6-K - BEPC - Equibles

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

_____________________________________________________________________________________________________________________

Form 6-K

_____________________________________________________________________________________________________________________

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13A-16 OR 15D-16

OF THE SECURITIES EXCHANGE ACT OF 1934

For the month of August 2022

Commission File Number: 001-39355

BROOKFIELD RENEWABLE

CORPORATION

(Translation of registrant's name into English)

_____________________________________________________________________________________________________________________

250 Vesey Street, 15th Floor

New York, New York 10281

(Address of principal executive office)

_____________________________________________________________________________________________________________________

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F ý Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

The information contained in Exhibits 99.1 and 99.2 of this Form 6-K is incorporated by reference into (i) the registrant’s registration statement on Form S-8 filed with the Securities and Exchange Commission ("SEC") on July 31, 2020 (File No. 333-240282), and (ii) the registrant’s registration statement on Form F-3 (File No. 333-258728) that was declared effective by the SEC on August 20, 2021.

EXHIBIT LIST

Exhibit
99.1	Interim Consolidated Financial Statements and Notes as at June 30, 2022 and December 31, 2021 and for the Three and Six Months Ended June 30, 2022 and 2021
99.2	Management's Discussion and Analysis for the Three and Six Months Ended June 30, 2022 and 2021
99.3	Form 52-109F2 – Certification of Interim Filings – CEO
99.4	Form 52-109F2 – Certification of Interim Filings – CFO

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	BROOKFIELD RENEWABLE CORPORATION
Date: August 5, 2022	By:	/s/ Jennifer Mazin
		Name: Jennifer Mazin<br>Title: General Counsel and Corporate Secretary

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bep-20220630_d2

BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

UNAUDITED<br><br>(MILLIONS)	Notes	June 30, 2022		December 31, 2021
Assets
Current assets
Cash and cash equivalents	11	$	571	$	410
Restricted cash	12	251		146
Trade receivables and other current assets	13	1,379		1,146
Financial instrument assets	3	79		58
Due from related parties	16	362		548
		2,642		2,308
Financial instrument assets	3	149		58
Equity-accounted investments	10	454		455
Property, plant and equipment, at fair value	6	37,258		37,915
Intangible assets		216		218
Goodwill		813		849
Deferred income tax assets	5	105		86
Other long-term assets		132		97
Total Assets		$	41,769	$	41,986
Liabilities
Current liabilities
Accounts payable and accrued liabilities	14	$	473	$	452
Financial instrument liabilities	3	353		247
Due to related parties	16	485		649
Non-recourse borrowings	7	1,375		1,452
Provisions		16		12
BEPC exchangeable and class B shares	9	5,993		6,163
		8,695		8,975
Financial instrument liabilities	3	508		523
Non-recourse borrowings	7	12,581		12,060
Deferred income tax liabilities	5	5,017		5,020
Provisions		524		547
Other long-term liabilities		616		636
Equity
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	8	9,755		10,297
Participating non-controlling interests – in a holding subsidiary held by the partnership	8	261		261
The partnership	9	3,812		3,667
Total Equity		13,828		14,225
Total Liabilities and Equity		$	41,769	$	41,986

The accompanying notes are an integral part of these interim consolidated financial statements.

Approved on behalf of Brookfield Renewable Corporation:
Patricia Zuccotti<br><br>Director	David Mann<br><br>Director		Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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		Page 1

BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

UNAUDITED<br><br>(MILLIONS)				Three months ended June 30						Six months ended June 30
	Notes		2022			2021			2022			2021
Revenues		16		$	997		$	817		$	1,926		$	1,656
Other income				6			5			70			19
Direct operating costs(1)				(296)			(249)			(587)			(587)
Management service costs		16		(43)			(47)			(95)			(102)
Interest expense		7		(255)			(220)			(483)			(440)
Share of (loss) earnings from equity-accounted investments		10		1			(1)			(1)			1
Foreign exchange and financial instruments (loss) gain		3		3			(18)			(30)			16
Depreciation		6		(286)			(275)			(582)			(565)
Other				—			(31)			(26)			(177)
Remeasurement of BEPC exchangeable and class B shares		9		1,080			694			171			788
Income tax recovery (expense)
Current		5		(29)			(18)			(67)			(31)
Deferred		5		(41)			2			(41)			19
				(70)			(16)			(108)			(12)
Net income				$	1,137		$	659		$	255		$	597
Net income attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries		8		$	90		$	46		$	180		$	(10)
Participating non-controlling interests – in a holding subsidiary held by the partnership		8		1			2			5			5
The partnership				1,046			611			70			602
				$	1,137		$	659		$	255		$	597

The accompanying notes are an integral part of these interim consolidated financial statements.

(1) Direct operating costs exclude depreciation expense disclosed below.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

UNAUDITED<br><br>(MILLIONS)				Three months ended June 30						Six months ended June 30
	Notes		2022			2021			2022			2021
Net income				$	1,137		$	659		$	255		$	597
Other comprehensive income (loss) that will not be reclassified to net income:
Revaluations of property, plant and equipment		6		—			15			(2)			(257)
Actuarial gain on defined benefit plans				9			7			12			12
Deferred income taxes on above items				(3)			(4)			(5)			40
Total items that will not be reclassified to net income				6			18			5			(205)
Other comprehensive income (loss) that may be reclassified to net income:
Foreign currency translation				(742)			249			(53)			(385)
Gains (losses) arising during the period on financial instruments designated as cash-flow hedges		3		13			(83)			(46)			12
Unrealized gain on foreign exchange swaps net investment hedge		3		58			5			15			26
Reclassification adjustments for amounts recognized in net income		3		35			—			90			(60)
Deferred income taxes on above items				(27)			11			(39)			1
Equity-accounted investments		10		(2)			—			1			—
Total items that may be reclassified subsequently to net income				(665)			182			(32)			(406)
Other comprehensive income (loss)				(659)			200			(27)			(611)
Comprehensive income (loss)				$	478		$	859		$	228		$	(14)
Comprehensive income (loss) attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries		8		$	(303)		$	84		$	77		$	(423)
Participating non-controlling interests – in a holding subsidiary held by the partnership		8		(23)			16			9			—
The partnership				804			759			142			409
				$	478		$	859		$	228		$	(14)

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

			Accumulated other comprehensive income								Non-controlling interests
UNAUDITED<br><br>THREE MONTHS ENDED JUNE 30<br><br>(MILLIONS)	The partnership		Foreign<br>currency<br>translation		Revaluation<br>surplus		Other		Total		Participating non-controlling interests – in a holding subsidiary held by the partnership		Participating non-controlling interests – in operating subsidiaries		Total<br>equity
Balance, as at March 31, 2022	$	(5,808)	$	(1,250)	$	10,130	$	(58)	$	3,014	$	293	$	10,573	$	13,880
Net income	1,046		—		—		—		1,046		1		90		1,137
Other comprehensive income (loss)	—		(258)		1		15		(242)		(24)		(393)		(659)
Capital contributions	—		—		—		—		—		—		135		135
Disposals (Note 2)	27		—		(27)				—				—		—
Dividends declared	—		—		—		—		—		(9)		(633)		(642)
Other	(3)		1		(3)		(1)		(6)		—		(17)		(23)
Change in period	1,070		(257)		(29)		14		798		(32)		(818)		(52)
Balance, as at June 30, 2022	$	(4,738)	$	(1,507)	$	10,101	$	(44)	$	3,812	$	261	$	9,755	$	13,828
Balance, as at March 31, 2021	$	(5,871)	$	(1,567)	$	8,268	$	(16)	$	814	$	241	$	9,683	$	10,738
Net income	611		—		—		—		611		2		46		659
Other comprehensive income (loss)	—		173		5		(30)		148		14		38		200
Capital contributions	—		—		—		—		—		—		11		11
Dividends declared	—		—		—		—		—		—		(154)		(154)
Other	(13)		—		—		(1)		(14)		1		3		(10)
Change in period	598		173		5		(31)		745		17		(56)		706
Balance, as at June 30, 2021	$	(5,273)	$	(1,394)	$	8,273	$	(47)	$	1,559	$	258	$	9,627	$	11,444

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

			Accumulated other comprehensive income								Non-controlling interests
UNAUDITED<br><br>SIX MONTHS ENDED JUNE 30<br><br>(MILLIONS)	The partnership		Foreign<br>currency<br>translation		Revaluation<br>surplus		Other		Total		Participating non-controlling interests – in a holding subsidiary held by the partnership		Participating non-controlling interests – in operating subsidiaries		Total<br>equity
Balance, as at December 31, 2021	$	(4,834)	$	(1,568)	$	10,125	$	(56)	$	3,667	$	261	$	10,297	$	14,225
Net income	70		—		—		—		70		5		180		255
Other comprehensive income (loss)	—		60		(1)		13		72		4		(103)		(27)
Capital contributions	—		—		—		—		—		—		196		196
Disposal (Note 2)	27		—		(27)		—		—		—		—		—
Dividends declared	—		—		—		—		—		(9)		(798)		(807)
Other	(1)		1		4		(1)		3		—		(17)		(14)
Change in period	96		61		(24)		12		145		—		(542)		(397)
Balance, as at June 30, 2022	$	(4,738)	$	(1,507)	$	10,101	$	(44)	$	3,812	$	261	$	9,755	$	13,828
Balance, as at December 31, 2020	$	(5,826)	$	(1,350)	$	8,381	$	(28)	$	1,177	$	258	$	10,290	$	11,725
Net income (loss)	602		—		—		—		602		5		(10)		597
Other comprehensive loss	—		(44)		(131)		(18)		(193)		(5)		(413)		(611)
Capital contributions	—		—		—		—		—		—		38		38
Dividends declared	—		—		—		—		—		—		(290)		(290)
Other	(49)		—		23		(1)		(27)		—		12		(15)
Change in period	553		(44)		(108)		(19)		382		—		(663)		(281)
Balance, as at June 30, 2021	$	(5,273)	$	(1,394)	$	8,273	$	(47)	$	1,559	$	258	$	9,627	$	11,444

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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BROOKFIELD RENEWABLE CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED		Three months ended June 30				Six months ended June 30
(MILLIONS)	Notes	2022		2021		2022		2021
Operating activities
Net income		$	1,137	$	659	$	255	$	597
Adjustments for the following non-cash items:
Depreciation	6	286		275		582		565
Unrealized financial instruments gain	3	29		20		84		3
Share of earnings (loss) from equity-accounted investments	10	(1)		1		1		(1)
Deferred income tax (recovery) expense	5	41		(2)		41		(19)
Other non-cash items		7		5		(5)		55
Remeasurement of BEPC exchangeable shares and class B shares	9	(1,080)		(694)		(171)		(788)
Dividends received from equity-accounted investments	10	2		1		2		1
		421		265		789		413
Changes in due to or from related parties		11		37		15		61
Net change in working capital balances		(109)		(407)		(229)		(287)
		323		(105)		575		187
Financing activities
Proceeds from non-recourse borrowings	7	1,652		782		2,333		1,085
Repayment of non-recourse borrowings	7	(1,008)		(327)		(1,670)		(624)
Repayment of lease liabilities		(4)		(5)		(7)		(12)
Capital contributions from non-controlling interests	8	135		11		196		38
Distributions paid:
To participating non-controlling interests	8	(642)		(154)		(807)		(290)
Related party borrowings, net		(165)		115		9		168
		(32)		422		54		365
Investing activities
Acquisitions, net of cash and cash equivalents, in acquired entity		—		(12)		—		(12)
Investment in property, plant and equipment	6	(246)		(166)		(414)		(405)
Proceeds from disposal of assets		88		—		88		—
Restricted cash and other	12	(102)		(34)		(125)		(72)
		(260)		(212)		(451)		(489)
Foreign exchange gain (loss) on cash		(18)		4		(17)		(6)
Cash and cash equivalents
Increase		13		109		161		57
Net change in cash classified within assets held for sale		—		(11)		—		(16)
Balance, beginning of period		558		298		410		355
Balance, end of period		$	571	$	396	$	571	$	396
Supplemental cash flow information:
Interest paid		$	237	$	202	$	448	$	407
Interest received		$	6	$	2	$	11	$	7
Income taxes paid		$	27	$	16	$	33	$	23

The accompanying notes are an integral part of these interim consolidated financial statements.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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BROOKFIELD RENEWABLE CORPORATION

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Brookfield Renewable Corporation (“BEPC” or the “company) and its subsidiaries, own and operate a portfolio of renewable energy power generating facilities primarily in North America, Europe, Colombia and Brazil. BEPC was formed as a corporation established under the British Columbia Business Corporation Act on September 9, 2019 and is a subsidiary of Brookfield Renewable Partners L.P. (“BEP”), or, collectively with its controlled subsidiaries, including BEPC (“Brookfield Renewable”), or, collectively with its controlled subsidiaries, excluding BEPC, (the “partnership”). Brookfield Asset Management Inc. (“Brookfield Asset Management” or together with its controlled subsidiaries, excluding Brookfield Renewable, “Brookfield”) is our company’s ultimate parent.

The class A exchangeable subordinate voting shares (“BEPC exchangeable shares”) of Brookfield Renewable Corporation are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BEPC”.

The registered head office of Brookfield Renewable Corporation is 250 Vesey Street, New York, NY, United States.

Notes to the consolidated financial statements		Page
1.	Basis of presentation and significant accounting policies	8
2.	Disposal of assets	10
3.	Risk management and financial instruments	10
4.	Segmented information	13
5.	Income taxes	20
6.	Property, plant and equipment	20
7.	Borrowings	22
8.	Non-controlling interests	23
9.	BEPC Exchangeable shares, BEPC Class B shares and BEPC Class C shares	25
10.	Equity-accounted investments	25
11.	Cash and cash equivalents	25
12.	Restricted cash	26
13.	Trade receivables and other current assets	26
14.	Accounts payable and accrued liabilities	26
15.	Commitments, contingencies and guarantees	26
16.	Related party transactions	28
Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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1. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

The interim consolidated financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting.

Certain information and footnote disclosures normally included in the annual audited consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”), have been omitted or condensed. These interim consolidated financial statements should be read in conjunction with the company’s December 31, 2021 audited consolidated financial statements. The interim consolidated statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2021 audited consolidated financial statements.

The interim consolidated financial statements are unaudited and reflect adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary to provide a fair statement of results for the interim periods in accordance with IFRS.

The results reported in these interim consolidated financial statements should not be regarded as necessarily indicative of results that may be expected for an entire year. The policies set out below are consistently applied to all periods presented, unless otherwise noted.

These interim financial statements were authorized for issuance by the Board of Directors of the company and authorized of issue on August 5, 2022.

Certain comparative figures have been reclassified to conform to the current year’s presentation.

References to $, €, R$, and COP are to United States (“U.S.”) dollars, Euros, Brazilian reais, and Colombian pesos, respectively.

All figures are presented in millions of U.S. dollars unless otherwise noted.

(b) Basis of presentation

The interim consolidated financial statements have been prepared on the basis of historical cost, except for the revaluation of property, plant and equipment and certain assets and liabilities which have been measured at fair value. Cost is recorded based on the fair value of the consideration given in exchange for assets.

These interim consolidated financial statements include the accounts of the company and its subsidiaries, which are the entities over which the company has control. An investor controls an investee when it is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Non-controlling interests in the equity of the company’s subsidiaries are shown separately in equity in the interim consolidated statements of financial position.

(d) Recently adopted accounting standards

Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework

The amendments add an exception to the recognition principle of IFRS 3 to avoid the issue of potential ‘day 2’ gains or losses arising for liabilities and contingent liabilities that would be within the scope of IAS 37 Provisions, Contingent Liabilities and Contingent Assets or IFRIC 21 Levies, if incurred separately. The exception requires entities to apply the criteria in IAS 37 or IFRIC 21, respectively, instead of the Conceptual Framework, to determine whether a present obligation exists at the acquisition date. At the same time, the amendments add a new paragraph to IFRS 3 to clarify that contingent assets do not qualify for recognition at the acquisition date. The amendments to IFRS 3 apply to annual reporting periods beginning on or after January 1, 2022.

The company has completed an assessment and implemented its transition plan to address the impact and effect changes as a result of amendments to the recognition principle of IFRS 3. The adoption did not have a significant impact on the company’s financial reporting.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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(e) Future changes in accounting policies

Amendments to IAS 1 – Presentation of Financial Statements (“IAS 1”)

The amendments clarify how to classify debt and other liabilities as current or non-current. The amendments to IAS 1 apply to annual reporting periods beginning on or after January 1, 2023. The company is currently assessing the impact of these amendments.

IFRS Interpretation Committee Agenda Decision - Demand Deposits with Restriction on Use Arising from a Contract with a Third Party (IAS 7 Statement of Cash Flow)

In April 2022, the IFRS Interpretation Committee (“IFRS IC”) concluded that restrictions on the use of a demand deposit arising from a contract with a third party do not result in the deposit no longer being cash, unless those restrictions change the nature of the deposit in a way that it would no longer meet the definition of cash in IAS 7 Statement of Cash Flow. In the fact pattern described in the request, the contractual restrictions on the use of the amounts held in the demand deposit did not change the nature of the deposit — the entity can access those amounts on demand. Therefore, the entity should include the demand deposit as a component of “cash and cash equivalents” in its statement of financial position and in its statement of cash flows. The company is currently assessing the impact of this IFRS IC agenda decision.

There are currently no other future changes to IFRS with potential impact on the company.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 9

2. DISPOSAL OF ASSETS

In June 2022, the company, together with its institutional partners, completed the sale of its 100% interest in a 36 MW operating hydroelectric portfolio in Brazil ("Brazil Hydroelectric Portfolio") for proceeds of R$461 million (approximately $90 million and $23 million net to the company). The company holds an approximately 23% economic interest in each of the project entities within the Brazil Hydroelectric Portfolio and a 100% voting interest. As a result of the disposition, the company's post-tax portion of the accumulated revaluation surplus of $27 million was reclassified from accumulated other comprehensive income directly to equity and noted as a Disposal item in the consolidated statements of changes in equity.

Summarized financial information relating to the disposal of the Brazil Hydroelectric Portfolio is shown below:

(MILLIONS)	Total
Proceeds, net of transaction costs	$	90
Carrying value of net assets held for sale
Assets	90
Liabilities	—
	90
Loss on disposal, net of transaction costs	$	—

3. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

RISK MANAGEMENT

The company`s activities expose it to a variety of financial risks, including market risk (i.e., commodity price risk, interest rate risk, and foreign currency risk), credit risk and liquidity risk. The company uses financial instruments primarily to manage these risks.

Fair value disclosures

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fair values determined using valuation models require the use of assumptions concerning the amount and timing of estimated future cash flows and discount rates. In determining those assumptions, management looks primarily to external readily observable market inputs such as interest rate yield curves, currency rates, commodity prices and, as applicable, credit spreads.

A fair value measurement of a non-financial asset is the consideration that would be received in an orderly transaction between market participants, considering the highest and best use of the asset.

Assets and liabilities measured at fair value are categorized into one of three hierarchy levels, described below. Each level is based on the transparency of the inputs used to measure the fair values of assets and liabilities.

Level 1 – inputs are based on unadjusted quoted prices in active markets for identical assets and liabilities;

Level 2 – inputs, other than quoted prices in Level 1, that are observable for the asset or liability, either directly or indirectly; and

Level 3 – inputs for the asset or liability that are not based on observable market data.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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The following table presents the company's assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy:

	June 30, 2022								December 31, 2021
(MILLIONS)	Level 1		Level 2		Level 3		Total		Total
Assets measured at fair value:
Cash and cash equivalents	$	571	$	—	$	—	$	571	$	410
Restricted cash(1)	302		—		—		302		197
Financial instrument assets(1)
Energy derivative contracts	—		29		2		31		45
Interest rate swaps	—		175		—		175		40
Foreign exchange swaps	—		20		—		20		31
Investments in debt and equity securities	—		—		2		2		—
Property, plant and equipment	—		—		37,258		37,258		37,915
Liabilities measured at fair value:
Financial instrument liabilities(1)
Energy derivative contracts	—		(295)		(155)		(450)		(206)
Interest rate swaps	—		(26)		—		(26)		(103)
Foreign exchange swaps	—		(2)		—		(2)		(6)
Tax equity	—		—		(383)		(383)		(455)
Liabilities for which fair value is disclosed:
BEPC exchangeable and class B shares(2)	(5,993)		—		—		(5,993)		(6,163)
Non-recourse borrowing(1)	(1,725)		(12,052)		—		(13,777)		(14,397)
Total	$	(6,845)	$	(12,151)	$	36,724	$	17,728	$	17,308

(1)Includes both the current amount and long-term amounts

(2)BEPC class C shares are also classified as financial liabilities due to their cash redemption feature. As discussed in Note 9 –BEPC Exchangeable shares, BEPC Class B shares and BEPC Class C shares, the BEPC class C shares meet certain qualifying criteria and are presented as equity.

There were no transfers between levels during the six months ended June 30, 2022.

Financial instruments disclosures

The aggregate amount of our company's net financial instrument positions are as follows:

	June 30, 2022						December 31, 2021
(MILLIONS)	Assets		Liabilities		Net Assets<br>(Liabilities)		Net Assets<br>(Liabilities)
Energy derivative contracts	$	31	$	450	$	(419)	$	(161)
Interest rate swaps	175		26		149		(63)
Foreign exchange swaps	20		2		18		25
Investments in debt and equity securities	2		—		2		—
Tax equity	—		383		(383)		(455)
Total	228		861		(633)		(654)
Less: current portion	79		353		(274)		(189)
Long-term portion	$	149	$	508	$	(359)	$	(465)	Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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		Page 11

(a) Tax equity

The company owns and operates certain projects in the United States under tax equity structures to finance the construction of solar and wind projects. In accordance with the substance of the contractual agreements, the amounts paid by the tax equity investors for their equity stakes are classified as financial instrument liabilities on the interim consolidated statements of financial position.

Gain or loss on the tax equity liabilities are recognized within foreign exchange and financial instruments (loss) gain in the interim consolidated statements of income (loss).

(b) Energy derivative contracts

The company has entered into energy derivative contracts primarily to stabilize or eliminate the price risk on the sale of certain future power generation. Certain energy contracts are recorded in the company's interim consolidated financial statements at an amount equal to fair value, using quoted market prices or, in their absence, a valuation model using both internal and third-party evidence and forecasts.

The company 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 interim consolidated financial statements at fair value.

(d) Foreign exchange swaps

The company has entered into foreign exchange swaps to minimize its exposure to currency fluctuations impacting its investments and earnings in foreign operations, and to fix the exchange rate on certain anticipated transactions denominated in foreign currencies.

The following table reflects the gains (losses) included in foreign exchange and financial instrument (loss) gain in the interim consolidated statements of income for the three and six months ended June 30:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Energy derivative contracts	$	(37)	$	(44)	$	(124)	$	(63)
Interest rate swaps	(2)		8		20		33
Foreign exchange swaps	27		3		35		48
Tax equity	32		2		62		16
Foreign exchange gain (loss)	(17)		13		(23)		(18)
	$	3	$	(18)	$	(30)	$	16

The following table reflects the gains (losses) included in other comprehensive income (loss) in the interim consolidated statements of comprehensive income (loss) for the three and six months ended June 30:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Energy derivative contracts	$	(75)	$	(71)	$	(224)	$	(23)
Interest rate swaps	79		(3)		179		37
Foreign exchange swaps	9		(9)		(1)		(2)
	13		(83)		(46)		12
Foreign exchange swaps - net investment	58		5		15		26
	$	71	$	(78)	$	(31)	$	38	Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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		Page 12

The following table reflects the reclassification adjustments recognized in net income in the interim consolidated statements of comprehensive income (loss) for the three and six months ended June 30:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Energy derivative contracts	$	35	$	(1)	$	88	$	(63)
Interest rate swaps	—		1		2		3
	$	35	$	—	$	90	$	(60)

4. SEGMENTED INFORMATION

The company’s Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or “CODM”) review the results of the operations, manage the operations, and allocate resources based on the type of technology, in conjunction with other segments of Brookfield Renewable.

The operations of the company are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) distributed energy & sustainable solutions (pumped storage, cogeneration and biomass) and 5) corporate. This best reflects the way in which the CODM reviews the results of the company.

The reporting to the CODM was revised during the quarter to incorporate the distributed energy & sustainable solutions business of the company. The distributed energy & sustainable solutions business corresponds to a portfolio of multi-technology assets and investments that support the broader strategy of decarbonization of electricity grids around the world through distributed generation and offering of other sustainable services. The financial information of operating segments in the prior period has been restated to present the corresponding results of the distributed energy & sustainable solutions.

In accordance with IFRS 8, Operating Segments, the company discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. The accounting policies of the reportable segments are the same as those described in Note 1 – Basis of presentation and significant accounting policies.

Reporting to the CODM on the measures utilized to assess performance and allocate resources is provided on a proportionate basis. Information on a proportionate basis reflects the company’s share from facilities which it accounts for using consolidation and the equity method whereby the company either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides shareholders perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results allocable to the company’s shareholders.

Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate consolidation basis have been disclosed below. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items include the company’s proportionate share of earnings from equity-accounted investments attributable to each of the above-noted items, and exclude the proportionate share of earnings (loss) of consolidated investments not held by the company apportioned to each of the above-noted items.

The company does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its consolidated financial statements. The presentation of the assets and liabilities and revenues and expenses does not represent the company’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish the company’s legal claims or exposures to such items.

The company reports its results in accordance with these segments and presents prior period segmented information in a consistent manner.

The company analyzes the performance of its operating segments based on Funds From Operations. Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”).

The company uses Funds From Operations to assess the performance of the company before the effects of certain cash items (e.g., acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g., deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 13

cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. The company includes realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term within Funds From Operations in order to provide additional insight regarding the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in current period net income.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 14

The following table provides each segment's results in the format that management organizes its segments to make operating decisions and assess performance and reconciles the company's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended June 30, 2022:

	Attributable to the partnership										Contribution from equity-accounted investments			Attributable<br> to non-<br>controlling<br> interests		As per <br>IFRS<br><br>financials(1)
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate				Total
Revenues	$	307	$	43	$	51	$	37	$	—	$	438		$	(12)	$	571	$	997
Other income	4		3		9		—		—		16			—		(10)		6
Direct operating costs	(109)		(13)		(11)		(16)		(2)		(151)			7		(152)		(296)
Share of revenue, other income and direct operating costs from equity-accounted investments	—		—		—		—		—		—			5		—		5
	202		33		49		21		(2)		303			—		409
Management service costs	—		—		—		—		(38)		(38)			—		(5)		(43)
Interest expense(1)	(46)		(7)		(14)		(4)		(4)		(75)			1		(126)		(200)
Current income taxes	(9)		(1)		1		—		—		(9)			—		(20)		(29)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—			(1)		—		(1)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—			—		(258)		(258)
Funds From Operations	147		25		36		17		(44)		181			—		—
Depreciation											(127)			3		(162)		(286)
Foreign exchange and financial instrument gain (loss)											(14)			—		17		3
Deferred income tax expense											(11)			—		(30)		(41)
Other											(8)			—		8		—
Dividends on BEPC exchangeable shares(1)											(55)			—		—		(55)
Remeasurement of BEPC exchangeable and BEPC class B shares											1,080			—		—		1,080
Share of earnings from equity-accounted investments											—			(3)		—		(3)
Net income attributable to non-controlling interests											—			—		167		167
Net income attributable to the partnership											$	1,046		$	—	$	—	$	1,046

(1)Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net income attributable to participating non-controlling interests of $91 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $255 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 15

	Attributable to the partnership												Contribution from equity-accounted investments		Attributable<br> to non-<br>controlling<br> interests		As per <br>IFRS<br><br>financials(1)
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate		Total
Revenues	$	243	$	47	$	49	$	34	$	—	$	373	$	(9)	$	453	$	817
Other income	10		—		1		—		—		11		—		(6)		5
Direct operating costs	(96)		(8)		(12)		(12)		—		(128)		4		(125)		(249)
Share of revenue, other income and direct operating costs from equity-accounted investments	—		—		—		—		—		—		5		—		5
	157		39		38		22		—		256		—		322
Management service costs	—		—		—		—		(47)		(47)		—		—		(47)
Interest expense(1)	(31)		(10)		(13)		(5)		(4)		(63)		2		(107)		(168)
Current income taxes	(5)		(2)		—		—		—		(7)		—		(11)		(18)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		(2)		—		(2)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		(204)		(204)
Funds From Operations	121		27		25		17		(51)		139		—		—
Depreciation											(122)		3		(156)		(275)
Foreign exchange and financial instrument gain (loss)											(25)		1		6		(18)
Deferred income tax recovery (expense)											8		—		(6)		2
Other											(31)		—		—		(31)
Dividends on BEPC exchangeable shares(1)											(52)		—		—		(52)
Remeasurement of BEPC exchangeable and BEPC class B shares											694		—		—		694
Share of earnings from equity-accounted investments											—		(4)		—		(4)
Net income attributable to non-controlling interests											—		—		156		156
Net income attributable to the partnership											$	611	$	—	$	—	$	611

(1)Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $48 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $220 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 16

	Attributable to the partnership					Contribution from equity-accounted investments		Attributable<br> to non-<br>controlling<br> interests	As per <br>IFRS<br><br>financials(1)
(MILLIONS)	Hydroelectric	Wind	Solar	Distributed energy & sustainable solutions	Corporate		Total
Revenues	573	95	90	67	—	825		(25)	1,126	1,926
Other income	24	5	21	7	—	57		—	13	70
Direct operating costs	(216)	(27)	(24)	(33)	(2)	(302)		15	(300)	(587)
Share of revenue, other income and direct operating costs from equity-accounted investments	—	—	—	—	—	—		10	—	10
	381	73	87	41	(2)	580		—	839
Management service costs	—	—	—	—	(90)	(90)		—	(5)	(95)
Interest expense(1)	(84)	(14)	(25)	(9)	(4)	(136)		3	(240)	(373)
Current income taxes	(19)	(1)	—	—	—	(20)		—	(47)	(67)
Share of interest and cash taxes from equity-accounted investments	—	—	—	—	—	—		(3)	—	(3)
Share of Funds From Operations attributable to non-controlling interests	—	—	—	—	—	—		—	(547)	(547)
Funds From Operations	278	58	62	32	(96)	334		—	—
Depreciation						(259)		6	(329)	(582)
Foreign exchange and financial instrument gain (loss)						(37)		2	5	(30)
Deferred income tax recovery (expense)						5		—	(46)	(41)
Other						(34)		—	8	(26)
Dividends on BEPC exchangeable shares(1)						(110)		—	—	(110)
Remeasurement of BEPC exchangeable and BEPC class B shares						171		—	—	171
Share of earnings from equity-accounted investments						—		(8)	—	(8)
Net income attributable to non-controlling interests						—		—	362	362
Net income attributable to the partnership						70		—	—	70

(1)Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $185 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $483 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 17

	Attributable to the partnership						Contribution from equity-accounted investments	Attributable<br> to non-<br>controlling<br> interests	As per <br>IFRS<br><br>financials(1)
(MILLIONS)	Hydroelectric	Wind	Solar	Distributed energy & sustainable solutions	Corporate	Total
Revenues	478	113	86	65	—	742	(22)	936	1,656
Other income	17	4	3	—	—	24	—	(5)	19
Direct operating costs	(179)	(33)	(24)	(23)	—	(259)	9	(337)	(587)
Share of revenue, other income and direct operating costs from equity-accounted investments	—	—	—	—	—	—	13	—	13
	316	84	65	42	—	507	—	594
Management service costs	—	—	—	—	(102)	(102)	—	—	(102)
Interest expense(1)	(67)	(20)	(27)	(10)	(4)	(128)	4	(212)	(336)
Current income taxes	(10)	(2)	—	—	—	(12)	—	(19)	(31)
Share of interest and cash taxes from equity-accounted investments	—	—	—	—	—	—	(4)	—	(4)
Share of Funds From Operations attributable to non-controlling interests	—	—	—	—	—	—	—	(363)	(363)
Funds From Operations	239	62	38	32	(106)	265	—	—
Depreciation						(248)	6	(323)	(565)
Foreign exchange and financial instrument gain (loss)						(27)	2	41	16
Deferred income tax recovery (expense)						21	—	(2)	19
Other						(93)	—	(84)	(177)
Dividends on BEPC exchangeable shares(1)						(104)	—	—	(104)
Remeasurement of BEPC exchangeable and BEPC class B shares						788	—	—	788
Share of earnings from equity-accounted investments						—	(8)	—	(8)
Net income attributable to non-controlling interests						—	—	368	368
Net income attributable to the partnership						602	—	—	602

(1)Share of earnings from equity-accounted investments of $1 million is comprised of amounts found on the Share of revenue, other income and direct operating costs, Share of interest and cash taxes and Share of earnings lines. Net loss attributable to participating non-controlling interests of $5 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net Income attributable to non-controlling interests. Total interest expense of $440 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 18

The following table presents information on a segmented basis about certain items in our company's statements of financial position and reconciles the company's proportionate results to the consolidated statements of financial position by aggregating the components comprising the company's investments in associates and reflecting the portion of each line item attributable to non-controlling interests:

	Attributable to the partnership										Contribution <br>from equity- <br>accounted<br>investments			Attributable<br> to non-<br>controlling<br> interests		As per<br> IFRS<br>financials
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate				Total
As at June 30, 2022
Cash and cash equivalents	$	62	$	60	$	48	$	11	$	—	$	181		$	(1)	$	391	571
Property, plant and equipment, at fair value	13,501		1,458		1,568		1,212		—		17,739			(610)		20,129		37,258
Total assets	15,181		1,723		1,732		1,268		14		19,918			(175)		22,026		41,769
Total borrowings	2,803		723		1,265		485		—		5,276			(163)		8,843		13,956
Other liabilities	4,147		433		170		18		6,063		10,831			(12)		3,166		13,985
For the six months ended June 30, 2022:
Additions to property, plant and equipment	61		20		63		10		—		154			(7)		309		456
As at December 31, 2021
Cash and cash equivalents	$	41	$	35	$	43	$	13	$	4	$	136		$	(2)	$	276	410
Property, plant and equipment, at fair value	13,577		1,478		1,585		1,232		—		17,872			(604)		20,647		37,915
Total assets	15,108		1,700		1,731		1,279		17		19,835			(176)		22,327		41,986
Total borrowings	2,720		765		1,377		461		—		5,323			(161)		8,350		13,512
Other liabilities	4,051		379		119		66		6,231		10,846			(15)		3,418		14,249
For the six months ended June 30, 2021:
Additions to property, plant and equipment	92		25		41		4		—		162			(5)		300		457
Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
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Additional Segment Information

The following table presents consolidated revenue split by technology for the three and six months ended June 30:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Hydroelectric	$	608	$	463	$	1,177	$	941
Wind	157		144		340		346
Solar	166		144		294		252
Distributed energy & sustainable solutions	66		66		115		117
Total	$	997	$	817	$	1,926	$	1,656

The following table presents consolidated property, plant and equipment and equity-accounted investments split by geographical region:

(MILLIONS)	June 30, 2022		December 31, 2021
North America	$	22,510	$	22,634
Colombia	8,170		8,497
Brazil	3,664		3,299
Europe	3,368		3,940
	$	37,712	$	38,370

5. INCOME TAXES

The company's effective income tax rate was 29.8% for the six months ended June 30, 2022 (2021: 2.0%). The effective tax rate is different than the statutory rate primarily due to rate differentials and non-controlling interests' income or loss not subject to tax.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 20

6. PROPERTY, PLANT AND EQUIPMENT

The following table presents a reconciliation of property, plant and equipment at fair value:

(MILLIONS)	Hydroelectric		Wind		Solar		Other(1)		Total(2)
Property, plant and equipment, at fair value
As at December 31, 2021	$	25,496	$	4,998	$	6,457	$	188	$	37,139
Additions	8		(52)		2		—		(42)
Transfer from construction work-in-progress	95		1		—		1		97
Disposals	(97)		—		—		—		(97)
Items recognized through OCI:
Change in fair value	(2)		—		—		—		(2)
Foreign exchange	(171)		(85)		(201)		6		(451)
Items recognized through net income:
Depreciation	(253)		(153)		(159)		(17)		(582)
As at June 30, 2022	$	25,076	$	4,709	$	6,099	$	178	$	36,062
Construction work-in-progress
As at December 31, 2021	$	224	$	114	$	433	$	5	$	776
Additions	61		144		289		4		498
Transfer to property, plant and equipment	(95)		(1)		—		(1)		(97)
Items recognized through OCI:
Foreign exchange	9		(5)		15		—		19
As at June 30, 2022	$	199	$	252	$	737	$	8	$	1,196
Total property, plant and equipment, at fair value
As at December 31, 2021(2)	$	25,720	$	5,112	$	6,890	$	193	$	37,915
As at June 30, 2022(2)	$	25,275	$	4,961	$	6,836	$	186	$	37,258

(1)Includes cogeneration and biomass.

(2)Includes right-of-use assets not subject to revaluation of $49 million (2021: $52 million) in our hydroelectric segment, $127 million (2021: $130 million) in our wind segment, $148 million (2021: $157 million) in our solar segment , and $2 million (2021: $2 million) in other.

In the first quarter of 2022, the company, together with its institutional partners, completed the acquisition of a 248 MW development wind portfolio in Brazil. The investment is accounted for as asset acquisition as it does not constitute a business combinations under IFRS 3, with $11 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. The company holds a 25% economic interest.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 21

7. BORROWINGS

Non-recourse borrowings

Non-recourse borrowings are typically asset-specific, long-term, and non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in the United States and Europe consist of both fixed and floating interest rate debt indexed to the London Interbank Offered Rate (“LIBOR”) and the Euro Interbank Offered Rate ("EURIBOR"). The company uses interest rate swap agreements in the United States and Colombia to minimize its exposure to floating interest rates. Non-recourse borrowings in Brazil consist of floating interest rates of Taxa de Juros de Longo Prazo (“TJLP”), the Brazil National Bank for Economic Development’s long-term interest rate, Interbank Deposit Certificate rate (“CDI”), or The Extended National Consumer Price Index (“IPCA”) plus a margin. Non-recourse borrowings in Colombia include floating interest rates of Indicador Bancario de Referencia rate (“IBR”), the Banco Central de Colombia short-term interest rate, or Colombian Consumer Price Index (“IPC”), the Banco Central de Colombia inflation rate, plus a margin.

Effective January 1, 2022, Sterling Overnight Index Average (“SONIA”) replaced £ LIBOR, and Euro Short-term Rate (“€STR”) replaced € LIBOR. It is also currently expected that Secured Overnight Financing Rate (“SOFR”) will replace US$ LIBOR prior to June 30, 2023. As at June 30, 2022, the company’s floating rate borrowings have not been materially impacted by SONIA and €STR reforms. The company has a transition plan for the replacement of US$ LIBOR with the Secured Overnight Financing Rate (“SOFR”) benchmark on June 30, 2023. This plan involves certain amendments to the contractual terms of US$ LIBOR referenced floating rate borrowings, interest rate swaps, interest rate caps and updates to hedge designations. These are not expected to have a material impact.

The composition of non-recourse borrowings is presented in the following table:

	June 30, 2022						December 31, 2021
	Weighted-average						Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest<br>rate (%)	Term<br><br>(years)(3)	Carrying<br>value		Estimated<br>fair value		Interest<br>rate (%)	Term<br>(years)	Carrying<br>value		Estimated<br>fair value
Non-recourse borrowings(1)(2)
Hydroelectric	6.3	8	$	6,812	$	6,683	5.1	7	$	6,160	$	6,543
Wind	4.4	9	2,417		2,300		3.7	9	2,416		2,577
Solar	5.1	13	3,938		4,006		4.1	13	4,110		4,365
Distributed energy & sustainable solutions	4.2	12	836		788		3.9	12	860		912
Total	5.5	10	$	14,003	$	13,777	4.5	9	$	13,546	$	14,397
Add: Unamortized premiums(4)			37						57
Less: Unamortized financing fees(4)			(84)						(91)
Less: Current portion			(1,375)						(1,452)
			$	12,581					$	12,060

(1)Includes $9 million (2021: $8 million) borrowed under a subscription facility of a Brookfield sponsored private fund.

(2)Includes $15 million (2021: nil) outstanding to an associate of Brookfield. Refer to Note 16 - Related party transactions for more details.

(3)Excluding credit facilities total weighted-average term is 9 years.

(4)Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.

In the first quarter of 2022, the company completed a financing of COP 200 billion ($53 million) in Colombia. The loan bears a fixed interest of 8.66% and matures in 2032.

In the first quarter of 2022, the company completed a financing of COP 356 billion ($95 million) in Colombia. The bond issued in two tranches bears variable interest at IPC plus an average margin of 4.39% maturing in 2029 and 2037.

In the first quarter of 2022, the company completed a financing of COP 200 billion ($53 million) in Colombia. The loan bears variable interest at IBR plus 3.25% maturing in 2032.

In the first quarter of 2022, the company completed a financing of R$150 million ($29 million) associated with a solar development project in Brazil. The loan bears a variable interest at IPCA plus 5.04% and matures February 2045.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 22

In the first quarter of 2022, the company completed a refinancing totaling $170 million associated with a hydroelectric portfolio in the United States. The debt drawn in two tranches bears an average fixed interest of 3.62% and matures in 2032.

In the first quarter of 2022, the company completed a refinancing totaling $35 million associated with a hydroelectric portfolio in the United States. A portion of the debt bears a fixed rate of 4.98% and the remaining portion bears interest at the SOFR plus 3.25% maturing in 2026.

In the second quarter of 2022, the company completed a financing of R$300 million ($63 million) associated with a solar development project in Brazil. The loan bears a variable interest at IPCA plus 5.39% and matures 2045.

In the second quarter of 2022, the company completed a financing of R$500 million ($96 million) associated with a solar development project in Brazil. The loan bears a variable interest at IPCA plus 1.58% and matures 2024.

In the second quarter of 2022, the company completed a financing of €66 million ($70 million) associated with a solar asset in Spain. The loan bears a fixed interest rate of 3.36% and matures 2039.

In the second quarter of 2022, the company completed a financing of COP 400 billion ($97 million) in Colombia. The loan bears variable interest at IBR plus 3.25% maturing in 2032.

In the second quarter of 2022, the company completed a financing of COP 100 billion ($24 million) in Colombia. The loan bears variable interest at IBR plus 3.9% maturing in 2030.

In the second quarter of 2022, the company completed a financing of COP 50 billion ($12 million) in Colombia. The loan bears variable interest at IBR plus 3.9% maturing in 2030.

In the second quarter of 2022, the company completed a financing of COP 100 billion ($24 million) in Colombia. The loan bears variable interest at IBR plus 4.70% maturing in 2034.

In the second quarter of 2022, the company completed a financing of COP 219 billion ($53 million) in Colombia. The loan bears variable interest at IBR plus 2.45% maturing in 2027.

In the second quarter of 2022, the company completed a financing of COP 594 billion ($144 million) in Colombia. The loan bears variable interest at IBR plus 2.98% maturing in 2029.

In the second quarter of 2022, the company completed a financing of COP 237 billion ($57 million) in Colombia. The loan bears variable interest at IBR plus 2.45% maturing in 2030.

In the second quarter of 2022, the company increased its revolving credit facility capacity associated with the United States business by $250 million to a total of $750 million.

In the second quarter of 2022, the company completed a refinancing totaling $500 million associated with the United States business. The loan bears a variable interest at SOFR plus 2.85% and matures in 2029.

8. NON-CONTROLLING INTERESTS

The company`s non-controlling interests are comprised of the following:

(MILLIONS)	June 30, 2022		December 31, 2021
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	$	9,755	$	10,297
Participating non-controlling interests – in a holding subsidiary held by the partnership	261		261
	$	10,016	$	10,558	Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
---	---	---
		Page 23

The net change in participating non-controlling interests – in operating subsidiaries is as follows:

(MILLIONS)	Brookfield Americas Infrastructure Fund		Brookfield Infrastructure Fund II		Brookfield Infrastructure Fund III		Brookfield Infrastructure Fund IV			Isagen institutional investors			Isagen public non-controlling interests			The Catalyst Group			TerraForm Power			Other		Total
As at December 31, 2021	$	686	$	2,251	$	3,186	$	261		$	2,442		$	13		$	132		$	853		$	473	$	10,297
Net income (loss)	—		(36)		67		(1)			106			1			12			22			9		180
Other comprehensive income (loss)	(7)		5		(15)		10			(66)			—			—			18			(48)		(103)
Capital contributions	—		4		—		186			—			—			—			—			6		196
Dividends declared	(21)		(39)		(251)		—			(424)			(1)			(5)			(46)			(11)		(798)
Other(1)	—		2		2		(1)			(4)			(1)			(1)			3			(17)		(17)
As at June 30, 2022	$	658	$	2,187	$	2,989	$	455		$	2,054		$	12		$	138		$	850		$	412	$	9,755
Interests held by third parties	75% - 78%		43% - 60%		23% - 71%		75		%	53		%	0.3		%	25		%	33		%	0.3% - 30%

(1) During the year, the company issued additional shares to a partly-owned subsidiary of Brookfield Renewable. Refer to Note 15 – Commitments, contingencies and guarantees in the unaudited interim consolidated financial statements for further details.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 24

9. BEPC EXCHANGEABLE SHARES, BEPC CLASS B SHARES AND BEPC CLASS C SHARES

The BEPC exchangeable shares and class B shares are classified as liabilities due to their exchange and cash redemption features. As at June 30, 2022, the BEPC exchangeable shares and class B shares were remeasured to $34.80 per share to reflect the NYSE closing price of a BEP unit. Remeasurement gains or losses associated with these shares are recorded in the interim consolidated statements of income (loss). During the three and six months ended June 30, 2022, our shareholders exchanged 4,743 and 8,084 BEPC exchangeable shares, respectively for an equal number of BEP units resulting in a decrease of less than $1 million to our financial liability (2021: 6,033 and 9,642 shares, respectively resulting in a decrease of less than $1 million). During the three and six months ended June 30, 2022, the company declared and paid dividends of $55 million and $110 million, respectively (2021: $52 million and $104 million, respectively) on its BEPC exchangeable shares outstanding. Dividends on BEPC exchangeable shares are presented as interest expense in the interim consolidated statements of income.

The following table provides a continuity schedule of outstanding BEPC exchangeable and class B shares along with the corresponding liability and remeasurement gains and losses.

	BEPC exchangeable shares outstanding (units)	BEPC class B shares outstanding (units)	BEPC exchangeable and BEPC class B shares ( million)
Balance, as at December 31, 2021	172,203,342	165
Share issuance	27,064	—	1
Share exchanges	(8,084)	—	—
Remeasurement of liability	—	—	(171)
Balance, as at June 30, 2022	172,222,322	165

All values are in US Dollars.

Similar to BEPC exchangeable shares and BEPC class B shares, BEPC class C shares are classified as liabilities due to their cash redemption feature. However, BEPC class C shares, the most subordinated class of all common shares, meet certain qualifying criteria and are presented as equity instruments given the narrow scope presentation exceptions existing in IAS 32. There are 189.6 million BEPC class C shares issued and outstanding as at June 30, 2022.

In December 2021, the company renewed its normal course issuer bid for its outstanding BEPC exchangeable shares. The company is authorized to repurchase up to 8.6 million BEPC exchangeable shares, representing 5% of its issued and outstanding BEPC exchangeable shares. The bids will expire on December 15, 2022, or earlier should the company complete its repurchases prior to such date. There were no BEPC exchangeable shares repurchased during the three and six months ended June 30, 2022.

10. EQUITY-ACCOUNTED INVESTMENTS

The following are the company’s equity-accounted investments for the six months ended June 30, 2022:

(MILLIONS)	June 30, 2022
Opening balance	$	455
Share of net loss	(1)
Share of other comprehensive income	1
Dividends received	(2)
Foreign exchange translation and other	1
Ending balance	$	454

11. CASH AND CASH EQUIVALENTS

The company’s cash and cash equivalents are as follows:

(MILLIONS)	June 30, 2022		December 31, 2021
Cash	$	567	$	405
Short-term deposits	4		5
	$	571	$	410	Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
---	---	---
		Page 25

12. RESTRICTED CASH

The company’s restricted cash is as follows:

(MILLIONS)	June 30, 2022		December 31, 2021
Operations	$	82	$	80
Credit obligations	74		67
Development projects	146		50
Total	302		197
Less: non-current	(51)		(51)
Current	$	251	$	146

13. TRADE RECEIVABLES AND OTHER CURRENT ASSETS

The company's trade receivables and other current assets are as follows:

(MILLIONS)	June 30, 2022		December 31, 2021
Trade receivables	$	457	$	502
Collateral deposits(1)	733		434
Prepaids and other	71		83
Income tax receivables	10		30
Inventory	21		20
Other short-term receivables	87		77
	$	1,379	$	1,146

(1)Collateral deposits are related to energy derivative contracts the company enters into in order to mitigate the exposure to wholesale market electricity prices on the future sale of uncontracted generation, as part of the company's risk management strategy.

The company primarily receives payments monthly for invoiced PPA revenues and has no significant aged receivables as of the reporting date. Receivables from contracts with customers are reflected in Trade receivables.

14. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

The company's accounts payable and accrued liabilities are as follows:

(MILLIONS)	June 30, 2022		December 31, 2021
Operating accrued liabilities	$	196	$	195
Accounts payable	108		118
Interest payable on borrowings	82		71
BEPC exchangeable shares distributions payable(1)	14		16
Current portion of lease liabilities	23		25
Other	50		27
	$	473	$	452

(1)Includes amounts payable only to external shareholders. Amounts payable to Brookfield and the partnership are included in due to related parties.

15. COMMITMENTS, CONTINGENCIES AND GUARANTEES

Commitments

In the course of its operations, the company has entered into agreements for the use of water, land and dams. Payment under those agreements varies with the amount of power generated. The various agreements can be renewed and are extendable up to 2089.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 26

In the normal course of business, the company will enter into capital expenditure commitments which primarily relate to contracted project costs for various growth initiatives. As at June 30, 2022, the company had $675 million (2021: $392 million) of capital expenditure commitments of which $394 million is payable in 2022, $262 million is payable in 2023 , $17 million is payable in 2024 to 2027, and $2 million thereafter.

The company, together with institutional partners, entered into a commitment to invest COP 153 billion ($37 million) to acquire a 38 MW portfolio of solar development projects in Colombia. The transaction is expected to close in the second half of 2022, subject to customary closing conditions, with the company expected to hold a 22% interest.

Brookfield Renewable, together with institutional partners, agreed to acquire a high-quality approximately 600 MW late-stage greenfield solar development project in Brazil, for a total investment of approximately $186 million (approximately $47 million net to Brookfield Renewable). The transaction is expected to close in second half of 2022, subject to customary closing conditions, with Brookfield Renewable holding a 25% interest.

An integral part of the company’s strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit the company’s profile. In the normal course of business, the company has made commitments to Brookfield-sponsored private equity funds to participate in these target acquisitions in the future, if and when identified. From time to time, in order to facilitate investment activities in a timely and efficient manner, the company will fund deposits or incur other costs and expenses (including by use of loan facilities to consummate, support, guarantee or issue letters of credit) in respect of an investment that ultimately will be shared with or made entirely by Brookfield sponsored vehicles, consortiums and/or partnerships (including private funds, joint ventures and similar arrangements), the company, or by co-investors.

Contingencies

The company and its subsidiaries are subject to various legal proceedings, arbitrations and actions arising in the normal course of business. While the final outcome of such legal proceedings and actions cannot be predicted with certainty, it is the opinion of management that the resolution of such proceedings and actions will not have a material impact on the company’s consolidated financial position or results of operations.

The company’s subsidiaries themselves have provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance.

The company, along with institutional investors, has provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance as it relates to interests in the Brookfield Americas Infrastructure Fund, the Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV and Brookfield Global Transition Fund. The company’s subsidiaries have similarly provided letters of credit, which include, but are not limited to, guarantees for debt service reserves, capital reserves, construction completion and performance.

Letters of credit issued by the company’s subsidiaries as at June 30, 2022 were $766 million (2021: $698 million).

Guarantees

In the normal course of operations, the company executes agreements that provide for indemnification and guarantees to third-parties of transactions such as business dispositions, capital project purchases, business acquisitions, sales and purchases of assets and services, and the transfer of tax credits or renewable energy grants from tax equity partnerships. The company has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings and guarantee agreements prevents the company from making a reasonable estimate of the maximum potential amount that the company could be required to pay third parties as the agreements do not always specify a maximum amount and the amounts are dependent upon the outcome of future contingent events, the nature and likelihood of which cannot be determined at this time.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 27

BRP Holdings (Canada) Inc. under its U.S. commercial paper program. BRP Bermuda Holdings I Limited (“BBHI”) and BEP Subco Inc. subsidiaries of the company have guaranteed the perpetual subordinated notes issued by Brookfield BRP Holdings (Canada) Inc. These arrangements do not have or are not reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

16. RELATED PARTY TRANSACTIONS

The company’s related party transactions are recorded at the exchange amount. The company’s related party transactions are primarily with the partnership and Brookfield.

Brookfield has provided a $400 million committed unsecured revolving credit facility maturing in December 2022 and the draws bear interest at LIBOR plus 1.8%. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield. Brookfield may from time to time place funds on deposit with the company which are repayable on demand including any interest accrued. There were nil funds placed on deposit with the company as at June 30, 2022 (December 31, 2021: nil). The interest expense on the Brookfield revolving credit facility and deposit for the three and six months ended June 30, 2022 totaled nil and less than $1 million (2021: nil and $1 million, respectively).

From time to time, Brookfield Asset Management Reinsurance Partners L.P. (“Brookfield Reinsurance”), an associate of the company, may take part in financings of the company, alongside other market participants. Such financings are non-recourse to the company and are recorded within Non-recourse borrowings on the consolidated statements of financial position. As at June 30, 2022, $15 million of non-recourse borrowings is due to Brookfield Reinsurance (2021: nil).

Other Amendments

During the year, a subsidiary of the company transferred its power agency agreements related to certain of the partnership’s Canadian assets to Evolugen Trading and Marketing LP (“ETMLP”), a subsidiary of the partnership.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 28

The following table reflects the related party agreements and transactions for the three and six months ended June 30 in the interim consolidated statements of income:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Revenues
Power purchase and revenue agreements	$	20	$	35	$	59	$	108
Other income
Interest income	$	3	$	—	$	5	$	—
Direct operating costs
Energy purchases(1)	$	(8)	$	(9)	$	(12)	$	(13)
Energy marketing fee & other services	(2)		(3)		(7)		(4)
Insurance services(2)	—		(4)		—		(9)
	$	(10)	$	(16)	$	(19)	$	(26)
Interest expense
Borrowings	$	(6)	$	(12)	$	(10)	$	(12)
Other related party services	$	(1)	$	(1)	$	(2)	$	(2)
Management service agreement	$	(43)	$	(47)	$	(95)	$	(102)

(1)Certain subsidiaries that the company controls, through a voting agreement, have entered into agreements to appoint the partnership as their agent in entering into certain derivative transactions with external counterparties to hedge against fluctuations in power purchase prices. For the three and six months ended June 30, 2021, the company recognized nil and $62 million gains, respectively associated with agency arrangement which have been excluded from energy purchases. As of April 1, 2021, the agency arrangements were transferred from the partnership to the company.

(2)Prior to November 2021, insurance services were paid to external insurance service providers through subsidiaries of Brookfield Asset Management. The fees paid to the subsidiaries of Brookfield Asset Management in 2021 were nil. As of November 2021, Brookfield, through a regulated subsidiary, began providing reinsurance coverage to third-party commercial insurers for the benefits of certain of the company’s entities in North America. The premiums and claims paid are not included in the table above.

Brookfield Renewable Corporation	Interim Consolidated Financial Statements and Notes	June 30, 2022
		Page 29
GENERAL INFORMATION
---	---
Corporate Office<br><br>250 Vesey Street<br><br>New York, NY<br><br>United States<br><br>Tel: (441) 294-3304<br><br>Fax: (441) 516-1988<br><br>https://bep.brookfield.com/bepc<br><br>Officers of Brookfield Renewable Corporation<br><br>Connor Teskey<br><br>Chief Executive Officer<br><br>Wyatt Hartley<br><br>Chief Financial Officer<br><br>Transfer Agent & Registrar<br><br>Computershare Trust Company of Canada<br><br>100 University Avenue<br><br>9th floor<br><br>Toronto, Ontario, M5J 2Y1<br><br>Tel Toll Free: (800) 564-6253<br><br>Fax Toll Free: (888) 453-0330<br><br>www.computershare.com	Directors of Brookfield Renewable Corporation<br><br>Jeffrey Blidner<br><br>Eleazar de Carvalho Filho<br><br>Scott Cutler<br><br>Nancy Dorn<br><br>David Mann<br><br>Lou Maroun<br><br>Patricia Zuccotti<br><br>Stephen Westwell<br><br>Randy MacEwen<br><br>Dr. Sarah Deasley<br><br>Exchange Listing<br><br>NYSE: BEPC (share unit)<br><br>TSX: BEPC (share unit)<br><br>Investor Information<br><br>Visit Brookfield Renewable Corporation online at<br><br>https://bep.brookfield.com/bepc for more information. For detailed and up-to-date news and information, please visit the News Release section.<br><br>Additional financial information is filed electronically with various securities regulators in United States and Canada through EDGAR at www.sec.gov and through SEDAR at www.sedar.com.<br><br>Shareholder enquiries should be directed to the Investor Relations Department at (416) 649-8172 or<br><br>enquiries@brookfieldrenewable.com

Document

Management’s Discussion and Analysis for
the three and six months ended June 30, 2022

The following Management’s Discussion and Analysis (“MD&A”) for the three and six months ended June 30, 2022 is provided as of August 5, 2022. Unless the context indicates or requires otherwise, the terms, “we”, “us”, and “our company” mean BEPC and its controlled entities. BEPC is an indirect controlled subsidiary of Brookfield Renewable Partners L.P. ("BEP", or collectively with its subsidiaries, including our company, "Brookfield Renewable")(NYSE: BEP; TSX:BEP.UN). Unless the context indicates or requires otherwise, the "partnership" means Brookfield Renewable and its controlled subsidiaries, excluding our company. The ultimate parent of Brookfield Renewable and Brookfield Renewable Corporation is Brookfield Asset Management Inc. (“Brookfield Asset Management”). Brookfield Asset Management and its subsidiaries, other than Brookfield Renewable, are also individually and collectively referred to as “Brookfield” in this Management’s Discussion and Analysis.

In addition to historical information, this MD&A contains forward-looking statements. Readers are cautioned that these forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. See “Cautionary Statements Regarding Forward-Looking Statements”.

BEPC’s unaudited interim consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”), which require estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities as at the date of the financial statements and the amounts of revenue and expense during the reporting periods.

References to $, C$, €, R$, and COP are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais and Colombian pesos, respectively. Unless otherwise indicated, all dollar amounts are expressed in U.S. dollars.

For a description on our operational and segmented information and for the non-IFRS financial measures we use to explain our financial results see “Part 8 – Presentation to Stakeholders and Performance Measurement”. For a reconciliation of the non-IFRS financial measures to the most comparable IFRS financial measures, see “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures”. This Management’s Discussion and Analysis contains forward-looking information within the meaning of U.S. and Canadian securities laws. Refer to – “Part 9 – Cautionary Statements” for cautionary statements regarding forward-looking statements and the use of non-IFRS measures. Our Annual Report and additional information filed with the Securities Exchange Commission (“SEC”) and with securities regulators in Canada are available on our website (https://bep.brookfield.com), on the SEC’s website (www.sec.gov/edgar.shtml), or on SEDAR (www.sedar.com).

Organization of the Management’s Discussion and Analysis
Part 1 – Overview	3		Part 5 – Liquidity and Capital Resources Continued
			Consolidated statements of cash flows		16
Part 2 – Financial Performance Review on Consolidated Information	4		Shares and units outstanding		17
		Contractual obligations		18
			Off-statement of financial position arrangements		18
Part 3 – Additional Consolidated Financial Information	6
Summary consolidated statements of financial position	6		Part 6 – Selected Quarterly Information		19
Related party transactions	6
			Part 7 – Critical Estimates, Accounting Policies, and Internal Controls		24
Part 4 – Financial Performance Review on Proportionate Information	8
		Part 8 – Presentation to Stakeholders and Performance Measurement		26
Proportionate results for the three months ended June 30	8
Reconciliation of non-IFRS measures	11		Part 9 – Cautionary Statements		29
Part 5 – Liquidity and Capital Resources	14
Available liquidity	14
Dividend policy	14
Borrowings	15
Capital expenditure	16

BUSINESS OVERVIEW

BEPC is a Canadian corporation incorporated on September 9, 2019 under the laws of British Columbia. Our company was established by Brookfield Renewable to be an alternative investment vehicle for investors who prefer owning securities through a corporate structure. While our operations are primarily located in the United States, Brazil, Colombia, and Europe, shareholders will, on economic terms, have exposure to all regions BEP operates in as a result of the exchange feature attaching to the Class A exchangeable subordinate voting shares ("BEPC exchangeable shares"), whereby BEPC will have the option to meet an exchange request by delivering cash or non-voting limited partnership units of BEP (“LP units”).

The BEPC exchangeable shares of our company are structured with the intention of being economically equivalent to the LP units. We believe economic equivalence is achieved through identical dividends and distributions on the BEPC exchangeable shares and the LP units and each BEPC exchangeable share being exchangeable at the option of the holder for one LP unit at any time. Given the economic equivalence, we expect that the market price of the BEPC exchangeable shares will be significantly impacted by the market price of the LP units and the combined business performance of our company and Brookfield Renewable as a whole. In addition to carefully considering the disclosure made in this document, shareholders are strongly encouraged to carefully review the partnership’s periodic reporting. The partnership is required to file reports, including annual reports on Form 20-F, and other information with the United States Securities and Exchange Commission (the “SEC”). The partnership’s SEC filings are available to the public from the SEC’s website at http://www.sec.gov. Copies of documents that have been filed with the Canadian securities authorities can be obtained at www.sedar.com. Information about the partnership, including its SEC filings, is also available on its website at https://bep.brookfield.com. The information found on, or accessible through, https://bep.brookfield.com is not incorporated into and does not form a part of this MD&A.

Our company, our subsidiaries and Brookfield Renewable, target a total return of 12% to 15% per annum on the renewable assets that it owns, measured over the long-term. Our group intends to generate this return from cash flows from our operations plus growth through investments in upgrades and expansions of our asset base, as well as acquisitions and capital recycling initiatives. Brookfield Renewable determines its distributions based primarily on an assessment of its operating performance. Our group uses Funds From Operations (“FFO”) to assess operating performance and can be used on a per unit basis as a proxy for future distribution growth over the long-term. For further details, see the “Performance Disclosures” section of this MD&A.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 3

The following table reflects key financial data for the three and six months ended June 30:

	Three months ended June 30			Six months ended June 30
(MILLIONS, EXCEPT AS NOTED)	2022	2021		2022		2021
Revenues		$	817	$	1,926	$	1,656
Direct operating costs	(296)	(249)		(587)		(587)
Management service costs	(43)	(47)		(95)		(102)
Interest expense	(255)	(220)		(483)		(440)
Depreciation	(286)	(275)		(582)		(565)
Remeasurement of BEPC exchangeable and BEPC class B shares	1,080	694		171		788
Income tax expense	(70)	(16)		(108)		(12)
Net income		$	659	$	255	$	597
	Average FX rates to
€	0.94	0.83		0.92		0.83
R$	4.92	5.30		5.08		5.38
COP	3,914	3,690		3,914		3,622

All values are in US Dollars.

Variance Analysis For The Three Months Ended June 30, 2022

Revenues totaling $997 million represents an increase of $180 million over the same period in the prior year. Recently acquired and commissioned facilities contributed 428 GWh of generation and $30 million to revenue which was partly offset by recently completed asset sales that reduced generation by 280 GWh and revenue by $28 million. On a same store, constant currency basis, revenue increased by $197 million primarily as we benefited from higher realized prices across most markets on the back of inflation escalation and higher global power prices, along with strong hydroelectric generation at our United States and Colombian fleet during the quarter.

The strengthening of the U.S. dollar relative to the same period in the prior year across most currencies decreased revenues by $19 million, which was partly offset by $11 million favorable foreign exchange impact on our operating and interest expenses for the quarter.

Direct operating costs totaling $296 million represents an increase of $47 million over the same period in the prior year as the benefit from cost saving initiatives across our business was more than offset by additional costs from our recently acquired and commissioned facilities and higher power purchases in Colombia, which are passed through to our customers.

Management service costs totaling $43 million represents a decrease of $4 million over the same period in the prior year due to the movement in the LP unit and BEPC exchangeable share price during the period.

Interest expense totaling $255 million represents an increase of $35 million over the same period in the prior year due to growth in our portfolio and accelerated financing activities in South America to fund the growth of our business.

Remeasurement of BEPC exchangeable shares resulted in a $1,080 million gain due to the movement in the LP unit price during the period.

Depreciation expense totaling $286 million represents an increase of $11 million over the same period in the prior year due to the growth of our business.

Net income totaling $1,137 million represents a increase of $478 million over the same period in the prior year due to the above noted items.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 4

Variance Analysis For The Six Months Ended June 30, 2022

Revenues totaling $1,926 million represents an increase of $270 million over the same period in the prior year. Recently acquired and commissioned facilities contributed 854 GWh of generation and $62 million to revenue which was partly offset by recently completed asset sales that reduced generation by 483 GWh and revenue by $48 million. On a same store, constant currency basis, revenue increased by $295 million primarily due to higher realized revenue per MWh across most markets on the back of inflation indexation, recontracting initiatives and higher global power prices.

The strengthening of the U.S. dollar relative to the same period in the prior year across most of the currencies decreased revenue by $39 million, which was partly offset by $24 million favorable foreign exchange impact on our operating and interest expenses for the year.

Direct operating costs totaling $587 million is consistent with the same period in the prior year as the benefit from cost-saving initiatives across our business, recently completed asset sales and the impact from the Texas winter storm in the prior year was offset by additional costs from our recently acquired and commissioned facilities and higher power purchases in Colombia, which are passed through to our customers.

Management service costs totaling $95 million represents a decrease of $7 million over the same period in the prior year due to the movement in the LP unit and BEPC exchangeable share price during the period.

Interest expense totaling $483 million represents an increase of $43 million over the same period in the prior year due to the growth in our portfolio and accelerated financing activities in South America to fund the growth of our business.

Remeasurement of BEPC exchangeable shares resulted in a $171 million gain due to the movement in the LP unit price during the period.

Depreciation expense totaling $582 million represents an increase of $17 million over the same period in the prior year due to the growth of our business.

Net income totaling $255 million represents a decrease of $342 million compared to the same period in the prior year due to the above noted items.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 5

SUMMARY CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

The following table provides a summary of the key line items on the unaudited interim consolidated statements of financial position:

(MILLIONS)	June 30, 2022
Current assets	2,642
Equity-accounted investments	454
Property, plant and equipment, at fair value	37,258
Total assets	41,769
Non-recourse borrowings	13,956
Deferred income tax liabilities	5,017
BEPC exchangeable shares and class B shares	5,993
Total equity in net asset	13,828
Total liabilities and equity	41,769
	Spot FX rates to
€	0.95
R$	5.24
COP	4,127

All values are in US Dollars.

Property, plant and equipment

Property, plant and equipment totaled $37.3 billion as at June 30, 2022 compared to $37.9 billion as at December 31, 2021. The $0.6 billion decrease was primarily attributable to sale of a 36 MW operating hydroelectric portfolio in Brazil which decreased property, plant and equipment by $0.1 billion, and the strengthening of the U.S. dollar across most of the currencies which decreased property, plant and equipment by $0.4 billion and depreciation expense associated with property, plant and equipment of $0.6 billion. The decreases were partially offset by our continued investment in development of power generating assets that increased property, plant and equipment by $0.5 billion.

RELATED PARTY TRANSACTIONS

Our company’s related party transactions are in the normal course of business, are recorded at the exchange amount, and are primarily with the partnership and Brookfield.

Our company sells electricity to Brookfield through a single long-term PPA across our New York hydroelectric facilities.

Brookfield has provided a $400 million committed unsecured revolving credit facility maturing in December 2022 and the draws bear interest at London Interbank Offered Rate plus 1.8%. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield. Brookfield may from time to time place funds on deposit with the company which are repayable on demand including any interest accrued. There were nil funds placed on deposit with the company as at June 30, 2022 (December 31, 2021: nil). The interest expense on the Brookfield revolving credit facility and deposit for the three and six months ended June 30, 2022 totaled nil and less than $1 million (2021: nil and $1 million, respectively).

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 6

In addition, our company has executed, amended, or terminated other agreements with the partnership and Brookfield that are described in Note 27 - Related party transactions in the company’s December 31, 2021 audited consolidated financial statements.

The following table reflects the related party agreements and transactions in the unaudited interim consolidated statements of income (loss) for the three and six months ended June 30:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Revenues
Power purchase and revenue agreements	$	20	$	35	$	59	$	108
Other income
Interest income	$	3	$	—	$	5	$	—
Direct operating costs
Energy purchases(1)	$	(8)	$	(9)	$	(12)	$	(13)
Energy marketing fee & other services	(2)		(3)		(7)		(4)
Insurance services(2)	—		(4)		—		(9)
	$	(10)	$	(16)	$	(19)	$	(26)
Interest expense
Borrowings	$	(6)	$	(12)	$	(10)	$	(12)
Other related party services	$	(1)	$	(1)	$	(2)	$	(2)
Management service agreement	$	(43)	$	(47)	$	(95)	$	(102)

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 7

SEGMENTED DISCLOSURES

Segmented information is prepared on the same basis that our company's chief operating decision maker, which we refer to as "CODM" manages our company, evaluates financial results, and makes key operating decisions. See "Part 8 – Presentation to Stakeholders and Performance Measurement" for information on segments and an explanation on the calculation and relevance of proportionate information.

PROPORTIONATE RESULTS FOR THE THREE MONTHS ENDED JUNE 30

The following chart reflects the generation and summary financial figures on a proportionate basis for the three months ended June 30:

	(GWh)		(MILLIONS)
	Actual Generation		Revenues				Adjusted EBITDA(2)				Funds From Operations(2)
	2022	2021	2022		2021		2022		2021		2022		2021
Hydroelectric	3,974	3,611	$	307	$	243	$	202	$	157	$	147	$	121
Wind	483	578	43		47		33		39		25		27
Solar	238	227	51		49		49		38		36		25
Distributed energy & sustainable solutions(1)	193	224	37		34		21		22		17		17
Corporate	—	—	—		—		(2)		—		(44)		(51)
Total	4,888	4,640	$	438	$	373	$	303	$	256	$	181	$	139

(1)Actual generation includes 104 GWh (2021: 113 GWh) from facilities that do not have a corresponding long-term average. See Part 8 – Presentation to Stakeholders and Performance Measurement for why we do not consider long-term average for certain of our facilities.

(2)Non-IFRS measures. For reconciliation to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 8

HYDROELECTRIC OPERATIONS ON PROPORTIONATE BASIS

The following table presents our proportionate results for Hydroelectric operations for the three months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Revenue	$	307	$	243
Other income	4		10
Direct operating costs	(109)		(96)
Adjusted EBITDA(1)	202		157
Interest expense	(46)		(31)
Current income taxes	(9)		(5)
Funds From Operations	$	147	$	121
Generation (GWh) - actual	3,974		3,611

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see “Reconciliation of Non-IFRS Measures” in this Management’s Discussion and Analysis.

Funds From Operations at our Hydroelectric business was $147 million versus $121 million in the prior year due to the benefit from the acquisition of additional 149 MW of hydroelectric capacity in Colombia, higher generation that was 10% above prior year, and higher revenue per MWh due to strong market pricing environment and inflation indexation on our contracted generation across our fleet.

WIND OPERATIONS ON PROPORTIONATE BASIS

The following table presents our proportionate results for Wind operations for the three months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Revenue	$	43	$	47
Other income	3		—
Direct operating costs	(13)		(8)
Adjusted EBITDA(1)	33		39
Interest expense	(7)		(10)
Current income taxes	(1)		(2)
Funds From Operations	$	25	$	27
Generation (GWh) - actual	483		578

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see “Reconciliation of Non-IFRS Measures” in this Management’s Discussion and Analysis.

Funds From Operations at our Wind business was $25 million versus $27 million in the prior year. On a same store basis, net of asset sales ($8 million and 143 GWh), Funds From Operations was higher than prior year primarily due to higher market prices in Spain partly offset by lower resources in Brazil.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 9

SOLAR OPERATIONS ON PROPORTIONATE BASIS

The following table presents our proportionate results for Solar operations for the three months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Revenue	$	51	$	49
Other income	9		1
Direct operating costs	(11)		(12)
Adjusted EBITDA(1)	49		38
Interest expense	(14)		(13)
Current income taxes	1		—
Funds From Operations	$	36	$	25
Generation (GWh) – actual	238		227

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see “Reconciliation of Non-IFRS Measures” in this Management’s Discussion and Analysis.

Funds From Operations at our Solar business was $36 million versus $25 million in the prior year. Contributions from our newly commissioned facilities were $1 million and 37 GWh. Funds From Operations was higher than prior year primarily due to higher market prices in Spain.

DISTRIBUTED ENERGY & SUSTAINABLE SOLUTIONS OPERATIONS ON PROPORTIONATE BASIS

The following table presents our proportionate results for Distributed energy & sustainable solutions for the three months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Revenue	$	37	$	34
Direct operating costs	(16)		(12)
Adjusted EBITDA(1)	21		22
Interest expense	(4)		(5)
Funds From Operations	$	17	$	17
Generation (GWh) – actual (2)	193		224

(1)Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure see “Reconciliation of Non-IFRS Measures” in this Management’s Discussion and Analysis.

(2)Actual generation includes 104 GWh (2021: 113 GWh) from facilities that do not have a corresponding long-term average. See Part 8 – Presentation to Stakeholders and Performance Measurement for why we do not consider long-term average for certain of our facilities.

Funds From Operations at our Distributed energy & sustainable solutions business was $17 million consistent with the prior year.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 10

RECONCILIATION OF NON-IFRS MEASURES

The following table reconciles the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the three months ended June 30, 2022:

	Attributable to the partnership
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income	$	124	$	2	$	23	$	7	$	981	$	1,137
Add back or deduct the following:
Depreciation	126		72		63		25		—		286
Deferred income tax expense	16		18		5		2		—		41
Foreign exchange and financial instrument loss (gain)	24		(19)		(8)		2		(2)		(3)
Other(1)	(10)		14		29		2		—		35
Dividends on BEPC exchangeable shares(2)	—		—		—		—		55		55
Remeasurement of BEPC exchangeable and BEPC class B shares	—		—		—		—		(1,080)		(1,080)
Management service costs	—		—		—		—		43		43
Interest expense(2)	116		31		40		12		1		200
Current income tax expense	27		2		—		—		—		29
Amount attributable to equity accounted investments and non-controlling interests(3)	(221)		(87)		(103)		(29)		—		$	(440)
Adjusted EBITDA	$	202	$	33	$	49	$	21	$	(2)	$	303

(1)Other corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and Brookfield Renewable’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included within Adjusted EBITDA.

(2)Total interest expense of $255 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

(3)Amount attributable to equity accounted investments corresponds to the Adjusted EBITDA to the company that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Adjusted EBITDA attributable to non-controlling interest, our company is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our company.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 11

	Attributable to the partnership
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	75	$	(36)	$	19	$	14	$	587	$	659
Add back or deduct the following:
Depreciation	112		81		62		20		—		275
Deferred income tax expense (recovery)	(3)		(3)		(6)		(2)		12		(2)
Foreign exchange and financial instrument loss (gain)	5		16		(3)		3		(3)		18
Other(1)	49		20		(1)		(2)		(2)		64
Dividends on BEPC exchangeable shares(2)	—		—		—		—		52		52
Remeasurement of BEPC exchangeable and BEPC class B shares	—		—		—		—		(694)		(694)
Management service costs	—		—		—		—		47		47
Interest expense(2)	79		37		39		12		1		168
Current income tax expense	16		2		—		—		—		18
Amount attributable to equity accounted investments and non-controlling interests(3)	(176)		(78)		(72)		(23)		—		$	(349)
Adjusted EBITDA	$	157	$	39	$	38	$	22	$	—	$	256

(2)Total interest expense of $220 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

(3)Amount attributable to equity accounted investments corresponds to the adjusted EBITDA to the company that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Adjusted EBITDA attributable to non-controlling interest, our company is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our company.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 12

The following table reconciles non-IFRS financial measures to the most directly comparable IFRS measures. Net income is reconciled to Funds From Operations for the three months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Net income	$	1,137	$	659
Add back or deduct the following:
Depreciation	286		275
Foreign exchange and financial instruments loss (gain)	(3)		18
Deferred income tax expense (recovery)	41		(2)
Other(1)	35		64
Dividends on BEPC exchangeable shares	55		52
Remeasurement of BEPC exchangeable and BEPC class B shares	(1,080)		(694)
Amount attributable to equity accounted investments and non-controlling interest(2)	(290)		(233)
Funds From Operations	$	181	$	139

(1)Other corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and the company’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included in Funds From Operations.

(2)Amount attributable to equity accounted investments corresponds to the Funds From Operations that are generated by its investments in associates and joint ventures accounted for using the equity method. Amounts attributable to non-controlling interest are calculated based on the economic ownership interest held by non-controlling interests in consolidated subsidiaries. By adjusting Funds From Operations attributable to non-controlling interest, our company is able to remove the portion of Funds From Operations earned at non-wholly owned subsidiaries that are not attributable to our company.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 13

AVAILABLE LIQUIDITY

Our company assesses liquidity on a group-wide basis, consistent with the partnership, because shareholders have exposure to a broader base of renewable investments by virtue of the exchange feature of BEPC exchangeable shares. Our group-wide liquidity consisted of the following:

(MILLIONS)	June 30, 2022		December 31, 2021
Our company's share of cash and cash equivalents	$	181	$	136
Authorized credit facilities(1)	2,375		2,375
	2,556		2,511
Available portion of subsidiary credit facilities	191		189
Brookfield Renewable group liquidity on a proportionate basis	1,122		1,369
Available liquidity	$	3,869	$	4,069

(1)Includes the $1,975 million Subordinated Credit Facilities with the partnership and a $400 million revolving credit facility with Brookfield Asset Management.

We operate with sufficient liquidity to enable us to fund growth initiatives, capital expenditures, distributions and withstand sudden adverse changes in economic circumstances or short-term fluctuations in generation. We maintain a strong, investment grade balance sheet characterized by a conservative capital structure, access to multiple funding levers including a focus on capital recycling on an opportunistic basis, and diverse sources of capital. Principal sources of liquidity are cash flows from operations, our credit facilities, upfinancings on non-recourse borrowings and proceeds from the issuance of various securities through public markets.

DIVIDEND POLICY

The BEPC board may declare dividends at its discretion. However, the BEPC exchangeable shares have been structured with the intention of providing an economic return equivalent to the LP units and it is expected that dividends on the BEPC exchangeable shares will be declared at the same time and in the same amount as distributions made on the LP units. In the event dividends are not declared and paid concurrently with a distribution on the LP units, then the undeclared or unpaid amount of such BEPC exchangeable share dividend will accrue and accumulate. Pursuant to the equity commitment agreement, the partnership has also agreed not to declare or pay any distribution on the LP units if on such date our company does not have sufficient funds or other assets to enable the declaration and payment of an equivalent dividend on the BEPC exchangeable shares. See Item 7.B “Related Party Transactions – BEPC relationship with the partnership – Equity Commitment Agreement” of our Form 20-F for the annual period ending December 31, 2021. Brookfield Renewable’s distributions are underpinned by stable, highly regulated and contracted cash flows generated from operations. Brookfield Renewable’s objective is to pay a distribution that is sustainable on a long-term basis and has set its target payout ratio at approximately 70% of Brookfield Renewable’s Funds From Operations.

The board of directors of the general partner of Brookfield Renewable approved a 5% increase in its annual distribution to $1.28 per LP unit, or $0.32 per LP unit quarterly, starting with the distribution paid in March 2022, an increase from $1.22 per LP unit in 2021. This increase reflects the forecasted contribution from Brookfield Renewable's recently commissioned capital projects, as well as the expected cash yield on recent acquisitions. Brookfield Renewable targets a 5% to 9% annual distribution growth in light of growth it foresees in its operations.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 14

BORROWINGS

The composition of debt obligations, overall maturity profile, and average interest rates associated with our borrowings and credit facilities on a proportionate basis is presented in the following table:

	June 30, 2022				December 31, 2021
	Weighted-average				Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest<br><br>rate (%)	Term<br><br>(years)	Total		Interest<br><br>rate (%)	Term<br><br>(years)	Total
Proportionate non-recourse borrowings(1)
Hydroelectric	6.2	8	$	2,804	4.9	8	$	2,720
Wind	4.1	9	723		3.9	9	765
Solar	4.4	13	1,260		3.3	13	1,377
Distributed energy & sustainable solutions	4.2	9	485		3.6	10	461
	5.3	9	5,272		4.2	10	5,323
Proportionate unamortized financing fees, net of unamortized premiums			(17)				(21)
			5,255				5,302
Equity-accounted borrowings			(163)				(161)
Non-controlling interests			8,864				8,371
As per IFRS Statements			$	13,956			$	13,512

(1)See “Part 8 – Presentation to Stakeholders and Performance Measurement” for information on proportionate debt.

The following table summarizes our undiscounted principal repayments and scheduled amortization on a proportionate basis as at June 30, 2022:

(MILLIONS)	2022		2023		2024		2025		2026		Thereafter		Total
Debt Principal repayments
Non-recourse borrowings
Credit facilities	$	—	$	—	$	4	$	—	$	13	$	—	$	17
Hydroelectric	37		17		70		266		269		1,368		2,027
Wind	—		11		21		—		—		271		303
Solar	15		9		—		—		—		272		296
Distributed energy & sustainable solutions	—		39		2		151		—		96		288
	52		76		97		417		282		2,007		2,931
Amortizing debt principal repayments
Non-recourse borrowings
Hydroelectric	29		75		80		76		83		427		770
Wind	26		49		51		45		41		200		412
Solar	43		71		67		67		65		650		963
Distributed energy & sustainable solutions	14		28		21		14		11		107		195
	112		223		219		202		200		1,384		2,340
Total	$	164	$	299	$	316	$	619	$	482	$	3,391	$	5,271

We remain focused on refinancing near-term facilities on acceptable terms and maintaining a manageable maturity ladder. We do not anticipate material issues in refinancing our borrowings through 2026 on acceptable terms and will do so opportunistically based on the prevailing interest rate environment.

Proportionate debt is presented to assist investors in understanding the capital structure of the underlying investments of our company that are consolidated in its financial statements but are not wholly-owned. When used in conjunction with

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 15

Funds from Operations, proportionate debt is expected to provide useful information as to how our company has financed its businesses at the asset-level. The only difference between consolidated debt presented under IFRS and proportionate debt is the adjustment to remove the share of debt of consolidated investments not attributable to our company and the adjustment to include share of debt attributable to the equity-accounted investments of our company. Management utilizes proportionate debt in understanding the capital structure of the underlying investments that are consolidated in its financial statements but are not wholly-owned. Proportionate debt provides useful information as to how our company has financed its businesses at the asset-level and provides a view into the return on the capital that it invests at a given degree of leverage.

CAPITAL EXPENDITURES

We fund growth capital expenditures with cash flow generated from operations, supplemented by non-recourse debt sized to investment grade coverage and covenant thresholds. This is designed to ensure that our investments have stable capital structures supported by a substantial level of equity and that cash flows at the asset level can be remitted freely to our company. This strategy also underpins our investment grade profile.

To fund large scale development projects and acquisitions, we will evaluate a variety of capital sources including proceeds from selling mature businesses, in addition to raising money in the capital markets through equity, debt and preferred share issuances. Furthermore, our company has $2.38 billion of committed revolving credit facilities available for investments and acquisitions, as well as funding the equity component of organic growth initiatives. The facilities are intended, and have historically been used, as a bridge to a long-term financing strategy rather than a permanent source of capital.

CONSOLIDATED STATEMENTS OF CASH FLOWS

The following table summarizes the key items in the unaudited interim consolidated statements of cash flows:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Cash flow provided by (used in):
Operating activities before changes in due to or from related parties and net working capital change	$	421	$	265	$	789	$	413
Changes in due to or from related parties	11		37		15		61
Net change in working capital balances	(109)		(407)		(229)		(287)
	323		(105)		575		187
Financing activities	(32)		422		54		365
Investing activities	(260)		(212)		(451)		(489)
Foreign exchange gain (loss) on cash	(18)		4		(17)		(6)
Increase in cash and cash equivalents	$	13	$	109	$	161	$	57

Operating Activities

Cash flows provided by operating activities before changes in due to or from related parties and net working capital changes for the three and six months ended June 30, 2022 totaled $421 million and $789 million, respectively compared to $265 million and $413 million, respectively reflecting strong operating performance of our business during the period.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 16

The net change in working capital balances shown in the unaudited interim consolidated statements of cash flows is comprised of the following:

	Three months ended June 30				Six months ended June 30
(MILLIONS)	2022		2021		2022		2021
Trade receivables and other current assets	$	(169)	$	(154)	$	(273)	$	(161)
Accounts payable and accrued liabilities	51		(262)		31		(233)
Other assets and liabilities	9		9		13		107
	$	(109)	$	(407)	$	(229)	$	(287)

Financing Activities

Cash flows used and provided by financing activities totaled $32 million and $54 million for the three and six months ended June 30, 2022, respectively. The strength of our balance sheet and disciplined access to diverse sources of capital allowed us to fund our growth as discussed below and generate $672 million of net proceeds from non-recourse upfinancings for the six months ended June 30, 2022.

Distributions paid during the three and six months ended June 30, 2022 to the partnership and to participating non-controlling interest in operating subsidiaries were $642 million and $807 million, respectively (2021: $154 million and $290 million, respectively). Our non-controlling interest contributed capital, net of capital returns, of $135 million and $196 million in the three and six months ended June 30, 2022, respectively (2021: $11 million and $38 million, respectively).

Cash flows provided in financing activities totaled $422 million and $365 million for the three and six months ended June 30, 2021, respectively. Our disciplined and investment grade approach to financing our increased investment activity allowed us to generate $461 million of proceeds from non-recourse upfinancing for the six months ended June 30, 2021.

Investing Activities

Cash flows used in investing activities totaled $260 million and $451 million for the three and six months ended June 30, 2022, respectively. Our continued investment in our property, plant and equipment, including the construction of a 1,200 MW solar facility in Brazil, was $246 million and $414 million for the three and six months ended June 30, 2022, respectively.

Cash flows used in investing activities totaled $212 million and $489 million for the three and six months ended June 30, 2021, respectively. Our continued investment in our property, plant and equipment, including the construction of a 1,800 MW of shovel-ready solar development projects in Brazil, the purchase of two 20 MW hydroelectric assets in Colombia and the continuing initiative to repower existing wind power projects, was $166 million and $405 million for the three and six months ended June 30, 2021, respectively.

SHARES AND UNITS OUTSTANDING

Our company’s equity interests include BEPC exchangeable shares held by the public shareholders and BEPC class B and BEPC class C shares held by the partnership. Dividends on each of our BEPC exchangeable shares are expected to be declared and paid at the same time and in the same amount per share as distributions on each LP unit of the partnership. Ownership of BEPC class C shares will entitle holders to receive dividends as and when declared by our board.

Our company’s capital structure is comprised of the following shares:

(UNITS)	June 30, 2022
BEPC exchangeable shares	172,222,322
BEPC class B shares	165
BEPC class C shares	189,600,000

In the three and six months ended June 30, 2022, our company declared dividends of $55 million and $110 million, respectively (2021: $52 million and $104 million, respectively) on its outstanding BEPC exchangeable shares. Dividends on our BEPC exchangeable shares are presented as interest expense in the unaudited interim consolidated financial statements. No dividends were declared on BEPC class B shares or BEPC class C shares during the three and six months ended June 30, 2022.

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Our company may from time-to-time, subject to applicable law, purchase shares for cancellation in the open market, provided that any necessary approval has been obtained.

As at the date of this report, Brookfield and its affiliates, including the partnership, through its ownership of BEPC exchangeable shares and BEPC class B shares, holds an approximate 81.5% voting interest in our company. Holders of BEPC exchangeable shares, excluding Brookfield and its affiliates, including the partnership, hold an approximate 18.5% aggregate voting interest in BEPC.

CONTRACTUAL OBLIGATIONS

Please see Note 15 – Commitments, contingencies and guarantees in the unaudited interim consolidated financial statements, for further details on the following:

•Commitments – Water, land, and dam usage agreements, and agreements and conditions on committed acquisitions of operating portfolios and development projects;

•Contingencies – Legal proceedings, arbitrations and actions arising in the normal course of business, and providing for letters of credit; and

•Guarantees – Nature of all the indemnification undertakings.

OFF-STATEMENT OF FINANCIAL POSITION ARRANGEMENTS

Our company does not have any off-statement of financial position arrangements that have or are reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

Our company issues letters of credit from its corporate credit facilities for general corporate purposes which include, but are not limited to, security deposits, performance bonds and guarantees for reserve accounts. As at June 30, 2022, letters of credit issued amounted to $766 million (2021: $698 million).

Two direct and indirect wholly-owned subsidiaries of our company fully and unconditionally guaranteed (i) any and all present and future unsecured debt securities issued by Brookfield Renewable Partners ULC, in each case as to payment of principal, premium (if any) and interest when and as the same will become due and payable under or in respect of the trust indenture under which such securities are issued, (ii) all present and future senior preferred shares of Brookfield Renewable Power Preferred Equity Inc. (“BRP Equity”) as to the payment of dividends when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of BRP Equity, (iii) certain of BEP’s preferred units, as to payment of distributions when due, the payment of amounts due on redemption and the payment of amounts due on the liquidation, dissolution or winding up of BEP, (iv) the obligations of all present and future bilateral credit facilities established for the benefit of Brookfield Renewable, and (v) notes issued by Brookfield BRP Holdings (Canada) Inc. under its U.S. commercial paper program. BRP Bermuda Holdings I Limited (“BBHI”) and BEP Subco Inc. subsidiaries of the company have guaranteed the perpetual subordinated notes issued by Brookfield BRP Holdings (Canada) Inc. These arrangements do not have or are not reasonably likely to have a material current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.

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HISTORICAL OPERATIONAL AND FINANCIAL INFORMATION RELATED TO THE PARTNERSHIP

As the market price of BEPC exchangeable shares is expected to be significantly impacted by the market price of the LP units and the combined business performance of Brookfield Renewable as a whole, we are providing the following historical operational and financial information regarding Brookfield Renewable. For further details please review the partnership’s periodic reporting referenced in the introductory section of this MD&A.

	2022				2021								2020
(MILLIONS, EXCEPT AS NOTED)	Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3
Revenues	$	1,274	$	1,136	$	1,091	$	966	$	1,019	$	1,020	$	952	$	867
Net loss to Unitholders	1		(78)		(57)		(115)		(63)		(133)		(120)		(162)
Basic and diluted loss per LP unit	(0.03)		(0.16)		(0.12)		(0.21)		(0.13)		(0.24)		(0.22)		(0.29)
Funds From Operations	294		243		214		210		268		242		201		157
Funds From Operations per Unit	0.46		0.38		0.33		0.33		0.42		0.38		0.31		0.25
Distribution per LP Unit	0.32		0.32		0.30		0.30		0.30		0.30		0.29		0.29

SUMMARY FINANCIAL INFORMATION

The following is a summary of unaudited quarterly financial information of our company for the last eight consecutive quarters:

	2022				2021								2020
(MILLIONS, EXCEPT AS NOTED)	Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3
Revenues	$	997	$	929	$	905	$	806	$	817	$	839	$	746	$	724
Net income (loss)	1,137		(882)		180		153		659		(62)		(1,632)		(1,297)
Net income (loss) attributable to the partnership	1,046		(976)		130		214		611		(9)		(1,516)		(1,295)		Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
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		Page 19

PROPORTIONATE RESULTS FOR THE SIX MONTHS ENDED JUNE 30

The following chart reflects the generation and summary financial figures on a proportionate basis for the six months ended June 30:

	(GWh)		(MILLIONS)
	Actual Generation		Revenues				Adjusted EBITDA(1)				Funds From Operations
	2022	2021	2022		2021		2022		2021		2022		2021
Hydroelectric	7,885	7,398	$	573	$	478	$	381	$	316	$	278	$	239
Wind	1,004	1,183	95		113		73		84		58		62
Solar	385	355	90		86		87		65		62		38
Distributed energy & sustainable solutions(1)	351	355	67		65		41		42		32		32
Corporate	—	—	—		—		(2)		—		(96)		(106)
Total	9,625	9,291	$	825	$	742	$	580	$	507	$	334	$	265

(1) Non-IFRS measures. For reconciliation to the most directly comparable IFRS measure see "Reconciliation of Non-IFRS Measures" in this Management's Discussion and Analysis

(2)Actual generation includes 208 GWh (2021: 186 GWh) from facilities that do not have a corresponding long-term average. See Part 8 – Presentation to Stakeholders and Performance Measurement for why we do not consider long-term average for certain of our facilities.

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RECONCILIATION OF NON-IFRS MEASURES

The following table reconciles the non-IFRS financial measures to the most directly comparable IFRS measures. Net income (loss) is reconciled to Adjusted EBITDA for the six months ended June 30, 2022:

	Attributable to the partnership
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	224	$	(1)	$	40	$	29	$	(37)	$	255
Add back or deduct the following:
Depreciation	253		154		125		50		—		582
Deferred income tax expense (recovery)	9		31		(1)		2		—		41
Foreign exchange and financial instrument loss (gain)	76		(21)		(18)		(5)		(2)		30
Other(1)	(4)		37		49		5		(2)		85
Dividends on BEPC exchangeable shares(2)	—		—		—		—		110		110
Remeasurement of BEPC exchangeable and BEPC class B shares	—		—		—		—		(171)		(171)
Management service costs	—		—		—		—		95		95
Interest expense(2)	210		60		77		21		5		373
Current income tax expense (recovery)	63		4		—		—		—		67
Amount attributable to equity accounted investments and non-controlling interests(3)	(450)		(191)		(185)		(61)		—		$	(887)
Adjusted EBITDA	$	381	$	73	$	87	$	41	$	(2)	$	580

(2)Total interest expense of $483 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
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	Attributable to the partnership
(MILLIONS)	Hydroelectric		Wind		Solar		Distributed energy & sustainable solutions		Corporate		Total
Net income (loss)	$	216	$	(90)	$	(17)	$	25	$	463	$	597
Add back or deduct the following:
Depreciation	219		183		124		39		—		565
Deferred income tax expense (recovery)	—		(9)		(2)		(4)		(4)		(19)
Foreign exchange and financial instrument loss (gain)	(9)		22		(23)		(2)		(4)		(16)
Other(1)	49		20		(1)		(2)		(2)		64
Dividends on BEPC exchangeable shares(2)	—		—		—		—		104		104
Remeasurement of BEPC exchangeable and BEPC class B shares	—		—		—		—		(788)		(788)
Management service costs	—		—		—		—		102		102
Interest expense(2)	155		71		80		23		7		336
Current income tax expense (recovery)	27		3		1		—		—		31
Amount attributable to equity accounted investments and non-controlling interests(3)	(342)		(143)		(124)		(45)		—		$	(654)
Adjusted EBITDA	$	315	$	57	$	38	$	34	$	(122)	$	322

(2)Total interest expense of $440 million is comprised of amounts on Interest expense and Dividends on BEPC exchangeable shares.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
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The following table reconciles non-IFRS financial measures to the most directly comparable IFRS measures. Net income is reconciled to Funds From Operations for the six months ended June 30:

(MILLIONS, EXCEPT AS NOTED)	2022		2021
Net income	$	255	$	597
Add back or deduct the following:
Depreciation	582		565
Foreign exchange and financial instruments loss (gain)	30		(16)
Deferred income tax expense (recovery)	41		(19)
Other(1)	85		64
Dividends on BEPC exchangeable shares	110		104
Remeasurement of BEPC exchangeable and BEPC class B shares	(171)		(788)
Amount attributable to equity accounted investments and non-controlling interest(2)	(598)		(242)
Funds From Operations	$	334	265

(1)Other corresponds to amounts that are not related to the revenue earning activities and are not normal, recurring cash operating expenses necessary for business operations. Other balance also includes derivative and other revaluations and settlements, gains or losses on debt extinguishment/modification, transaction costs, legal, provisions, amortization of concession assets and the company’s economic share of foreign currency hedges and realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term that are included in Funds From Operations.

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CRITICAL ESTIMATES AND CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES

The unaudited interim consolidated financial statements are prepared in accordance with IFRS, which require the use of estimates and judgments in reporting assets, liabilities, revenues, expenses and contingencies. In the judgment of management, none of the estimates outlined in Note 1 – Basis of presentation and significant accounting policies in the audited consolidated financial statements are considered critical accounting estimates with the exception of the estimates related to the valuation of property, plant and equipment, financial instruments, and the related deferred income tax liabilities. These assumptions include estimates of future electricity prices, discount rates, expected long-term average generation, inflation rates, terminal year, the amount and timing of operating and capital costs, and the income tax rates of future income tax provisions. Estimates also include determination of accruals, purchase price allocations, useful lives, asset valuations, asset impairment testing, deferred tax liabilities, decommissioning retirement obligations and those relevant to the defined benefit pension and non-pension benefit plans. Estimates are based on historical experience, current trends and various other assumptions that are believed to be reasonable under the circumstances.

In making estimates, management relies on external information and observable conditions where possible, supplemented by internal analysis, as required. These estimates have been applied in a manner consistent with that in the prior year and there are no known trends, commitments, events or uncertainties that we believe will materially affect the methodology or assumptions utilized in this MD&A. These estimates are impacted by, among other things, future power prices, movements in interest rates, foreign exchange volatility and other factors, some of which are highly uncertain, as described in the “Risk Factors” section of our Form 20-F for the annual period ended December 31, 2021. The interrelated nature of these factors prevents us from quantifying the overall impact of these movements on our company’s financial statements in a meaningful way. These sources of estimation uncertainty relate in varying degrees to substantially all asset and liability account balances. Actual results could differ from those estimates.

NEW ACCOUNTING STANDARDS

Amendments to IFRS 3 Business Combinations - Reference to the Conceptual Framework

FUTURE CHANGES IN ACCOUNTING POLICIES

Amendments to IAS 1 – Presentation of Financial Statements (“IAS 1”)

IFRS Interpretation Committee Agenda Decision - Demand Deposits with Restriction on Use Arising from a Contract with a Third Party (IAS 7 Statement of Cash Flow)

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
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There are currently no other future changes to IFRS with potential impact on the company.

INTERNAL CONTROL OVER FINANCIAL REPORTING

No changes were made in our internal control over financial reporting during the six months ended June 30, 2022, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PRESENTATION TO PUBLIC STAKEHOLDERS

Actual Generation

For assets acquired, disposed or reached commercial operation during the year, reported generation is calculated from the acquisition, disposition or commercial operation date and is not annualized. Generation on a same store basis refers to the generation of assets that were owned during both periods presented. As it relates to Colombia only, generation includes both hydroelectric and cogeneration facilities. Distributed energy & sustainable solutions includes generation from our distributed generation, pumped storage, North America cogeneration and Brazil biomass assets.

Our risk of a generation shortfall in Brazil continues to be minimized by participation in a hydrological balancing pool administered by the government of Brazil. This program mitigates hydrology risk by assuring that all participants receive, at any particular point in time, an assured energy amount, irrespective of the actual volume of energy generated. The program reallocates energy, transferring surplus energy from those who generated an excess to those who generate less than their assured energy, up to the total generation within the pool. Periodically, low precipitation across the entire country’s system could result in a temporary reduction of generation available for sale. During these periods, we expect that a higher proportion of thermal generation would be needed to balance supply and demand in the country, potentially leading to higher overall spot market prices.

Voting Agreements with Affiliates

Our company has entered into voting agreements with Brookfield and the partnership, whereby our company gained control of the entities that own certain renewable power generating facilities in the United States and Brazil, as well as TerraForm Power. Our company has also entered into a voting agreement with its consortium partners in respect of our Colombian business. The voting agreements provide our company the authority to direct the election of the boards of directors of the relevant entities, among other things, and therefore provide our company with control. Accordingly, our company consolidates the accounts of these entities.

For entities previously controlled by Brookfield Asset Management, the voting agreements entered into do not represent business combinations in accordance with IFRS 3, as all combining businesses are ultimately controlled by Brookfield Asset Management both before and after the transactions were completed. Our company accounts for these transactions involving entities under common control in a manner similar to a pooling of interest, which requires the presentation of pre-voting agreement financial information as if the transactions had always been in place. Refer to Note 1((r))(ii) – Critical judgments in applying accounting policies – Common control transactions in our audited annual consolidated financial statements for our policy on accounting for transactions under common control.

PERFORMANCE MEASUREMENT

Segment Information

Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) distributed energy & sustainable solutions (pumped storage, cogeneration and biomass), and 5) corporate. This best reflects the way in which the CODM reviews results, manages operations and allocates resources.

We report our results in accordance with these segments and present prior period segmented information in a consistent manner. See Note 4 – Segmented information in our unaudited interim consolidated financial statements.

One of our primary business objectives is to generate stable and growing cash flows while minimizing risk for the benefit of all stakeholders. We monitor our performance in this regard through three key metrics — i) Net Income (Loss), ii) Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (“Adjusted EBITDA”), and iii) Funds From Operations.

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It is important to highlight that Adjusted EBITDA and Funds From Operations do not have any standardized meaning prescribed by IFRS and therefore are unlikely to be comparable to similar measures presented by other companies and have limitations as analytical tools. We provide additional information below on how we determine Adjusted EBITDA and Funds From Operations. We also provide reconciliations to Net income (loss). See “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of Non-IFRS Measures”.

Proportionate Information

Reporting to the CODM on the measures utilized to assess performance and allocate resources has been provided on a proportionate basis. Information on a proportionate basis reflects our company’s share from facilities which it accounts for using consolidation and the equity method whereby our company either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a shareholder perspective that the CODM considers important when performing internal analyses and making strategic and operating decisions. The CODM also believes that providing proportionate information helps investors understand the impacts of decisions made by management and financial results that can be allocated to shareholders.

Proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Tables reconciling IFRS data with data presented on a proportionate basis have been disclosed. Segment revenues, other income, direct operating costs, interest expense, depreciation, current and deferred income taxes, and other are items that will differ from results presented in accordance with IFRS as these items (1) include our company’s proportionate share of earnings (loss) from equity-accounted investments attributable to each of the above-noted items, and (2) exclude the proportionate share of earnings (loss) of consolidated investments not held by us apportioned to each of the above-noted items.

The presentation of proportionate results has limitations as an analytical tool, including the following:

•The amounts shown on the individual line items were derived by applying our overall economic ownership interest percentage and do not necessarily represent our legal claim to the assets and liabilities, or the revenues and expenses; and

•Other companies may calculate proportionate results differently than we do.

Because of these limitations, our proportionate financial information should not be considered in isolation or as a substitute for our financial statements as reported under IFRS.

Our company does not control those entities that have not been consolidated and as such, have been presented as equity-accounted investments in its financial statements. The presentation of the assets and liabilities and revenues and expenses do not represent our company’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish our company’s legal claims or exposures to such items.

Unless the context indicates or requires otherwise, information with respect to the MW attributable to our company’s facilities, including development assets, is presented on a consolidated basis, including with respect to facilities whereby our company either controls or jointly controls the applicable facility.

Net Income (Loss)

Net income (loss) is calculated in accordance with IFRS.

Net income (loss) is an important measure of profitability, in particular because it has a standardized meaning under IFRS. The presentation of net income (loss) on an IFRS basis for our business will often lead to the recognition of a loss even though the underlying cash flows generated by the assets are supported by strong margins and stable, long-term power purchase agreements. The primary reason for this is that accounting rules require us to recognize a significantly higher level of depreciation for our assets than we are required to reinvest in the business as sustaining capital expenditures.

Adjusted EBITDA

Adjusted EBITDA is a non-IFRS measure used by investors to analyze the operating performance of companies.

Our company uses Adjusted EBITDA to assess the performance of our company before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash income or loss from equity-accounted investments, distributions to preferred shareholders, preferred limited partnership unit holders, perpetual subordinated noteholders and other typical non-recurring items. Our company adjusts for these factors as they may be non-cash, unusual in nature and/or are not factors used by management for evaluating operating performance. Our company includes realized disposition gains and losses on assets that we developed and/or did not intend to hold over the long-term within Adjusted EBITDA in order to provide additional insight regarding

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
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the performance of investments on a cumulative realized basis, including any unrealized fair value adjustments that were recorded in equity and not otherwise reflected in current period Adjusted EBITDA.

Our company believes that presentation of this measure will enhance an investor’s ability to evaluate our financial and operating performance on an allocable basis.

Funds From Operations

Funds From Operations is a non-IFRS measure used by investors to analyze net earnings from operations without the effects of certain volatile items that generally have no current financial impact or items not directly related to the performance of the business.

Our company uses Funds From Operations to assess the performance of our company before the effects of certain cash items (e.g. acquisition costs and other typical non-recurring cash items) and certain non-cash items (e.g. deferred income taxes, depreciation, non-cash portion of non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, and other non-cash items) as these are not reflective of the performance of the underlying business. In the unaudited interim consolidated financial statements of our company, the revaluation approach is used in accordance with IAS 16, Property, Plant and Equipment, whereby depreciation is determined based on a revalued amount, thereby reducing comparability with peers who do not report under IFRS as issued by the IASB or who do not employ the revaluation approach to measuring property, plant and equipment. Management adds back deferred income taxes on the basis that they do not believe this item reflects the present value of the actual tax obligations that they expect our company to incur over the long-term investment horizon of our company.

Our company believes that analysis and presentation of Funds From Operations on this basis will enhance an investor’s understanding of the performance of the business.

Funds From Operations is not a generally accepted accounting measure under IFRS and therefore may differ from definitions of Funds From Operations used by other entities, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”). Furthermore, this measure is not used by the CODM to assess our company’s liquidity.

Proportionate Debt

Proportionate debt is presented based on the proportionate share of borrowings obligations relating to the investments of our company in various portfolio businesses. The proportionate financial information is not, and is not intended to be, presented in accordance with IFRS. Proportionate debt measures are provided because management believes it assists investors and analysts in estimating the overall performance and understanding the leverage pertaining specifically to our company's share of its invested capital in a given investment. When used in conjunction with proportionate Adjusted EBITDA, proportionate debt is expected to provide useful information as to how our company has financed its businesses at the asset-level. Management believes that the proportionate presentation, when read in conjunction with our company’s reported results under IFRS, including consolidated debt, provides a more meaningful assessment of how the operations of our company are performing and capital is being managed.

The presentation of proportionate results has limitations as an analytical tool, including the following:

•Proportionate debt amounts do not represent the consolidated obligation for debt underlying a consolidated investment. If an individual project does not generate sufficient cash flows to service the entire amount of its debt payments, management may determine, in their discretion, to pay the shortfall through an equity injection to Brookfield Renewable Corporation to avoid defaulting on the obligation. Such a shortfall may not be apparent from or may not equal the difference between aggregate proportionate Adjusted EBITDA for all of the portfolio investments of our company and aggregate proportionate debt for all of the portfolio investments of our company; and

•Other companies may calculate proportionate debt differently.

Because of these limitations, the proportionate financial information of our company should not be considered in isolation or as a substitute for the financial statements of our company as reported under IFRS.

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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report 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 the group. Forward-looking statements in this report include, but are not limited to, statements regarding the quality of our group’s assets and the resiliency of the cash flow they will generate, our anticipated financial performance, future commissioning of assets, contracted portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions, future energy prices and demand for electricity, economic recovery, achieving long-term average generation, project development and capital expenditure costs, diversification of the group’s investor base, energy policies, economic growth, growth potential of the renewable asset class, our future growth prospects and distribution profile, our access to capital and future dividends and distributions made to holders of LP units and BEPC’s exchangeable shares. 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”, “endeavors”, “pursues”, “strives”, “seeks” or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “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 report 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 resource availability, as a result of climate change or otherwise, at any of our group’s facilities; volatility in supply and demand in the energy markets; our group’s inability to re-negotiate or replace expiring PPAs on similar terms; an increase in the amount of uncontracted generation in our group’s portfolio; availability and access to interconnection facilities and transmission systems; concessions and licenses expiring and not being renewed or replaced on similar terms; our group’s 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 our group; increases in the cost of operating our group’s facilities; our group’s failure to comply with conditions in, or our group’s inability to maintain, governmental permits; equipment failures, including relating to wind turbines and solar panels; the unavailability of necessary equipment, including spare parts and components required for project development and significant cost increases relating thereto; dam failures and the costs and potential liabilities associated with such failures; the severity, duration and spread of the COVID-19 outbreak, as well as the direct and indirect impacts that the virus may have; uninsurable losses and higher insurance premiums; changes in regulatory, political, economic and social conditions in the jurisdictions in which we operate; force majeure events; adverse changes in currency exchange rates and our group’s inability to effectively manage foreign currency exposure; health, safety, security and environmental risks; energy marketing risks; the termination of, or a change to, the MRE balancing pool in Brazil; involvement in litigation and other disputes, and governmental and regulatory investigations; counterparties to our group’s contracts not fulfilling their obligations; the time and expense of enforcing contracts against non-performing counterparties and the uncertainty of success; foreign laws or regulation to which our group becomes subject as a result of future acquisitions in new markets; our group’s operations being affected by local communities; our group’s reliance on computerized business systems, which could expose our group to cyber-attacks; newly developed technologies in which our group invests not performing as anticipated; 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; labour disruptions and economically unfavorable collective bargaining agreements; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; our group’s inability to finance its operations due to the status of the capital markets; operating and financial restrictions imposed on our groups by its loan, debt and security agreements; changes to our group’s credit ratings; our group’s inability to identify sufficient investment opportunities and complete transactions; changes to our group’s current business, including through future energy transition investments; our group’s inability to complete all or some of its capital recycling initiatives; the growth of our group’s portfolio and our group’s inability to realize the expected benefits of its transactions or acquisitions; our group’s inability to develop

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 29

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 our group enters into with communities and joint venture partners; Brookfield Asset Management’s election not to source acquisition opportunities for our group and our group’s lack of access to all renewable power acquisitions that Brookfield Asset Management identifies, including by reason of conflicts of interest; our group does not have control over all of its operations or investments; political instability or changes in government policy; some of our group’s acquisitions may be of distressed companies, which may subject our group to increased risks, including the incurrence of legal or other expenses; a decline in the value of our group’s investments in securities, including publicly traded securities of other companies; our group is not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from control within our group’s organizational structure; future sales and issuances of BEP units, preferred units or securities exchangeable for BEP units, including BEPC exchangeable shares, or the perception of such sales or issuances, could depress the trading price of the BEP units or BEPC exchangeable shares; the incurrence of debt at multiple levels within our group’s organizational structure; being deemed an “investment company” under the Investment Company Act of 1940; the effectiveness of our group’s internal controls over financial reporting; our group’s dependence on Brookfield Asset Management and the partnership and Brookfield Asset Management’s significant influence over our group; the departure of some or all of Brookfield Asset Management’s key professionals; our group’s lack of independent means of generating revenue; changes in how Brookfield Asset Management elects to hold its ownership interests in our group; Brookfield Asset Management acting in a way that is not in our group’s best interests or our shareholders; broader impact of climate change; failure of our group’s systems technology; any changes in the market price of the BEP units and BEPC exchangeable shares; the redemption of BEPC exchangeable shares by us at any time or upon notice from the holder of the BEPC class B 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 report 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 most recent Annual Report on Form 20-F and other risks and factors that are described therein.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES

We prepare our financial statements in accordance with IFRS. However, this report also contains references to Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit which are not generally accepted accounting measures standardized under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit used by other entities. In particular, our definition of Funds From Operations may differ from the definition of funds from operations used by other organizations, as well as the definition of funds from operations used by the Real Property Association of Canada (“REALPAC”) and the National Association of Real Estate Investment Trusts, Inc. (“NAREIT”), in part because the NAREIT definition is based on U.S. GAAP, as opposed to IFRS. We believe that Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit are useful supplemental measures that may assist investors in assessing our financial performance. None of Adjusted EBITDA, Funds From Operations or Funds From Operations per Unit should be considered as the sole measure 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. These non-IFRS measures reflect how we manage our business and, in our opinion, enable the reader to better understand our business. For a reconciliation of these non-IFRS financial measures to the most comparable IFRS financial measures, see “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures”.

A reconciliation of net income to Adjusted EBITDA and Funds From Operations is presented in our Management’s Discussion and Analysis. We have also provided a reconciliation of Funds From Operations to net income (loss) in Note 4 – Segmented information in the unaudited interim consolidated financial statements.

Brookfield Renewable Corporation	Management's Discussion and Analysis	June 30, 2022
		Page 30

Document

Exhibit 99.3

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Connor Teskey, Chief Executive Officer of Brookfield Renewable Corporation, certify the following:

1.Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Brookfield Renewable Corporation, (the "issuer") for the interim period ended June 30, 2022.

2.No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3.Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4.Responsibility: The issuer's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers' Annual and Interim Filings, for the issuer.

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

ii.information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

(b)designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer's GAAP.

5.1 Control framework: The control framework the issuer's other certifying officer and I used to design the issuer's ICFR is the Internal Control - Integrated Framework (COSO 2013 Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 ICFR – material weakness relating to design: N/A

5.3 Limitation on scope of design: N/A

6.Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer's ICFR that occurred during the period beginning on April 1, 2022 and ended on June 30, 2022 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.

Date: August 5, 2022
/s/ Connor Teskey
Name:	Connor Teskey
Title:	Chief Executive Officer of Brookfield Renewable Corporation
(Principal Executive Officer)

Document

Exhibit 99.4

FORM 52-109F2

CERTIFICATION OF INTERIM FILINGS

FULL CERTIFICATE

I, Wyatt Hartley, Chief Financial Officer of Brookfield Renewable Corporation, certify the following:

5.Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer's other certifying officer(s) and I have, as at the end of the period covered by the interim filings

(a)designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

i.material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

5.2 ICFR – material weakness relating to design: N/A

5.3 Limitation on scope of design: N/A

Date: August 5, 2022
/s/ Wyatt Hartley
Name:	Wyatt Hartley
Title:	Chief Financial Officer of Brookfield Renewable Corporation
(Principal Executive Officer)