Brookfield Renewable Partners L P : 2023 Annual Report (English)

Our Operations

We invest in renewable power and sustainable solutions assets directly, as well as with institutional partners, joint venture partners and through other arrangements. Across our business, we leverage our extensive operating experience to maintain and enhance the value of assets, grow cash flows on an annual basis and cultivate positive relations with local stakeholders. Our portfolio includes assets for which we have access to a priority growth pipeline that if funded would provide us the opportunity to own a near-majority share of the business.

Our global diversified portfolio of renewable power assets, which makes up over 97% of our business, has approximately 31,800 MW of operating capacity and annualized LTA generation of approximately 93,000 GWh and a development pipeline of approximately 155,400 MW.

The table below outlines our renewable power portfolio as at December 31, 2023:

	River				Capacity		LTA(1)		Storage
		Facilities				Capacity
	Systems			(MW)		(GWh)		(GWh)
Hydroelectric
North America
United States(2)	30	139	2,921	11,963	2,559
Canada	19	33	1,361	5,178	1,261
	49		172		4,282		17,141		3,820
Colombia(3)	11	22	3,053	16,143	3,703
Brazil	27	43	940	4,811		-
	87		237		8,275		38,095		7,523
Wind(4)
North America	-	55	6,830	21,872		-
Europe	-	56	1,432	4,814		-
Brazil	-	34	809	3,539		-
Asia	-	27	1,874	5,534		-
	-		172		10,945		35,759		-
Utility-scalesolar(5)	-	211	7,073	15,211		-
Distributed energy & storage(6)(7)	2	6,408	5,129	2,989	5,220
Total renewable power	89		7,028		31,422		92,054		12,743

1. LTA is calculated based on our portfolio as at December 31, 2023, reflecting all facilities on a consolidated and an annualized basis from the beginning of the year, regardless of the acquisition, disposition or commercial operation date. See Item 5.A "Part 9 - Presentation to Stakeholders and Performance Measurement" for an explanation on our methodology in computing LTA and why we do not consider LTA for our pumped storage and certain of our other facilities.
2. Includes three battery storage facilities in North America (36 MW).
3. Includes two wind plants (32 MW) and five solar plants (100 MW) in Colombia.
4. Excludes 303 MW of wind capacity with an LTA of 719 GWh included in our sustainable solutions segment.
5. Excludes 118 MW of solar capacity with an LTA of 247 GWh included in our sustainable solutions segment.
6. Includes a battery storage facility in North America (10 MW).
7. Includes nine fuel cell facilities in North America (10 MW) and pumped storage in North America (633 MW) and Europe (2,088 MW).

We also have investments in our sustainable solution portfolio comprised of assets and businesses that enable the transition to net-zero through established but emerging technologies that require capital to scale, and in businesses where we believe we can leverage our access to capital and partnerships to accelerate growth. This portfolio includes our investment in Westinghouse (a leading global nuclear services business) as well as investments in an operating portfolio of 57 thousand metric tonnes per annum ("TMTPA") of carbon capture and storage ("CCS"), 3 million Metric Million British thermal units ("MMBtu") of agricultural renewable natural gas ("RNG") operating production capacity annually and over 1 million tons of recycled materials annually. Our sustainable solutions development pipeline includes opportunities to invest in additional projects with 14 million metric tonnes per annum ("MMTPA") of CCS, 1.6 million tons of recycled materials, roughly 3.5 million MMBtu of RNG production capacity annually, a solar manufacturing facility capable of producing 5,000 MW of panels annually and a 1 million tons per annum green ammonia facility powered entirely by renewable energy.

The following table presents the annualized long-term average generation of our renewable power portfolio as at December 31, 2023 on a consolidatedand quarterly basis:

GENERATION (GWh)(1)	Q1		Q2		Q3		Q4		Total
Hydroelectric
North America
United States	3,402	3,469	2,171	2,921	11,963
Canada	1,235		1,489		1,236		1,218		5,178
	4,637	4,958	3,407	4,139	17,141
Colombia(2)	3,697	4,048	3,944	4,454	16,143
Brazil	1,183		1,198		1,214		1,216		4,811
	9,517	10,204	8,565	9,809	38,095
Wind	9,191	9,162	8,088	9,319	35,760
Utility-scalesolar	3,239	4,348	4,502	3,123	15,212
Distributed energy & storage	646	888	856	599	2,989
Total	22,593	24,602	22,011	22,850	92,056

1. LTA is calculated based on our portfolio as at December 31, 2023, reflecting all facilities on an annualized basis from the beginning of the year, regardless of the acquisition, disposition or commercial operation date. See Item 5.A "Part 9 - Presentation to Stakeholders and Performance Measurement" for an explanation on our methodology in computing LTA and why we do not consider LTA for our pumped storage and certain of our other facilities.
2. Includes two wind plants (174 GWh) and five solar plants (248 GWh) in Colombia.

The following table presents the annualized long-term average generation of our renewable power portfolio as at December 31, 2023 on a proportionateand quarterly basis:

GENERATION (GWh)(1)	Q1		Q2		Q3		Q4		Total
Hydroelectric
North America
United States	2,224	2,359	1,466	1,950	7,999
Canada	1,010		1,210		980		959		4,159
	3,234	3,569	2,446	2,909	12,158
Colombia(2)	843	922	900	1,016	3,681
Brazil	1,008		1,020		1,034		1,035		4,097
	5,085	5,511	4,380	4,960	19,936
Wind	2,511	2,449	2,145	2,555	9,660
Utility-scalesolar	849	1,225	1,278	825	4,177
Distributed energy & storage	207		303		292		189		991
Total	8,652	9,488	8,095	8,529	34,764

1. LTA is calculated based on our portfolio as at December 31, 2023, reflecting all facilities on an annualized basis from the beginning of the year, regardless of the acquisition, disposition or commercial operation date. See Item 5.A "Part 9 - Presentation to Stakeholders and Performance Measurement" for an explanation on our methodology in computing LTA and why we do not consider LTA for our pumped storage and certain of our other facilities.
2. Includes two wind facilities (39 GWh) and five solar facilities (56 GWh) in Colombia.

Statement Regarding Forward-Looking Statements and Use of Non-IFRS Measures

This Annual Report contains forward-looking information within the meaning of U.S. and Canadian securities laws. We may make such statements in this Annual Report and in other filings with the U.S. Securities and Exchange Commission ("SEC") and with securities regulators in Canada - see "PART 10 - Cautionary Statements". We make use of non-IFRS measures in this Annual Report - see "Part 10 - Cautionary Statements". This Annual Report, our Form 20-F and additional information filed with the SEC and with Securities regulators in Canada are available on our website at https://bep.brookfield.com, on the SEC's website at www.sec.govor on SEDAR+'s website at www.sedarplus.ca.

Letter to Unitholders

2023 was another successful year for our business. Our disciplined approach to development and underwriting enabled us to continue generating strong returns and advance our business plans. This is evident in our results where we generated record funds from operations (FFO) and had a record year for both capital deployed and asset development. We maintained our best-in-class balance sheet and have significant flexibility moving forward to continue generating our target returns for shareholders.

We have established ourselves as a global clean energy supermajor, growing our capacity, capabilities and relationships. We now have almost 33,000 megawatts of renewable power operating capacity and an approximately 155,000-megawatt development pipeline. We grew our sustainable solutions business, which contributed approximately 5% to our FFO this year and have a visible pipeline to grow this segment which complements our renewable power business.

Our global scale and ability to provide large scale decarbonization solutions continues to positively impact our performance and differentiates our value proposition to our customers. We have evolved from a pure play renewable energy producer to a preeminent platform for renewable power and decarbonization solutions, with a wider set of growth opportunities and greater upside. However, we continue to, and always will, measure ourselves based on the value we generate for shareholders.

Given our strong financial performance and liquidity, and the positive outlook for the business, we are pleased to announce an over 5% increase to our distributions to $1.42 per unit on an annualized basis. This is the 13th consecutive year of at least 5% annual distribution growth, dating back to 2011, when Brookfield Renewable was publicly listed.

Highlights for the year include:

• Generated record FFO for the year of $1.1 billion, or $1.67 per unit, a 7% increase over last year, including solid fourth quarter results (per unit FFO increased 9%), as we benefitted from our diverse asset base, high-qualityinflation-linked and contracted cash flows, organic growth, and contributions from acquisitions.
• We advanced commercial priorities including securing contracts for new developments for almost 50 terawatt hours of generation, of which over 90% is with corporate customers.
• Accelerated our development activities, commissioning almost 5,000 megawatts of new clean energy capacity globally across wind, solar and battery storage, further diversifying and growing our cash flows. We expect commissioned capacity to contribute ~$60 million of incremental FFO annually on a run-rate basis.
• Our advanced stage development pipeline expanded to almost 24,000 megawatts which is expected to contribute approximately $300 million of FFO annually to Brookfield Renewable once commissioned.
• Deployed, or agreed to deploy a record $9 billion of capital ($2 billion net to Brookfield Renewable) into accretive investments across all of our key markets and closed a number of significant transactions in the fourth quarter including Westinghouse and Deriva Energy, immediately growing our cash flows.
• We continued to execute on our capital recycling initiatives generating $800 million of proceeds ($500 million net to Brookfield Renewable) representing nearly three times our invested capital, and providing funds for growth.

• Strengthened our best-in-class balance sheet executing approximately $15 billion of financings and finishing the year with available liquidity of over $4 billion, positioning the business to opportunistically deploy capital at strong risk adjusted returns.

We are a key enabler of the technology sector

With the significant growth in demand for data globally, the position of the technology mega-cap players as the largest and fastest growing businesses in the world continues to solidify. Since 2020, the cloud computing segments of these companies have grown by over 30% annually, representing their highest growth segments and generating their highest margins. Demand for cloud computing from digitalization and the adoption of AI enabled tools is incentivizing these companies to continue investing heavily in their capabilities and capacity, and two of the key ingredients needed to deliver these products are computing power and energy.

Over the last twelve months, the race to increase computing power has been illustrated by the increase in demand for certain inputs, such as computer chips. However, we believe most investors have yet to grasp the importance of a secure energy source in being able to deliver data center and computing power growth.

The largest cloud computing businesses run on clean power. These companies have 100% clean energy targets and have been growing their consumption by approximately 50% per annum over the past couple years, making them the largest buyers of green power globally. However, the highly power intensive nature of AI is acting as a multiplier on energy demand which is increasingly becoming a key bottleneck for growth of cloud computing. For example, the integration of AI uses up to ten times more power when integrated into a typical search process. The accelerating global trend of digitalization was already driving a step change in electricity needs, which is now being further multiplied by the implementation of AI. Renewable power, as the cheapest form of bulk electricity production, is the solution to this growing electricity demand.

Furthermore, as the scale and energy intensity of data centers increases, these facilities put pressure on global electricity grids. As a result, certain regulators are now requiring data center developers to provide a power solution in order to receive data center permitting approvals. This has put power on the critical path to growth for these technology companies. Along with electrification of large segments like industrials and transportation, this trend creates an environment where significant increases in demand for new electricity projects is a reality in developed markets for the first time in decades.

It is widely estimated that global electricity consumption from data centers will increase to approximately 10% of total electricity demand by 2030 (from approximately 2% today). Meaning to satisfy the needs of data centers alone - which doesn't factor in the penetration of EV or broader electrification - additional generation capacity will be required equivalent to the size of the current U.S. grid.

For the better part of a decade, we have been positioning our business to capitalize on these trends. By building a leading global development platform, combined with our early focus on corporate power marketing capabilities, this has allowed us to serve the needs of the largest and fastest growing buyers of green power. The global technology companies have been the largest corporate customers of our business for years, as we have differentiated ourselves with our scale and credibility, delivering new energy projects on time to enable their growth.

Our ability to deliver 24/7 clean power solutions at scale and across geographies positions our business to continue to be a major beneficiary of this robust demand growth going forward. Further, our ability to provide unique and tailored solutions of scale allows us to avoid competition and drive better returns in bilateral contracts. We have signed contracts to provide over 60 terawatt hours of power over the past two

years to the large technology businesses, an amount we expect to increase dramatically in the coming years.

As a result, going forward we expect the vast majority of our new renewable power development will be contracted to corporate customers where we are seeing strong demand for our differentiated offerings at attractive contract terms. Currently we have approximately 22 terawatt hours per year of generation contracted to corporate customers representing approximately 30% of our total contract volumes, over double the volumes contracted to these types of customers five years ago. Based on our existing development pipeline we expect contracted generation to corporate customers to double again by 2028 to approximately 44 terawatt hours per year, or 45% of contract volumes.

We continue to deliver attractive risk adjusted returns

We were well equipped to navigate the rising rate environment and supply chain challenges that faced the sector over the past twelve-months. Most notably, our disciplined approach to development, which focuses on removing risks upfront, meant that our development activities remained robust, delivering a record year, at a time when some market participants saw headwinds. Lastly, our prudent approach to financing our business, combined with the strength of our balance sheet, durability of our cash flows, and diverse sources of scale capital, ensured that we were able to continue to pursue growth at a time when some could not and there was less competition.

We capitalized on opportunities, deploying or agreeing to deploy $9 billion of capital ($2 billion net to Brookfield Renewable) highlighted by our acquisitions of Westinghouse, Deriva Energy, a further 50% interest in X-Elio which we did not own, Banks Renewables, and investments in CleanMax and Avaada in India.

While our proposed acquisition of Origin Energy did not receive the required level of shareholder support, which was a condition precedent to the closing of the transaction, we are confident in achieving our target deployment of $7-8 billion over the next five years and growing our cash flows and distributions in-line with our targets. Since the initial announcement of the Origin transaction, we have received in-bounds from businesses around the world who are seeking a partner with significant capital and deep operating expertise to accelerate their transition goals and enhance the value of their businesses.

In light of public market conditions and our strong conviction in the intrinsic value of our business and growth trajectory, we continued to allocate capital to repurchase shares. In 2023, we repurchased 2 million units under our normal course issuer bid. Looking forward, we will continue to allocate capital based on where we are seeing the best risk-adjusted returns and remain confident we will continue to create meaningful value for our investors.

We have been scaling our development capabilities and delivered almost 5,000 megawatts in the past year, a record for our business, while also pulling forward our pipeline. Our advanced stage development pipeline now stands at almost 24,000 megawatts with just under 7,000 megawatts on track to be delivered this year and over 7,000 megawatts in 2025. These projects are well advanced with almost 25% of our three year pipeline under construction, over 20% with revenues and inputs fully contracted and over 30% in the final stages of securing PPAs and construction contracts. These projects and our remaining advanced stage pipeline are expected to contribute $300 million of incremental run-rate FFO once commissioned.

Operating Results

Our operating business continued to perform well and we delivered record FFO despite cyclical resource volatility and generation below the long term average at some of our assets. We generated FFO of $1.1 billion, or $1.67 per unit, a 7% per unit increase year-over-year and a 9% increase per unit in the fourth quarter. While our results fell slightly below our target of 10%+ FFO per unit growth, largely due to later

than expected transaction closings during the fourth quarter, we remain well positioned to achieve our goal going into 2024 and beyond.

We are already seeing the benefits of our growth activities which were back-end weighted this year with commissioning of nearly half of our almost 5,000 megawatts of new capacity in the fourth quarter and the closing of major acquisitions contributing over $100 million in incremental annual FFO in the final three months of the year. We expect to also receive an uplift as our fleet reverts to its long-term average generation, particularly from our hydro assets where we often see cyclicality.

Additionally, we expect that our growth initiatives will continue to stabilize our results going forward, not only increasingly diversifying our cash flows, but also enhancing the contracted and less variable components of our business. As we continue to diversify our business, we are reducing the volatility of our results and helping to minimize our exposure to any underlying resource to deliver our earnings growth targets. While we constantly update and monitor our long-term average resource figures for financings and management of our operations, the impact of these metrics on our financial performance is being watered down (pardon the pun), by our broader development, growth, and contracting initiatives.

Our hydroelectric segment delivered FFO of $624 million. Despite a more challenging year from a resource perspective in our high value markets, the portfolio performed well, benefiting from strong all-in power prices. Reservoirs have rebounded to start 2024, with the first quarter trending positively compared with the end of 2023.

Our wind and solar segments generated a combined $643 million of FFO benefiting from the commissioning of new projects, repowering activities and our inflation linked contracted generation. As is expected during a period of rapid growth, we have acquired a number of assets that were performing below their long-term average generation under prior ownership. As part of our business plans, we leverage our operational capabilities, through repowering and other upgrades, to drive improvement in these assets back to their long-term average levels in the first few years post-ownership. We have been executing several repowering and upgrade initiatives in the past couple years that are expected to be completed and start contributing higher earnings this year.

Our distributed energy and storage, and sustainable solutions segments generated a combined $185 million of FFO, benefiting from organic growth as we scale these businesses. We continue to see positive momentum for the more nascent technologies that sit in our sustainable solutions segment. For example, our Canadian carbon capture and storage business Entropy entered into a fixed price 15-year carbon credit offtake agreement with the Canada Growth Fund that guarantees an offtake price for 600 Kt per annum of CO2, de-risking the project pipeline. Alongside the offtake agreement, Canada Growth Fund agreed to invest up to C$200 million in the business which could result in a fully drawn post-money valuation of approximately one and a half times our entry point.

Balance Sheet and Liquidity

We finished the year in an excellent financial position with over $4 billion of available liquidity providing significant flexibility to fund our growth. Our best-in-class balance sheet and access to diverse sources of capital continue to differentiate our business and enable us to opportunistically invest when capital becomes scarce, as we demonstrated this year, adding quality businesses at attractive risk-adjusted returns.

During the year we strengthened our financial position executing on almost $15 billion in non-recourse financings generating almost $500 million in upfinancing proceeds to Brookfield Renewable. We also recently updated our Green Financing Framework to incorporate eligible investment categories in-line with our strategy to invest in businesses and projects that support the transition to net zero. We subsequently took advantage of a favorable market environment in early January, issuing C$400 million

of 30-year notes at 5.3%, conservatively raising debt as our cash flows grow, maintaining our investment grade rating and meaningfully extending our debt maturity profile.

We were successful with our capital recycling program generating $800 million in proceeds ($500 million net to Brookfield Renewable) over the past twelve-months, representing almost three times our invested capital. Our recycling initiatives are a consistent source of funding which we will continue to scale with our growth in development activities. We take a disciplined and practical approach to asset rotation, looking to sell assets when they are in-demand and attracting valuations at or above our internal assessments, regardless of technology or geography.

We sold a 150-megawatt solar project in Spain which we commissioned in early 2023 generating $100 million in proceeds (~$20 million net to Brookfield Renewable). We also executed the sale of a minority interest in a portfolio of contracted wind assets in Canada which we developed over ten years ago returning over three and half times our invested capital over this period.

Our approach to selling assets that are in demand irrespective of technology or geography has served us well and generated meaningful returns above our underwriting targets for investors. We expect to continue to leverage this funding source going forward as we bring online new projects and acquire new platforms.

Outlook

The prospects for our business continue to be very positive. Our goal remains to deliver 12-15% long- term total returns for investors and to do this we will continue to be disciplined allocators of capital leveraging our differentiated operating and development capabilities and diverse funding sources.

On behalf of the Board and management, we thank all our unitholders and shareholders for their ongoing support. We look forward to updating you on our progress throughout 2024.

Sincerely,

Connor Teskey

Chief Executive Officer

February 29, 2024