regarded as met only when the sale is highly probable and the non-current asset or disposal group is available for immediate sale in its present condition. Management must be committed to the sale, which should be expected to qualify for recognition as a completed sale within one year from the date of classification subject to limited exceptions.
When Brookfield Renewable is committed to a sale plan involving loss of control of a subsidiary, all of the assets and liabilities of that subsidiary are classified as held for sale when the criteria described above are met, regardless of whether Brookfield Renewable will retain a non-controlling interest in its former subsidiary after the sale.
Non-current assets and disposal groups classified as held for sale are measured at the lower of their previous carrying amount and fair value less costs to sell.
Assets classified as held for sale and the assets of a disposal group are presented separately from other assets in the consolidated statements of financial position and are classified as current. The liabilities of a disposal group classified as held for sale are presented separately from other liabilities in the consolidated statements of financial position and are classified as current.
Once classified as held for sale, property, plant and equipment and intangible assets are not depreciated or amortized.
(q) Other items
(i) Capitalized costs
Capitalized costs related to CWIP include eligible expenditures incurred in connection with acquisition, construction or production of a qualifying asset. A qualifying asset is an asset that takes a substantial period of time to prepare for its intended use. Interest and borrowing costs related to CWIP are capitalized when activities that are necessary to prepare the asset for its intended use or sale are in progress, expenditures for the asset have been incurred and funds have been used or borrowed to fund the construction or development. Capitalization of costs ceases when the asset is ready for its intended use.
(ii) Pension and employee future benefits
Pension and employee future benefits are recognized in the consolidated financial statements in respect of employees of the operating entities within Brookfield Renewable. The costs of retirement benefits for defined benefit plans and post-employment benefits are recognized as the benefits are earned by employees. The projected unit credit method, using the length of service and management’s best estimate assumptions, is used to value pension and other retirement benefits. All actuarial gains and losses are recognized immediately through OCI in order for the net pension asset or liability recognized in the consolidated statements of financial position to reflect the full value of the plan deficit or surplus. Net interest is calculated by applying the discount rate to the net defined benefit asset or liability. Changes in the net defined benefit obligation related to service costs (comprising of current service costs, past services costs, gains and losses on curtailments and non-routine settlements), and net interest expense or income are recognized in the consolidated statements of income (loss).
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Re-measurements, comprising of actuarial gains or losses, the effect of the asset ceiling, and the return on plan assets (excluding net interest), are recognized immediately in the consolidated statements of financial position with a corresponding debit or credit to OCI in the period in which they occur. Re-measurements are not reclassified to income in subsequent periods. For defined contribution plans, amounts are expensed based on employee entitlement.
(iii) Decommissioning, restoration and environmental liabilities
Legal and constructive obligations associated with the retirement of property, plant and equipment are recorded as liabilities when those obligations are incurred and are measured at the present value of the expected costs to settle the liability, using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the liability. The liability is accreted up to the date the liability will be settled with a corresponding charge to operating expenses. The carrying amount of decommissioning, restoration and environmental liabilities is reviewed annually with changes in the estimates of timing or amount of cash flows added to or deducted from the cost of the related asset.
(iv) Provisions
A provision is a liability of uncertain timing or amount. A provision is recognized if Brookfield Renewable has a present legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably estimated. Provisions are not recognized for future operating losses. The provision is measured at the present value of the best estimate of the expenditures expected to be required to settle the obligation using a discount rate that reflects the current market assessments of the time value of money and the risks specific to the obligation. Provisions are re-measured at each statement of financial position date using the current discount rate. The increase in the provision due to the passage of time is recognized as interest expense.
(v) Interest income
Interest income is earned with the passage of time and is recorded on an accrual basis.
(vi) Government grants
Brookfield Renewable becomes eligible for government grants by constructing or purchasing renewable power generating assets, and by bringing those assets to commercial operation, coupled with a successful application to the applicable program or agency. The assessment of whether or not a project has complied with the conditions and that there is reasonable assurance the grants will be received will be undertaken on a case-by-case basis. Brookfield Renewable reduces the cost of the asset by the amount of the grant. The grant amounts are recognized in income on a systematic basis as a reduction of depreciation over the periods, and in the proportions, in which depreciation on those assets is charged.
With respect to grants related to income, the government assistance (in the form of the difference between market price and guaranteed fixed price) typically becomes payable once electricity is produced and delivered to the relevant grid. It is at this point that the receipt of the grant becomes reasonably assured, and therefore the grant is recognized as revenue in the month that delivery of the electricity occurs.
(r) Critical estimates
Brookfield Renewable makes estimates and assumptions that affect the carrying value of assets and liabilities, disclosure of contingent assets and liabilities and the reported amount of income and OCI for the year. Actual results could differ from these estimates. The estimates and assumptions that are critical to the determination of the amounts reported in the consolidated financial statements relate to the following:
(i) Property, plant and equipment
The fair value of Brookfield Renewable’s property, plant and equipment is calculated using estimates and assumptions about future electricity prices from renewable sources, anticipated long-term average generation, estimated operating and capital expenditures, future inflation rates, discount rates and terminal value, as described in Note 13 – Property, plant and equipment, at fair value. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of Brookfield Renewable’s property, plant and equipment. See Note 1(s)(iii) – Critical judgments in applying accounting policies – Property, plant and equipment for further details.
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Estimates of useful lives and residual values are used in determining depreciation and amortization. To ensure the accuracy of useful lives and residual values, these estimates are reviewed on an annual basis.
(ii) Financial instruments
Brookfield Renewable makes estimates and assumptions that affect the carrying value of its financial instruments, including estimates and assumptions about future electricity prices, long-term average generation, capacity prices, discount rates, the timing of energy delivery and the elements affecting fair value of the tax equity financings. The fair value of interest rate swaps is the estimated amount that another party would receive or pay to terminate the swap agreements at the reporting date, taking into account current market interest rates. This valuation technique approximates the net present value of future cash flows. See Note 6 – Risk management and financial instruments for more details.
(iii) Deferred income taxes
The consolidated financial statements include estimates and assumptions for determining the future tax rates applicable to subsidiaries and identifying the temporary differences that relate to each subsidiary. Deferred income tax assets and liabilities are measured at the tax rates that are expected to apply during the year when the assets are realized or the liabilities settled, using the tax rates and laws enacted or substantively enacted at the consolidated statement of financial position dates. Operating plans and forecasts are used to estimate when the temporary difference will reverse based on future taxable income.
(iv) Decommissioning liabilities
Decommissioning costs will be incurred at the end of the operating life of some of Brookfield Renewable’s assets. These obligations are typically many years in the future and require judgment to estimate. The estimate of decommissioning costs can vary in response to many factors including changes in relevant legal, regulatory, and environmental requirements, the emergence of new restoration techniques or experience at other power generating facilities. Inherent in the calculations of these costs are assumptions and estimates including the ultimate settlement amounts, inflation factors, discount rates, and timing of settlements.
(v) Impairment of goodwill
The impairment assessment of goodwill requires estimation of the value-in-use or fair value less costs of disposal of the CGUs or groups of CGUs to which goodwill has been allocated.
Brookfield Renewable uses the following critical assumptions and estimates for the value-in-use method: the circumstances that gave rise to the goodwill, timing and amount of future cash flows expected from the CGUs; discount rates; terminal capitalization rates; terminal valuation dates and future leverage assumptions.
(s) Critical judgments in applying accounting policies
The following are the critical judgments that have been made in applying the accounting policies used in the consolidated financial statements that have the most significant effect on the amounts in the consolidated financial statements:
(i) Preparation of consolidated financial statements
These consolidated financial statements present the financial position, results of operations and cash flows of Brookfield Renewable. Brookfield Renewable exercises judgment in determining whether non-wholly owned subsidiaries are controlled by Brookfield Renewable. Brookfield Renewable’s judgment included the determination of (i) how the relevant activities of the subsidiary are directed; (ii) whether the rights of shareholdings are substantive or protective in nature; and (iii) Brookfield Renewable’s ability to influence the returns of the subsidiary.
(ii) Common control transactions
Common control business combinations specifically fall outside of scope of IFRS 3 and as such management has used its judgment to determine an appropriate policy to account for these transactions by considering other relevant accounting guidance that is within the framework of principles in IFRS and that reflects the economic reality of the transactions. Brookfield Renewable’s policy is to record assets and liabilities recognized as a result of transactions between entities under common control at the carrying value on the transferor’s financial statements, and to have the
	Page 28

consolidated statements of income (loss), consolidated statements of comprehensive income, consolidated statements of financial position, consolidated statements of changes in equity and consolidated statements of cash flows reflect the results of the combined entities for all periods presented for which the entities were under the transferor’s common control, irrespective of when the combination takes place. Differences between the consideration given and the assets and liabilities received are recorded directly to equity.
(iii) Property, plant and equipment
The accounting policy relating to Brookfield Renewable’s property, plant and equipment is described in Note 1(g) – Property, plant and equipment and revaluation method. In applying this policy, judgment is used in determining whether certain costs are additions to the carrying amount of the property, plant and equipment as opposed to repairs and maintenance that are expensed when incurred. If an asset has been developed, judgment is required to identify the point at which the asset is capable of being used as intended and to identify the directly attributable costs to be included in the carrying value of the development asset. The useful lives of property, plant and equipment are determined by independent engineers periodically with an annual review by management.
Annually, Brookfield Renewable determines the fair value of its property, plant and equipment using a methodology that it has judged to be reasonable. The methodology for hydroelectric assets is generally a twenty-year discounted cash flow model. Twenty years is the period considered reasonable as Brookfield Renewable has twenty-year capital plans and it believes a reasonable third party would be indifferent between extending the cash flows further in the model versus using a discounted terminal value. The methodology for wind, solar and storage & other assets is to align the model length with the expected remaining useful life of the subject assets.
The valuation model incorporates future cash flows from long-term power purchase agreements that are in place where it is determined that the power purchase agreements are linked specifically to the related power generating assets. With respect to estimated future generation that does not incorporate long-term power purchase agreement pricing, the cash flow model uses estimates of future electricity prices using broker quotes from independent sources for the years in which there is a liquid market. The valuation of generation not linked to long-term power purchase agreements also requires the development of a long-term estimate of future electricity prices. In this regard the valuation model uses a discount to the all-in cost of construction with a reasonable return, to secure energy from a new renewable resource with a similar generation profile to the asset being valued as the benchmark that will establish the market price for electricity for renewable resources.
Brookfield Renewable’s long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth by the years 2026 to 2035 in North America, 2029 in Colombia, and 2026 in Brazil. The year of new entry is viewed as the point when generators must build additional capacity to maintain system reliability and provide an adequate level of reserve generation with the retirement of older coal-fired plants and rising environmental compliance costs in North America and Europe, and overall increasing demand in Colombia and Brazil. For the North American and European businesses, Brookfield Renewable has estimated a discount to these new-build renewable asset prices to determine renewable electricity prices for hydroelectric, solar and wind facilities. In Brazil and Colombia, the estimate of future electricity prices is based on a similar approach as applied in North America using a forecast of the all-in cost of development.
Terminal values are included in the valuation of hydroelectric assets in North America and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset with consideration of a one-time thirty-year renewal on qualifying hydroelectric assets.
Discount rates are determined each year by considering the current interest rates, average market cost of capital as well as the price risk and the geographical location of the operational facilities as judged by management. Inflation rates are also determined by considering the current inflation rates and the expectations of future rates by economists. Operating costs are based on long-term budgets escalated for inflation. Each operational facility has a twenty-year capital plan that it follows to ensure the maximum life of its assets is achieved. Foreign exchange rates are forecasted by using the spot rates and the available forward rates, extrapolated beyond the period available. The inputs described above to the discounted cash flow model require management to consider facts, trends and plans in making its judgments as to what derives a reasonable fair value of its property, plant and equipment.
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(iv) Financial instruments
The accounting policy relating to Brookfield Renewable’s financial instruments is described in Note 1(l) – Financial instruments. In applying the policy, judgments are made in applying the criteria set out in IFRS 9 to record financial instruments at fair value through profit and loss, fair value through other comprehensive income and the assessments of the effectiveness of hedging relationships.
For power purchase agreements accounted for under IFRS 9 (“IFRS 9 PPAs”) that have unobservable values, Brookfield Renewable determines the fair value of these IFRS 9 PPAs using a discounted cash flow model based on the term of the contract and applies judgements surrounding the inputs used within the valuation model. The valuation model incorporates various inputs and assumptions including future power prices, contractual prices, contractual volumes and discount rates. Future power prices are based on broker quotes from independent sources and for IFRS 9 PPAs with no available broker quotes, future fuel driven merchant prices are incorporated within the model. Contractual prices are stipulated within each individual agreement, contractual volumes are either specified within the agreement or determined using future generation of the power generating assets and discount rate used in the valuation model is the credit adjusted risk free rate.
(v) Deferred income taxes
The accounting policy relating to Brookfield Renewable’s income taxes is described in Note 1(n) – Income taxes. In applying this policy, judgments are made in determining the probability of whether deductions, tax credits and tax losses can be utilized.
(t) Recently adopted accounting standards
Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework
The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising from liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date. The amendments to IFRS 3 apply to annual reporting periods beginning on or after January 1, 2022. Brookfield Renewable has completed an assessment and implemented its transition plan that addresses the impact and effect changes as a result of amendments to the recognition principle of IFRS 3. The adoption did not have a significant impact on Brookfield Renewable’s financial reporting.
IFRS Interpretations Committee Agenda Decision - Demand Deposits with Restriction on Use Arising from a Contract with a Third Party (IAS 7 Statement of Cash Flows)
In April 2022, the IFRS Interpretations Committee (“IFRS IC”) concluded that restrictions on the use of a demand deposit arising from a contract with a third party do not result in the deposit no longer being cash, unless those restrictions change the nature of the deposit in a way that it would no longer meet the definition of cash in IAS 7 Statement of Cash Flows. In the fact pattern described in the request, the contractual restrictions on the use of the amounts held in the demand deposit did not change the nature of the deposit — the entity can access those amounts on demand. Therefore, the entity should include the demand deposit as a component of “cash and cash equivalents” in its statement of financial position and in its statement of cash flows. Brookfield Renewable has completed the assessment and implemented its transition plan that addresses the impact of this IFRS IC agenda decision. The effect of the IFRIC IC agenda decision resulted in an increase to Cash and cash equivalents and a corresponding decrease to Restricted cash of $268 million (2021: $136 million), on the consolidated statements of financial position. The impact on the consolidated statements of cash flows is an increase to Cash and cash equivalents of $268 million (2021: $136 million and 2020: $176 million) and an increase to cash used in investing activities in the prior year (2021: $40 million and 2020: $44 million).
(u) Future changes in accounting policies
Amendments to IAS 1 – Presentation of Financial Statements (“IAS 1”)
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The amendments clarify how to classify debt and other liabilities as current or non-current. The amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2024. Brookfield Renewable is currently assessing the impact of these amendments.
There are currently no other future changes to IFRS with potential impact on Brookfield Renewable.
2. PRINCIPAL SUBSIDIARIES
The following table lists the subsidiaries of Brookfield Renewable which significantly affect its financial position and results of operations as at December 31, 2022:
		Percentage of
	Jurisdiction of	voting securities
	Incorporation or	owned or
	Organization	controlled (%)
BP Brazil US Subco LLC			...............................................................................................	Delaware	100

Brookfield BRP Canada Corp.			.......................................................................................	Ontario	100

Brookfield BRP Europe Holdings (Bermuda) Limited				..................................................	Bermuda	100

Brookfield Power US Holding America Co.					..................................................................	Delaware	100

Isagen S.A. E.S.P.(1)			.......................................................................................................	Colombia	99.70

TerraForm Power Parent, LLC(1)						....................................................................................	New York	100.00

(1)	Voting control held, in whole or in part, through voting agreements with Brookfield.
							Page 31

3. ACQUISITIONS
The following investments were accounted for using the acquisition method by Brookfield Renewable, and the results of operations have been included in the audited annual consolidated financial statements since the date of acquisition.
U.S. Utility-scale Solar PortfolioOn January 24, 2022, Brookfield Renewable, together with its institutional partners, completed the acquisition of 100% interest in a utility scale development business with a 20 GW portfolio of utility-scale solar and energy storage development assets in the United States. The purchase price of this acquisition, including working capital and closing adjustments, was $702 million, plus $58 million of additional incentive payments to be paid contingent upon certain milestones being achieved. The total transaction costs related to the acquisition were $2 million. Brookfield Renewable holds an approximately 20% economic interest.Europe Utility-scale Solar PortfolioOn February 2, 2022, Brookfield Renewable, together with institutional partners, completed the acquisition of 100% interest in a 1.7 GW portfolio of utility-scale solar development assets in Germany. The purchase price of this acquisition, including working capital and closing adjustments, was approximately €66 million ($73 million), plus €15 million ($17 million) of additional incentive payments to be paid contingent upon certain milestones being achieved. The total transaction costs related to the acquisition were €2 million ($2 million). Brookfield Renewable holds an approximately 20% economic interest.
Chile Distributed Generation PortfolioOn March 17, 2022, Brookfield Renewable, together with institutional partners, completed the acquisition of 83% interest in a 437 MW distributed generation portfolio of high quality operating and development assets in Chile. The purchase price of this acquisition, including working capital and closing adjustments, was approximately $31 million. The total transaction costs related to the acquisition was $1 million. Brookfield Renewable holds an approximately 20% economic interest in the investment.During the fourth quarter of 2022, Brookfield Renewable, together with institutional partners, contributed an additional approximate $4 million to fund the development pipeline, increasing the ownership interest from 83% to 84%.U.S. Distributed Generation Portfolio
On September 28, 2022, Brookfield Renewable, together with its institutional partners, completed the acquisition of 100% interest in an integrated distributed generation developer with approximately 500 MW of contracted operating and under construction assets, and an 1.8 GW of development pipeline in the United States. The purchase price of this acquisition was $614 million, consisting of $538 million initial equity price, a $22 million working capital and closing adjustments and $98 million to repay previously existing non-recourse borrowings (in aggregate $123 million net to Brookfield Renewable). The total transaction costs related to the acquisition were $5 million. Brookfield Renewable holds an approximately 20% economic interest.
This investment was accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the U.S. Distributed Generation Portfolio would have been $46 million for the year ended December 31, 2022.
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U.S. Wind PortfolioOn December 16, 2022, Brookfield Renewable, together with institutional partners, completed the acquisition of 100% interest in a renewable developer with a portfolio of over 800 MW of operating wind assets and pipeline of over 22 GW of solar and storage assets in the United States. The purchase price of this acquisition, including working capital and closing adjustments, was approximately $1,092 million. The total transaction costs related to the acquisition were $4 million. Brookfield Renewable holds an approximately 20% economic interest.This investment was accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the U.S. Wind Portfolio would have been $82 million for the year ended December 31, 2022.The purchase price allocations, at fair value, as at December 31, 2022, with respect to the acquisitions are as follows:
	Chile
			Europe
		Distributed		U.S. Utility-	U.S. Distributed
			Utility-
		Generation	scale Solar	scale Solar	Generation	US Wind
	Portfolio		Portfolio	Portfolio (1)	Portfolio(2)(3)	Portfolio(2)	Total
(MILLIONS)
Cash and cash equivalents								............... $	2 $		3 $	22 $				33 $	26 $	86

Restricted cash										.................................	—		—		6	6				5	17

Trade receivables and other
current assets										...............................	2		30		48				13	13	106

Assets classified as held for sale(4)		..	—		—		—			—	240	240

Property, plant and
equipment, at fair value								...............	21		1								561	708	1,796	3,087

Deferred tax assets										..........................	—		—		—				10	—	10

Financial instruments assets(5)								.........	—	—		—				10	2	12

Other non-current assets								..................	1	—		4				21	22	48

Accounts payable and accrued
liabilities										......................................	(1)		(5)		(32)				(66)	(38)	(142)

Current portion of non-recourse
borrowings										...................................	—		—		—				(9)	—	(9)

Liabilities classified as held for
sale(4)												............................................	—		—		—				—	(135)	(135)

Financial instruments liabilities(5)		...	—		—		(15)			(15)	(725)	(755)

Non-recourse borrowings								................	(6)	—		(48)				(346)	—	(400)

Deferred income tax
liabilities										......................................	—		(7)		(43)				—	—	(50)

Provisions										........................................	—		—		—				(25)	(29)	(54)

Other long-term liabilities								...............	—	—		(30)				(35)	(68)	(133)

Fair value of net assets
acquired .......................................	19		22								473	305	1,109	1,928
Non-controlling interests								................. $	(6) $	— $		— $				— $	(26) $	(32)

Goodwill										..........................................	18		68									287	309	9	691

Purchase price										................................. $	31 $		90 $									760 $	614 $	1,092 $	2,587

(1)	During the year, Brookfield Renewable recorded purchase price allocation adjustment of $176 million primarily to Property, plant and equipment, Deferred tax asset, Other non-current assets, Deferred income tax liabilities and Other long-term liabilities.
(2)	The purchase price allocation is preliminary as at December 31, 2022. Brookfield Renewable is currently assessing the fair value of Property, plant and equipment, Financial instruments, Provisions and Deferred tax liabilities for the purchase price allocation and expect to finalize the balances in 2023.
(3)	During the year, Brookfield Renewable recorded purchase price allocation adjustments of $97 million primarily to Property, plant and equipment, at fair value, Deferred tax assets and Deferred income tax liabilities.
(4)	Refer to Note 5 - Assets held for sale
(5)	Includes both short-term and long-term balances
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The following investments were accounted for using the equity method as Brookfield Renewable has significant influence through its position in the business, and the results of operations have been included in the audited annual consolidated financial statements since the date of investment.
Powen
In February 2022, Brookfield Renewable, together with institutional partners, acquired an initial 16% interest in a DG solar development business in Spain and Mexico with approximately 700 MW of operating and development assets for $22 million ($6 million net to Brookfield Renewable). During the course of 2022, Brookfield Renewable, together with institutional partners, subscribed for additional shares for $34 million ($7 million net to Brookfield Renewable). This subscription increased our interest to approximately 32% (6% net to Brookfield Renewable)
Island Aggregator LP
On June 20, 2022, Brookfield Renewable, together with institutional partners, committed to invest $500 million, of which $122 million was deployed for a 20% stake in common equity into a private owner and operator of long-term, U.S. denominated, contracted power and utility assets across the Americas with 1.2 GW of installed capacity and approximately 1.3 GW development pipeline. Brookfield Renewable holds a 20% interest in this investment through an intermediate entity.
California Resources Corporation
On August 3, 2022, Brookfield Renewable, together with its institutional partners, formed a joint venture with California Resources Corporation (“CRC”) to establish a Carbon Management Business that will develop carbon capture and storage in California. Brookfield Renewable, together with its institutional partners, has committed to invest up to $500 million to fund the development of identified carbon capture and storage projects in California. This includes an initial investment of approximately $137 million, of which $48 million was deployed during the year, which includes a put option that offers strong downside protection at a pre-determined rate of return. Brookfield Renewable holds an approximate 10% economic interest.
California Bioenergy (“Calbio”)
On December 21, 2022, Brookfield Renewable, together with its institutional partners, closed its purchase of a 10% interest in a developer, operator and owner of renewable natural gas assets in the U.S. with an initial equity commitment of $150 million ($30 million net to Brookfield Renewable) and secured the option to invest up to approximately $350 million ($70 million net to Brookfield Renewable) of follow-on equity capital for future projects meeting our risk-return requirements. Brookfield Renewable holds an approximate 2% economic interest.
Completed in 2021
The following investments were accounted for using the acquisition method, and the results of operations have been included in the audited annual consolidated financial statements since the date of acquisition.
Oregon Wind Portfolio
On March 24, 2021, Brookfield Renewable, together with institutional partners, completed the acquisition of 100% of a portfolio of three wind generation facilities of approximately 845 MW and development projects of approximately 400 MW (together, “Oregon Wind Portfolio”) located in Oregon, United States. The purchase price of this acquisition, including working capital and closing adjustments, was approximately $744 million. The total transaction costs of $6 million were expensed as incurred and have been classified under Other in the consolidated statement of income (loss). Brookfield Renewable holds a 25% economic interest.
This investment was accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the Oregon Wind Portfolio would have been $183 million for the year ended December 31, 2021.
During March 31, 2022, the purchase price allocation was finalized with no material changes from the purchase price allocation as at December 31, 2021 as disclosed in the 2021 Annual Report.
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U.S. Distributed Generation Portfolio
On March 31, 2021, Brookfield Renewable, together with institutional partners, completed the acquisition of 100% of a distributed generation business (the “U.S. Distributed Generation Portfolio”) comprised of 360 MW of operating and under construction assets across approximately 600 sites and 700 MW of development assets, all in the United States. The purchase price of this acquisition, including working capital and closing adjustments, was approximately $684 million. The total transaction costs of $2 million were expensed as incurred and have been classified under Other in the consolidated statement of income (loss). Brookfield Renewable holds a 25% economic interest.
This investment was accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the U.S. Distributed Generation Portfolio would have been $79 million for the year ended December 31, 2021.
The purchase price allocation, at fair value, as at December 31, 2021, with respect to the acquisitions are as follows:
	Oregon Wind	U.S. Distributed
	Portfolio	Generation Portfolio	Total
(MILLIONS)
Cash and cash equivalents				......................................................... $	1 $	1 $	2

Restricted cash							...........................................................................	49	5	54

Trade receivables and other current assets								................................	28	23	51

Property, plant and equipment				...................................................	1,643	723	2,366

Current liabilities							.......................................................................	(10)	(6)	(16)

Current portion of non-recourse borrowings								.............................	(74)	(7)	(81)

Financial instruments				.................................................................	(16)	—	(16)

Non-recourse borrowings				..........................................................	(761)	(133)	(894)

Provisions							..................................................................................	(83)	(16)	(99)

Other long-term liabilities				.........................................................	(33)	(23)	(56)

Fair value of net assets acquired				................................................	744	567	1,311

Goodwill							....................................................................................	—	117	117

Purchase price							............................................................................ $	744 $	684 $	1,428

			Page 35

The following investments were accounted for using the equity method as Brookfield Renewable has significant influence through its position in the business, and the results of operations have been included in the audited annual consolidated financial statements since the date of investment.
Polenergia
In the first quarter of 2021, Brookfield Renewable, together with its institutional partners, closed its purchase of a 23% interest in a large scale renewable business in Poland, in connection with its previously announced tender offer alongside the current majority shareholder, at a cost of approximately $175 million (approximately $44 million net to Brookfield Renewable for a 6% interest). Brookfield Renewable, together with its institutional partners and the current majority shareholder, holds a 75% interest in the company.
During the first quarter of 2022, Brookfield Renewable, together with its institutional partner, subscribed for additional shares in Polenergia. This subscription increased the total interest in Polenergia to 32% (8% net to Brookfield Renewable).
Completed in 2020
The following investments were accounted for using the acquisition method, and the results of operations have been included in the audited annual consolidated financial statements since the date of acquisition.
Spanish CSP Portfolio
On February 11, 2020, Brookfield Renewable, through its investment in TerraForm Power, completed the acquisition of 100% of a portfolio of two concentrated solar power facilities (together, “Spanish CSP Portfolio”) located in Spain with a combined nameplate capacity of approximately 100 MW. The purchase price of this acquisition, including working capital adjustments, was €111 million ($121 million). The total acquisition costs of $1 million were expensed as incurred and have been classified under other in the consolidated statement of income (loss).
This investment was accounted for using the acquisition method, and the results of operations have been included in the consolidated financial statements since the date of the acquisition. If the acquisition had taken place at the beginning of the year, the revenue from the Spanish CSP Portfolio would have been $99 million for the year ended December 31, 2020.
The purchase price allocation, at fair value, with respect to the acquisition is as follows:
	Spanish CSP Portfolio
(MILLIONS)
Cash and cash equivalents		.......................................................................................................................... $	22

Restricted cash				............................................................................................................................................	27

Trade receivables and other current assets					.................................................................................................	33

Property, plant and equipment, at fair value					..............................................................................................	661

Deferred tax assets				.....................................................................................................................................	14

Other non-current assets		.............................................................................................................................	8

Current liabilities				........................................................................................................................................	(17)

Financial instruments		.................................................................................................................................	(148)

Non-recourse borrowings		...........................................................................................................................	(475)

Decommissioning liabilities		.......................................................................................................................	(23)

Other long-term liabilities		..........................................................................................................................	(22)

Fair value of identifiable net assets acquired					.............................................................................................	80

Goodwill				.....................................................................................................................................................	41

Purchase price				............................................................................................................................................ $	121


			Page 36

4. DISPOSAL OF ASSETS
In April 2022, Brookfield Renewable, together with its institutional partners, completed the sale of its interest in a portfolio of 19 MW utility-scale solar assets in Asia (“Malaysia Utility-scale Solar Portfolio”) for proceeds of approximately MYR 144 million ($33 million and $10 million net to Brookfield Renewable). This resulted in a loss on disposition of $9 million ($3 million net to Brookfield Renewable) recognized within Other in the consolidated statements of income (loss). As a result of the disposition, Brookfield Renewable's post-tax portion of the accumulated revaluation surplus of $3 million was reclassified from accumulated other comprehensive income directly to equity and presented as a Disposals item in the consolidated statements of changes in equity.
In June 2022, Brookfield Renewable, together with its institutional partners, completed the sale of its 100% interest in a 36 MW operating hydroelectric portfolio in Brazil (“Brazil Hydroelectric Portfolio”) for proceeds of R$461 million (approximately $90 million and $23 million net to Brookfield Renewable). Brookfield Renewable holds an approximately 25% economic interest in each of the project entities within the Brazil Hydroelectric Portfolio and a 100% voting interest. As a result of the disposition, Brookfield Renewable's post-tax portion of the accumulated revaluation surplus of $30 million was reclassified from accumulated other comprehensive income directly to equity and presented as a Disposals item in the consolidated statements of changes in equity.
Summarized financial information relating to the disposals are shown below:
		Brazil
	Malaysia Utility-		Hydroelectric
	scale Solar Portfolio	Portfolio		Total
(MILLIONS)
Proceeds, net of transaction costs					........................................................ $	33 $	90 $		123

Carrying value of net assets held for sale
Assets							............................................................................................	55	90		145

Liabilities							......................................................................................	(6)	—		(6)

Non-controlling interests					..............................................................	(7)	—		(7)

						42	90		132
Loss on disposal, net of transaction costs								............................................ $	(9) $	— $		(9)

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5. ASSETS HELD FOR SALE
As at December 31, 2022, assets held for sale within Brookfield Renewable's operating segments include a 378 MW operating hydroelectric portfolio in the U.S. following our institutional partners agreement to sell their 50% interest. Brookfield Renewable will continue to retain its 22% interest in the investment and accordingly, will not receive proceeds from the sale. The portfolio has been reclassified as held for sale, as subsequent to our institutional partners’ 50% interest completing this sale, Brookfield Renewable will no longer consolidate this investment and will recognize its interest as an equity-accounted investment.
Assets held for sale also include acquired wind assets in the U.S. that were acquired as part of the acquisition of a renewables developer that had a pre-existing sale and purchase agreement at the time of acquisition.
The following is a summary of the major items of assets and liabilities classified as held for sale as at December 31:
	2022	2021
(MILLIONS)
Assets
Cash and cash equivalents			............................................................................................................. $	9 $	9

Restricted cash				...............................................................................................................................	5	1

Trade receivables and other current assets					.....................................................................................	4	1

Financial instrument assets			............................................................................................................	3	—

Property, plant and equipment, at fair value					..................................................................................	911	47

Other long-term assets			...................................................................................................................	6	—

Assets held for sale				........................................................................................................................... $	938 $	58

Liabilities
Current liabilities				........................................................................................................................... $	9 $	—

Non-recourse borrowings			...............................................................................................................	171	3

Financial instrument liabilities			.......................................................................................................	167	—

Other long-term liabilities			..............................................................................................................	1	3

Provisions				.......................................................................................................................................	3

Liabilities directly associated with assets held for sale						.................................................................... $	351 $	6

Brookfield Renewable continues to consolidate and recognize the revenues, expenses and cash flows associated with assets held for sale in the consolidated statements of income (loss), consolidated statements of comprehensive income, and the consolidated statements of cash flows, respectively. Non-current assets classified as held for sale are not depreciated.
6. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS
Brookfield Renewable’s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. Brookfield Renewable uses financial instruments primarily to manage these risks.
The sensitivity analysis discussed below reflects the risks associated with instruments that Brookfield Renewable considers are market sensitive and the potential loss resulting from one or more selected hypothetical changes. Therefore, the discussion below is not intended to fully reflect Brookfield Renewable’s risk exposure.
(a) Market risk
Market risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by Brookfield Renewable will fluctuate because of changes in market prices.
Brookfield Renewable faces market risk from foreign currency assets and liabilities, the impact of changes in interest rates, and floating rate liabilities. Market risk is managed by funding assets with financial liabilities in the same currency and with similar interest rate characteristics and holding financial contracts, such as interest rate swaps and foreign exchange contracts, to minimize residual exposures. Financial instruments held by Brookfield Renewable that are subject to market risk include borrowings and financial instruments, such as interest rate,
		Page 38

currency and commodity contracts. The categories of financial instruments that can give rise to significant variability are described below:
(i) Electricity price risk
Brookfield Renewable aims to sell electricity under long-term contracts to secure stable prices and mitigate its exposure to wholesale markets. Electricity price risk arises from the sale of Brookfield Renewable’s uncontracted generation and is mitigated by entering into short-term energy derivative contracts. Electricity price risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by Brookfield Renewable will fluctuate because of changes in electricity prices.
The table below summarizes the impact of changes in the market price of electricity as at December 31. The impact is expressed in terms of the effect on net income and OCI. The sensitivities are based on the assumption that the market price changes by 5% with all other variables held constant.
Impact of a 5% change in the market price of electricity, on outstanding energy derivative contracts and IFRS 9 PPAs, for the year ended December 31:
	Effect on net income(1)	Effect on OCI(1)
	2022		2021	2020	2022	2021	2020
(MILLIONS)
5% increase								................................. $	(76) $		(37) $	(13) $	(36) $			(21) $	(16)

5% decrease								.................................	75		40	14	36			22	16

(1)	Amounts represent the potential annual net pretax impact.
(ii) Foreign currency risk
Foreign currency risk is defined for these purposes as the risk that the fair value of a financial instrument held by Brookfield Renewable will fluctuate because of changes in foreign currency rates.
Brookfield Renewable has exposure to the Canadian dollar, euro, Brazilian real, Colombian peso, British pound sterling, Indian rupee, Malaysian ringgit, Chinese yuan and Polish złoty through its investments in foreign operations. Consequently, fluctuations in the U.S. dollar exchange rate against these currencies increase the volatility of net income and other comprehensive income. Brookfield Renewable holds foreign currency contracts primarily to mitigate this exposure.
The table below summarizes the impact to Brookfield Renewable’s financial instruments of changes in the exchange rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the currency exchange rate changes by five percent with all other variables held constant.
Impact of a 5% change in U.S. dollar exchange rates, on outstanding foreign exchange swaps, for the year ended December 31:
	Effect on net income(1)	Effect on OCI(1)
									2022	2021	2020	2022	2021	2020
(MILLIONS)
5% increase								.............................. $	27 $		29 $	10 $	96 $	95 $	73

5% decrease								.............................	(27)	(29)	(7)	(96)	(95)	(72)

(1)	Amounts represent the potential annual net pretax impact.
(iii) Interest rate risk
Interest rate risk is defined for these purposes as the risk that the fair value or future cash flows of a financial instrument held by Brookfield Renewable will fluctuate, because of changes in interest rates.
Brookfield Renewable’s assets largely consist of long duration physical assets. Brookfield Renewable’s financial liabilities consist primarily of long-term fixed-rate debt or variable-rate debt that has been swapped to fixed rates with interest rate financial instruments. Other than tax equity, all other non-derivative financial liabilities are recorded at their amortized cost. Brookfield Renewable also holds interest rate contracts to lock-in fixed rates on certain anticipated future debt issuances.
							Page 39

Brookfield Renewable will enter into interest rate swaps designed to minimize the exposure to interest rate fluctuations on its variable-rate debt. Fluctuations in interest rates could impact Brookfield Renewable’s cash flows, primarily with respect to the interest payable against Brookfield Renewable’s variable rate debt, which is limited to certain non-recourse borrowings with a total principal value of $7,823 million (2021: $6,758 million). Of this principal value, $3,396 million (2021: $3,493 million) has been fixed through the use of interest rate contracts. The fair values of the recognized asset and liability for the interest rate swaps were calculated using a valuation model with observable interest rates.
The table below summarizes the impact of changes in the interest rate as at December 31. The impact is expressed in terms of the effect on income and OCI. The sensitivities are based on the assumption that the interest rate changes by 1% with all other variables held constant.
Impact of a 1% change in interest rates, on outstanding interest rate swaps, variable-rate debt and tax equity, for the year ended December 31:
	Effect on net income(1)	Effect on OCI(1)
	2022		2021	2020	2022	2021	2020
(MILLIONS)
1% increase								.............................. $	20 $		15 $	37 $	112 $			114 $	122

1% decrease								.............................	(20)		(16)	(38)	(118)	(124)	(129)

(1)	Amounts represent the potential annual net pretax impact.
(b) Credit risk
Credit risk is the risk of loss due to the failure of a borrower or counterparty to fulfill its contractual obligations. Brookfield Renewable’s exposure to credit risk in respect of financial instruments relates primarily to counterparty obligations regarding energy contracts, interest rate swaps, forward foreign exchange contracts and physical electricity transactions.
Brookfield Renewable minimizes credit risk with counterparties through the selection, monitoring and diversification of counterparties, the use of standard trading contracts, and other credit risk mitigation techniques. In addition, Brookfield Renewable’s power purchase agreements are reviewed regularly and the majority are with customers having long standing credit histories or investment grade ratings, which limit the risk of non-collection. See Note 24 – Trade receivables and other current assets, for additional details regarding Brookfield Renewable’s trade receivables balance.
The maximum credit exposure at December 31 was as follows:
						2022	2021
(MILLIONS)
Trade receivables and other short-term receivables									......................................................................... $	883 $	807

Long-term receivables										.....................................................................................................................	235	216

Financial instrument assets(1)											...........................................................................................................	390	127

Due from related parties(1)										................................................................................................................	251	177

Contract asset(1)								................................................................................................................................	395	445

		$				2,154 $	1,772
(1)	Includes both the current and long-term amounts.
(c) Liquidity risk
Liquidity risk is the risk that Brookfield Renewable cannot meet a demand for cash or fund an obligation when due. Liquidity risk is mitigated by Brookfield Renewable’s cash and cash equivalent balances and its access to undrawn credit facilities. Details of the available portion of credit facilities are included in Note 15 – Borrowings. Brookfield Renewable also ensures that it has access to public capital markets and maintains a strong investment grade credit rating.
Brookfield Renewable is also subject to the risk associated with debt financing. This risk is mitigated by the long-term duration of debt instruments and the staggered maturity dates over an extended period of time.
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CASH OBLIGATIONS
The table below classifies the cash obligations related to Brookfield Renewable’s liabilities into relevant maturity groupings based on the remaining period from the statement of financial position dates to the contractual maturity date.
AS AT DECEMBER 31, 2022(MILLIONS)
	< 1 year	2-5 years	> 5 years	Total
Accounts payable and accrued liabilities					...................................... $	1,086 $					— $	— $	1,086

Financial instrument liabilities(1)(2)					...............................................	559	1,018	652	2,229

Due to related parties									....................................................................	586					1	—	587

Other long-term liabilities									– concession payments	......................	2	6	12	20

Lease liabilities(1)									..........................................................................		30	116	413	559

Corporate borrowings(1)									................................................................	249	664	1,643	2,556

Non-recourse borrowings(1)												..........................................................	2,027	7,904	12,390	22,321

Interest payable on borrowings(3)								..................................................	1,368	4,141	4,663	10,172

Total													.............................................................................................. $	5,907 $	13,850 $	19,773 $	39,530

AS AT DECEMBER 31, 2021(MILLIONS)
	< 1 year	2-5 years	> 5 years	Total
Accounts payable and accrued liabilities					...................................... $	779 $					— $	— $	779

Financial instrument liabilities(1)(2)					...............................................	400	358	207	965

Due to related parties									....................................................................	164					34	—	198

Other long-term liabilities									– concession payments	......................	1	6	13	20

Lease liabilities(1)									..........................................................................		30	129	305	464

Corporate borrowings(1)									................................................................		—	317	1,839	2,156

Non-recourse borrowings(1)												..........................................................	1,818	6,926	10,608	19,352

Interest payable on borrowings(3)								..................................................	912	2,989	3,987	7,888

Total													.............................................................................................. $	4,104 $	10,759 $	16,959 $	31,822

(1)	Includes both the current and long-term amounts.
(2)	Includes tax equity liabilities that will be partially settled by the delivery of non-cash tax attributes.
(3)	Represents aggregate interest payable expected to be paid over the entire term of the obligations, if held to maturity. Variable rate interest payments have been calculated based on estimated interest rates.
Fair value disclosures
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads.
A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset.
Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities.
Level 1 – inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities;
Level 2 – inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and
Level 3 – inputs for the asset or liability that are not based on observable market data.
				Page 41

The following table presents Brookfield Renewable’s assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy as at December 31:
	Level 1	Level 2	Level 3	2022	2021
(MILLIONS)
Assets measured at fair value:Cash and cash equivalents
						.................................. $	998 $	— $	— $	998 $	900

Restricted cash(1).................................................	191	—	—	191	176
Financial instrument assets(1)
Energy derivative contracts						.............................	—	37					2	39	55

Interest rate swaps						...........................................	—	335	—	335	40

Foreign exchange swaps						..................................	—	16	—	16	32

Investments in debt and equity securities								........	155	39	1,041	1,235	195

Property, plant and equipment						...........................	—	—	54,283	54,283	49,432

Liabilities measured at fair value:Financial instrument liabilities(1)
Energy derivative contracts						.............................	—	(236)	(670)	(906)	(226)

Interest rate swaps						...........................................	—	(82)	—	(82)	(228)

Foreign exchange swaps						..................................	—	(110)	—	(110)	(56)

Tax equity									........................................................	—	—	(1,131)	(1,131)	(455)

Contingent consideration(2)						................................	—	—	(68)	(68)	(3)

Liabilities for which fair value is disclosed:Corporate borrowings(1)
						......................................	(2,362)	—	—	(2,362)	(2,334)

Non-recourse borrowings(1)						................................	(2,115)	(19,002)	—	(21,117)	(20,435)

Total										................................................................... $	(3,133) $	(19,003) $	53,457 $	31,321 $	27,093

(1)	Includes both the current amount and long-term amount.
(2)	Amount relates to business combination completed in 2022 with obligations lapsing from 2023 to 2027.
There were no transfers between levels during the year ended December 31, 2022.
					Page 42

Financial instruments disclosures
The aggregate amount of Brookfield Renewable’s net financial instrument positions as at December 31 are as follows:
	Financial Instruments Assets	Financial Instruments Liabilities
			Instruments not	Instruments not
			designated as hedges	designated as hedges
					Instruments	Fair value		Fair value	Instruments	Fair value					Fair value
					designated	through		through	designated as	through					through		Net Assets
					as hedges	profit & loss			OCI	Total	hedges	profit & loss					OCI	Total	(Liabilities)
(MILLIONS)
IFRS 9 PPAs										...............................................	10 $		12 $				— $ 22	$	(35) $							(7) $		— $	(42) $				(20)

Energy derivative contracts													........................	3 $		30 $				— $ 33	$	(61) $		(123) $							— $ (184) $	(151)

Interest rate swaps										......................................	22		18				—	40		(117)		(111)							—	(228)				(188)

Foreign exchange swaps													.............................	30					2	—	32		(48)					(8)				—	(56)			(24)

Investments in debt and equity securities					...	—	—												195 195		—						—			—	—				195

Tax equity										...................................................	—		—				—	—		—		(455)							—	(455)				(455)

Balance, as at December 31, 2021															............. $	65 $		62 $											195 $ 322	$	(261) $		(704) $				— $ (923) $	(643)

Less: current portion																...................................	(60)				400				340

Long-term portion										......................................	$ 262			$ (523) $				(303)

IFRS 9 PPAs										............................................... $	— $		— $				— $ —	$	(94) $		(574) $							— $ (668) $	(668)

Energy derivative contracts													........................	12		27				—	39		(37)		(201)							—	(238)			(199)

Interest rate swaps										......................................	284		51				— 335		(15)		(67)							—	(82)				253

Foreign exchange swaps													.............................	14					2	—	16		(90)		(20)							—	(110)			(94)

Investments in debt and equity securities					...	—	1,010												225 1,235		—						—			—	—				1,235

Tax equity										...................................................	—		—				—	—		—		(1,131)							— (1,131)	(1,131)

Balance, as at December 31, 2022															............. $	310 $		1,090 $											225 $ 1,625	$	(236) $		(1,993) $				— $ (2,229) $	(604)

Less: current portion																...................................	(125)				559				434

Long-term portion										......................................	$ 1,500			$ (1,670) $				(170)

												Page 43

The following table presents the change in Brookfield Renewable’s total net financial instrument asset position as at and for the year ended December 31:
				Changes in fair
					value on
		Changes in			financial	Amounts
	Balance as at	fair value	Changes in fair	instruments		reclassified	Acquisitions,		Foreign	Balance as at
	Dec. 31, 2021	recognized	value (hedge	through profit		from OCI to	settlements and		exchange	Dec. 31, 2022
	asset (liability)	in OCI(1)	ineffectiveness)(2)		and loss(2)	income		other	gain (loss)	asset (liability)
(MILLIONS)
IFRS 9 PPAs(3)											............................... $	(20) $	(75) $	(13) $	(218) $							22 $	(364) $								— $	(668)

Energy derivative contracts																	............	(151)	(117)	2	(132)								142	57							—	(199)

Interest rate swaps											..........................	(188)	331	5												85	5	18							(3)	253

Foreign exchange swaps																	.................	(24)	(56)	—			89	—	(103)								—	(94)

Investments in debt and equity
securities											.......................................	195	(11)	—				13	—	1,046						(8)	1,235

Tax equity											.......................................	(455)	—	—	115							—	(791)								—	(1,131)

	$											(643) $	72 $	(6) $	(48) $							169 $	(137) $	(11) $								(604)
(1)	Amounts recognized in Equity-accounted investments, Gains (losses) arising during the year on financial instruments designated as cash-flow hedges and Unrealized gain (loss) on foreign exchange swaps – net investment hedge on the consolidated statements of comprehensive income (loss).
(2)	Amounts recognized in Foreign exchange and financial instruments gain (loss) on the consolidated statements of income (loss) excluding realized gains and losses recorded on foreign exchange.
(3)	Level 3 power purchase agreements accounted for as energy derivatives that are either designated as a hedge or not designated as a hedge.
				Changes in fair
					value on
		Changes in		derivatives not		Amounts
	Balance as at	fair value	Changes in fair	designated in		reclassified	Acquisitions,		Foreign	Balance as at
	Dec. 31, 2020	recognized	value (hedge		hedge	from OCI to	settlements and		exchange	Dec. 31, 2021
	asset (liability)	in OCI(1)	ineffectiveness)(2)	relationships(2)		income		other	gain (loss)	asset (liability)
(MILLIONS)
IFRS 9 PPAs(3)											.............................. $	68 $	(151) $	(5) $	(120) $							90 $	98 $								— $	(20)

Energy derivative contracts																	...........	34	(242)	—			3	42	12								—	(151)

Interest rate swaps											.........................	(422)	9	(17)				89	90	49						14	(188)

Foreign exchange swaps																	................	(90)	50	—	132								—	(116)							—	(24)

Investments in debt and equity
securities											......................................	330	3	—				19	—	(153)						(4)	195

Tax equity											......................................	(402)	—	—	(21)							—	(32)								—	(455)

	$											(482) $	(331) $	(22) $	102 $							222 $	(142) $								10 $	(643)
(1)	Amounts recognized in Equity-accounted investments, Gains (losses) arising during the year on financial instruments designated as cash-flow hedges and Unrealized gain (loss) on foreign exchange swaps – net investment hedge on the consolidated statements of comprehensive income (loss).
(2)	Amounts recognized in Foreign exchange and financial instruments gain (loss) on the consolidated statements of income (loss) excluding realized gains and losses recorded on foreign exchange.
(3)	Level 3 power purchase agreements accounted for as energy derivatives that are either designated as a hedge or not designated as a hedge.
																Page 44

(a) Tax equity
Brookfield Renewable owns and operates certain projects in the United States under tax equity structures to finance the construction of utility-scale solar and wind projects. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the consolidated statements of financial position.
Gains or losses on the tax equity liabilities are recognized within foreign exchange and financial instruments gain (loss) in the consolidated statements of income (loss).
(b) Investments in debt and equity securities
Brookfield Renewable's investments in debt and equity securities are classified as FVPL, FVOCI and amortized cost. Refer to Note 1(l) – Basis of preparation and significant accounting policies – Financial instruments.
(c) Energy derivative contracts and IFRS 9 PPAs
Brookfield Renewable has entered into long-term energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in Brookfield Renewable’s consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts.
There is an economic relationship between the hedged items and the hedging instruments as the terms of the energy derivative contracts match the terms of the expected highly probable forecast transactions (i.e. notional amount and expected payment date). Brookfield Renewable has established a hedge ratio of 1:1 for the hedging relationships. To measure the hedge effectiveness, Brookfield Renewable uses the hypothetical derivative method and compares changes in the fair value of the hedging instruments against the changes in fair value of the hedged items attributable to the hedged risks. The hedge ineffectiveness can arise from different indexes (and accordingly different curves) linked to the hedged risk of the hedged items and hedging instruments.
For the year ended December 31, 2022, gains of $146 million relating to energy derivative contracts were realized and reclassified from OCI to the consolidated statements of income (loss) (2021: $25 million and 2020: 55 million ).
Based on market prices as of December 31, 2022, unrealized losses of $37 million (2021: $72 million loss and 2020: 19 million gain) recorded in accumulated other comprehensive income (“AOCI”) on energy derivative contracts are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market prices.
The following table summarizes the energy derivative contracts designated as hedging instruments:
Energy derivative contracts and IFRS 9 PPAs	December 31, 2022	December 31, 2021
Carrying amount (asset/(liability))			.........................................................................	(116)	(83)

Notional amount – GWh						........................................................................................	13,674	10,022

Weighted average hedged rate for the year ($/MWh)							............................................	58	35

Maturity dates								.........................................................................................................	2023-2038	2022 - 2027

Hedge ratio								.............................................................................................................	1:1	1:1

Change in discounted spot value of outstanding hedging instruments											..................	(90)	(124)

Change in value of hedged item used to determine hedge effectiveness											...............	64	117

There is $18 million of hedge ineffectiveness losses recognized within foreign exchange and financial instruments gain (loss) in the consolidated statements of income (loss) related to energy derivative contracts (cash flow hedges) for the year ended December 31, 2022 (2021: $7 million loss and 2020: $2 million loss).
(d) Interest rate hedges
Brookfield Renewable has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable-rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the consolidated financial statements at fair value.
					Page 45

There is an economic relationship between the hedged items and the hedging instruments as the terms of the interest rate hedges match the terms of the respective fixed-rate debt (i.e., notional amount, maturity, payment and reset dates). Brookfield Renewable established a hedge ratio of 1:1 for the hedging relationships. To measure the hedge effectiveness, Brookfield Renewable uses the hypothetical derivative method and compares the changes in the fair value of the hedging instrument against the changes in fair value of the hedged items attributable to the hedged risk.
The hedge ineffectiveness can arise from:
•	Different interest rate curves being applied to discount the hedged item and hedging instrument
•	Differences in timing of cash flows of the hedged item and hedging instrument
•	The counterparties’ credit risk having an asymmetrical impact on the fair value movements of the hedging instrument and hedged item
As at December 31, 2022, agreements with a total notional exposure of $3,621 million were outstanding (2021: $3,437 million) including $701 million (2021: $789 million) associated with agreements that are not formally designated as hedging instruments. The weighted-average fixed interest rate resulting from these agreements is 2.9% (2021: 1.5%).
For the year ended December 31, 2022, net movements relating to cash flow hedges realized and reclassified from OCI to interest expense in the consolidated statements of income (loss) were $2 million losses (2021: $18 million losses and 2020: $12 million losses).
Based on market prices as of December 31, 2022, unrealized losses of $50 million (2021: $41 million and 2020: $34 million) recorded in AOCI on interest rate swaps are expected to be settled or reclassified into income in the next twelve months. The actual amount reclassified from AOCI, however, could vary due to future changes in market rates.
The following table summarizes the interest rate hedges designated as hedging instruments:
Interest rate hedges		December 31, 2022	December 31, 2021
Carrying amount (asset/(liability))				.........................................................................	269	(95)

Notional amount – $							...............................................................................................	803	558

Notional amount – C$(1)							.........................................................................................	349	377

Notional amount – €(1)							............................................................................................	1,315	1,572

Notional amount – £(1)							............................................................................................	296	—

Notional amount – COP(1)								......................................................................................	157	141

Maturity dates	.........................................................................................................								2023-2061	2022 - 2039

Hedge ratio	.............................................................................................................				1:1	1:1

Change in discounted spot value of outstanding hedging instruments											..................	333	80

Change in value of hedged item used to determine hedge effectiveness											...............	(328)	(97)

(1)	Notional amounts of foreign currency denominated interest rate hedges are presented at the U.S. dollar equivalent value based on the December 31, 2022 foreign currency spot rate.
The hedge ineffectiveness loss recognized within foreign exchange and financial instruments gain (loss) in the consolidated statements of income (loss) related to interest rate contracts (cash flow hedges) for the year ended December 31, 2022 was $5 million losses (2021: $17 million and 2020: 2 million).
(e) Foreign exchange swaps
Brookfield Renewable has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies.
There is an economic relationship between the hedged item and the hedging instrument as the net investment or anticipated foreign currency transaction creates a translation risk that will match the respective hedging instrument.
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Brookfield Renewable established a hedge ratio of 1:1 as the underlying risk of the hedging instrument is identical to the hedged risk component.
Certain Brookfield subsidiaries that Brookfield Renewable controls, through a voting agreement, have entered into Master Hedge Agreements appointing Brookfield as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in foreign exchange. Pursuant to each Agreement, Brookfield was entitled to be reimbursed for any third party costs incurred in connection with the these derivative transactions. Substantially all of Brookfield Renewable’s foreign exchange swaps are entered into pursuant to a Master Hedge Agreement.
As at December 31, 2022, agreements with a total notional exposure of $3,669 million were outstanding (2021: $2,701 million) including $1,804 million (2021: $561 million) associated with agreements that are not formally designated as hedging instruments.
There are no unrealized gains or losses recorded in AOCI on foreign exchange swaps that are expected to be settled or reclassified into income in the next twelve months (2021: nil and 2020: nil). The actual amount reclassified from AOCI, however, could vary due to future changes in market rates.
The following table summarizes the foreign exchange swaps designated as hedging instruments:
Foreign exchange swaps	December 31, 2022	December 31, 2021
Carrying amount (asset/(liability))			.........................................................................	(76)	(18)

Notional amount for hedges of the Colombian Peso(1)						...........................................	302	676

Notional amount for hedges of the euro(1)							..............................................................	601	571

Notional amount for hedges of the British pounds sterling(1)								................................	76	125

Notional amount for hedges of the Chinese yuan(1)						...............................................	575	427

Notional amount for hedges of the Indian rupee(1)						.................................................	128	260

Notional amount for hedges of the Brazilian real(1)						...............................................	79	75

Notional amount for hedges of other currencies(1)						.................................................	104	6

Maturity date									..........................................................................................................	2023 - 2024	2022 - 2023

Hedge ratio									.............................................................................................................	1:1	1:1

Weighted average hedged rate for the year:
COP/$ foreign exchange forward contracts							......................................................	5,038	3,925

€/$ foreign exchange forward contracts							............................................................	0.99	0.87

£/$ foreign exchange forward contracts							............................................................	0.83	0.76

CNY/$ foreign exchange forward contracts							......................................................	7.05	7.18

INR/$ foreign exchange forward contracts							.......................................................	83	78

BRL/$ foreign exchange forward contracts							......................................................	5.69	5.73

(1)	Notional amounts expressed in millions of U.S. dollars
					Page 47

The following table presents a reconciliation of the limited partners’ equity reserves impacted by financial instruments:
		Investments	Foreign
	Cash flow	in equity	currency
(MILLIONS)hedgessecuritiestranslation
Balance, as at December 31, 2020				.................................................................... $	(39) $				3 $	(720)

Effective portion of changes in fair value arising from:
Energy derivative contracts				............................................................................	(38)				—	—

Interest rate swaps						..........................................................................................	27	—	—

Foreign exchange swaps								.................................................................................	—	—	2

Amount reclassified to profit or loss				.................................................................			(3)	—	—

Foreign currency revaluation of designated borrowings									...................................	—	—	(17)

Foreign currency revaluation of net foreign operations									....................................	—	—	(104)

Valuation of investments in equity securities designated FVOCI										....................	—	1	—

Tax effect											...........................................................................................................	3	—	3

Other											..................................................................................................................	2	—	(6)

Balance, as at December 31, 2021				.................................................................... $	(48) $				4 $	(842)

Effective portion of changes in fair value arising from:
Energy derivative contracts				............................................................................			7	—	—

Interest rate swaps						..........................................................................................	52	—	—

Foreign exchange swaps								.................................................................................	—	—	10

Amount reclassified to profit or loss				.................................................................			37	—	—

Foreign currency revaluation of designated borrowings									...................................	—	—	68

Foreign currency revaluation of net foreign operations									....................................	—	—	(74)

Valuation of investments in equity securities designated FVOCI										....................	—	(3)	—

Tax effect											...........................................................................................................	(29)			—	(5)

Other											..................................................................................................................	(2)	—	(2)

Balance, as at December 31, 2022				.................................................................... $			17 $	1 $	(845)

			Page 48

7. SEGMENTED INFORMATION
Brookfield Renewable’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the business, manage operations, and allocate resources based on the type of technology.
Brookfield Renewable operations are segmented by – 1) hydroelectric, 2) wind, 3) utility-scale solar, 4) distributed energy & sustainable solutions (distributed generation, pumped storage, renewable natural gas, carbon capture and storage, recycling, and cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e. North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results of our company.
The reporting to the CODM was revised during the year to incorporate the distributed energy & sustainable solutions business of Brookfield Renewable. The distributed energy & sustainable solutions business corresponds to a portfolio of multi-technology assets and investments that support the broader strategy of decarbonization of electricity grids around the world through distributed generation and offering of other sustainable services. The financial information of operating segments in the prior period has been restated to present the corresponding results of the distributed energy & sustainable solutions.
Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder (holders of the GP interest, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and LP units) perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to Brookfield Renewable’s Unitholders.
Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include Brookfield Renewable’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by us apportioned to each of the above-noted items.
Brookfield Renewable does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its consolidated financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.
Brookfield Renewable reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.
The accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Brookfield Renewable analyzes the performance of its operating segments based on Funds From Operations. Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”).
Brookfield Renewable uses Funds From Operations to assess the performance of Brookfield Renewable before the effects of certain cash items (e.g., acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g., deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. Brookfield Renewable includes realized
	Page 49

disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term within Funds From Operations in order to provide additional insight regarding the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in current period net income.

	Page 50

The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from Brookfield Renewable’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2022:
	Attributable to Unitholders
					Hydroelectric	Wind
		Contribution	Attributable				Distributed
		from equity-	to non-			Utility-	energy &
		accounted	controlling	As per IFRS		scale	sustainable	North						North
		investments	interests	financials(1)		solar	solutions	Corporate	Total	(MILLIONS)									America	Brazil						Colombia	America	Europe												Brazil	Asia
Revenues														.............................................................. $	964 $ 197 $						273 $	332 $	134 $												31 $ 41 $ 374 $			290 $	— $ 2,636 $	(188) $	2,263 $	4,711

Other income														........................................................	15						22	10	31	23												—	2	90		26									73 292	(19)										(137)	136

Direct operating costs																				..........................................	(376)																	(52)	(82)	(124)	(24)												(7)	(9) (102)	(119)	(31) (926)	86							(594)	(1,434)

Share of revenue, other income and direct
operating costs from equity-accounted
investments														.....................................................	—						—	—	—	—												—	—	—		—									—	—										121	7					128

											603	167					201	239	133												24	34	362										197	42 2,002	—	1,539
Management service costs																				...................................	—						—	—	—	—												—	—	—		—	(243) (243)	—	—										(243)

Interest expense														....................................................	(185)																	(20)	(57)	(65)	(16)												(4) (11) (102)	(42)	(94) (596)	19										(647)	(1,224)

Current income taxes																				...........................................	(6)						(9)	(27)	(2)	(3)												(1)	(2)	(7)		(1)	(1)	(59)	10										(99)	(148)

Distributions attributable to
Preferred limited partners equity																						......................	—						—	—	—	—												—	—	—		—	(44)	(44)	—	—										(44)

Preferred equity																				................................................	—						—	—	—	—												—	—	—		—	(26)	(26)	—	—										(26)

Perpetual subordinated notes																						.............................	—							—	—	—	—												—	—	—		—	(29)	(29)	—	—										(29)

Share of interest and cash taxes from equity-
accounted investments																				....................................	—						—	—	—	—												—	—	—		—									—	—	(29)	(8)							(37)

Share of Funds From Operations attributable to
non-controlling interests																				.................................	—						—	—	—	—												—	—	—		—									—	—	—							(785)	(785)

Funds From Operations																				........................................	412	138						117	172	114												19	21	253										154	(395) 1,005	—	—

Depreciation														.........................................................	(934)	25																(674)	(1,583)

Foreign exchange and financial instrument loss										..	(190)	3	59															(128)

Deferred income tax recovery																						..............................	156	(4)	(2)																150

Other	....................................................................									(332)	(29)															166	(195)

Share of earnings from equity-accounted
investments														.....................................................		—	5	—																5

Net income attributable to non-controlling
interests														...........................................................		—	—																451	451

Net income (loss) attributable to Unitholders(2)										...	$ (295) $	— $	— $															(295)

(1)	Share of earnings from equity-accounted investments of $96 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $334 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests.
(2)	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and LP units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity, preferred equity, and perpetual subordinated notes
							.
				Page 51

The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from Brookfield Renewable’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2021:
	Attributable to Unitholders
		Contribution	Attributable					Hydroelectric	Wind					Distributed
		from equity-	to non-		Utility-	energy &
		accounted	controlling	As per IFRS	scale	sustainable	North						North
		investments	interests	financials(1)	solar	solutions	Corporate	Total	(MILLIONS)									America	Brazil						Colombia	America	Europe												Brazil	Asia
Revenues													.............................................................. $	876 $ 169 $						224 $	370 $	125 $												29 $ 32 $ 348 $			242 $	— $ 2,415 $									(163) $	1,844	4,096

Other income													.......................................................	42						36	14	27	98												1 —	39		3	41	301	(11)	14														304

Direct operating costs																	..........................................	(349)															(50)	(79)	(120)	(36)												(7)	(8)	(89)		(72)	(30) (840)	75											(600)	(1,365)

Share of revenue, other income and opex from
equity-accounted investments																				........................	—						—	—	—	—												— —	—		—	—	—	99	43												142

										569	155					159	277	187												23 24	298										173	11 1,876	—	1,301
Management service costs																	...................................	—						—	—	—	—												— —	—		—	(288) (288)	—	—														(288)

Interest expense													...................................................	(158)															(20)	(28)	(74)	(19)												(5)	(8) (111)		(38)	(78) (539)	29														(471)	(981)

Current income taxes																	...........................................	(2)						(4)												(3)	(3)	(4)												(1)	(1)	(2)		(2)	—	(22)	3	(24)							(43)

Distributions attributable to
Preferred limited partners equity																				.....................	—						—	—	—	—												— —	—		—	(55)	(55)	—	—												(55)

Preferred equity																	...............................................	—						—	—	—	—												— —	—		—	(26)	(26)	—	—														(26)

Perpetual subordinated notes																				...........................	—						—	—	—	—												— —	—		—	(12)	(12)	—	—												(12)

Share of interest and cash taxes from equity-
accounted investments																	....................................	—						—	—	—	—												— —	—		—	—	—	(32)	(33)														(65)

Share of Funds From Operations attributable to
non-controlling interests																	.................................	—						—	—	—	—												— —	—		—	—	—	—																(773)	(773)

Funds From Operations																	.......................................	409	131						128	200	164												17 15	185										133	(448)	934	—	—

Depreciation													........................................................	(922)	38																		(617)	(1,501)

Foreign exchange and financial instrument loss									.	(129)	(2)	99													(32)

Deferred income tax expense																				..............................		133	5																		(109)	29

Other	....................................................................								(384)	14	63													(307)

Share of earnings from equity-accounted
investments													.....................................................		—	(55)	—														(55)

Net income attributable to non-controlling
interests													...........................................................		—	—																		564	564

Net income (loss) attributable to Unitholders(2)									..	$ (368) $	— $	— $													(368)

(1)	Share of earnings from equity-accounted investments of $22 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $209 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net income attributable to non-controlling interests.
(2)	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
				Page 52

The following table provides each segment’s results in the format that management organizes its segments to make operating decisions and assess performance and reconciles Brookfield Renewable’s proportionate results to the consolidated statements of income (loss) on a line-by-line basis by aggregating the components comprising the earnings from Brookfield Renewable’s investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the year ended December 31, 2020:
	Attributable to Unitholders
		Contribution	Attributable				Distributed
					Hydroelectric	Wind
		from equity-	to non-			Utility-	energy &
		accounted	controlling	As per IFRS		scale	sustainable	North						North
		investments	interests	financials(1)		solar	solutions	Corporate	Total	(MILLIONS)									America	Brazil						Colombia	America	Europe												Brazil	Asia
Revenues														.............................................................. $	824 $ 175 $						211 $	263 $	105 $												27 $ 28 $ 245 $			169 $	— $ 2,047 $	(72) $	1,835	3,810

Other income														.......................................................	58						54								12	11	26												3	3	50		3								64	284						(29)	(127)	128

Direct operating costs																					..........................................	(301) (52)						(92)	(78)	(35)												(6) (6)	(63)									(61)	(23) (717)	34											(591)	(1,274)

Share of revenue, other income and direct
operating costs from equity-accounted
investments														.....................................................	—						—								—	—	—												— —	—		—								—	—	67	31											98

											581 177					131	196	96												24 25	232										111	41 1,614	—	1,148
Management service costs																					...................................	—						—								—	—	—											— —	—		—	(217) (217)	—	(18)											(235)

Interest expense														...................................................	(143) (18)						(30)	(73)	(15)												(6) (6)	(90)										(25)	(79) (485)	20													(511)	(976)

Current income taxes																					...........................................	1						(7)	(11)	—	(2)												(1) (1)	(3)		(2)								—	(26)	4	(44)											(66)

Distributions attributable to
Preferred limited partners equity																						.....................	—						—								—	—	—											— —	—		—	(54)	(54)	—	—											(54)

Preferred equity																					...............................................	—						—								—	—	—											— —	—		—	(25)	(25)	—	—											(25)

Share of interest and cash taxes from equity-
accounted investments																					....................................	—						—								—	—	—											— —	—		—						—	—										(24)	(13)			(37)

Share of Funds From Operations attributable to
non-controlling interests																					.................................	—						—								—	—	—											— —	—		—						—	—	—											(562)	(562)

Funds From Operations																					.......................................	439 152														90	123	79											17 18	139		84	(334)	807	—	—

Depreciation														........................................................	(756)	21																	(632)	(1,367)

Foreign exchange and financial instrument loss										.		(35)	8																154	127

Deferred income tax expense																						..............................		175	(6)	44																	213

Other	....................................................................									(495)	11	52																(432)

Share of earnings from equity-accounted
investments														.....................................................		—																(34)	—																(34)

Net income attributable to non-controlling
interests														...........................................................		—	—																	382	382

Net income (loss) attributable to Unitholders(2)										..	$ (304) $	— $	— $																(304)

(1)	Share of earnings from equity-accounted investments of $27 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $180 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net income attributable to non-controlling interests.
(2)	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.
				Page 53

The following table presents information on a segmented basis about certain items in our company’s consolidated statements of financial position and reconciles our proportionate balances to the consolidated statements of financial position basis by aggregating the components comprising Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests:
	Attributable to Unitholders
		Contribution	Attributable
					Hydroelectric	Wind						Distributed
		from equity-	to non-			Utility	energy &
		accounted	controlling	As per IFRS		-scale	sustainable	North					North
		investments	interests	financials		solar	solutions	Corporate	Total	(MILLIONS)								America	Brazil				Colombia	America	Europe							Brazil	Asia
As at December 31, 2022
Cash and cash equivalents													................................... $	55 $ 15 $									14 $	48 $	56 $							22 $ 24 $ 139 $	72 $							— $	445 $								(43) $	596 $	998

Property, plant and equipment, at fair value																			........	15,331 1,743				1,826	3,563	650							346 294 3,046	2,337								— 29,136	(1,165)	26,312	54,283

Total assets																				..........................................................	16,971 1,880				2,036	3,969	816							381 399 3,520	2,794	581 33,347								(587)	31,351	64,111

Total borrowings																				.................................................	4,206 258				526	1,356	358							83 238 2,382								928	2,556 12,891									(373)	12,332	24,850

Other liabilities																				....................................................	5,250				99	634	1,344	244							15 71 492								507	271 8,927									(204)	4,252	12,975

For the year ended December 31, 2022
Additions to property, plant and equipment										....	153				33					—	78	13									15 35 157						145	—	629							(62)	1,868	2,435

As at December 31, 2021
Cash and cash equivalents													................................... $	42 $ 30 $									17 $	30 $	46 $							8 $ 9 $ 133 $	44 $	245 $	604 $							(28) $	324 $	900

Property, plant and equipment, at fair value																			........	15,188 1,680				2,032	3,286	676							277 266 3,355	2,183								— 28,943	(1,111)	21,600	49,432

Total assets																				..........................................................	16,456 1,833				2,277	3,665	842							292 342 3,746	2,366	292 32,111								(518)	24,274	55,867

Total borrowings																				.................................................	4,126 261				526	1,628	474							74 195 2,736								996	2,156 13,172									(351)	8,708	21,529

Other liabilities																				....................................................	4,499				91	644	771	218							8 52 435								227	303 7,248									(167)	3,261	10,342

For the year ended December 31, 2021
Additions to property, plant and equipment										....	113				85	130	88	22										10	1 197	31					6	683							(12)	1,576	2,247

				Page 54

Geographical Information
The following table presents consolidated revenue split by reportable segment for the year ended December 31:
	2022	2021	2020
(MILLIONS)
Hydroelectric
North America				.............................................................................................. $	1,211 $	1,044 $	1,030

Brazil					.............................................................................................................	181	177	201

Colombia				.......................................................................................................	1,135	929	874

							2,527	2,150	2,105
Wind
North America				..............................................................................................	676	684	494

Europe					...........................................................................................................	201	189	237

Brazil					.............................................................................................................	90	81	79

Asia					...............................................................................................................	179	120	105

							1,146	1,074	915
Utility-scale solar				.............................................................................................	700	563	539

Distributed energy & sustainable solutions							..................................................	338	309	251

Total					................................................................................................................. $	4,711 $	4,096 $	3,810

The following table presents consolidated property, plant and equipment and equity-accounted investments split by geography:
	December 31, 2022	December 31, 2021
(MILLIONS)
United States				...................................................................................................................... $				29,056 $	26,713

Colombia					............................................................................................................................	8,264	8,497

Canada					................................................................................................................................	7,560	5,534

Brazil					..................................................................................................................................	4,754	3,860

Europe					................................................................................................................................	3,963	4,440

Asia	.....................................................................................................................................		1,932	1,495

Other					...................................................................................................................................	146	—

	$							55,675 $	50,539
8. OTHER INCOME
Brookfield Renewable’s other income for the year ended December 31 is comprised of the following:
	2022	2021	2020
(MILLIONS)
Interest and other investment income									.................................................................. $	68 $	59 $	47

Gain on regulatory and contract settlement							.........................................................	43	35	61

Gain on disposition of development assets							..........................................................	—	202	10

Other					....................................................................................................................	25	8	10

						$	136 $	304 $	128
			Page 55

9. DIRECT OPERATING COSTS
Brookfield Renewable’s direct operating costs for the year ended December 31 are comprised of the following:
	2022	2021	2020
(MILLIONS)
Fuel and power purchases(1)(2)					.............................................................	(400) $	(390) $	(348)

Salaries and benefits							...........................................................................	(325)	(293)	(270)

Operations and maintenance					................................................................	(309)	(285)	(256)

Water royalties, property taxes and other regulatory fees								..................	(205)	(201)	(208)

Insurance									..............................................................................................	30					(71)	(68)	(60)

Professional fees							.................................................................................	(59)	(56)	(63)

Other related party services					.................................................................	30					(1)	(8)	(4)

Other expenses							....................................................................................	(64)	(64)	(65)

						(1,434) $	(1,365) $	(1,274)
(1)	Fuel and power purchases are primarily attributable to our portfolio in Colombia.
(2)	Includes $80 million in 2021 relating to the Texas winter storm event which reflect the cost of acquiring energy to cover our contractual obligations for our wind assets that were not generating during the period due to freezing conditions, net of hedging initiatives.
Direct operating costs exclude depreciation expense of $1,583 million (2021: $1,501 million and 2020: $1,367 million).
10. OTHER
Brookfield Renewable’s other for the year ended December 31 is comprised of the following:
	2022	2021	2020
(MILLIONS)
Change in fair value of property, plant and equipment								.......................	(61)	(63)	(101)

Transaction costs							.................................................................................	(2)	(8)	(13)

Amortization of service concession assets											..........................................	(15)	(14)	(9)

Legal provisions							..................................................................................	29					(6)	(58)	(231)

Foreign currency translation and cash flow hedge, net of investment
									hedge, associated with the disposal of assets			..............................	4					—	(41)	—

Loss on debt extinguishment ...............................................................						—	—	(12)
Other									....................................................................................................	(111)	(123)	(66)

						(195) $	(307) $	(432)
11. FOREIGN CURRENCY TRANSLATION
Brookfield Renewable’s foreign currency translation for the year ended December 31 shown in the consolidated statements of comprehensive income is comprised of the following:
	2022	2021	2020
(MILLIONS)
Foreign currency translation on
Property, plant and equipment, at fair value											....................................	13					(2,011) $	(1,510) $	(604)

Goodwill									...........................................................................................	19					(131)	(121)	(20)

Borrowings									.......................................................................................	15					975	436	(219)

Deferred income tax liabilities and assets											........................................	12					526	318	35

Other assets and liabilities					................................................................	(6)	18	(32)

						(647) $	(859) $	(840)
				Page 56

12. INCOME TAXES
The major components of income tax recovery (expense) for the year ended December 31 are as follows:
	2022	2021	2020
(MILLIONS)
Income tax recovery (expense) applicable to:Current taxes
Attributed to the current period				.......................................................................... $	(148) $	(43) $	(66)

Deferred taxes
Income taxes – origination and reversal of temporary differences					....................	125	160	185

Relating to change in tax rates / imposition of new tax laws					.............................	10	(147)	(7)

Relating to unrecognized temporary differences and tax losses					........................	15	16	35

								150	29	213
Total income tax recovery (expense)				.................................................................... $	2 $	(14) $	147

The major components of deferred income tax (expense) recovery for the year ended December 31 recorded directly to other comprehensive income are as follows:
	2022	2021	2020
(MILLIONS)
Deferred income taxes attributed to:
Financial instruments designated as cash flow hedges						...................................... $	(75) $	3 $	13

Other								...................................................................................................................	(17)	(13)	(3)

Revaluation surplus
Origination and reversal of temporary differences									............................................	(881)	(1,003)	(934)

Relating to changes in tax rates / imposition of new tax laws					...........................	34	(159)	—

							$	(939) $	(1,172) $	(924)
Brookfield Renewable’s effective income tax recovery (expense) for the year ended December 31 is different from its recovery at its statutory income tax rate due to the differences below:
	2022	2021	2020
(MILLIONS)
Statutory income tax recovery (expense)(1)										....................................................... $	(38) $	14 $	53

Reduction (increase) resulting from:
Decrease (increase) in tax assets not recognized									............................................	(10)	(5)	34

Differences between statutory rate and future tax rate and tax rate changes							.	10	(147)	(7)

Subsidiaries’ income taxed at different rates									..................................................	49	129	68

Other								................................................................................................................	(9)	(5)	(1)

Effective income tax recovery (expense)										........................................................... $	2 $	(14) $	147

(1)	Statutory income tax expense is calculated using domestic rates applicable to the profits in the relevant country.
The above reconciliation has been prepared by aggregating the information for all of Brookfield Renewable’s subsidiaries using the domestic rate in each tax jurisdiction.
Brookfield Renewable’s effective income tax rate was (1.5)% for the year ended December 31, 2022 (2021: (26.9)% and 2020: 76.6%). The effective tax rate is different than the statutory rate primarily due to rate differentials, legislative changes in tax rates during the year, changes in tax assets not recognized and non-controlling interests’ income not subject to tax.
			Page 57

The following table details the expiry date, if applicable, of the unrecognized deferred tax assets as at December 31:
	2022	2021	2020
(MILLIONS)
Less than four years				........................................................................................... $	9 $	5 $	5

Thereafter					..........................................................................................................	144	138	149

The deferred tax assets and liabilities of the following temporary differences have been recognized in the consolidated financial statements for the year ended December 31:
		Difference					Net deferred
	Non-capital					between tax and	tax (liabilities)
(MILLIONS)losses					carrying value	assets
As at January 1, 2020				........................................................................................ $	885 $	(5,574) $	(4,689)

Recognized in net income (loss)								.......................................................................	273	(60)	213

Recognized in equity				.........................................................................................	(52)	(865)	(917)

Business combination				........................................................................................	30	18	48

Foreign exchange				..............................................................................................	4	31	35

As at December 31, 2020				..................................................................................	1,140	(6,450)	(5,310)

Recognized in net income (loss)								.......................................................................	23	6	29

Recognized in equity				.........................................................................................	8	(1,068)	(1,060)

Business combination				........................................................................................	(28)	33	5

Foreign exchange				..............................................................................................	6	312	318

As at December 31, 2021				..................................................................................	1,149	(7,167)	(6,018)

Recognized in net income (loss)								.......................................................................	132	18	150

Recognized in equity				.........................................................................................	—	(947)	(947)

Business combination				........................................................................................	—	(42)	(42)

Foreign exchange				..............................................................................................	(8)	534	526

As at December 31, 2022				.................................................................................. $	1,273 $	(7,604) $	(6,331)

The deferred income tax liabilities include $6,914 million (2021: $6,082 million and 2020: $5,145 million) of liabilities which relate to property, plant and equipment revaluations included in equity.
The unrecognized taxable temporary difference attributable to Brookfield Renewable’s interest in its subsidiaries, branches, associates, and joint ventures is $6,028 million (2021: $5,856 million and 2020: $5,405 million).
			Page 58

13. PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE
The following table presents a reconciliation of property, plant and equipment at fair value:
(MILLIONS)NotesHydroelectricWindSolar	Other(1)	Total
Property, plant and equipment, at fair value				.................

As at December 31, 2020					....................................................	$					28,206 $	8,797 $	6,840 $	149 $ 43,992

Additions, net							......................................................................						576	490	78	9	1,153

Transfer from construction work-in-progress				.....................						118	187	258	1	564

Acquisitions through business combinations				......................	3						—	1,643	679	—	2,322

Disposals(2)							..........................................................................						—	(1,208)	—	—	(1,208)

Items recognized through OCI:					...........................................

Change in fair value					..........................................................						4,306	(51)	101	73	4,429

Foreign exchange					..............................................................	11						(1,133)	(124)	(221)	(9)	(1,487)

Items recognized through net income:								................................

Change in fair value					..........................................................						(13)	(19)	(3)	(24)	(59)

Depreciation							......................................................................						(547)	(600)	(343)	(11)	(1,501)

As at December 31, 2021					....................................................						31,513	9,115	7,389	188	48,205

Additions, net(3)							...................................................................						5	(194)	(65)	(7)	(261)

Transfer from construction work-in-progress				.....................						183	911	1,071	7	2,172

Acquisitions through business combinations				......................	3						—	1,418	495	—	1,913

Disposals(2)							..........................................................................	4						(97)	—	—	—	(97)

Transfer to assets held for sale					...........................................	5						(677)	—	—	—	(677)

Items recognized through OCI:					...........................................

Change in fair value					..........................................................						2,490	779	(31)	77	3,315

Foreign exchange					..............................................................	11						(1,634)	(178)	(191)	7	(1,996)

Items recognized through net income:								................................

Change in fair value					..........................................................						(2)	8	(44)	(2)	(40)

Depreciation							......................................................................						(613)	(557)	(385)	(28)	(1,583)

As at December 31, 2022					..................................................	$					31,168 $	11,302 $	8,239 $	242 $ 50,951

Construction work-in-progress								........................................

As at December 31, 2020					....................................................	$					212 $	213 $	172 $	1 $	598

Additions, net							......................................................................						194	357	575	6	1,132

Transfer to property, plant and equipment				..........................						(118)	(187)	(258)	(1)	(564)

Acquisitions through business combinations				......................						—	—	44	—	44

Disposals(3)							..........................................................................						—	(104)	—	—	(104)

Items recognized through OCI:					...........................................

Change in fair value					..........................................................						—	17	127	—	144

Foreign exchange					..............................................................	11						(10)	(1)	(11)	(1)	(23)

As at December 31, 2021					....................................................						278	295	649	5	1,227

Additions, net							......................................................................						209	1,155	1,325	7	2,696

Transfer to property, plant and equipment				..........................						(183)	(911)	(1,071)	(7)	(2,172)

Acquisitions through business combinations				......................	3						—	347	827	—	1,174

Transfer to assets held for sale					...........................................	5						(8)	—	—	—	(8)

Items recognized through OCI:					...........................................

Change in fair value					..........................................................						—	269	161	—	430

Foreign exchange					..............................................................	11						3	(23)	6	(1)	(15)

As at December 31, 2022					..................................................	$					299 $	1,132 $	1,897 $	4 $	3,332

Total property, plant and equipment, at fair value									.......

As at December 31, 2021(4)					.................................................	$					31,791 $	9,410 $	8,038 $	193 $ 49,432

As at December 31, 2022(4)					...............................................	$					31,467 $	12,434 $	10,136 $	246 $ 54,283

(1)	Includes biomass and cogeneration.
(2)	Relates to disposal of significant assets. See Note 4 Disposal of assets for additional details.
(3)	Includes fair value changes to decommissioning assets of $255 million
(4)	Includes right-of-use assets not subject to revaluation of $64 million (2021: $69 million) in hydroelectric, $242 million (2021: $174 million) in wind, $215 million (2021: $186 million) in solar and nil (2021: $2 million) in other.
			Page 59

During the year, Brookfield Renewable, together with its institutional partners, completed the acquisitions of the following investments. They are accounted for as asset acquisitions as they do not constitute business combinations under IFRS 3:
•	A 248 MW development wind portfolio in Brazil, with $11 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 25% economic interest.
•	An operating wind asset in China for a total capacity of 10 MW, with $17 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 25% economic interest.
•	An development wind asset in China for a total capacity of 169 MW, with $241 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 20% economic interest.
•	An operating utility-scale solar asset in Colombia for a total capacity of 40 MW, with $37 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 24% economic interest.
The fair value of Brookfield Renewable’s property, plant and equipment is calculated as described in Notes 1(g) – and 1(r)(i) – Critical estimates – Property, plant and equipment. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of Brookfield Renewable’s property, plant and equipment. See Note 1(s)(iii) – Critical judgments in applying accounting policies – Property, plant and equipment. Brookfield Renewable has classified its property, plant and equipment under level 3 of the fair value hierarchy.
Discount rates, terminal capitalization rates and terminal years used in the valuation methodology are provided in the following table:
		North America	Colombia	Brazil	Europe
		2022				2021	2022			2021	2022			2021	2022		2021
Discount rate(1)
Contracted	...........................								4.9% - 5.4%	4.1% - 4.3%	8.5 %			7.9 %	8.2 %		7.2 %	4.4%		3.9 %

Uncontracted	.......................								6.2% - 6.7%	5.4% - 5.6%	9.7 %			9.2 %	9.5 %		8.5 %	4.4%		3.9 %

Terminal capitalization rate(2)									.	4.3% - 4.9%	4.8% - 5.1%	7.7 %			8.0 %	N/A		N/A	N/A		N/A

Terminal year(3)	.......................	2044				2042	2042			2041	2051			2048	2036		2036

(1)	Discount rates are not adjusted for asset specific risks.
(2)	The terminal capitalization rate applies only to hydroelectric assets in the United States, Canada and Colombia.
(3)	For hydroelectric assets, terminal year refers to the valuation date of the terminal value.
The following table summarizes the impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment:
				2022
										North
										America	Colombia	Brazil					Europe	Total
(MILLIONS)
25 bps increase in discount rates		.......................... $								(1,530) $	(310) $	(110) $					(50) $	(2,000)

25 bps decrease in discount rates		..........................								1,650	260	110	50			2,070

5% increase in future energy prices		......................								1,280	440	120	—			1,840

5% decrease in future energy prices		.....................								(1,270)	(440)	(120)	—			(1,830)

25 bps increase in terminal capitalization rate						......				(490)	(70)	—	—			(560)

25 bps decrease in terminal capitalization rate						.....				540	80	—	—			620

								Page 60

2021
		North
		America	Colombia	Brazil				Europe	Total
	(MILLIONS)
	25 bps increase in discount rates					.......................... $	(1,510) $	(240) $	(100) $				(60) $	(1,910)

	25 bps decrease in discount rates					..........................	1,690					330	100				60	2,180

	5% increase in future energy prices					......................	1,100					410	80	—	1,590

	5% decrease in future energy prices					.....................	(1,100)	(410)					(80)	—	(1,590)

	25 bps increase in terminal capitalization rate								......	(390)					(70)	—	—	(460)

	25 bps decrease in terminal capitalization rate								.....	430					70	—	—	500

	Terminal values are included in the valuation of hydroelectric assets in the United States, Canada and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset plus a one-time 30-year renewal term for the majority of the hydroelectric assets. The weighted-average remaining duration of the authorization or useful life of a concession asset at December 31, 2022, including a one-time 30-year renewal for applicable hydroelectric assets, is 35 years (2021: 31 years). Consequently, there is no terminal value attributed to the hydroelectric assets in Brazil at the end of the authorization term.
	The following table summarizes the percentage of total generation contracted under power purchase agreements as at December 31, 2022:
		North America					Colombia	Brazil	Europe
	1 - 5 years									...................................................................	75 %	52 %				84 %	100 %

	6 - 10 years									.................................................................	60 %	12 %				66 %	81 %

	Thereafter									....................................................................	30 %	2 %				43 %	65 %

	The following table summarizes average power prices from long-term power purchase agreements that are linked specifically to the related power generating assets:
	Per MWh(1)	North America					Colombia	Brazil	Europe
	1 - 10 years									................................................................. $	85 COP 293,000 R$	336 €	72

	11 - 20 years									...............................................................	76				352,000	387	66

	(1)	Assumes nominal prices based on weighted-average generation.
	The following table summarizes the estimates of future electricity prices:
	Per MWh(1)	North America					Colombia	Brazil	Europe
	1 - 10 years									................................................................. $	98 COP 376,000 R$	290 €	62

	11 - 20 years									...............................................................	126				554,000	387	74

	(1)	Assumes									nominal prices based on weighted-average generation.
	Brookfield Renewable’s long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth between 2026 and 2035. A further one year change would increase or decrease the fair value of property, plant and equipment by approximately $140 million (2021: $173 million).
	Had Brookfield Renewable’s revalued property, plant and equipment been measured on a historical cost basis, the carrying amounts, net of accumulated depreciation would have been as follows at December 31:
					Page 61

	2022	2021
(MILLIONS)
Hydroelectric			................................................................................................................................. $	9,812 $	11,135

Wind				..............................................................................................................................................	10,146	7,719

Solar				..............................................................................................................................................	8,576	6,467

Other(1)				...........................................................................................................................................	158	155

					$	28,692 $	25,476
(1)	Includes biomass and cogeneration.
14. INTANGIBLE ASSETS
The following table provides a reconciliation of intangible assets:
		Total
(MILLIONS)
Balance, as at December 31, 2020						.......................................................................................................... $	232

Amortization(1)			.........................................................................................................................................	(14)

Balance, as at December 31, 2021						..........................................................................................................	218

Foreign exchange							....................................................................................................................................	6

Amortization(1)			.........................................................................................................................................	(15)

Balance, as at December 31, 2022						.......................................................................................................... $	209

(1)	Included in Other within the consolidated statements of income (loss).
Intangible assets relate to certain of our power generating facilities that operate under service concession arrangements in South America. We primarily benefit from a government promoted concession agreement and a long-term PPA with UTE - Administracion Nacional de Usinas y Transmisiones Electricas, the Republic of Uruguay’s state-owned electricity company. Under this PPA, we are required to deliver power at a fixed rate for the contract period, in all cases inflation adjusted.
Brookfield Renewable's service concession assets operate as authorizations that expire between 2035 and 2045. The remaining intangible assets are amortized straight-line over 17 to 20 years.
Under these arrangements, Brookfield Renewable recognized $36 million of revenue for the year ended December 31, 2022 (2021: $33 million and 2020: $35 million)
		Page 62

15. BORROWINGS
Corporate Borrowings
The composition of corporate borrowings as at December 31 is presented in the following table:
	December 31, 2022	December 31, 2021
			Weighted-			Weighted-
			average			average
			Interest	Term			Carrying	Estimated	Interest	Term				Carrying	Estimated
(MILLIONS EXCEPT AS NOTED)			rate (%)	(years)			value	fair value	rate (%)	(years)				value	fair value
Credit facilities									...............	N/A	5 $					— $	—	N/A			5	$	— $				—

Commercial paper									..........				5.1	<1			249	249	N/A	N/A			—				—

Medium-Term Notes:
Series 4 (C$150)									..........				5.8	14			111	114							5.8	15		118	154

Series 9 (C$400)									..........				3.8	2	295	286							3.8	3	317	334

Series 10 (C$500)									........				3.6	4	369	350							3.6	5	396	421

Series 11 (C$475)									........				4.3	6	351	338							4.3	7	376	419

Series 12 (C$475)									........				3.4	7	351	316							3.4	8	376	399

Series 13 (C$300)									........				4.3	27			221	184							4.3	28		237	275

Series 14 (C$425)									........				3.3	28			314	218							3.3	29		336	332

Series 15 (C$400)(1)			.....										5.9	10			295	307							—	—		—		—

													4.1	11			2,307	2,113							3.9	13		2,156	2,334
Total corporate borrowings			...................................	2,556 $	2,362			2,156 $ 2,334

Add: Unamortized premiums(2)													..........................	2		3

Less: Unamortized financing fees(2)	...................			(10)				(10)

Less: Current portion			..........................................	(249)				—

				$ 2,299			$ 2,149
(1) Includes $7 million (2021: nil) outstanding to an associate of Brookfield. Refer to Note 30 - Related party transactions for more details.
(2) Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
The following table outlines the change in the unamortized financing fees of corporate borrowings for the year ended December 31:
							2022	2021
(MILLIONS)
Corporate borrowings
Unamortized financing fees, beginning of year				..............................................................................	$					(10) $	(11)

Additional financing fees			................................................................................................................				(1)					—

Amortization of financing fees													.......................................................................................................	1						1

Unamortized financing fees, end of year	........................................................................................ $						(10) $					(10)

Credit facilities
Brookfield Renewable had $249 million commercial paper outstanding as at December 31, 2022 (2021: nil).
In the first quarter of 2022, Brookfield Renewable increased the capacity of its commercial paper program from $500 million to $1 billion.
Brookfield Renewable issues letters of credit from its corporate credit facilities for general corporate purposes which include, but are not limited to, security deposits, performance bonds and guarantees for debt service reserve accounts. See Note 29 – Commitments, contingencies and guarantees for letters of credit issued by subsidiaries.
								Page 63

The following table summarizes the available portion of corporate credit facilities as at December 31:
	2022	2021
(MILLIONS)
Authorized corporate credit facilities and related party credit facilities(1)			........................................ $	2,375 $	2,375

Draws on corporate credit facilities(1)(2)				............................................................................................	—	(24)

Authorized letter of credit facility				.....................................................................................................	500	400

Issued letters of credit					.......................................................................................................................	(344)	(289)

Available portion of corporate credit facilities						................................................................................. $	2,531 $	2,462

(1)	Amounts are guaranteed by Brookfield Renewable.
(2)	Relates to letter of credit issued on Brookfield Renewable’s corporate credit facilities of $1,975 million.
Medium-term notes
Corporate borrowings are obligations of a finance subsidiary of Brookfield Renewable, Brookfield Renewable Partners ULC (“Canadian Finco”) (Note 32 – Subsidiary Public Issuers). Canadian Finco may redeem some or all of the borrowings from time to time, pursuant to the terms of the indenture. The balance is payable upon maturity, and interest on corporate borrowings is paid semi-annually. The term notes payable by Canadian Finco are unconditionally guaranteed by Brookfield Renewable, Brookfield Renewable Energy L.P. (“BRELP”) and certain other subsidiaries.
During the fourth quarter of 2022, Brookfield Renewable issued C$400 million of Series 15 medium-term notes. The medium-term notes have a fixed interest rate of 5.88% and a maturity date of November 2032. The Series 15 medium-term notes are corporate-level green bonds.
Non-recourse borrowings
Non-recourse borrowings are typically asset-specific, long-term, non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in North America and Europe consist of both fixed and floating interest rate debt indexed to the Secured Overnight Financing Rate (“SOFR”), the Sterling Overnight Index Average (“SONIA”), the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate (“EURIBOR”) and the Canadian Dollar Offered Rate (“CDOR”). Brookfield Renewable uses interest rate swap agreements in North America and Europe to minimize its exposure to floating interest rates. Non-recourse borrowings in Brazil consist of floating interest rates of Taxa de Juros de Longo Prazo (“TJLP”), the Brazil National Bank for Economic Development’s long-term interest rate, or Interbank Deposit Certificate rate (“CDI”), plus a margin. Non-recourse borrowings in Colombia consist of both fixed and floating interest rates indexed to Indicador Bancario de Referencia rate (IBR), the Banco Central de Colombia short-term interest rate, and Colombian Consumer Price Index (IPC), Colombia inflation rate, plus a margin. Non-Recourse borrowings in India consist of both fixed and floating interest indexed to Prime lending rate of lender (“MCLR”)
							. Non-recourse borrowings in China consist of floating interest rates
of People's Bank of China (“PBOC”).
Effective January 1, 2022, SONIA replaced £ LIBOR, and Euro Short-term Rate (“€STR”) replaced € LIBOR. It is also currently expected that SOFR will replace US$ LIBOR prior to June 30, 2023 and the Canadian Overnight Repo Rate Average (“CORRA”) is expected to replace CDOR after June 28, 2024.
As at December 31, 2022, Brookfield Renewable’s floating rate borrowings have not been materially impacted by SONIA and €STR reforms. Brookfield Renewable has a transition plan for the replacement of US$ LIBOR with the Secured Overnight Financing Rate (“SOFR”) benchmark on June 30, 2023. This plan involves certain amendments to the contractual terms of US$ LIBOR referenced floating rate borrowings, interest rate swaps, interest rate caps and updates to hedge designations. These are not expected to have a material impact.
		Page 64

The composition of non-recourse borrowings as at December 31 is presented in the following table:
	December 31, 2022	December 31, 2021
			Weighted-average	Weighted-average
			Weighted-	Weighted-
			average	average
			interest	Term				Carrying	Estimated	interest	Term					Carrying	Estimated
(MILLIONS EXCEPT AS NOTED)			rate (%)	(years)(4)				value	fair value	rate (%)	(years)					value	fair value
Non-recourse borrowings(1)
Hydroelectric(2)									............	7.2	10 $ 8,813 $					8,104	4.9	11 $ 8,541 $ 9,008

Wind										............................	5.4		8	5,943	5,824	4.4				8	4,767	5,059

Utility-scale solar									........	5.6	13				4,625	4,502	4.1	13		4,303	4,561

Distributed energy &
sustainable solutions			..	4.6		7	2,940	2,687	3.2							8	1,741	1,807

Total										...............................	6.1	10 22,321 $ 21,117			4.5	10 19,352 $ 20,435

Add: Unamortized premiums and discounts(3)	...				105			160

Less: Unamortized financing fees(3)	...................				(124)			(132)

Less: Current portion												..........................................	(2,027)			(1,818)

					$ 20,275		$ 17,562
(1)	Includes $1,838 million (2021: $30 million) borrowed under a subscription facility of a Brookfield sponsored private fund.
(2)	Includes $93 million (2021: $51 million) outstanding to an associate of Brookfield. Refer to Note 30 - Related party transactions for more details.
(3)	Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.
(4)	Excluding non-permanent financings, total weighted-average term is 11 years.
Future repayments of Brookfield Renewable’s non-recourse borrowings for each of the next five years and thereafter are as follows :
	2023				2024	2025	2026	2027					Thereafter	Total
(MILLIONS)
Non-recourse borrowings
Hydroelectric									........................... $	1,116 $				697 $	628 $	880 $	554 $		4,938 $	8,813

Wind										........................................	402				1,486	326	573	324		2,832	5,943

Utility-scale solar									....................	314				420	296	343	222		3,030	4,625

Distributed energy &
sustainable solutions			.............	195				900	116	71	68					1,590	2,940

			$	2,027 $				3,503 $	1,366 $	1,867 $	1,168 $ 12,390 $ 22,321
The following table outlines the change in the unamortized financing fees of non-recourse borrowings for the year ended December 31:
							2022	2021
(MILLIONS)
Non-recourse borrowings
Unamortized financing fees, beginning of year					............................................................................. $		(132)	$	(122)

Additional financing fees			...............................................................................................................				(49)						(40)

Amortization of financing fees			.......................................................................................................				36						21

Foreign exchange translation and other	.........................................................................................						21						9

Unamortized financing fees, end of year	....................................................................................... $						(124) $	(132)

								Page 65

The following table outlines the change in the unamortized premiums of non-recourse borrowings for the year ended December 31:

2022

2021

(MILLIONS)

Non-recourse borrowings

Unamortized premiums and discounts, beginning of year

............................................................. $

160

Additional premiums and discounts

...............................................................................................

(13)

103

Amortization of premiums and discounts

......................................................................................

(15)

(13)

Foreign exchange translation and other

.........................................................................................

(27)

Unamortized premiums and discounts, end of year

....................................................................... $

105 $

160

Brookfield Renewable’s financing and refinancing completed for the year ended December 31, 2022 are as follows:

Average

Period

Interest

ClosedRegionTechnology

rate1

Maturity

Carrying Value

Q1 2022

Colombia

Hydroelectric

8.66%

Financing

2032

COP 200 billion ($53 million)

Q1 2022

Colombia

Hydroelectric

IPC

Financing

2029-2037

COP 356 billion ($95 million)

Q1 2022

Colombia

Hydroelectric

IBR

Financing

2032

COP 200 billion ($53 million)

Utility-scale

Q1 2022

Brazil

IPCA

Financing

2045

BRL 150 million ($29 million)

solar

Q1 2022

China

Wind

4.90%

Financing

2037

CNY 835 million ($132 million)

Q1 2022

U.S.

Hydroelectric

3.62%

Refinancing

2032

$170 million

Q1 2022

U.S.

Hydroelectric

SOFR

Refinancing

2026

$35 million

Utility-scale

Q2 2022

Brazil

IPCA

Financing

2045

BRL 300 million ($63 million)

solar

Q2 2022

Brazil

Wind

CDI

Financing

2024

BRL 500 million ($96 million)

Utility-scale

Q2 2022

Europe

3.36%

Refinancing

2039

€66 million ($70 million)

solar

Utility-scale

Q2 2022

U.S.

SOFR

Financing

2025

$250 million

solar

Q2 2022

U.S.

Various

SOFR

Refinancing

2029

$500 million

Distributed

Q2 2022

U.S.

5.23%

Financing

2029

$402 million

generation

Q2 2022

China

Wind

4.60%

Financing

2039

CNY 290 million ($43 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2032

COP 400 billion ($97 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2030

COP 100 billion ($24 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2030

COP 50 billion (12 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2034

COP 100 billion ($24 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2027

COP 219 billion ($53 million)

Q2 2022

Colombia

Hydroelectric

IBR

Financing

2029

COP 594 billion ($144 million)

Q2 2022

Colombia

Hydroelectric

IBR

Refinancing

2030

COP 237 billion ($57 million)

Q3 2022

China

Wind

4.40%

Financing

2039

CNY 181 million ($25 million)

Q3 2022

China

Wind

4.40%

Financing

2039

CNY 262 million ($37 million)

Utility-scale

Q3 2022

China

4.40%

Financing

2040

CNY 107 million ($15 million)

solar

Q3 2022

China

Wind

4.40%

Financing

2038

CNY 87 million ($12 million)

Q3 2022

Colombia

Hydroelectric

IBR

Financing

2030

COP 315 billion ($71 million)

Distributed

Q3 2022

U.S.

6.50%

Financing

2032

$14 million

generation

Page 66

			Average
Period			Interest
ClosedRegionTechnology	rate1		Maturity		Carrying Value
Q3 2022	U.S.	Hydroelectric	SOFR	Refinancing	2024	$12 million
Q4 2022	China	Wind	4.40%	Financing	2039		CNY 241 million ($34 million)
Q4 2022	China	Wind	4.60%	Financing	2039		CNY 227 million ($32 million)
Q4 2022	China	Wind	4.40%	Financing	2040		CNY 214 million (31 million)
Q4 2022	Colombia	Hydroelectric	IBR	Financing	2032		COP 252 billion ($53 million)
Q4 2022	Chile	Various	SOFR	Financing	2034	$200 million
		Distributed
Q4 2022	U.S.		SOFR	Financing	2023	$75 million
		generation
Q4 2022	U.S.	Hydroelectric	SOFR	Financing	2023	$100 million
Q4 2022	U.S.	Hydroelectric	SOFR	Financing	2037	$200 million
Q4 2022	U.S.	Hydroelectric	SOFR	Financing	2037	$175 million
Q4 2022	U.S.	Hydroelectric	SOFR	Financing	2029	$60 million
Q4 2022	India	Various	8.65%	Refinancing	2026-2035		INR 5 billion ($62 million)
Q4 2022	India	Various	8.95%	Financing	2038		INR 11 billion ($139 million)
Q4 2022	Canada	Hydroelectric	5.13%	Financing	2029		C$786 million ($580 million)
Q4 2022	Canada	Hydroelectric	CDOR	Financing	2023		C$300 million ($221 million)
		Utility-scale
Q4 2022	Brazil		IPCA	Financing	2046		BRL 450 million ($87 million)
		solar
(1)	Benchmarked financings bear a variable interest at the applicable rate plus a margin.
In the first quarter of 2022, Brookfield Renewable increased its revolving credit facility associated with the distributed generation portfolio in the United States by $50 million to a total of $150 million and agreed to amend its maturity to March 2025.
In the second quarter of 2022, Brookfield Renewable increased its revolving credit facility capacity associated with the United States business by $250 million to a total of $750 million.
In the fourth quarter of 2022, Brookfield Renewable extended the maturity of its COP $3 trillion facility associated with the Colombia hydroelectric assets to 2047.
In the fourth quarter of 2022, Brookfield Renewable extended the maturity of $750 million facility associated with the Brookfield Global Transition Fund subscription facility to December 2023 and April 2024.
In the fourth quarter of 2022, Brookfield Renewable extended the maturity of $250 million revolving credit facility associated with a wind portfolio in the United States to 2023.
In the fourth quarter of 2022, Brookfield Renewable extended the maturity of its BRL 350 million facility associated with a portfolio of Brazilian solar assets to 2047.
						Page 67

Supplemental Information
The following table outlines changes in Brookfield Renewable’s borrowings for the year ended December 31:
		Net cash	Non-cash
		flows from				Transfer to
		financing	liabilities held
	January 1	activities(1)		Acquisition	Disposal	for sale Other(2)(3)	December 31
(MILLIONS)
2022
Corporate borrowings								....... $ 2,149	545							—	—					—	(146) $	2,548

Non-recourse borrowings	. $ 19,380	3,254							443	—							(171)	(604) $	22,302

2021
Corporate borrowings								....... $ 2,135					(3)	—	—					—	17 $	2,149

Non-recourse borrowings	. $ 15,947	3,177							869	(646)							—	33 $	19,380

(1)	Excludes $233 million (2021: $51 million) of net cash flow from financing activities related to tax equity recorded on the consolidated statements of cash flows.
(2)	Includes foreign exchange and amortization of unamortized premium and financing fees.
(3)	Includes $129 million (2021: $358 million) of non-recourse borrowings acquired through asset acquisitions.
16. NON-CONTROLLING INTERESTS
Brookfield Renewable’s non-controlling interests are comprised of the following as at December 31:
											2022	2021
(MILLIONS)
Participating non-controlling interests														– in operating subsidiaries	................................................... $		14,755 $	12,303

General partnership interest in a holding subsidiary held by Brookfield					.........................................						59	59

Participating non-controlling interests														– in a holding subsidiary – Redeemable/Exchangeable
															units held by Brookfield	............................................................................................................								2,892	2,894

BEPC exchangeable shares	...............................................................................................................										2,561	2,562

Preferred equity																.................................................................................................................................	571	613

Perpetual subordinated notes	............................................................................................................										592	592

										$	21,430 $	19,023
												Page 68

Participating non-controlling interests – in operating subsidiaries
The net change in participating non-controlling interests – in operating subsidiaries is as follows:
												TerraForm
	Brookfield				Brookfield	Brookfield				Isagen public		Power
	Americas	Brookfield	Brookfield	Brookfield	Global	Global	Canadian	The	Isagen		non-	public non-
	Infrastructure	Infrastructure	Infrastructure	Infrastructure	Infrastructure	Transition	Hydroelectric	Catalyst	institutional		controlling		controlling
(MILLIONS)Fund	Fund II	Fund III	Fund IV	Income Fund	Fund	Portfolio	Group	partners	interests		interests	Other	Total
As at December 31,
2019	............................. $	922 $	1,851 $	3,619 $	163	$										—	$										— $	618	$ 89	$ 2,375		$	13	$ 1,208					$	228 $ 11,086

Net income(loss)																		..........	(13)	(21)																		(52)	15											—											—	35	16		130	—	(31)		101	180

Other comprehensive
income (loss)																		...........	100	196	413	—											—											—	11		27		325		2						2		36	1,112

Capital contributions																		....	—		9	23	246											—											—	—		—		—		—		—						242	520

Return of capital																		..........	—		(3)	(109)	—											—											—	(35)		—		—		—		—						—	(147)

Disposals																						......................	—		—	—	—											—											—	—		—		—		—		—					(15)	(15)

Distributions(1)																		.............	(8)	(38)	(204)	(13)											—											—	(1)	(34)		(180)		—		(35)						(38)	(551)

Special distribution/
TerraForm Power
acquisition																		...............	—		—	—	—											—											—	—		—		—		—	(1,101)						— (1,101)

Other	............................																			1		—	(67)	(1)											—											—	(1)		(1)		1		(1)		(43)						128	16

As at December 31,
2020	.............................	1,002	1,994	3,623	410											—											—	627		97		2,651		14		—						682 11,100

Net income (loss)																		.........	5		43	(16)	38											—	—	4		16		113		1		—						5	209

Other comprehensive
income (loss)																		...........	(122)	445	196	150											—	—	163		28		(107)		—		—						86	839

Capital contributions																		....	—		6	10	924											—	—	—		—		—		—		—						181	1,121

Disposals																						......................	(181)	(214)																		—	—											—	—	—		—		—		—	—				—	(395)

Distributions(1)																		.............	(18)	(32)	(350)	(114)											—	—	(25)		(8)		(215)		(1)		—						(47)	(810)

Other	............................																			(1)		11	155																				2											—	—	205		(1)		—		(1)	—				(131)	239

As at December 31,
2021	.............................	685	2,253	3,618	1,410											—											—	974	132		2,442		13		—						776 12,303

Net income (loss)																		.........	19	(31)	144	16											(1)	(50)	20		11		179		1		—						26	334

Other comprehensive
income (loss)																		...........	(103)	449	212	425											35											9	187	(19)		67		1		—						(15)	1,248

Capital contributions																		....	—		4	—	301		200		1,484	—		—		—		—		—						142	2,131

Disposals																						......................	(54)		—	(21)	—											—											—	—		—		—		—		—					—	(75)

Distributions(1)																		.............	(71)	(59)	(460)	(3)											(7)	(14)	(37)		(9)		(524)		(1)		—						(90) (1,275)

Other	............................																			1		1	(3)	(15)		254											32	4		—		(5)		—		—						(180)	89

As at December 31,
2022	............................. $	477 $	2,617 $	3,490 $	2,134	$	481	$	1,461 $	1,148	$ 115	$ 2,159		$	14	$	—					$	659 $ 14,755

Interests held by third
parties																						...........................	75%-78%	43%-60%	23%-71%	75 %	1.5%-24%	77% - 80%	50 %	25 %	53 %		0.3 %	— %	0.3% - 71%

(1)	Distributions paid during the year ended December 31, 2022, totaled $1,275 million (2021: $810 million and 2020: $551 million)
														Page 69

The following tables summarize certain financial information of operating subsidiaries that have non-controlling interests that are material to Brookfield Renewable:
	Brookfield				Brookfield	Brookfield
	Americas	Brookfield	Brookfield	Brookfield	Global	Global	Canadian	The
	Infrastructure	Infrastructure	Infrastructure	Infrastructure	Infrastructure	Transition	Hydroelectric	Catalyst		TerraForm
(MILLIONS)Fund	Fund II	Fund III(1)	Fund IV	Income Fund	Fund	Portfolio	Group	Isagen (2)	Power(3)	Other	Total
Interests held by third parties													.....................	75%-78%	43%-60%	69%-71%	75 %	24 %	77% - 80%	50 %	25 %	77 %	42 %	0.3%-71%
														North
						America,
				United States ,		Europe,									United States,
		United States,	United States,	Brazil,		India,				North America,					Brazil, Canada,
	United States,	Brazil,	Brazil, Europe,	India,		China,		United		South America,	Colombia,
Place of business														........................................	Brazil	Europe	India, China	China	Canada	Australia	Canada	States	Colombia		Europe	China, Chile

Year ended December 31, 2020:
Revenue														.................................................. $	137 $	346 $	189 $	85	$	—	$										— $	123	$ 141	$	874	$	1,161					$	20 $ 3,076

Net income														.............................................	(15)	(34)															(2)	20		—											—	73		65		247		(360)					173	167

Total comprehensive income (loss)																		.......	109	345	160	19		—											—	108	173		866		238						176	2,194

Net income allocated to non-controlling
interests																			.......................................................	(13)	(21)															(4)	15		—											—	38		16		187	(158)			120	180

Year ended December 31, 2021:
Revenue														.................................................. $	137 $	302 $	195 $	316		—	$										— $	81	$ 136	$	929	$	1,239					$	19 $ 3,354

Net income (loss)														...................................						7	64	1	50		—											—	10		62		214		(245)						66	229

Total comprehensive income (loss)																		.......	(161)	895	348	252		—											—	329	173		11		(243)						187	1,791

Net income (loss) allocated to non-
controlling interests														....................................						5	43	2	38		—											—	4		16		162		(109)						48	209

As at December 31, 2021:
Property, plant and equipment, at fair
value																			....................................................... $	1,053 $	5,578 $	2,861 $	4,440	$	—	$										— $	2,417	$ 1,129	$ 8,497		$	10,867					$	321 $ 37,163

Total assets														.............................................	1,087	5,673	3,510	5,460		—											—	2,741	1,140	9,498			11,939						374 41,422

Total borrowings														....................................	179	1,331	1,048	2,768		—											—	516	507	2,224			6,902						93 15,568

Total liabilities														.......................................	205	1,552	1,180	3,356		—											—	576	511	4,896			8,916						151 21,343

Carrying value of non-controlling
interests																			.......................................................	685	2,253	1,658	1,410		—											—	1,029	132	3,493			1,344						299 12,303

Year ended December 31, 2022:
Revenue														.................................................. $	120 $	324 $	213 $	451	$	94	$										54 $	116	$ 131	$ 1,135		$	1,324					$	76 $ 4,038

Net income (loss)														...................................						25	(66)															44	14		4		(66)	40		44		340		94						41	514

Total comprehensive income (loss)																		.......	(106)	732	183	586		96		(51)	403		(32)		467		301						36	2,615

Net income allocated to non-controlling
interests																			.......................................................	19	(31)															31	16		(1)		(50)	20		11		257		31						31	334

As at December 31, 2022:
Property, plant and equipment, at fair
value																			....................................................... $	131 $	6,223 $	2,873 $	6,060	$	874	$	1,565 $	2,686	$ 1,031	$ 8,264		$	10,012					$	1,062 $ 40,781

Total assets														.............................................	852	6,368	3,529	6,911		1,324		5,298	2,984	1,053	9,178			11,192						1,463 50,152

Total borrowings														....................................						14	1,332	1,051	3,120	$	37		497	466	476	2,356			6,371						614 16,334

Total liabilities														.......................................	240	1,618	1,172	4,173	$	386		3,502	520	491	5,112			8,275						792 26,281

Carrying value of non-controlling
interests																			.......................................................	477	2,617	1,675	2,134	$	247		1,461	1,194	115	3,146			1,452						237 14,755

(1)	Excludes information relating to Isagen and TerraForm Power which are presented separately.
(2)	The total third party ownership interest in Isagen as of December 31, 2022 was 77.4% and comprised of Brookfield Infrastructure Fund III: 23.0%, Brookfield Global Infrastructure Income Fund: 1.5%, Isagen Institutional investors: 52.6% and other non-controlling interests: 0.3%.
(3)	The total third party interest in Terraform Power as of December 31, 2022 was 42.3% and comprised of Brookfield Infrastructure Fund III: 35.5% and Brookfield Global Infrastructure Income Fund: 6.8%.
												Page 70

General partnership interest in a holding subsidiary held by Brookfield, Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield and Class A exchangeable shares of Brookfield Renewable Corporation held by public shareholders and 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 distributions exceed specified target levels. To the extent that LP unit distributions exceed $0.20 per LP unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that quarterly LP unit distributions exceed $0.2253 per LP unit per quarter, the incentive distribution is equal to 25% of distributions above this threshold.
Consolidated equity includes Redeemable/Exchangeable partnership units, BEPC exchangeable shares and the GP interest. The Redeemable/Exchangeable partnership units and the GP interest are held 100% by Brookfield and the BEPC exchangeable shares are held 26.0% by Brookfield with the remainder held by public shareholders. The Redeemable/Exchangeable partnership units and BEPC exchangeable shares provide the holder, at its discretion, with the right to redeem these units or shares, respectively, for cash consideration. Since this redemption right is subject to Brookfield Renewable’s right, at its sole discretion, to satisfy the redemption request with LP units of Brookfield Renewable on a one-for-one basis, the Redeemable/Exchangeable partnership units and BEPC exchangeable shares are classified as equity in accordance with IAS 32, Financial Instruments: Presentation.
The Redeemable/Exchangeable partnership units, BEPC exchangeable shares and the GP interest are presented as non-controlling interests since they relate to equity in a subsidiary that is not attributable, directly or indirectly, to Brookfield Renewable. During the year ended December 31, 2022, exchangeable shareholders of BEPC exchanged 12,308 (December 31, 2021: 16,071) BEPC exchangeable for an equivalent number of LP units amounting to less than $1 million (December 31, 2021: $1 million). No Redeemable/Exchangeable partnership units have been redeemed.
The Redeemable/Exchangeable partnership units issued by BRELP and the BEPC exchangeable shares issued by BEPC have the same economic attributes in all respects to the LP units issued by Brookfield Renewable, except for the redemption rights described above. The Redeemable/Exchangeable partnership units, BEPC exchangeable shares and the GP interest, excluding incentive distributions, participate in earnings and distributions on a per unit basis equivalent to the per unit participation of the LP units of Brookfield Renewable.
As at December 31, 2022, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and units of GP interest outstanding were 194,487,939 units (December 31, 2021: 194,487,939 units), 172,218,098 shares (December 31, 2021: 172,203,342 shares), and 3,977,260 units (December 31, 2021: 3,977,260 units), respectively.
In December 2022, Brookfield Renewable renewed its normal course issuer bid in connection with its LP units and outstanding BEPC exchangeable shares. Brookfield Renewable is authorized to repurchase up to 13,764,352 LP units and 8,610,905 BEPC exchangeable shares, representing 5% of each of its issued and outstanding LP units and BEPC exchangeable shares. The bids will expire on December 15, 2023, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were no LP units or BEPC exchangeable shares repurchased during the years ended December 31, 2022 and 2021.
	Page 71

The composition of the distributions are presented in the following table:
	2022	2021	2020
(MILLIONS)
General partnership interest in a holding subsidiary held by Brookfield				............. $	6 $	5 $	5

Incentive distribution					............................................................................................	94	80	65

							100	85	70
Participating non-controlling interests							– in a holding subsidiary –
Redeemable/Exchangeable units held by Brookfield								.......................................	250	237	250

BEPC exchangeable shares held by
Brookfield									..........................................................................................................	58	53	42

External shareholders					........................................................................................	162	156	74

Total BEPC exchangeable shares							.........................................................................	220	209	116

						$	570 $	531 $	436
The following table summarizes certain financial information regarding General partnership interest in a holding subsidiary held by Brookfield, Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield and Class A exchangeable shares of Brookfield Renewable Corporation held by public shareholders and Brookfield:
	2022	2021	2020
(MILLIONS)
For the year ended December 31:
Revenue									.................................................................................................................. $	4,711 $	4,096 $	3,810

Net income (loss)					....................................................................................................	138	(66)	(45)

Comprehensive income					..........................................................................................	2,628	2,700	2,229

Net income (loss) allocated to(1):
General partnership interest in a holding subsidiary held by Brookfield				...........	92	77	62

Participating non-controlling interests							– in a holding subsidiary –
										Redeemable/Exchangeable units held by Brookfield	.....................................	(117)	(135)	(133)

BEPC exchangeable shares											................................................................................	(104)	(119)	(49)

As at December 31:
Property, plant and equipment, at fair value							........................................................... $	54,283 $	49,432

Total assets									.............................................................................................................	64,111	55,867

Total borrowings					.....................................................................................................	24,850	21,529

Total liabilities									........................................................................................................	37,825	31,871

Carrying value of (2):
General partnership interest in a holding subsidiary held by Brookfield				...........	59	59

Participating non-controlling interests							– in a holding subsidiary –
										Redeemable/Exchangeable units held by Brookfield	.....................................	2,892	2,894

(1)	Allocated based on weighted-average GP interest, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and LP units of 4.0 million, 194.5 million, 172.2 million and 275.2 million, respectively (2021: 4.0 million, 194.5 million, 172.2 million and 274.9 million, respectively and 2020: 4.0 million, 194.5 million, 139.9 million and 271.1 million, respectively).
(2)	Allocated based on outstanding GP interest, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and LP units of 4.0 million, 194.5 million, 172.2 million and 275.4 million, respectively (2021: 4.0 million, 194.5 million, 172.2 million and 275.1 million, respectively).
			Page 72

Preferred equity
Brookfield Renewable’s preferred equity as at December 31 consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. (“BRP Equity”) as follows:
				Dividends declared for
			Earliest	the year ended
		Cumulative	permitted	December 31	Carrying value as at
	Shares	dividend	redemption
	outstanding	rate (%)	date	(MILLIONS, EXCEPT AS		2022		2021	December 31, 2022	December 31, 2021
NOTED)
Series 1 (C$136)							.....	6.85					3.1	April 2025 $		4 $	4 $	126 $		135

Series 2 (C$113)(1)							..	3.11					6.3	April 2025		3	2		57	62

Series 3 (C$249)							.....	9.96					4.4	July 2024		8	9	183		197

Series 5 (C$103)							.....	4.11					5.0	April 2018		4	4		76	81

Series 6 (C$175)							.....	7.00					5.0	July 2018		7	7	129		138

		31.03			$					26 $	26 $	571 $			613
(1)	Dividend rate represents annualized distribution based on the most recent quarterly floating rate.
Distributions paid during the year ended December 31, 2022, totaled $26 million (2021: $26 million and 2020: $25 million
												).
The Class A Preference Shares do not have a fixed maturity date and are not redeemable at the option of the holders. As at December 31, 2022, none of the issued Class A, Series 5 and 6 Preference Shares have been redeemed by BRP Equity.
In December 2022, the Toronto Stock Exchange accepted notice of BRP Equity's intention to renew the normal course issuer bid in connection with its outstanding Class A Preference Shares for another year to December 15, 2023, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, BRP Equity is permitted to repurchase up to 10% of the total public float for each respective series of the Class A Preference Shares. Shareholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. There were no repurchases of Class A Preference Shares during 2022 or 2021 in connection with the normal course issuer bid.
Perpetual subordinated notes
In April 2021 and December 2021, Brookfield BRP Holdings (Canada) Inc., a wholly-owned subsidiary of Brookfield Renewable, issued $350 million and $260 million, respectively, of perpetual subordinated notes at a fixed rate of 4.625% and 4.875%, respectively.
The perpetual subordinated notes do not have a maturity date and are repaid in an Event of Default. The perpetual subordinated notes also provide Brookfield Renewable, at its discretion, the right to defer the interest (in whole or in part) until liquidation of assets due to an Event of Default. The perpetual subordinated notes are classified as a separate class of non-controlling interest on Brookfield Renewable's consolidated statements of financial position as per IAS 32, Financial Instruments: Presentation. The interest expense on the perpetual subordinated notes during the year ended December 31, 2022 of $29 million (2021: $12 million and 2020: nil) are presented as distributions in the consolidated statements of changes in equity. The carrying value of the perpetual subordinated notes, net of transaction cost, is $592 million (2021: $592 million) as at December 31, 2022.
Distributions paid during the year ended December 31, 2022, totaled $27 million (2021: $9 million and 2020: nil).
										Page 73

17. PREFERRED LIMITED PARTNERS’ EQUITY
Brookfield Renewable’s preferred limited partners’ equity comprises of Class A Preferred units as follows:
				Distributions declared
			Earliest
				for the year ended
		Cumulative	permitted
				December 31	Carrying value as at
(MILLIONS, EXCEPT	Shares	distribution	redemption
	outstanding	rate (%)	date	2022		2021	December 31, 2022	December 31, 2021
AS NOTED)
Series 5 (C$72)									........	—					5.59	April 2018 $			— $	3 $		— $	49

Series 7 (C$175)									......	7.00					5.50 January 2026	7	8	128			128

Series 9 (C$200)									......	—					5.75	July 2021			—	5		—	—

Series 11 (C$250)									....	—					5.00	April 2022			3	10		—	187

Series 13 (C$250)									....	10.00					5.00	April 2023			10	10	196			196

Series 15 (C$175)									....	7.00					5.75	April 2024			8	8	126			126

Series 17 ($200)									.......0	8.00					5.25	March 2025			11	11	195			195

Series 18 (C$150)		6.00									5.50	April 2027				5	—	115			—
		38.00			$							44 $	55 $	760 $				881
In the first quarter of 2022, Brookfield Renewable redeemed all of the outstanding units of Series 5 Preferred Limited Partnership units for C$72 million or C$25.25 per Preferred Limited Partnership Unit.
In the second quarter of 2022, Brookfield Renewable issued 6,000,000 Series 18 Preferred Units at a price of C$25 per unit for gross proceeds of C$150 million. The holders of the Series 18 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.5%.
In the second quarter of 2022, Brookfield Renewable redeemed all of the outstanding units of Series 11 Preferred Units for C$250 million or C$25 per Unit.
Distributions paid during the year ended December 31, 2022, totaled $44 million (2021: $55 million and 2020: $52 million).
Class A Preferred LP Units - Normal Course Issuer Bid
In December 2022, the Toronto Stock Exchange accepted notice of Brookfield Renewable's intention to renew the normal course issuer bid in connection with the outstanding Class A Preferred Limited Partnership Units for another year to December 15, 2023, or earlier should the repurchases be completed prior to such date. 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 Preferred Limited Partnership Units. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during 2022 or 2021.
18. LIMITED PARTNERS’ EQUITY
Limited partners’ equity
As at December 31, 2022, 275,358,750 LP units were outstanding (2021: 275,084,265 LP units) including 68,749,416 LP units (2021: 68,749,416 LP units) held by Brookfield. Brookfield owns all general partnership interests in Brookfield Renewable representing a 0.01% interest.
				f the proceeds from the offering of LP units.
During the year ended December 31, 2022, 262,177 LP units (2021: 230,304 LP units) were issued under the distribution reinvestment plan at a total value of $9 million (2021: $9 million).
During the year ended December 31, 2022, exchangeable shareholders of BEPC exchanged 12,308 BEPC exchangeable shares (2021: 16,071 shares) for an equivalent number of LP units amounting to less than $1 million (2021: $1 million).
As at December 31, 2022, Brookfield Corporation’s direct and indirect interest of 308,051,190 LP units, Redeemable/Exchangeable partnership units and BEPC exchangeable shares represents approximately 48.0% of Brookfield Renewable on a fully-exchanged basis and the remaining approximate 52.0% is held by public investors.
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On an unexchanged basis, Brookfield holds a 25% direct limited partnership interest in Brookfield Renewable, a 41% direct interest in BRELP through the ownership of Redeemable/Exchangeable partnership units, a direct 1% GP interest in BRELP and a 26% direct interest in the BEPC exchangeable shares of BEPC as at December 31, 2022.
In December 2022, Brookfield Renewable renewed its normal course issuer bid in connection with its LP units. Brookfield Renewable is authorized to repurchase up to 13,764,352 LP units, representing 5% of its issued and outstanding LP units. The bids will expire on December 15, 2023, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were no LP units repurchased during the year ended December 31, 2022 and December 31, 2021.
Distributions
The composition of the distributions are presented in the following table:
	2022	2021
(MILLIONS)
Brookfield			......................................................................................................................................... $	88 $	84

External LP unitholders				....................................................................................................................	267	251

					$	355 $	335
In February 2023, distributions to unitholders were increased to $1.35 per LP unit on an annualized basis, an increase of $0.07 per LP unit, which will take effect on the distribution payable in March 2023.
Distributions paid during the year ended December 31, 2022, totaled $345 million (2021: $325 million and 2020: $349 million).
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19. GOODWILL
The following table provides a reconciliation of goodwill:
	Total
(MILLIONS)
Balance, as at December 31, 2020			................................................................................................................	970

Acquired through acquisition			........................................................................................................................	3			117

Foreign exchange					..........................................................................................................................................	(121)

Balance, as at December 31, 2021			................................................................................................................	966

Acquired through acquisition			........................................................................................................................	3			691

Foreign exchange and other						..........................................................................................................................	(131)

Balance, as at December 31, 2022			................................................................................................................	1,526

Goodwill is allocated to the following CGUs or group of CGUs:
	2021
(MILLIONS)
Value-in-use method					.....................................................................................................................

Colombia Hydroelectric(1)						............................................................................................................ $	676

U.S. Distributed Generation(2)			......................................................................................................	117

U.S. Utility-scale Solar						................................................................................................................	—

Europe Utility-scale Solar development platform							........................................................................	—

Chile Distributed Generation			........................................................................................................	—

U.S. Wind					.....................................................................................................................................	—

									793
Fair value less costs of disposal			....................................................................................................

Europe Utility-scale Solar						............................................................................................................	106

Europe Wind					.................................................................................................................................	49

South America Wind					....................................................................................................................	18

									173
								$	966
Goodwill related to the Colombia hydroelectric segment was created as a result of recording the deferred tax liabilities assumed in the purchase price allocations of business combinations. The deferred tax liabilities are measured in accordance with IAS 12 in the purchase price allocations rather than at fair value. As a result, the goodwill recorded does not represent ‘core’ goodwill, but rather goodwill created as a result of accounting concepts or ‘non-core’ goodwill. In order to avoid an immediate impairment of this ‘non-core’ goodwill.
Includes $115 million (2021: $117 million) of goodwill related to 360 MW of operating and 700 MW of development business acquired in 2021 and $309 million (2021: nil) related to the acquisition of an integrated distributed generation developer with approximately 500 MW of contracted operating and under construction assets, and an 1.8 GW of development pipeline in the United States.
As at December 31, 2022, Brookfield Renewable performed an impairment test at the level that goodwill is monitored by management. Brookfield Renewable did not identify any impairments of goodwill. In performing this impairment test, management removed the ‘non-core’ goodwill that continued to be supported by the existence of the original deferred tax liability that gave rise to the goodwill from the carrying value of the applicable assets.
For the remaining goodwill balance, the key inputs in determining the fair value of each cash generating unit under the value in use model are the utilization of discount rates ranging from 9% to 15%, terminal capitalization rate of 3x to 5x, discrete cash flow periods from 4 to 5 years, and future leverage assumptions for the platforms.
20. CAPITAL MANAGEMENT
Brookfield Renewable’s primary capital management objectives are to ensure the sustainability of its capital to support continuing operations, meet its financial obligations, allow for growth opportunities and provide stable distributions to its LP unitholders. Brookfield Renewable’s capital is monitored through the debt-to-total capitalization ratio on a corporate and consolidated basis. As at December 31, 2022 these ratios were 11% and 39%, respectively (2021: 8% and 33%, respectively).
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Brookfield Renewable has provided covenants to certain of its lenders for its corporate borrowings and credit facilities. The covenants require Brookfield Renewable to meet minimum debt-to-capitalization ratios. Subsidiaries of Brookfield Renewable have provided covenants to certain of their lenders for their non-recourse borrowings. These covenants vary from one credit agreement to another and include ratios that address debt-service coverage. Certain lenders have also put in place requirements that oblige Brookfield Renewable and its subsidiaries to maintain debt and capital expenditure reserve accounts. The consequences to the subsidiaries as a result of failure to comply with their covenants could include a limitation of distributions from the subsidiaries to Brookfield Renewable, as well as repayment of outstanding debt. Brookfield Renewable is dependent on the distributions made by its subsidiaries to service its debt.
Brookfield Renewable’s strategy during 2022, which was unchanged from 2021, was to maintain the measures set out in the following schedule as at December 31:
	Corporate	Consolidated
	2022		2021	2022		2021
(MILLIONS)
Commercial paper(1)					....................................................................... $	249					$	—			$	249				$	—

Debt
Medium-term notes(2)					..................................................................	2,307						2,156				2,307					2,156

Non-recourse borrowings(3)									.........................................................	—					—			22,321				19,352

											2,307					2,156			24,628				21,508
Deferred income tax liabilities, net(4)											.............................................	—					—			6,331				6,018

Equity
Non-controlling interest									..............................................................	—					—			14,755				12,303

Preferred equity					...........................................................................	571						613				571					613

Perpetual subordinated notes									.......................................................	592					592			592				592

Preferred limited partners’ equity(5)											............................................	760					881			760				881

Unitholders’ equity					......................................................................	9,608						9,607				9,608					9,607

Total capitalization					......................................................................... $ 13,838	$ 13,849	$ 57,245	$ 51,522

Debt-to-total capitalization									.............................................................	17 %		16 %	43 %	42 %

Debt-to-total capitalization (market value)(6)												.................................	11 %	8 %	39 %		33 %

(1)	Draws on corporate credit facilities and commercial paper issuances are excluded from the debt-to-total capitalization ratios as they are not a permanent source of capital.
(2)	Medium-term notes are unsecured and guaranteed by Brookfield Renewable and excludes $8 million (2021: $7 million) of deferred financing fees, net of unamortized premiums.
(3)	Consolidated non-recourse borrowings include $1,838 million (2021: $30 million) borrowed under a subscription facility of a Brookfield sponsored private fund and excludes $124 million (2021: $132 million) of deferred financing fees and $105 million (2021: $160 million) of unamortized premiums.
(4)	Deferred income tax liabilities less deferred income tax assets.
(5)	During the year end December 31, 2022, Brookfield Renewable completed the redemption of C$72 million of Series 5 Preferred Units.
(6)	Based on market values of Preferred equity, Perpetual subordinated notes, Preferred limited partners’ equity and Unitholders’ equity.
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21. EQUITY-ACCOUNTED INVESTMENTS
The following table outlines the changes in Brookfield Renewable’s equity-accounted investments:
	2022	2021	2020
(MILLIONS)
Balance, beginning of year				..................................................................................... $	1,107 $	971 $	937

Investment					..............................................................................................................	373	57	42

Return of capital						.....................................................................................................	(3)	(8)	(19)

Share of net income						................................................................................................	96	22	27

Share of other comprehensive income (loss)							..........................................................	(65)	148	29

Dividends received						.................................................................................................	(89)	(78)	(56)

Foreign exchange translation and other							..................................................................	(27)	(5)	11

Balance, end of year						............................................................................................... $	1,392 $	1,107 $	971

22. CASH AND CASH EQUIVALENTS
Brookfield Renewable’s cash and cash equivalents as at December 31 are as follows:
		2022	2021
(MILLIONS)
Cash................................................................................................................................................... $		728 $	759
Cash subject to restriction(1)				..............................................................................................................	268	136

Short-term deposits						...........................................................................................................................	2	5

								$	998 $	900
(1)
See Note 1(t) - Recently adopted accounting standards for additional details.
23. RESTRICTED CASH
Brookfield Renewable’s restricted cash as at December 31 is as follows:
	Note	2022	2021
(MILLIONS)
Operations					.........................................................................................................................			$	93 $	106

Credit obligations						...............................................................................................................			56	64

Capital expenditures and development projects							................................................................		42	6

Total(1)					................................................................................................................................				191	176

Less: non-current						...............................................................................................................	25				(52)	(23)

Current					...............................................................................................................................			$	139 $	153

(1)
See Note 1(t) - Recently adopted accounting standards for additional details.
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24. TRADE RECEIVABLES AND OTHER CURRENT ASSETS
Brookfield Renewable’s trade receivables and other current assets as at December 31 are as follows:
	2022	2021
(MILLIONS)
Trade receivables			.............................................................................................................................. $	672 $	629

Collateral deposits(1)			..........................................................................................................................	609	434

Short term deposits and advances				....................................................................................................	113	27

Inventory					...........................................................................................................................................	42	31

Prepaids and others			...........................................................................................................................	86	354

Income tax receivables			......................................................................................................................	74	39

Sales tax receivable			...........................................................................................................................	73	36

Current portion of contract asset				.......................................................................................................	54	57

Other short-term receivables				.............................................................................................................	137	76

						$	1,860 $	1,683
(1)	Collateral deposits are related to energy derivative contracts that Brookfield Renewable enters into in order to mitigate the exposure to wholesale market electricity prices on the future sale of uncontracted generation, as part of Brookfield Renewable's risk management strategy.
As at December 31, 2022, 89% (2021: 82%) of trade receivables were current. Brookfield Renewable does not expect issues with collectability of these amounts. Accordingly, as at December 31, 2022 and 2021 an allowance for doubtful accounts for trade receivables was not deemed necessary. Trade receivables are generally on 30-day terms and credit limits are assigned and monitored for all counterparties. In determining the recoverability of trade receivables, management performs a risk analysis considering the type and age of the outstanding receivables and the credit worthiness of the counterparties. Management also reviews trade receivable balances on an ongoing basis.
25. OTHER LONG-TERM ASSETS
Brookfield Renewable’s other long-term assets as at December 31 are as follows:
							Note	2022	2021
(MILLIONS)
Contract asset			.....................................................................................................................			$	341 $	388

Long-term receivables			........................................................................................................				235	216

Due from related parties								.....................................................................................................	30		128	142

Restricted cash(1).................................................................................................................							23		52	23
Other					...................................................................................................................................		86	27

						$	842 $	796
(1)
See Note 1(t) - Recently adopted accounting standards for additional details.
At December 31, 2022 and 2021, restricted cash was held primarily to satisfy operations and maintenance reserve requirements, lease payments and credit agreements.
Contract assets are the result of contract amendments made to Brookfield Renewable’s long-term power purchase agreements with Brookfield associated with generating assets in Ontario held by Great Lakes Power Limited and Mississagi Power Trust. The net impact of these changes were offset by changes to Brookfield Renewable’s long-term energy revenue agreement with Brookfield associated with several entities owned by Brookfield Renewable in the United States, however the changes resulted in a difference in timing of cash flows. As a result, the amendments were accounted for in reflection of their substance, with the recognition of contract asset and liability balances and net financing charges to be recognized over the remainder of the term of the agreements. There are no material provisions for expected credit losses on contract assets. See Note 30 – Related party transactions, for additional details regarding Brookfield Renewable’s revenue agreements with Brookfield.
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26. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
Brookfield Renewable’s accounts payable and accrued liabilities as at December 31 are as follows:
	2022	2021
(MILLIONS)
Operating accrued liabilities			............................................................................................................. $	440 $	312

Accounts payable				..............................................................................................................................	276	208

Interest payable on borrowings			.........................................................................................................	153	116

Income tax payable				...........................................................................................................................	78	5

LP Unitholders distributions, preferred limited partnership unit distributions, preferred
dividends payable , perpetual subordinate notes distributions and exchange shares dividends(1)						53	54

Current portion of lease liabilities			.....................................................................................................	33	30

Other						.................................................................................................................................................	53	54

					$	1,086 $	779
(1)	Includes amounts payable only to external LP unitholders and BEPC exchangeable shareholders. Amounts payable to Brookfield are included in due to related parties.
27. PROVISIONS
The following table presents the change in the decommissioning liabilities for Brookfield Renewable:
	2022	2021
(MILLIONS)
Balance, beginning of the year			......................................................................................................... $	668 $	645

Acquisitions through business combinations							...................................................................................	54	99

Disposal						...........................................................................................................................................	(1)	(12)

Accretion						..........................................................................................................................................	15	13

Changes in estimates				........................................................................................................................	(245)	(69)

Foreign exchange				.............................................................................................................................	(12)	(8)

Balance, end of the year			................................................................................................................... $	479 $	668

Brookfield Renewable has recorded decommissioning retirement obligations associated with certain power generating assets. The decommissioning retirement obligation has been established for hydroelectric, wind and solar operation sites that are substantially expected to be restored between the years 2031 to 2055. The estimated cost of decommissioning activities is based on a third-party assessment.
For details on other legal provisions, please refer to Note 29 – Commitments, contingencies and guarantees.
28. OTHER LONG-TERM LIABILITIES
Brookfield Renewable’s other long-term liabilities as at December 31 are comprised of the following:
	2022	2021
(MILLIONS)
Contract liabilities				.......................................................................................................................... $	662 $	635

Lease liabilities				...............................................................................................................................	526	434

Regulatory liabilities(1)			...................................................................................................................	149	130

Pension obligations				........................................................................................................................	51	77

Concession payment liability			.........................................................................................................	10	10

Due to related parties				......................................................................................................................	1	34

Other						...............................................................................................................................................	132	120

					$	1,531 $	1,440
(1)	Regulatory liabilities are related to the regulated pricing mechanism at certain of Brookfield Renewable’s Spanish assets.
Contract liabilities are the result of the amendment to the energy revenue agreement between Brookfield and several entities owned by Brookfield Renewable in the United States. See Note 25 – Other long-term assets, for additional
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details regarding Brookfield Renewable’s contract balances. See Note 30 – Related party transactions, for additional details regarding Brookfield Renewable’s revenue agreements with Brookfield.

29. COMMITMENTS, CONTINGENCIES AND GUARANTEES

Commitments

In the course of its operations, Brookfield Renewable and its subsidiaries have entered into agreements for the use of water, land and dams. Payment under those agreements varies with the amount of power generated. The various agreements can be renewed and are extendable up to 2089.

In the normal course of business, Brookfield Renewable will enter into capital expenditure commitments which primarily relate to contracted project costs for various growth initiatives. As at December 31, 2022, Brookfield Renewable had $1,126 million (2021: $699 million) of capital expenditure commitments outstanding, of which $1,059 million (2021: $669 million) is payable in less than one year, $63 million (2021: $30 million) in two to five years, and $4 million (2021: nil) thereafter.

The following table lists the assets and portfolio of assets that Brookfield Renewable, together with institutional partners have agreed to acquire which are subject to customary closing conditions as at December 31, 2022:

Brookfield

Renewable

RegionTechnology

Capacity

Consideration

Economic Interest

Expected Close

102 MW

CNY 255 million

ChinaWind

20%

Q1 2023

development

($38 million)

BrazilWind

137 MW operating BRL 529 million ($98 million)

25%

Q1 2023

Nuclear

U.S.

N/A

$4.5 billion

Up to 17%

Q2 2023

Services

Utility-scale

First of three

U.S.

473 MW operating

$135 million

20%

solar

projects in Q4 2023

350 MW

CNY 853 million

First of two projects

ChinaWind

20%

development

($125 million)

in Q4 2023

An integral part of Brookfield Renewable’s strategy is to participate with institutional partners in Brookfield-sponsored private equity funds that target acquisitions that suit Brookfield Renewable’s profile. In the normal course of business, Brookfield Renewable has made commitments to Brookfield-sponsored private equity funds to participate in these target acquisitions in the future, if and when identified. From time to time, in order to facilitate investment activities in a timely and efficient manner, Brookfield Renewable will fund deposits or incur other costs and expenses (including by use of loan facilities to consummate, support, guarantee or issue letters of credit) in respect of an investment that ultimately will be shared with or made entirely by Brookfield sponsored vehicles, consortiums and/or partnerships (including private funds, joint ventures and similar arrangements), Brookfield Renewable, or by co-investors.

Contingencies

Brookfield Renewable and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on Brookfield Renewable’s consolidated financial position or results of operations.

Brookfield Renewable, on behalf of Brookfield Renewable’s subsidiaries, and the subsidiaries themselves have provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance. The activity on the issued letters of credit by Brookfield Renewable can be found in Note 15 – Borrowings.

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Brookfield Renewable, along with institutional partners, has provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance as it relates to interests in the Brookfield Americas Infrastructure Fund, the Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV, and Brookfield Global Transition Fund. Brookfield Renewable’s subsidiaries have similarly provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance.
Letters of credit issued by Brookfield Renewable along with institutional partners and its subsidiaries were as at the following dates:
	2022	2021
(MILLIONS)
Brookfield Renewable along with institutional partners			................................................................. $	99 $	98

Brookfield Renewable's subsidiaries				...............................................................................................	1,510	950

					$	1,609 $	1,048
Guarantees
In the normal course of operations, Brookfield Renewable and its subsidiaries execute agreements that provide for indemnification and guarantees to third-parties of transactions such as business dispositions, capital project purchases, business acquisitions, and sales and purchases of assets and services. Brookfield Renewable has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings prevents Brookfield Renewable from making a reasonable estimate of the maximum potential amount that Brookfield Renewable could be required to pay third parties as the agreements do not always specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time. Historically, neither Brookfield Renewable nor its subsidiaries have made material payments under such indemnification agreements.
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30. RELATED PARTY TRANSACTIONS
Brookfield Renewable’s related party transactions are recorded at the exchange amount and are primarily with Brookfield.
Brookfield Renewable and Brookfield have entered into, or amended, the following material agreements:
Principal Agreements
Limited Partnership Agreements
Each of the amended and restated limited partnership agreements of Brookfield Renewable and BRELP outline the key terms of the partnerships, including provisions relating to management, protections for limited partners, capital contributions, distributions and allocation of income and losses. BRELP’s general partner is entitled to receive incentive distributions from BRELP as a result of its ownership of the general partnership interest in BRELP. The incentive distributions are to be calculated in increments based on the amount by which quarterly distributions on the limited partnership units of BRELP exceed specified target levels as set forth in the amended and restated partnership agreement.
Master Services Agreement
Brookfield Renewable entered into an agreement with Brookfield Corporation pursuant to which Brookfield Corporation has agreed to provide oversight of the business and provide the services of senior officers to Brookfield Renewable for a management service fee. The fee is paid on a quarterly basis and has a fixed quarterly component of $5 million and a variable component calculated as a percentage of the increase in the total capitalization value of Brookfield Renewable over an initial reference value (subject to an annual escalation by a specified inflation factor beginning on January 1, 2013). Total capitalization value as of December 31, 2022 is $21 billion, which against the initial reference value of $8 billion and factoring in the annual amount of $24 million (as adjusted for inflation), resulted in a management service fee payment for the year ended December 31, 2022 of $243 million (2021: $288 million and 2020: $212 million).
Relationship Agreement
Since inception, Brookfield Renewable has had a Relationship Agreement with Brookfield pursuant to which Brookfield has agreed, subject to certain exceptions, that Brookfield Renewable will serve as its primary vehicle through which it will directly or indirectly, acquire renewable power assets on a global basis.
TERP Brookfield Master Services Agreement
TerraForm Power was party to a management agreement (“TERP Brookfield Master Services Agreement”) with Brookfield and certain of its affiliates, dated as of October 16, 2017. Pursuant to the TERP Brookfield Master Services Agreement, TerraForm Power paid management service costs on a quarterly basis calculated as follows:
•	For each of the first four quarters following October 16, 2017, a fixed component of $2.5 million per quarter (subject to proration for the quarter including October 16, 2017) plus 0.3125% of the market capitalization value increase for such quarter;
•	For each of the next four quarters, a fixed component of $3.0 million per quarter adjusted annually for inflation plus 0.3125% of the market capitalization value increase for such quarter; and
•	Thereafter, a fixed component of $3.75 million per quarter adjusted annually for inflation plus 0.3125% of the market capitalization value increase for such quarter.
For purposes of calculating its management service costs, the term market capitalization value increase meant, for any quarter, the increase in value of TerraForm Power’s market capitalization for such quarter, calculated by multiplying the number of outstanding shares of TerraForm Power’s common stock as of the last trading day of such quarter by the difference between (x) the volume weighted average trading price of a share of common stock for the trading days in such quarter and (y) $9.52. If the difference between (x) and (y) in the market capitalization value increase calculation for a quarter is a negative number, then the market capitalization value increase is deemed to be zero. TerraForm Power’s management service costs for the year ended December 31, 2022 of nil (2021: nil and
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2020: $23 million) have been included in Brookfield Renewable’s consolidated statements of income (loss) based on its historical records.
The TERP Brookfield Master Services Agreement was terminated upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020.
BRELP Voting Agreement
In 2011, Brookfield Renewable entered into a voting agreement with Brookfield pursuant to which Brookfield Renewable, through BRPL, has a number of voting rights, including the right to direct all eligible votes in the election of the directors of BRELP’s general partner.
Governance Agreement
TerraForm Power was party to a governance agreement, referred to as the Governance Agreement, dated October 16, 2017 with Orion Holdings 1 L.P. (“Orion Holding”), a controlled subsidiary of Brookfield Corporation, and any other controlled affiliate of Brookfield Corporation (other than TerraForm Power and its controlled affiliates) that by the terms of the Governance Agreement from time to time becomes a party thereto, collectively referred to as the sponsor group.
The Governance Agreement established certain rights and obligations of TerraForm Power and controlled affiliates of Brookfield Corporation that owned voting securities of TerraForm Power relating to the governance of TerraForm Power and the relationship between such affiliates of Brookfield Corporation and TerraForm Power and its controlled affiliates.
On June 11, 2018, Orion Holdings, Brookfield BRP Holdings (Canada) Inc (“NA HoldCo”) and TerraForm Power entered into a Joinder Agreement pursuant to which NA HoldCo became a party to the Governance Agreement. On June 29, 2018, a second Joinder Agreement was entered into among Orion Holdings, NA HoldCo, BBHC Orion Holdco L.P. (“BBHC Orion”), a controlled subsidiary of Brookfield Corporation, and TerraForm Power pursuant to which BBHC Orion became a party to the Governance Agreement.
The Governance Agreement was terminated upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020.
Power Services Agreements
Power Agency Agreements
Certain Brookfield Renewable subsidiaries entered into Power Agency Agreements appointing Brookfield as their exclusive agent in respect of the sale of electricity, including the procurement of transmission and other additional services. In addition, Brookfield scheduled, dispatched and arranged for transmission of the power produced and the power supplied to third-parties in accordance with prudent industry practice. Pursuant to each Agreement, Brookfield was entitled to be reimbursed for any third party costs incurred, and, in certain cases, received an additional fee for its services in connection with the sale of power and for providing the other services.
On closing of the Energy Marketing Internalization, all Power Agency Agreements were transferred by Brookfield to Brookfield Renewable.
Revenue Agreements
Contract Amendments
In the first quarter of 2021, two long-term power purchase agreements for sale of energy generated by hydroelectric facilities owned by Great Lakes Power Limited (“GLPL”) and Mississagi Power Trust (“MPT”) were amended and Brookfield’s third-party power purchase agreements associated the sale energy generated by GLPL and MPT were reassigned.
Historically, the power purchase agreements required Brookfield to purchase energy generated by GLPL and MPT at an average price of C$100 per MWh and C$127 per MWh, respectively, both subject to an annual adjustment equal to a 3% fixed rate. The GLPL and MPT contracts with Brookfield each had an initial term to December 1, 2029, and Brookfield Renewable will have an option to extend a fixed price commitment to GLPL from Brookfield
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through 2044 at a price of C$60 per MWh. There were no changes to the terms following the assignment of the third-party power purchase agreements from Brookfield to GLPL and MPT.
There were no amendments to or termination of the agreement that gives Brookfield Renewable the option to extend a fixed price commitment to GLPL from Brookfield from December 1, 2029 through 2044 at a price of C$60 per MWh.
Energy Revenue Agreement
In 2018, the energy revenue agreement between Brookfield and several entities owned by Brookfield Renewable was effectively amended.
Brookfield will support the price that Brookfield Renewable receives for energy generated by certain facilities in the United States at a price $75 per MWh. This price is to be increased annually on January 1 until 2021 by an amount equal to 40% of the increase in the CPI during the previous calendar year, but not exceeding an increase of 3% in any calendar year. The price will be reduced by $3 per MWh per year from 2021 to 2025 and then further reduced by $5.03 per MWh in 2026. The energy revenue agreement will terminate in 2046 and provides Brookfield the right to terminate the agreement in 2036.
Other Revenue Agreements
Pursuant to a power guarantee agreement, Brookfield purchased all energy from the two facilities of Hydro Pontiac Inc. at a price of C$68 per MWh, increased annually each calendar year beginning in 2010 by an amount equal to 40% of the increase in the CPI during the previous calendar year. This power guarantee agreement was scheduled to commence in 2019 for one facility and in 2020 for the other, upon the expiration of existing third-party power agreements. The agreement with Brookfield had an initial term to 2029 and automatically renewed for a successive 20-year period with certain termination provisions. On closing of the Energy Marketing Internalization, the power guarantee agreement with Hydro Pontiac Inc. was transferred to Brookfield Renewable.
Voting Agreements
Brookfield Renewable entered into voting agreements with Brookfield whereby Brookfield, as managing member of entities related to the Brookfield Americas Infrastructure Fund (the “BAIF Entities”) in which Brookfield Renewable holds investments in power generating operations with institutional partners, agreed to assign to Brookfield Renewable their voting rights to elect the Boards of Directors of the BAIF Entities. Brookfield Renewable’s economic interests in the BAIF Entities in the United States and Brazil are 22% and 25%, respectively.
Brookfield Renewable entered into voting agreements with certain Brookfield subsidiaries whereby these subsidiaries, as managing members of entities related to Brookfield Infrastructure Fund II (the “BIF II Entities”) 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 the BIF II Entities. Brookfield Renewable’s economic interests in the BIF II Entities are between 40% and 50.1%.
Except as set out below in respect to TerraForm Power and Isagen, Brookfield Renewable entered into voting agreements with certain Brookfield subsidiaries as managing members of entities related to Brookfield Infrastructure Fund III (the “BIF III Entities”) in which Brookfield Renewable holds investments in power generating operations with institutional partners, Brookfield agreed to provide to Brookfield Renewable the authority to direct the election of the Boards of Directors of the BIF III Entities. Brookfield Renewable’s economic interests in the BIF III Entities are between 24% and 31%.
Brookfield Renewable holds its interest in its Colombian operations as part of a consortium. The consortium in turn holds its interest in Isagen through an entity (“Hydro Holdings”) which is entitled to appoint a majority of the board of directors of Isagen. The general partner of Hydro Holdings is a controlled subsidiary of Brookfield Renewable. Brookfield Renewable is entitled to appoint a majority of Hydro Holdings’ board of directors, provided that Brookfield Corporation and its subsidiaries (including Brookfield Renewable) collectively are (i) the largest holder of Hydro Holdings’ limited partnership interests, and (ii) hold over 30% of Hydro Holdings’ limited partnership interests. Brookfield Renewable currently meets this ownership test and is entitled to appoint a majority of the board of directors.
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Simultaneously with the completion of the TerraForm Power acquisition, Brookfield Renewable entered into voting agreements with a controlled affiliate of Brookfield to transfer the power to vote their respective shares held of TerraForm Power to Brookfield Renewable. As a result, Brookfield Renewable controls and consolidates TerraForm Power.
Brookfield Renewable entered into voting agreements with certain Brookfield subsidiaries whereby these subsidiaries, as managing members of entities related to Brookfield Infrastructure Fund IV (the “BIF IV Entities”) 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 the BIF IV Entities. Brookfield Renewable’s economic interests in the BIF IV Entities is 25%.
Brookfield Renewable entered into voting agreements with certain Brookfield subsidiaries whereby these subsidiaries, as managing members of entities related to Brookfield Global Transition Fund (the “BGTF Entities”), agreed to provide to Brookfield Renewable the authority to direct the election of the Boards of Directors of the BGTF Entities, giving Brookfield Renewable control or significant influence over the entities that own certain renewable power and sustainable solution investments with institutional partners. Brookfield Renewable’s economic interests in the BGTF Entities is 20%.
During the third quarter of 2022, Brookfield Renewable entered into a new voting agreement with Brookfield to gain control of BGTF Finco LLC, the primary borrower under the Brookfield Global Transition Fund subscription facility. The voting agreements provide Brookfield Renewable with control and accordingly, Brookfield Renewable consolidates the accounts of this entity, resulting in an increase to total assets of $177 million, an increase in total liabilities of $199 million and a decrease in equity of $22 million. The transaction was accounted for as an asset acquisition.
Other Agreements
Sponsor Line Agreement
TerraForm Power entered into the Sponsor Line with Brookfield Corporation and one of its affiliates (the “Lenders”) on October 16, 2017. The Sponsor Line establishes a $500 million secured revolving credit facility and provides for the Lenders to commit to making LIBOR loans to Brookfield Renewable during a period not to exceed three years from the effective date of the Sponsor Line (subject to acceleration for certain specified events). TerraForm Power may only use the revolving Sponsor Line to fund all or a portion of certain funded acquisitions or growth capital expenditures. The Sponsor Line terminates, and all obligations thereunder become payable, no later than October 16, 2022. Borrowings under the Sponsor Line bear interest at a rate per annum equal to a LIBOR rate determined by reference to the costs of funds for U.S. dollar deposits for the interest period relevant to such borrowing adjusted for certain additional costs, in each case plus 3% per annum. In addition to paying interest on outstanding principal under the Sponsor Line, Brookfield Renewable is required to pay a standby fee of 0.5% per annum in respect of the unutilized commitments thereunder, payable quarterly in arrears.
TerraForm Power is permitted to voluntarily reduce the unutilized portion of the commitment amount and repay outstanding loans under the Sponsor Line at any time without premium or penalty, other than customary “breakage” costs. Under certain circumstances, TerraForm Power may be required to prepay amounts outstanding under the Sponsor Line.
The sponsor line was terminated upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020.
TERP Relationship Agreement
TerraForm Power entered into a relationship agreement, referred to as the TERP Relationship Agreement, dated October 16, 2017 with Brookfield Corporation, which governed certain aspects of the relationship between Brookfield Corporation and TerraForm Power. Pursuant to the TERP Relationship Agreement, Brookfield Corporation agreed that TerraForm Power will serve as the primary vehicle through which Brookfield Corporation and certain of its affiliates will own operating wind, utility-scale solar, and distributed generation assets in North America and Western Europe and that Brookfield Corporation will provide, subject to certain terms and conditions, TerraForm Power with a right of first offer on certain operating wind, utility-scale solar, and distributed generation assets that are located in such countries and developed by persons sponsored by or under the control of Brookfield
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Corporation. The rights of TerraForm Power under the TERP Relationship Agreement are subject to certain exceptions and consent rights set out therein.
TerraForm Power did not acquire any renewable energy facilities pursuant to the TERP Relationship Agreement from Brookfield Corporation during the years ended December 31, 2020 and 2019.
TERP Relationship Agreement was terminated upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020.
TERP Registration Rights Agreement
TerraForm Power entered into a registration rights agreement, referred to as the TERP Registration Rights Agreement, on October 16, 2017 with Orion Holdings. The TERP Registration Rights Agreement governed the rights and obligations of TerraForm Power, on the one hand, and Brookfield Corporation and its affiliates, on the other hand, with respect to the registration for resale of all or a part of the TERP common stock held by Brookfield Corporation or any of its affiliates that become party to the TERP Registration Rights Agreement.
On June 11, 2018, Orion Holdings, NA HoldCo and TerraForm Power entered into a Joinder Agreement pursuant to which NA HoldCo became a party to the TERP Registration Rights Agreement. On June 29, 2018, a second Joinder Agreement was entered into among Orion Holdings, NA HoldCo, BBHC Orion and TerraForm Power pursuant to which BBHC Orion became a party to the TERP Registration Rights Agreement.
The TERP Registration Rights Agreement was terminated upon the completion of the TerraForm Power acquisition by Brookfield Renewable on July 31, 2020.
New Terra LLC Agreement
TerraForm Power and BRE Delaware Inc. entered into an amended and restated limited liability company agreement of TerraForm Power, LLC, referred to as the New Terra LLC Agreement, dated October 16, 2017. The New Terra LLC Agreement, among other things, reset the incentive distribution right, or IDR, thresholds of TerraForm Power, LLC to establish a first distribution threshold of $0.93 per share of TERP common stock and a second distribution threshold of $1.05 per share of TERP common stock. As a result of the New Terra LLC Agreement, amounts distributed from TerraForm Power, LLC were to be distributed on a quarterly basis as follows:
•	first, to TerraForm Power in an amount equal to TerraForm Power’s outlays and expenses for such quarter;
•	second, to holders of TerraForm Power, LLC Class A units, referred to as Class A units, until an amount has been distributed to such holders of Class A units that would result, after taking account of all taxes payable by TerraForm Power in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of TERP common stock of $0.93 per share (subject to further adjustment for distributions, combinations or subdivisions of shares of TERP common stock) if such amount were distributed to all holders of shares of TERP common stock;
•	third, 15% to the holders of the IDRs pro rata and 85% to the holders of Class A units until a further amount has been distributed to holders of Class A units in such quarter that would result, after taking account of all taxes payable by TerraForm Power in respect of the taxable income attributable to such distribution, in a distribution to holders of shares of TERP common stock of an additional $0.12 per share (subject to further adjustment for distributions, combinations or subdivisions of shares of TERP common stock) if such amount were distributed to all holders of shares of TERP common stock; and
•	thereafter, 75% to holders of Class A units pro rata and 25% to holders of the IDRs pro rata.
TerraForm Power made no IDR payments during the years ended December 31, 2022, 2021 and 2020.
The New Terra LLC Agreement was amended upon the completion of the TERP acquisition by Brookfield Renewable on July 30, 2020 to remove TerraForm Power, LLC’s obligations to make IDR payments.
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Credit facilities and funds on deposit
Brookfield Corporation has provided a $400 million committed unsecured revolving credit facility maturing in December 2023 and the draws bear interest at the London Interbank Offered Rate plus a margin. As at December 31, 2022, there were no draws on the committed unsecured revolving credit facility provided by Brookfield Corporation. Brookfield Corporation may from time to time place funds on deposit with Brookfield Renewable which are repayable on demand including any interest accrued. There were nil funds placed on deposit with Brookfield Renewable as at December 31, 2022 (2021: nil). The interest expense on the deposit and draws from the credit facility for the year ended December 31, 2022 totaled nil (2021: $2 million).
Brookfield Renewable participates with institutional partners in Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV, Brookfield Infrastructure Debt Fund, and Brookfield Global Transition Fund (“Private Funds”), each of which is a Brookfield sponsored fund, and in connection therewith, Brookfield Renewable, together with its institutional partners, has access to financing using the Private Funds’ credit facilities.
Other Agreements
In 2011, on formation of Brookfield Renewable, Brookfield transferred certain development projects to Brookfield Renewable for no upfront consideration but is entitled to receive variable consideration on commercial operation or sale of these projects.
During the fourth quarter of 2022, Brookfield Renewable, together with institutional partners, formed a strategic partnership with Cameco Corporation (“Cameco”) to acquire 100% of Westinghouse Electric Corporation (“Westinghouse”) from Brookfield Business Partners (“BBU”) and its institutional partners for a total equity cost of $4.5 billion, subject to closing adjustments. The transaction was done at arm’s length. Refer to Note 29 - Commitments, Contingencies and Guarantees for more details.
During the fourth quarter of 2022, Brookfield Renewable sold a portfolio of investments, which included partial interests in consolidated subsidiaries, with an approximate fair value of $388 million to an affiliate of Brookfield in exchange for securities of equal value. The portfolio of investments represented seed assets in a new product offering that Brookfield will be marketing and selling to third party investors which at that time will provide Brookfield Renewable the opportunity to, subject to certain conditions, monetize the securities to generate liquidity. The securities are recorded as financial instrument assets on the consolidated statements of financial position. The reduction in partial interests in consolidated subsidiaries is reflected as an increase in non-controlling interests in operating subsidiaries on the consolidated statements of financial position.
The following table reflects the related party agreements and transactions in the consolidated statements of income (loss), for the years ended December 31:
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	2022	2021	2020
(MILLIONS)
Revenues
Power purchase and revenue agreements				........................................................... $	21 $	103 $	286

Direct operating costs
Other services					.....................................................................................................	(1)	(8)	(4)

Insurance services(1)						...........................................................................................	—	(26)	(24)

							$	(1) $	(34) $	(28)
Interest expense
Borrowings					......................................................................................................... $	— $	(2) $	(2)

Contract balance accretion								.................................................................................	(20)	(21)	(13)

							$	(20) $	(23) $	(15)
Other related party services						................................................................................... $	(5) $	(4) $	—

Management service costs						..................................................................................... $	(243) $	(288) $	(235)

Prior to November 2021, insurance services were paid to external insurance service providers through subsidiaries of Brookfield Corporation. The fees paid to the subsidiaries of Brookfield Corporation in 2022 were nil (2021 was nil and 2020: was nil). As of November 2021, Brookfield, through a regulated subsidiary, began providing insurance coverage through third-party commercial insurers for the benefits of certain entities in North America. The premiums and claims paid are not included in the table above.The following table reflects the impact of the related party agreements and transactions on the consolidated statements of financial position as at December 31:
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	Related party	2022	2021
(MILLIONS)
Current assets
Trade receivables and other current assets
Contract asset	Brookfield			................................................ $	54 $	57

Due from related parties
Amounts due from	Brookfield			................................................	105	21

	Equity-accounted investments and other				.	18	14

						123	35
Non-current assetsOther long-term assets
Contract asset	Brookfield			................................................	341	388

Amounts due from	Equity-accounted investments and other				.	128	142

Current liabilitiesFinancial instrument liabilities
	Brookfield Reinsurance					...........................	3	—

Due to related parties
Amounts due to	Brookfield			................................................	166	119

	Equity-accounted investments and other				.	62	13

	Brookfield Reinsurance					...........................	321	—

Non-recourse borrowings	Brookfield			................................................	88	—

Accrued distributions payable on LP units,
							BEPC exchangeable shares, Redeemable/
							Exchangeable partnership units and GP
							interest	Brookfield	................................................	38	32

						675	164
Non-current liabilitiesFinancial instrument liabilities
	Brookfield Reinsurance					...........................	3	—

Corporate borrowings	Brookfield Reinsurance					...........................	7	—

Non-recourse borrowings	Brookfield Reinsurance and associates				...	93	51

	Brookfield					1,750	30
						1,843	81
Other long-term liabilities
	Equity-accounted investments,
	Brookfield Reinsurance and associates
Amounts due to	and other			...............................................	1	34

Contract liability	Brookfield			................................................	662	635

					$	663 $	669
EquityPreferred limited partners equity
	Brookfield Reinsurance and associates				... $	15 $	—

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Current assets
Amounts due from Brookfield are non-interest bearing, unsecured and due on demand.
Current liabilities
Amounts due to Brookfield are unsecured, payable on demand and relate to recurring transactions.
31. SUPPLEMENTAL INFORMATION
The net change in working capital balances for the year ended December 31 shown in the consolidated statements of cash flows is comprised of the following:
(MILLIONS)	2022	2021	2020
Trade receivables and other current assets				.............................................................	$	(296) $	(515) $	(2)

Accounts payable and accrued liabilities				................................................................		109	(282)	(91)

Other assets and liabilities						......................................................................................		(7)	81	(62)

					$	(194) $	(716) $	(155)
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32. SUBSIDIARY PUBLIC ISSUERS
The following tables provide consolidated summary financial information for Brookfield Renewable, BRP Equity, and Canadian Finco:
				Subsidiary				Brookfield
	Brookfield	BRP	Canadian	Credit	Other		Consolidating	Renewable
(MILLIONS)	Renewable(1)	Equity	Finco	Supporters(2)		Subsidiaries(1)(3)	adjustments(4)	consolidated
As at December 31, 2022:
Current assets									............................... $	61 $ 391 $ 2,336 $	834 $	4,172 $						(3,611) $	4,183

Long-term assets									..........................	4,860	241										3	33,830	59,860	(38,866)	59,928

Current liabilities									.........................	60	7										30	7,877	4,455						(7,486)	4,943

Long-term liabilities													....................	—	—	2,299			16	30,567						—	32,882

Participating non-controlling
interests – in operating
subsidiaries									...............................	—	—										—	—	14,755						—	14,755

Participating non-controlling
interests – in a holding
subsidiary – Redeemable/
Exchangeable units held by
Brookfield									.................................	—	—										—	2,892	—						—	2,892

BEPC exchangeable shares													............	—	—										—	—	2,561					—	2,561

Preferred equity									...........................	—	571										—	—	—						—		571

Perpetual subordinated notes															.........	—	—										—	592	—					—		592

Preferred limited partners’
equity																.............................................	761	—										—	765	—					(766)		760

As at December 31, 2021:
Current assets									................................. $	50 $ 419 $ 2,182 $	1,155 $	2,647 $						(3,564) $	2,889

Long-term assets									............................	4,979	258										3	32,973	52,893	(38,128)	52,978

Current liabilities									...........................	46	7										28	7,720	2,943						(7,522)	3,222

Long-term liabilities									......................	—	—	2,149		—	26,500							—	28,649

Participating non-controlling
interests – in operating
subsidiaries									................................	—	—										—	—	12,303						—	12,303

Participating non-controlling
interests – in a holding
subsidiary –
Redeemable\Exchangeable
units held by Brookfield													............	—	—										—	2,894	—					—	2,894

BEPC exchangeable shares													...............	—	—										—	—	2,562					—	2,562

Preferred equity									.............................	—	613										—	—	—						—		613

Perpetual subordinated notes															.........	—	—										—	592	—					—		592

Preferred limited partners’ equity	..									881	—										—	891	—						(891)		881

(1)	Includes investments in subsidiaries under the equity method.
(2)	Includes BRELP, BRP Bermuda Holdings I Limited, Brookfield BRP Holdings (Canada) Inc., Brookfield BRP Europe Holdings Limited, Brookfield Renewable Investments and BEP Subco Inc., collectively the “Subsidiary Credit Supporters”.
(3)	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Canadian Finco and the Subsidiary Credit Supporters.
(4)	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.
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				Subsidiary				Brookfield
			Cana
	Brookfield	BRP	dian	Credit	Other		Consolidating	Renewable
(MILLIONS)	Renewable(1)	Equity	Finco	Supporters		Subsidiaries(1)(2)	adjustments(3)	consolidated
For the year ended December 31, 2022
Revenues									............................................... $	— $ — $ — $	— $	4,711 $						— $	4,711

Net income (loss)												..................................	(122)	—	2	(1,322)	772			808	138

For the year ended December 31, 2021
Revenues									................................................ $	— $ — $ — $	— $	4,096 $						— $	4,096

Net income (loss)												...................................	(136)	— —		(1,185)	561			694	(66)

For the year ended December 31, 2020
Revenues									................................................ $	— $ — $ — $	— $	3,810 $						— $	3,810

Net income (loss)												...................................	(130)	— (10)		(772)	1,173			(306)	(45)

(1)	Includes									investments in subsidiaries under the equity method.
(2)	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Canadian Finco, and the Subsidiary Credit Supporters.
(3)	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.
See Note 15 – Borrowings for additional details regarding the medium-term notes issued by Canadian Finco. See Note 16 – Non-controlling interests for additional details regarding Class A Preference Shares issued by BRP Equity.
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