Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 336

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 5
Chunk 336
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emable/Exchangeable partnership units, BEPC exchangeable shares and class A.2 exchangeable shares and GP interest.

PART 7 - BUSINESS RISKS AND RISK MANAGEMENT

RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

Management’s objectives are to protect Brookfield Renewable against material economic exposures and variability of results from various financial risks that include electricity price risk, foreign currency risk, interest rate risk, credit risk, and liquidity risk. These risks are further discussed in Note6 - Risk management and financial instruments in the audited annual consolidated financial statements.

The following table outlines Brookfield Renewable’s financial risks and how they are managed:

  Financial Risk         Description of Risk                                                                                                                                                                                       Management of Risk                                                                                                                                                                                    
  Electricity price      We have exposure to movements in the market price of electricity.                                                                                                                                         ' - Enter into long-term contracts that specify the price at which electricity is sold                                                                                                                
                                                                                                                                                                                                                                   - Maintain a portfolio of short, medium, and long-term financial contracts to mitigate our exposure to fluctuations in electricity prices                                                             
                                                                                                                                                                                                                                   - Ensure limits and controls are in place for trading activities                                                                                                                                      
                                                                                                                                                                                                                                   - As of December 31, 2024, we had, on a proportionate basis, approximately 88% of 2025 generation (2023: 88% of 2024 generation) contracted under power purchase agreements and financial contrac...  
  Foreign currency       We are exposed to foreign currency risk – including Canadian dollar, Brazilian real, Euro, British pound sterling, Colombian peso, Indian rupee, Chinese yuan and Australian dollar – related to ...      ' - Enter into foreign currency contracts designed to minimize the exposure to foreign currency fluctuations                                                                                          
                                                                                                                                                                                                                                   - 39% of cash flow is generated in the United States while Canadian Dollar and Euro exposure, representing 36% of our portfolio, is proactively managed through foreign currency contracts            
                                                                                                                                                                                                                                   - Limited foreign currency contracts to hedge our exposure to currencies in South America and Asia-Pacific – representing 25% of our portfolio – due to the high costs associated with hedging ce...  
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  Financial Risk      Description of Risk                                                                                                                                                                                       Management of Risk                                                                                                                                                                                    
  Interest rate       We are exposed to interest rate risk on the interest rates of our variable