Prepared remarks
Thank you for standing by, and welcome to the Brookfield Renewable Second Quarter 2025 Results Conference Call and Webcast. As a reminder, today's program is being recorded. And now I'd like to introduce your host for today's program, Connor Teskey, CEO. Please go ahead, sir.
Thank you, operator. Good morning, everyone, and thank you for joining us for our Second Quarter 2025 conference call. Before we begin, we would like to remind you that a copy of our news release, investor supplement, and letter to unitholders can be found on our website. We also want to remind you that we may make forward-looking statements on this call. These statements are subject to known and unknown risks, and our future results may differ materially. For more information, you're encouraged to review our regulatory filings available on SEDAR, EDGAR, and on our website. On today's call, we will provide a review of our second quarter performance. And then Wyatt Hartley, Co-President of Brookfield Renewable and Head of our North American business, will discuss our recently announced Hydro Framework Agreement with Google and how our strategic operating portfolio and deep capabilities across renewable technologies have positioned us as the partner of choice to the largest buyers of power globally. Lastly, Patrick will conclude our remarks by discussing our operating results and the strong financing environment that we are seeing for our business and our assets today. Following our comments, we look forward to taking your questions. We had a successful quarter, delivering strong financial results and executing on our business plans and growth initiatives. Our robust operating results were driven by our large hydro fleet, which is increasingly strategic in the current environment and the benefits of our development activities where over the past 12 months, we have commissioned 7.7 gigawatts of new renewable energy capacity globally. One highlight in the quarter was the strong results from our Nuclear Services business Westinghouse, as the momentum for nuclear power continues to build with Westinghouse well placed to benefit from continued growth in the sector given its global leadership position. Looking at the broader market, we recently received additional clarity on policy changes in the United States with the signing of the One Big Beautiful Bill. And while we have been preparing our business for changes in tax credit eligibility for U.S. renewables projects for some time, we are now in a position to execute with a greater level of confidence. With that, we began deploying a safe harboring strategy that will secure credit eligibility for nearly all of our projects in the United States through to the end of 2029. While doing so, we are staying true to our approach to development, focusing on ensuring we have a strong line of sight on both our costs and revenues for each project. With a particular focus on minimizing the capital at risk while protecting our ability to deliver our target returns. Most importantly, the outlook for a global diversified business like ours remains exceptionally strong, driven by the most robust energy demand growth we have seen in decades. We continue to see a significant supply-demand imbalance for energy throughout the regions in which we operate. And it is becoming increasingly clear that solving this imbalance will require substantial expansion of many forms of energy generation, but with low-cost, quick-to-market renewables technology is well positioned to provide much of this needed build-out, in addition to other critical technologies that will support grid reliability. Our business is well positioned to help meet this exponential demand and support grid reliability with our over 230-gigawatt pipeline of projects which includes significant battery storage solutions, our global fleet of operating hydro facilities and through Westinghouse, our leading nuclear service business. Turning back to our performance during the quarter. We delivered strong financial results and executed on our commercial initiatives and growth plans, all while maintaining the strength of our balance sheet. We delivered FFO per unit that was up 10% year-over-year and continue to expect to deliver on our 10%-plus FFO per unit growth target for the year. We were successful in advancing our commercial initiatives, securing contracts to deliver an incremental 4,300 gigawatt-hours per year of generation in addition to signing the Hydro Framework Agreement. We progressed our development activities and commissioned approximately 2.1 gigawatts of new renewable energy capacity in the quarter and anticipate bringing on approximately 8 gigawatts in 2025, which will be a record for our business. We have also continued to execute on our asset recycling initiatives. And since the start of the second quarter, we sold assets for expected proceeds of approximately $1.5 billion or $400 million net to Brookfield Renewable, all at strong returns. Based on our advanced pipeline, we expect total asset sales proceeds in 2025 to exceed last year with returns at or above our targets. Illustrative of the increasing and recurring nature of asset monetizations as a highly accretive way to fund our future growth. The outlook for our business remains robust, driven by exceptionally strong demand for power that will necessitate the development of all forms of energy. With our globally diversified portfolio across hydro, wind, solar, nuclear, and battery storage, we see strong potential to deepen relationships with the world's largest buyers of power, and this gives us confidence that for our business, the best is yet to come. With that, we will now turn it over to Wyatt to speak to our recently announced Hydro Framework Agreement with Google and how our strategic operating portfolio and deep capabilities across renewables technologies have positioned us as the partner of choice to the largest buyers of power globally.
Thank you, Connor, and good morning, everyone. This past quarter, we reinforced our position as the energy solutions partner of choice to the global technology players with the signing of a first-of-its-kind agreement with Google to deliver up to 3 gigawatts of hydroelectric capacity across the United States. This framework agreement follows on our landmark framework agreement with Microsoft that we signed last year to deliver over 10.5 gigawatts of renewable energy capacity and is a testament to our unique capabilities while also demonstrating our credibility with the largest buyers of power in the world. The agreement is also notable as it reflects a trend in how the hyperscalers are procuring power. Historically, they were focused on contracting new build wind and solar. However, in the current environment, we have seen them extend their procurement of power to include hydro and nuclear generation at scale as a complement to their continued strong demand for low-cost and quick-to-market wind and solar. We have already signed the first two contracts under the Google Framework Agreement for 670 megawatts of capacity from our Holtwood and safe harbor facilities in Pennsylvania, securing 20-year contracts that deliver strong all-in prices and provide a near-term path to up financing, which will generate significant proceeds to deploy into further accretive growth. We also have another 300 megawatts of hydro capacity we are presenting to Google this year that we expect to contract at similarly attractive terms that should provide additional up-financing opportunities. For the remaining capacity under the framework agreement, we will explore additional contracting opportunities within our existing hydro fleet, as well as pursue potential new hydro investments. Stepping back, as Connor spoke to in his remarks, there is an incredible growth in energy demand that will require any and all solutions to deliver the electricity needed in the market. At the same time, there is also an increasing requirement to match the needs of the grid with the right mix of technologies to maintain reliability. In light of this, we continue to expand our capabilities in low-cost wind and solar generation while also placing emphasis on critical technologies that enable and support broader development of these renewables namely hydro, nuclear, and batteries. By continuing to grow our capabilities in these technologies, we are further positioning ourselves for large-scale partnerships that deliver the needs of our customers while at the same time, earning strong risk-adjusted returns in line with our expectations. Furthering our strategy of growing in critical technologies to provide clean baseload power to support the grid, in July, we reached an agreement to invest up to $1 billion to acquire an approximately 15% incremental stake in our Colombian Hydro platform, Isagen. This accretive transaction enables us to increase our interest in an irreplaceable fleet of primarily hydro assets that generate 24/7 baseload power and deliver significant, stable, and contracted cash flows. The business generates almost 20% of Columbia's electricity, and we continue to identify opportunities to drive performance improvements by leveraging our commercial relationships, marketing expertise, and building out incremental renewable generation in the country. The investment is anticipated to be approximately 2% accretive to our FFO in 2026. In addition to our growing hydro fleet, we own Westinghouse, which services approximately 2/3 of the world's nuclear power fleet and whose technology is the basis for approximately half the operating nuclear reactors globally, providing us exposure to another critical technology required to meet the needs of today's grid. Beyond Westinghouse's core fuel and reactor services business, Westinghouse provides design and engineering for new build reactors without taking on certain nuclear-specific new build risks. The U.S. government recently announced executive orders to significantly grow nuclear capacity in the country, and Westinghouse, as the U.S. nuclear champion with the most advanced utility-scale reactor technology that is operating today, is well positioned to help deliver on these objectives. Lastly, in the first quarter, we closed our acquisition of Neoen, which significantly expanded our battery capabilities and made us one of the largest operators and developers of battery storage solutions globally. This enhanced the suite of energy solutions we can offer to our customers and is leading to more opportunities across our business, both in terms of M&A opportunities, but also within our existing fleet. Going forward, we will continue to be active investing in the critical technologies that are required to support growing energy demand and the reliability of the grid, in addition to low-cost wind and solar, and expect to expand our partnerships with the largest buyers of power on large-scale framework agreements, like the ones we executed with Google and Microsoft to date, as well as on a project-by-project basis. With that, I will pass it on to Patrick to discuss our operating results and financial position.
Thanks, Wyatt. And good morning to everyone on the call. Our business performed well this quarter, delivering funds from operations of $371 million or $0.56 per unit, an increase of 10% year-over-year driven by strong hydro generation and execution of our growth initiatives over the past year, which more than offset the impact of asset sales we completed in the last year. Our hydroelectric segment delivered strong growth with FFO up over 50% from the prior year on strong performance from our U.S. and Colombian fleets with hydrology that was above the long-term average. The outperformance reflects a rebound from a challenging prior year for hydrology and is in line with our expectation of a reversion to the mean over the long term. The strong performance for our hydros bodes well for our overall results in 2025 and going into 2026, given the typical multi-year cycle we see in the hydrology of our fleet. Our wind and solar segments performed well with FFO essentially flat compared to the prior year. As newly commissioned capacity and the closing of our investment in National Grid's renewables business in the U.S. during the quarter was offset by lower FFO due to asset dispositions and gains on the sale of development assets in the prior year. Our distributed energy, storage, and sustainable solutions segments delivered strong performance with FFO up almost 40% year-over-year, driven by strong results from Westinghouse, as the business continues to benefit from the growing global demand for nuclear energy. Turning to our financial position. We ended the quarter with $4.7 billion of available liquidity across the business, providing strong financial flexibility for the franchise. Our balance sheet continues to be top tier in the sector, and we remain committed to a prudent financing approach, enabling us to pursue growth opportunistically. In light of the exceptionally robust demand for our assets and businesses we are seeing today in the capital markets, we continue to proactively pull forward financings across our business, including a number of up-financing opportunities. This should provide additional liquidity earlier than expected to fund accretive growth across the franchise. Year-to-date, we have successfully completed $19 billion of financings across the business extending maturities and optimizing our capital structure with a couple of noteworthy financings in the quarter. In June, we were successful in issuing CAD 250 million of 30-year hybrid notes at the tightest corporate hybrid new issue spread ever in Canada in an offering that was several times oversubscribed. The issuance aligns with our strategy of conservatively accessing the market to optimize our capital structure as our cash flows increase. Also during the quarter, we successfully executed Brookfield Renewables' largest-ever project financing, raising EUR 6.3 billion for our offshore wind development project in Poland. Lastly, we further demonstrated the strong demand for our high-quality assets, raising a $435 million long-term fixed-rate private placement for a strategic U.S. hydro asset at our lowest spread in 5 years for this type of financing. This again was an offering that was multiple times oversubscribed. These financings are indicative of the strong support from lenders for our derisked infrastructure assets and indicate how our significant access to capital continues to be an enduring competitive advantage. In closing, we remain focused on delivering 12% to 15% long-term total returns for our investors while remaining disciplined allocators of capital and leveraging our strengths to access unique opportunities in the most attractive technologies and regions. On behalf of the Board and management, we thank all our unitholders and shareholders for their ongoing support. We are excited about Brookfield's Renewables future and look forward to updating you on our progress throughout the year, including at our upcoming Investor Day in Toronto on September 25. That concludes our formal remarks for today's call. Thank you for joining us this morning. And with that, I'll pass it back to our operator for questions.
Questions and answers
And our first question comes from the line of Nelson Ng from RBC Capital Markets.
Congrats on a strong quarter. So the first question is like, I think it's already well known that there is a big demand for power and the lack of supply. But in light of the results from the recent PJM auction and the high capacity payments, are you able to accelerate the pace of development in that area? Or are you making any changes in, in the U.S.? And are you able to further kind of leverage your footprint in that region?
And thanks for the question, Nelson. In terms of what we saw recently in the capacity auction in PJM, we would simply say it's indicative of that supply-demand imbalance that we're seeing in most of the regions we operate around the world, just with the capacity auction, the results get published, it creates a really formal portrayal of a dynamic we've been seeing on the ground in a number of places that we think is going to continue for years to come. In terms of how we leverage our existing position and look to pull things forward, two comments to be made there. Make no mistake, in this market where there is a supply-demand imbalance the shortage is not capital. The shortage is not demand. The shortage is having availability to build projects, and we are tackling this three ways. One, everything we can, we are pulling forward as quickly as possible. That has very much been true for a couple of years now, and we'll look to continue to be true for the foreseeable future. Secondly, we will continue to use our M&A capabilities and our access to capital to add more projects and more pipeline in the regions where we are seeing the greatest amount of demand. And then thirdly, I would highlight our framework agreements and partnerships with the largest buyers of power around the world because what those partnerships allow us to do is get a very intimate knowledge of where those buyers of power and their future needs are. And really, what it does is it gives us a hunting license, if you will, to either develop or acquire with greater confidence in regions where we essentially know there is a backstop level of demand. And therefore, we're already pulling everything forward as fast as possible, but we're looking to use the growth levers as our franchise to look to do more in those markets where we see that supply-demand imbalance persisting in the longer term.
So just to follow up on that. I noticed in your development pipeline that the amount of projects being commissioned in North America in 2025 is, I think, roughly 2.7 gigawatts that reduces a little bit to 2.4 in '26, and then it more than doubles to 5.4 gigawatts in 2027. Is that just purely timing? Or are there kind of other forces at work in terms of that profile?
That's purely timing. Our development pipeline consists of specific projects that have various interconnection and COD dates. If you were to draw a trend line across our North American region, it consistently trends upwards. However, the specifics from one year to the next depend on the individual projects and their timelines for coming online.
Okay. Got it. And then just one last question. Just based on your discussion with big tech companies and the big hyperscalers, like how do they balance the need for baseload versus intermittent renewable energy?
The large technology companies are the biggest buyers of power and are significantly driving incremental demand due to the growth of AI and the expansion of data centers globally, especially in the U.S. Consequently, they are eager to secure as much generation capacity as possible. While we often refer to them as one specific industry, the demand is widespread. While tech companies are the primary drivers, this trend is apparent across all sectors of the economy. Additionally, we are noticing a growing sophistication and demand for solutions beyond just pay-as-produced generation. We fully support this trend as it positions Brookfield favorably. There is an increasing demand for 24/7 power, and we are seeing contracts evolve from simple pay-as-produced arrangements to include power and renewable energy credits. More contracts now integrate capacity components that contribute to revenues from these assets. This aligns perfectly with our strengths, given our technological diversity and particularly our extensive flexible operating base that can integrate traditional wind and solar resources to meet these changing market demands. Therefore, this trend is on the rise, and we view it as a crucial element in how Brookfield Renewable will continue to stand out in the market.
And our next question comes from the line of Sean Steuart from TD Cowen.
First question, Connor, you touched on feeling pretty good about your U.S. pipelines tax credit eligibility through 2029. And I guess the question is, I suppose that's the read relative to the reconciliation bill. Do you have any thoughts on the Trump's executive order? And if any potential changes to FIAC criteria might change the parameters of tax credit eligibility for your pipeline?
We are closely monitoring the ongoing review and feel confident in our position. More importantly, should any unforeseen issues arise from that review, we believe we are well positioned to leverage our global supply chain and relationships to adapt as necessary. We are confident that we will be able to secure tax credit eligibility for nearly our entire U.S. pipeline through the end of the decade. While you mentioned focusing on 2029, it's important to recognize that due to the supply imbalances in the market, we can adjust construction costs, whether they increase or decrease, including CapEx, tax credits, or funding costs. We've successfully passed these changes to our end customers by adjusting the price of the PPA, maintaining our development margin regardless of cost fluctuations. Our outlook is positive given the visibility extending to 2029, which allows us ample time to incorporate any necessary price increases for projects that are more than five years away. This gives us the confidence that we can maintain our development margins in the U.S. for the foreseeable future.
That's useful. Second question for you, Connor, for Wyatt. To fulfill the full 3 gigawatts under the Google framework agreement, you touched on it would require some M&A. And I'm wondering if you can speak to the hydro M&A environment in the U.S. right now. And how you expect to navigate that opportunity set going forward?
So we're actually seeing the hydro market after I would say, an extended period of inactivity becoming more and more liquid. And obviously, hydro are scarce assets. But it's also hydro operating capabilities are scarce as well. And we've been buyers, owners, operators of hydros for 4 decades. And really, I'll use the same word again. What our arrangement with Google does is it gives us a hunting license, if you will, to pursue opportunities in hydro when they become available when they fit the parameters of that framework, we can pursue those opportunities with confidence. And one thing we would highlight is there is the opportunity, but not the obligation to deliver those incremental megawatts. So we will continue to be disciplined. But I would say it's certainly another competitive advantage for us as we look to grow our strategy.
Yes. And Sean, it's Wyatt here. The only thing I would add is, with that additional capacity, it could be that it's all fulfilled with our existing fleet. We have that capacity available for contract. Really, it's just a matter of whether it's in the right region that Google would want it as an offtake. This doesn't mean that we need to pursue mergers and acquisitions to fulfill it. It's just that we have options. And it's primarily based on meeting Google’s needs and collaborating with them over the next several years to determine that, but we have the option of using the existing fleet or pursuing M&A.
Our next question comes from the line of Mark Jarvi from CIBC.
Just coming back to the conversation around PJM. The pricing signals are very encouraging, but it also highlights the challenges in getting assets through the interconnection. I'm curious about how you are adapting to some of the challenges in the U.S. market and your discussions with large customers. Are you beginning to prioritize other regions where transmission, land procurement, and the ability to build are more manageable? For instance, are you considering areas like Texas, where large-scale data center complexes are advancing?
Mark, thanks for the questions. I want to clarify that we are not starting a new approach; rather, we are continuing to consider the speed of connection in our development activities and our interactions with our customers. For example, regarding the PJM market, although it's somewhat outdated, we acquired the Urban Grid platform years ago specifically for its advantageous interconnection queue positions in a congested market. This isn't a reaction to a newly recognized problem but rather an acknowledgment of an ongoing dynamic that will persist. We will continue to integrate this understanding into our growth strategy, both through mergers and acquisitions and in our development efforts to meet the increasing demands of our customers. This has been our approach for years, and we will keep following it. It's important to note that in some markets, you cannot start a project and expect it to be operational for a customer in the near term.
Something like the Urban Grid platform, is that something you can continue to lean on? Or have you sort of exhausted, but largely taken advantage of their preferential interconnection queue and siding positions? Or is that a business that continues to create more upside on the competitive advantage in the PJM market for now?
I believe that acquiring businesses and development platforms with a strong understanding of interconnection grids and queue positions is crucial for extracting resources effectively. These capabilities are essential and we recognized that we were acquiring a valuable asset due to their existing connections. Our platforms continue to expand our pipeline in the most lucrative markets throughout the United States, which enables us to generate thousands of megawatts each year. This progress is rooted in the strategic decisions we made years ago.
Okay. And then maybe turning to Europe. It seems like a cost decline on batteries and solar create some tailwinds on the economic case for deployment there. We've heard some other developers ramp-up activity just with Neoen and other platforms you have in Europe, are you able to grow faster on the organic side? Or is M&A something you'd have to look to more in Europe to take advantage of potential economic tailwinds there?
Battery capital expenditure costs have decreased by more than 60% over the past two years, while the increase in renewable energy use has led to a greater demand for grid-stabilizing services. This creates a situation where costs are dropping even as revenues rise in nearly every global market. As a result, the economic justification for batteries is outstanding in most markets we examine. Consequently, we have adopted a battery strategy across all our development platforms at Brookfield over the past year. We are also exploring opportunities such as battery acquisitions or platforms focused on energy storage, which was an essential aspect of our acquisition of Neoen, the world's largest utility-scale battery developer. It is worth noting that although Neoen is a French company and we acquired it from the French Stock Exchange, it operates globally. We are leveraging this global presence to stimulate organic growth outside of Europe as well.
So if you say today where you think the best rate of change in terms of growth on batteries can really accelerate development activities or capital deployment activities, how would you rank to the markets that are really starting to lead your focus right now?
If I could frame it slightly differently, I think this will be helpful. Batteries are the fastest-growing technology within our platform today. In terms of areas where we are seeing batteries deployed at scale. Candidly, I think the U.S. would probably still be number one for us, but we continue to see opportunities in other markets, in particular areas where there's very high radiation and very high renewable penetration. So parts of the U.S., obviously fit that bill. Australia obviously fits that bill. Places in Europe, storage is increasingly becoming of interest in Southern Europe. The other place that I would highlight is we're actually seeing a growing number of opportunities in the Middle East as well.
And given that economic case, would batteries be at the top end of your target IRR range for now?
Yes, absolutely. It probably won't stay there forever. But right now, the returns on batteries are very attractive.
And our next question comes from the line of Mark Strouse from JPMorgan.
Just I wanted to ask a couple of points on your safe harbor business, Connor. Just given kind of the July 7 executive order and potential changes to safe harbor, we'll find out what treasury says here in the next couple of weeks, hopefully. I'm curious, you talked about your safe harboring nearly all of your U.S. projects through year-end '29. Are you able to say how much of that was safe harbored in 2024 and prior? Just our understanding is that the potential rule change is going to be for 2025 and beyond safe harbors, if there's going to be any change. So kind of breaking that down? And then secondarily, how are you thinking about that in 2025 kind of weighing spending money now to lock in your credits to the extent that you can maximize that? But on the other hand, not looking to overspend in the event that rule changes are draconian.
There are a few key points to clarify. Regarding our safe harbor strategy for our U.S. platform, we expect to have safe harbor almost all of it, with most already completed. I can't specify the exact date, but a large portion is done, and some elements of our pipeline that aren't finished may not require safe harbor, such as some of our battery projects that had more favorable treatment under the recent rules. Concerning the execution process of our safe harbor strategy, we aim to remain committed to our practice of investing only when we can secure both revenues and costs simultaneously. This approach has been effective for us across various cycles, and we intend to uphold it. When executing our safe harbor strategy, we first utilize the offsite on-site physical work test approach, followed by pulling forward capital expenditures. Consequently, this method necessitates only a modest amount of capital expenditure compared to what would typically be required. In the broader context of our overall organic development spending, the incremental costs associated with pulling forward CapEx to achieve safe harbor for these projects are not significantly substantial.
And our next question comes from the line of Jon Windham from UBS.
I would just be interested in hearing your thoughts on what the key milestones are over the next year for nuclear development, things we should keep an eye on for the Westinghouse business.
So in terms of the Westinghouse business and perhaps I'll start and then why the developments in the U.S. are certainly the most interesting, so perhaps hand to you. But the way to think about our Westinghouse business is when we made the investment, we really think of it as two components. One, it has an existing product services and technical capabilities to the existing nuclear operating fleet around the world and that provides incredibly long-term stable inflation-linked cash flows as nuclear reactors simply run, refuel, refurbish lifetime extensions, things like that. And all of that is, of course, trending in the right direction right now given the existing nuclear fleet around the world. What is the new dynamic that has accelerated in the last 3 to 4 years is new build nuclear. And the joy for Westinghouse is it plays an absolute leadership role in that activity as well. That's new build of large reactors, SMRs or even micro reactors as well. And what we're seeing around the world is governments and corporates increasingly looking to large-scale nuclear to meet their electricity and their baseload demand. And in particular, we're seeing that activity most dramatically, I would say, in Europe and the United States. And what you saw in our results this quarter is while the ongoing business, the core services business of Westinghouse is very, very stable and growing as we do more Westinghouse activities related to the growth of new nuclear, that will provide significant upside in our financial results as they execute on some of those types of activities. And it was certainly growth of new nuclear in Europe that drove the successful outperformance this quarter. In terms of key milestones, while I'll hand to you, but I do think that the one to look for is growth in the United States as the government has been very vocal about their intention to start the build of 10 new reactors before the end of the decade, with Westinghouse as the U.S. nuclear technology in the global champion, it certainly looks to be on the front foot of that. And we would expect that demand to come from both governments and from corporates which is probably the most notable inflection change we're seeing in the industry. Wyatt, anything you'd add to that?
I want to emphasize the previous point about the U.S. As Connor noted, we are experiencing significant demand globally. Westinghouse has made substantial progress in regions like Europe, particularly with projects advancing in Poland and strong momentum in Bulgaria. Our technology is also being utilized in the Czech Republic, showcasing our global achievements. In the U.S., as Connor highlighted, there is a notable focus from the current administration. Recently, an executive order was issued aimed at initiating construction of 10 gigawatt-scale reactors by the end of this decade. This positions Westinghouse, a credible provider of that essential technology, to benefit significantly. At the recent energy innovation summit in Pennsylvania, where President Trump and the state's senator were present, the emphasis on these large-scale reactors aligns with the administration’s goal of leading in AI. From this standpoint, both the business and our shareholders, including Brookfield and Cameco, are closely collaborating with various stakeholders, which include governments, utilities, and predominantly hyperscale companies. We are actively working towards bringing forward developments in the near term that should clarify what this means for Westinghouse and the overall advantage to Brookfield.
And our next question comes from the line of Jessica Hoyle from Scotiabank.
So just to start, you touched on this a little bit, but just given the CapEx increases that we're seeing from the tech companies, how have discussions regarding new facilities or contractual frameworks changed in recent months.
What stands out to us is that the numbers, demand, and magnitude continue to rise. There are a couple of key points to emphasize. First, there's a growing interest in new technologies beyond just wind and solar, as evidenced by our hydro framework. Additionally, discussions around nuclear energy are gaining momentum. Another significant aspect emerging from these conversations is the focus large tech companies are placing on establishing broader relationships. The procurement of power has become a critical barrier to growth for their cloud and AI operations, and they increasingly seek to mitigate risks by partnering with the largest and most capable counterparts. Therefore, when we mention our hydro framework with Google, it's essential to understand that it represents just one part of a much wider and integrated relationship that includes wind and solar. Moreover, we have retail power agreements with several tech companies, and these relationships are evolving to become larger and more interconnected. This is probably the most significant change we've observed in recent months. Thank you very much for joining our call and your interest in support of Brookfield Renewable. We look forward to updating you on our Q3 results in 3 months' time, but hopefully, we'll speak to you at our Investor Day at the end of September. Thank you, and have a great day.
Thank you, ladies and gentlemen for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.