BROOKFIELD RENEWABLE PARTNERS L.P.

Q1 2021 Supplemental Information

THREE MONTHS ENDED MARCH 31, 2021

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Supplemental Information contains forward-looking statements and information, within the meaning of Canadian securities laws and "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this Supplemental Information include statements regarding the quality of Brookfield Renewable's assets and the resiliency of the cash flow they will generate, Brookfield Renewable's anticipated financial performance and payout ratio, future commissioning of assets, contracted nature of our portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions and dispositions, including financing and refinancing opportunities, BEPC's eligibility for index inclusion, BEPC's ability to attract new investors as well as the future performance and prospects of BEPC and Brookfield Renewable, the prospects and benefits of the combination of Brookfield Renewable and TerraForm Power, including certain information regarding the combined company's expected cash flow profile and liquidity, future energy prices and demand for electricity, economic recovery, achieving long-term average generation, project development and capital expenditure costs, energy policies, economic growth, growth potential of the renewable asset class, the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable's access to capital. In some cases, forward looking statements can be identified by the use of words such as "plans", "expects", "scheduled", "estimates", "intends", "anticipates", "believes", "potentially", "tends", "continue", "attempts", "likely", "primarily", "approximately", "endeavours", "pursues", "strives", "seeks", "targets", "believes", or variations of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information in this Supplemental Information are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. You should not place undue reliance on forward looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to, the following: changes to hydrology at our hydroelectric facilities, to wind conditions at our wind energy facilities, to irradiance at our solar facilities or to weather generally, as a result of climate change or otherwise, at any of our facilities; volatility in supply and demand in the energy markets; our inability to re-negotiate or replace expiring PPAs on similar terms; increases in water rental costs (or similar fees) or changes to the regulation of water supply; advances in technology that impair or eliminate the competitive advantage of our projects; an increase in the amount of uncontracted generation in our portfolio; industry risks relating to the power markets in which we operate; the termination of, or a change to, the hydrological balancing pool administered by the government of Brazil; increased regulation on our operations; concessions and licenses expiring and not being renewed or replaced on similar terms; our real property rights for wind and solar renewable energy facilities being adversely affected by the rights of lienholders and leaseholders that are superior to those granted to us; increases in the cost of operating our facilities; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures, including relating to wind turbines and solar panels; dam failures and the costs and potential liabilities associated with such failures; force majeure events; uninsurable losses and higher insurance premiums; adverse changes in currency exchange rates and our inability to effectively manage foreign currency exposure; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; energy marketing risks; counterparties to our contracts not fulfilling their obligations; the time and expense of enforcing contracts against non-performing counterparties and the uncertainty of success; our operations being affected by local communities; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; some of our acquisitions may be of distressed companies, which may subject us to increased risks, including the incurrence of legal or other expenses; our reliance on computerized business systems, which could expose us to cyber-attacks; newly developed technologies in which we invest not performing as anticipated; labor disruptions and economically unfavorable collective bargaining agreements; our inability to finance our operations due to the status of the capital markets; operating and financial restrictions imposed on us by our loan, debt and security agreements; changes to our credit ratings; our inability to identify sufficient investment opportunities and complete transactions; the growth of our portfolio and our inability to realize the expected benefits of our transactions or acquisitions; our inability to develop greenfield projects or find new sites suitable for the development of greenfield projects; delays, cost overruns and other problems associated with the construction and operation of generating facilities and risks associated with the arrangements we enter into with communities and joint venture partners; Brookfield Asset Management's election not to source acquisition opportunities for us and our lack of access to all renewable power acquisitions that Brookfield Asset Management identifies, including by reason of conflicts of interest; we do not have control over all of our operations or investments; political instability or changes in government policy; pandemics or epidemics, including risks associated with the global pandemic caused by COVID-19, and the related global reduction in commerce and travel and substantial volatility in stock markets worldwide, which may result in a decrease of cash flows and impairment losses and/or revaluations of our investments and assets; foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; changes to government policies that provide incentives for renewable energy; a decline in the value of our investments in securities, including publicly traded securities of other companies; we are not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from control within our organizational structure; future sales and issuances of our LP Units, preferred limited partnership units or securities exchangeable for LP Units, including BEPC's exchangeable shares, or the perception of such sales or issuances, could depress the trading price of the LP Units, preferred limited partnership units or BEPC's exchangeable shares; the incurrence of debt at multiple levels within our organizational structure; being deemed an "investment company" under the U.S. Investment Company Act of 1940, as amended; the effectiveness of our internal controls over financial reporting; our dependence on Brookfield Asset Management and Brookfield Asset Management's significant influence over us; the departure of some or all of Brookfield Asset Management's key professionals; our lack of independent means of generating revenue; changes in how Brookfield Asset Management elects to hold its ownership interests in us; Brookfield Asset Management acting in a way that is not in our best interests or those of our unitholders; the severity, duration and spread of the COVID-19 outbreak, as well as the direct and indirect impacts that the virus may have; broader impact of climate change; failure of our systems technology; involvement in litigation and other disputes, and governmental and regulatory investigations; any changes in the market price of the LP Units and BEPC's exchangeable shares; the redemption of the BEPC exchangeable shares by BEPC at any time or upon notice from the holder of BEPC class B multiple voting shares; and other factors described in our most recent Annual Report on Form 20-F, including those set forth under Item 3.D "Risk Factors".

We caution that the foregoing list of important factors that may affect future results is not exhaustive. The forward-looking statements represent our views as of the date of this Supplemental Information and should not be relied upon as representing our views as of any subsequent date. While we anticipate that subsequent events and developments may cause our views to change, we disclaim any obligation to update the forward- looking statements, other than as required by applicable law. For further information on these known and unknown risks, please see "Risk Factors" included in our Form 20-F and other risks and factors that are described therein.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES

This Supplemental Information contains references to Adjusted EBITDA, Funds From Operations ("FFO"), FFO per Unit, Normalized FFO, Normalized FFO per Unit and Cash Available for Distribution ("CAFD") (collectively, "Brookfield Renewable's Non-IFRS Measures") which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, FFO, FFO per Unit, Normalized FFO, Normalized FFO per Unit and CAFD used by other entities. We believe that Brookfield Renewable's Non-IFRS Measures are useful supplemental measures that may assist investors in assessing our financial performance. Brookfield Renewable's Non-IFRS Measures should not be considered as the sole measures of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. For a reconciliation of Adjusted EBITDA, FFO and FFO per Unit to the most directly comparable IFRS measure, please see "Appendix 1 - Reconciliation of Non-IFRS Measures".

References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise. All amounts are in U.S. dollars and presented on a consolidated basis unless otherwise specified.

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Q1 2021 Highlights

Three months ended

(MILLIONS, EXCEPT AS NOTED)

2021

2020

Operational Information

Capacity (MW)

20,638

19,272

Total generation (GWh)

Long-term average generation

14,099

14,151

Actual generation

13,828

14,264

Proportionate generation (GWh)

Long-term average generation

7,602

6,717

Actual generation

7,375

7,164

Average revenue ($ per MWh)

87

76

Selected Financial Information

Consolidated Adjusted EBITDA(1)

$

686

$

761

Proportionate Adjusted EBITDA(1)

489

391

FFO(1)

242

217

Normalized FFO(1)(2)

257

193

Net income attributable to Unitholders

(133)

20

FFO per Unit(1)(3)

0.38

0.37

Normalized FFO per Unit(1)(2)(3)

0.40

0.33

CAFD(1)

319

148

Distributions per LP unit(4)

0.30

0.29

Basic income (loss) per LP unit(4)

(0.24)

0.01

  1. Non-IFRSmeasures. For reconciliations to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" and "Cautionary Statement Regarding Use of Non-IFRS Measures".
  2. Normalized FFO assumes long-term average generation in all segments except the Brazil and Colombia hydroelectric segments and uses 2020 foreign currency rates. For the three months ended March 31, 2021, the change related to long-term average generation totaled $12 million (2020: $(24) million) and the change related to foreign currency totaled $3 million.
  3. Average Units for the three months ended March 31, 2021 were 645.5 million (2020: 583.7 million), being inclusive of our LP units, Redeemable/Exchangeable partnership units, BEPC exchangeable shares and GP interest. The actual Units outstanding at March 31, 2021 were 645.6 million (2020: 467.0 million).
  4. Average LP units outstanding for the three months ended March 31, 2021 were 274.8 million (2020: 268.5 million). The actual
    LP units outstanding at March 31, 2021 were 274.9 million (2020: 268.5 million).

(MILLIONS, EXCEPT AS NOTED)

March 31, 2021

December 31, 2020

Liquidity and Capital Resources

Available liquidity

$

3,376

$

3,270

Debt to capitalization - Corporate

7 %

6 %

Debt to capitalization - Consolidated

29 %

27 %

Non-recourse borrowings

89 %

88 %

Floating rate debt exposure on a proportionate basis(1)

4 %

4 %

Corporate borrowings term to maturity

13 years

14 years

Non-recourse borrowings on a proportionate basis

Average debt term to maturity

10 years

11 years

Average interest rate

3.9 %

4.0 %

  1. Excludes 4% (2020: 5%) floating rate debt exposure of certain regions outside of North America and Europe due to the high cost of hedging associated with those regions.

7.4 TWh

$257M

21%

PROPORTIONATE

NORMALIZED

NORMALIZED FFO PER

GENERATION

FFO

UNIT INCREASE

PERFORMANCE HIGHLIGHTS

  • Normalized FFO increased to $257 million or $0.40 per Unit, representing an 21% increase from the prior year on a per Unit basis:
    • Contributions from growth, predominately from the merger of TerraForm Power;
    • Higher realized prices particularly in Canada, Brazil and Colombia on the back of inflation escalation and commercial contracting initiatives; and
    • Higher margins due to cost reduction initiatives
  • FFO of $242 million or $0.38 per Unit represents a 3% increase from the prior year on a per Unit basis as the above noted was partially offset by above average generation that benefited the prior year, which was concentrated in high price markets
  • Distributions of $0.30 per LP unit in the first quarter of 2021 ($1.215 annualized) represents an increase of 5% over the prior year
    • Payout ratio of 84% of FFO
  • Liquidity position remains robust, with $3.4 billion of total available liquidity, no material maturities over the next five years, only 4% of debt is exposed to floating rates and a strong investment grade balance sheet (BBB+)

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Q1 2021 Highlights (cont'd)

OPERATIONS

  • Continued to focus on extending our contract profile and leveraging our deep customer relationships
  • Signed 29 agreements for approximately 2,300 GWh of annual renewable generation with corporate offtakers globally and across all major industries in the last quarter

LIQUIDITY AND CAPITAL RESOURCES

  • Maintained ample liquidity and a strong balance sheet
    • Bolstered our liquidity position, with $3.4 billion of total available liquidity and only 4% of debt is exposed to floating rates
    • Capitalized on the low interest rate environment and sourced liquidity from diverse funding levers by executing on approximately $3.1 billion of investment grade financings
      • Secured over $600 million of non-recourse financings during the quarter
      • Extended the maturity of our corporate credit facilities by two years to June 2026, increased the size by $225 million and expanded incentive-based pricing across the entire facility
      • Subsequent to the quarter, issued our inaugural perpetual green subordinated notes for $350 million at a fixed rate of 4.625%
    • So far this year, we have signed sales agreements that are expected to generate over $850 million of proceeds ($410 million net to Brookfield Renewable) from capital recycling initiatives including the sale of mature onshore wind portfolios in Ireland and the U.S., returning, in the aggregate approximately two times our invested capital

GROWTH AND DEVELOPMENT

  • Together with our institutional partners, completed the purchases of:
    • A distributed generation business comprised of 360 MW of operating assets across nearly 600 sites and over 700 MW of development assets, growing our leading distributed generation business in the United States;
    • An 845 MW operating and fully contracted wind portfolio in Oregon, one of the largest onshore wind projects in North America with one of the largest repowering opportunities in the world; and
    • A 23% interest in Polenergia, a scale renewable business in Europe with a 3,000 MW offshore wind development pipeline in one of the most attractive markets in the world
  • Subsequent to the quarter, we signed an agreement which gives us the right to acquire a 450 MW shovel ready solar project with one of the largest developers in India. The project is expected to be commissioned by the end of the year and is backed by 25-year power purchase agreements with a high- quality state utility. We expect to invest $70 million ($20 million net to Brookfield Renewable) of equity in the project
  • Commissioned 152 MW of development projects and continued to advance the construction of 2,740 MW of hydroelectric, wind, pumped storage, solar PV and rooftop solar development projects. These projects are expected to be commissioned between 2021 and 2023 and generate annualized FFO of approximately $63 million in the aggregate

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About Brookfield Renewable

We are a global leader in decarbonization, with integrated operating platforms on four continents with operating, development and power marketing expertise

$59 billion

20,600

3,000

TOTAL POWER ASSETS

MEGAWATTS OF CAPACITY

OPERATING EMPLOYEES

5,952 power generating facilities

26 markets in 16 countries

120 years of experience

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Brookfield Renewable Partners LP published this content on 04 May 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 May 2021 12:00:14 UTC.