Company: BEP
Filing Date: 2025-02-28
Form Type: 20-F
Source: 0001533232-25-000006
Chunk: 558

Company: Brookfield Renewable Partners L.P.
Filing Date: 2025-02-28
Form: 20-F
Item: Item 19
Chunk 558
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 December 31, 2024      December 31, 2023  
 ──────────────────────────────────────────────────────────────────────────────────────────────────────────────────────
  Carrying amount ((liability)/asset)                                       ( 826)                 64                 
  Notional amount – GWh                                                                                               
  Weighted average hedged rate for the year ($/MWh)                         44                     50                 
  Maturity dates                                                            2025-2051              2024-2044          
  Hedge ratio                                                               1:1                    1:1                
  Change in discounted spot value of outstanding hedging instruments        ( 284)                 152                
  Change in value of hedged item used to determine hedge effectiveness      ( 308)                 ( 118)             

There is $ 10 nil 18

(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.

  F - 48  

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, 2024, agreements with a total notional exposure of $ 8,045 4,389 4,438 718 3.1 3.3

For the year ended December 31, 2024, net movements relating to cash flow hedges realized and reclassified from OCI to interest expense in the consolidated statements of income (loss) were $ 6 3 2

Based on market