管理層發言
Thank you for joining us for the Brookfield Renewable Second Quarter 2025 Results Conference Call and Webcast. As a reminder, today's program is being recorded. I would now like to introduce your host, Connor Teskey, CEO. Please proceed, 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 global and diversified businesses like ours remain 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, we 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.
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 multiyear 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 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 indicates 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.
分析師問答
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 the U.S.? And are you able to further 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 where 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 of 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 with various interconnection and COD dates. If you were to draw a trend line across our North American region, it consistently shows growth. 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 base load versus intermittent renewable energy?
The large technology companies are the biggest consumers of power and are significantly contributing to the increasing demand due to the growth of AI and data centers globally, especially in the U.S. They are actively seeking to secure as much generation as they can. While they are often discussed as a specific sector, the demand is widespread, primarily driven by tech companies, but we observe this trend across all areas of the economy. Additionally, there is a growing sophistication and demand for services beyond traditional pay-as-produced generation. We strongly support this trend, as it positions Brookfield very well. There is a rising demand for 24/7 power, and we're witnessing changes in contracts; previously, these were based solely on pay-as-produced generation, but now offtakers are seeking power along with renewable energy certificates. We are increasingly seeing contracts incorporate capacity components, which provide additional revenue opportunities. All of this aligns with our strengths, thanks to our diverse technologies and particularly our extensive flexible operating base that can integrate traditional wind and solar to meet the market's evolving needs. This trend is undoubtedly increasing, and we view it as a vital way for Brookfield Renewable to distinguish itself.
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 continue to monitor the ongoing review and feel very comfortable with our position. More importantly, if anything unexpected arises from that review, we are highly confident that we are as well positioned as anyone to leverage our global supply chain and our various relationships as needed. We are confident that we will be able to secure tax credit eligibility for essentially our entire U.S. pipeline through the end of the decade. I’m not sure if this was part of your question, but regarding our focus extending to 2029, it's important to recognize that due to the supply imbalance we are seeing in the market, we can adjust for changes in construction costs, whether increases or decreases related to capital expenditures, the inclusion or removal of tax credits, or funding costs. We have successfully passed these changes on to the end customer by adjusting the price of the Power Purchase Agreement (PPA). This flexibility allows us to manage both cost decreases and increases while maintaining our development margin. The visibility we have extending to 2029 provides both the market and us as a developer ample time to account for any necessary price increases for projects further out. This gives us confidence that we can preserve our development margins in our U.S. business 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 mentioned it would require some mergers and acquisitions. I'm wondering if you can discuss the hydro mergers and acquisitions environment in the U.S. right now and how you expect to approach that opportunity 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. It's Wyatt here. I would add that with the additional capacity, it could potentially be fulfilled with our existing fleet. We do have available capacity that can be contracted. The key factor is whether it is located in the right region for Google’s needs. This does not necessarily mean we need to pursue mergers and acquisitions to meet this demand. We have the flexibility to choose, and it really depends on our ability to align with Google’s requirements and collaborate with them in the coming years. We have the option to use our existing fleet or consider M&A.
Our next question comes from the line of Mark Jarvi from CIBC.
Just coming back to the conversation about PJM. The pricing signals are very encouraging, but it also highlights the challenges in getting assets through the interconnection. I'm curious how you are adapting to the challenges in the U.S. market and your discussions with large customers. Are you starting to prioritize regions where transmission, land procurement, and the ability to build are easier? For instance, are you shifting focus to areas like Texas where some of the large data center complexes are trying to advance?
Mark, thanks for the questions. In response, I want to emphasize that we are not starting from scratch but rather continue to consider the pace of connection in our development efforts and our engagements with customers. Take the PJM market as an example; although it's a bit outdated now, we acquired Urban Grid years ago specifically due to its advantageous interconnection queue positions in a congested market. This isn’t simply a reactive approach to a problem; it’s an acknowledgment of an ongoing dynamic that we recognize and will persist. We’re incorporating this into our growth strategy through mergers and acquisitions as well as our development efforts to meet the increasing demands of our customers. This is a continuous practice we've maintained for years and will keep doing. It's important to note that starting a project in some markets now doesn’t necessarily mean it will be operational for a customer in the near future.
Something like the Urban Grid platform, is that something you can continue to lean on? Or have you sort of exhausted largely taking 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?
Even less specific to Urban Grid, I think buying businesses and development platforms that take into account and have really good knowledge of how interconnection grids work, how queue positions will be turned into pulling assets out of the ground. Those capabilities are recurring. We felt in that example that we were buying an underappreciated asset because of their existing connections, but that and our other platforms continue to add pipeline in the highest value markets across the United States. And that's what gives us that pipeline of being able to pull multiple thousand megawatts out of the ground each year. It's really based on decisions and positions that we took 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?
Batteries and battery capital expenditure costs have decreased by over 60% in the past two years, while the increase in renewable energy usage has created a demand for more grid-stabilizing services. We are experiencing a situation where costs are falling at the same time that revenues are rising in nearly every market globally. Consequently, the business and economic rationale for batteries is currently quite strong in most markets we are examining. Over the past year, we have adopted a battery strategy across all our development platforms at Brookfield. We are also exploring options to enhance this strategy through battery acquisitions or platforms that focus on energy storage, which was a significant factor in our acquisition of Neoen, the largest utility-scale battery developer globally. It is important to note that although Neoen is a French company based in France and was privatized from the French Stock Exchange, it operates on a global scale. We are definitely leveraging this to promote organic growth in regions outside of Europe.
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 #1 for us, but we continue to see opportunities in other markets, in particular areas where there's very high radiation and very high renewables 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 points to clarify. Regarding our safe harbor strategy for our U.S. platform, we expect to safe harbor almost all of it. While I can't provide a specific date, the majority is already completed. Some components of our pipeline may not require safe harboring, such as certain battery projects which benefit from more favorable treatment under the latest rules. Concerning the execution of our safe harboring strategy, we aim to remain committed to our approach of investing capital only when we can secure both revenues and costs simultaneously. This strategy has proven effective across various cycles, and we intend to adhere to it. When executing the safe harbor strategy, we prioritize using the offsite on-site physical work test approach and, subsequently, pulling forward capital expenditures. This method allows us to require only a modest amount of capital expenditure compared to what would typically be needed. In the context of our overall organic development spending, the cost of safe harboring and the additional expenses associated with advancing CapEx for these projects are not particularly significant.
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.
In terms of the Westinghouse business, the developments in the U.S. are particularly noteworthy. When considering our Westinghouse business, we view our investment as comprising two components. First, it includes existing products, services, and technical capabilities for the global nuclear operating fleet, which generates stable, long-term cash flows that are linked to inflation as nuclear reactors operate, are refueled, refurbished, and have their lifetimes extended. Currently, this segment is trending positively due to the existing nuclear fleet worldwide. The new dynamic that has accelerated in recent years is the expansion of new nuclear builds. Westinghouse plays a crucial leadership role in this area, including the construction of large reactors, small modular reactors (SMRs), and even micro reactors. Governments and corporations are increasingly turning to large-scale nuclear energy to fulfill their electricity demands and baseload requirements, with significant activity observed especially in Europe and the United States. This quarter’s results indicate that while Westinghouse's core services business remains stable and is growing, the expansion into new nuclear offerings presents substantial upside potential for our financial outcomes. Particularly, growth in new nuclear initiatives in Europe contributed to our impressive performance this quarter. As for key milestones to watch, one major aspect is growth in the United States, where the government has expressed clear intentions to begin constructing ten new reactors by the decade's end. With Westinghouse positioned as a leader in U.S. nuclear technology, we anticipate significant demand from both government and corporate sectors, marking a notable shift in the industry.
I want to emphasize the previous point regarding the U.S. As Connor noted, there is significant global demand. Westinghouse has made strong advancements in Europe, particularly with projects in Poland and forward momentum in Bulgaria. Our technology is also being utilized in the Czech Republic, indicating positive global progress. However, as Connor highlighted, the U.S. is where we observe a significant focus from the current administration. Recently, an executive order was issued aiming to initiate construction on 10-gigawatt reactors by the end of the decade. This positions Westinghouse as a leading provider of the fundamental technology, allowing us to benefit considerably from this initiative. At the recent energy innovation summit in Pennsylvania, attended by President Trump and the Pennsylvania Senator, the discussion around these large-scale reactors aligned with the administration's vision of leadership in AI. Consequently, our business, along with shareholders Brookfield and Cameco, is collaborating closely with various stakeholders, including government entities, utilities, and primarily the hyperscalers. We are actively working to advance this initiative in the near future, which will give insight into the potential benefits for Westinghouse and the overall advantage for Brookfield.
And our next question comes from the line of Jessica Hoyle from Scotiabank.
To start, you mentioned this briefly, but given the recent increases in capital expenditures from tech companies, how have discussions around new facilities or contractual frameworks evolved in the past few months?
What stands out to us is that the demand and numbers continue to rise, which we might sound repetitive saying. However, there are a couple of key points to emphasize. First, there's a growing interest in new technologies beyond only wind and solar. Our hydro framework exemplifies this trend, and discussions about nuclear energy are also picking up speed. Additionally, it's clear that major tech companies are placing greater importance on establishing broader relationships. The procurement of power has become a crucial obstacle to the growth of their cloud and AI operations. They increasingly prefer to mitigate that growth risk by collaborating with the largest and most capable partners. Thus, when we mention our hydro framework with Google, it’s vital to see it as just one part of a more extensive and integrated relationship that includes wind and solar. We also have retail power agreements with several tech companies, and these partnerships are expanding and becoming more interconnected. This is likely the most significant shift we have observed in recent months. And with that, I will pass it back to our operator for questions. 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.