BEPI 0001533232-20-000013 6-K as filed: Aug 7, 2020

OUR OPERATIONS

We invest in renewable assets directly, as well as with institutional partners, joint venture partners and through other arrangements. Our portfolio of assets has approximately 19,300 megawatts ("MW") of capacity and annualized long-term average ("LTA") generation of approximately 57,400 gigawatt hours ("GWh"), in addition to a development pipeline of approximately 18,000 MW, making us one of the largest pure-play public renewable companies in the world. We leverage our extensive operating experience to maintain and enhance the value of assets, grow cash flows on an annual basis and cultivate positive relations with local stakeholders. The table below outlines our portfolio as at June 30, 2020:



	River Systems	Facilities	Capacity (MW)	LTA⁽¹⁾ (GWh)	Storage Capacity (GWh)
Hydroelectric
North America
United States	31	140	3,148	13,503	2,523
Canada	18	29	1,098	3,656	1,261
	49	169	4,246	17,159	3,784
Colombia	6	6	2,732	14,485	3,703
Brazil	27	44	946	4,924	—
	82	219	7,924	36,568	7,487
Wind
North America
United States⁽²⁾	—	27	2,075	6,926	—
Canada	—	4	483	1,437	—
	—	31	2,558	8,363	—
Europe	—	45	1,062	2,365	—
Brazil	—	19	457	1,950	—
Asia	—	9	660	1,650	—
	—	104	4,737	14,328	—

Solar
Utility⁽³⁾	—	97	2,569	5,387	—
Distributed generation⁽⁴⁾	—	4,872	819	1,117	—
	—	4,969	3,388	6,504	—

Storage⁽⁵⁾	2	3	2,688	—	5,220
Other⁽⁶⁾	—	6	580	—	—
	84	5,301	19,317	57,400	12,707

⁽¹⁾

LTA is calculated based on our portfolio as at June 30, 2020, reflecting all facilities on a consolidated basis, including equity-accounted investments, and an annualized basis from the beginning of the year, regardless of the acquisition, disposition or commercial operation date. See "Part 8 – Presentation to Stakeholders and Performance Measurement" for an explanation on our methodology in computing LTA and why we do not consider LTA for our Storage and Other facilities.


⁽²⁾	Includes a battery storage facility in North America (10 MW).


⁽³⁾	Includes four solar facilities (52 MW) in South Africa and Asia that have been presented as Assets held for sale.


⁽⁴⁾	Includes nine fuel cell facilities in North America (10 MW).


⁽⁵⁾	Includes pumped storage in North America (600 MW) and Europe (2,088 MW).


⁽⁶⁾	Includes four biomass facilities in Brazil (175 MW), one cogeneration plant in Colombia (300 MW), one cogeneration plant in North America (105 MW).

The following table presents the annualized long-term average generation of our portfolio as at June 30, 2020 on a consolidated and quarterly basis:



GENERATION (GWh)⁽¹⁾	Q1	Q2	Q3	Q4	Total
Hydroelectric
North America
United States	3,794	3,918	2,525	3,266	13,503
Canada	841	1,064	873	878	3,656
	4,635	4,982	3,398	4,144	17,159
Colombia	3,315	3,614	3,502	4,054	14,485
Brazil	1,215	1,228	1,241	1,240	4,924
	9,165	9,824	8,141	9,438	36,568
Wind
North America
United States	1,877	1,851	1,392	1,806	6,926
Canada	400	345	273	419	1,437
	2,277	2,196	1,665	2,225	8,363
Europe	711	530	455	669	2,365
Brazil	371	494	606	479	1,950
Asia	368	439	454	389	1,650
	3,727	3,659	3,180	3,762	14,328
Solar
Utility⁽²⁾	998	1,704	1,783	902	5,387
Distributed generation	221	342	336	218	1,117
	1,219	2,046	2,119	1,120	6,504
Total	14,111	15,529	13,440	14,320	57,400


⁽¹⁾	LTA is calculated on a consolidated basis, including equity-accounted investments, and an annualized basis from the beginning of the year, regardless of the acquisition or commercial operation date. See "Part 8 – Presentation to Stakeholders and Performance Measurement" for an explanation on our methodology in computing LTA and why we do not consider LTA for our Storage and Other facilities.


⁽²⁾	Includes four solar facilities (52 MW) in South Africa and Asia that have been presented as Assets held for sale.

The following table presents the annualized long-term average generation of our portfolio as at June 30, 2020 on a proportionate and quarterly basis:



GENERATION (GWh)⁽¹⁾	Q1	Q2	Q3	Q4	Total
Hydroelectric
North America
United States	2,614	2,805	1,819	2,293	9,531
Canada	619	775	624	619	2,637
	3,233	3,580	2,443	2,912	12,168
Colombia	798	870	843	978	3,489
Brazil	988	998	1,009	1,009	4,004
	5,019	5,448	4,295	4,899	19,661
Wind⁽²⁾
North America
United States	1,223	1,201	896	1,179	4,499
Canada	376	328	261	394	1,359
	1,599	1,529	1,157	1,573	5,858
Europe	394	294	249	365	1,302
Brazil	126	168	210	165	669
Asia	99	118	121	104	442
	2,218	2,109	1,737	2,207	8,271
Solar⁽²⁾
Utility⁽³⁾	378	668	698	337	2,081
Distributed generation	142	222	219	140	723
	520	890	917	477	2,804
Total	7,757	8,447	6,949	7,583	30,736

⁽¹⁾

LTA is calculated on a proportionate and an annualized basis from the beginning of the year, regardless of the acquisition or commercial operation date. See "Part 8 – Presentation to Stakeholders and Performance Measurement" for an explanation on the calculation and relevance of proportionate information, our methodology in computing LTA and why we do not consider LTA for our Storage and Other facilities.


⁽²⁾	Adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020.


⁽³⁾	Includes four solar facilities (52 MW) in South Africa and Asia that have been presented as Assets held for sale.

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

This Interim Report contains forward-looking information within the meaning of U.S. and Canadian securities laws. We may make such statements in this Interim Report and in other filings with the U.S. Securities and Exchange Commission ("SEC") and with securities regulators in Canada - see "PART 9 - Cautionary Statements". We make use of non-IFRS measures in this Interim Report - see "PART 9 - Cautionary Statements''. This Interim Report, our Form 20-F and additional information filed with the SEC and with securities regulators in Canada are available on our website at https://bep.brookfield.com, on the SEC's website at www.sec.gov or on SEDAR's website at www.sedar.com.



.Letter to Unitholders .

Over the past 20 years, we have built a scale, global renewable power business with over $50 billion of operating assets, an 18,000 megawatt development pipeline and deep expertise across all major renewable technologies. The world continues to be in the early stages of a global transition to the decarbonization of electricity grids. This shift, which is fueled by a push to reduce CO₂ emissions, to meet increasingly stringent carbon reduction targets, and solar and wind power becoming the lowest cost, easiest to build providers of bulk power, will require significant investment over the coming decades. Accordingly, there is considerable room for our business to grow for many years ahead and, as subsidies decline or fall away, the opportunity will increasingly favor investors like ourselves who can drive value and enhance cash flows from our global scale and depth of operating expertise. We believe that we have established ourselves as one of the few entities with the scale, track record and global capabilities to partner with governments and businesses to help them achieve their goal of greening the global electricity grids, while earning a strong return for our investors.

Our solar business has grown substantially over the last five years. Today, we have over 3,000 megawatts of solar in operations and an additional nearly 10,000 megawatts of solar under development. As a result of technology advances and reductions in construction costs, solar can stand on its own without subsidies and more importantly, is now amongst the lowest cost sources of conventional power globally. To put this in perspective, solar costs over the last five years - the period in which we have built our solar business - have gone from over $4 per watt to install, to less than a $1 per watt in almost all jurisdictions around the world.

As a result of these favorable economics, as well as the renewable nature and perpetual source of free energy, we believe it is possible that in ten years from now the majority of the production capacity of Brookfield Renewable will be solar capacity. It is not that we do not believe in wind or hydro but the growth in solar and the ability for us to develop and earn strong risk adjusted returns should enable us to grow our solar operations at a far greater pace. Recently, we executed two transactions that highlight the strengths and scale of our solar capabilities and demonstrate the various ways we approach creating value for our shareholders.

First, we completed the merger of TerraForm Power into Brookfield Renewable on an all-stock basis. TerraForm Power was one of the largest owners of solar globally prior to the bankruptcy of its sponsor in 2016. Given our scale, we were one of the few organizations that could acquire it through the restructuring, and immediately stabilize the business, by implementing an operating plan, and resuming growth. As a result, we have driven significant value in the business, delivering TerraForm Power shareholders, including BEP, a 35% annualized total return and over two times their money since our involvement. The merger is accretive to Brookfield Renewable, strengthens our business in North America and Europe and further enhances our position as one of the largest publicly traded, pure-play renewable power businesses with an equity market capitalization of approximately $20 billion.

The second transaction we executed was to acquire a 1,200 megawatt solar development project in Brazil. This is one of the largest solar development projects in the world and requires both development and energy marketing capabilities to bring the project to completion. The project is 75% contracted, and we intend to leverage our deep energy marketing capabilities to contract the remaining power. In addition, given our global scale, we expect to drive down equipment procurement, installation and operating costs to deliver additional value over time. Accordingly, we expect to achieve approximately 20% returns on this investment. The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.

Additional highlights for the quarter include:


•	Generated FFO of $232 million, up slightly from prior year, and normalized FFO of $241 million, a 19% increase over the prior year, as our sites continue to perform well with high levels of asset



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availability, and we benefited from growth from new acquisitions and development assets coming online;


•	We agreed on transactions to invest over $580 million ($130 million net to BEP) of equity;


•	Our liquidity remains robust at $3.4 billion and our balance sheet remains in excellent shape - with no material debt maturities over the next five years; and


•	So far this year, we generated close to $500 million of proceeds ($85 million net to BEP) from asset recycling initiatives.

Brookfield Renewable Corporation (BEPC)

We completed the special distribution of BEPC shares providing investors with greater flexibility in how they invest in our business. BEPC is listed on the same exchanges as BEP, offering investors the optionality to invest in Brookfield Renewable through either a partnership or Canadian corporation, which we believe should lead to increased demand and enhanced liquidity for our securities.

We completed the special distribution on July 30th by providing unitholders with one share of BEPC for every four units of BEP. We have subsequently seen strong support for BEPC shares in the market, with strong trading volumes over the first week of trading and the share price trading slightly above the BEP unit price. We are very pleased with the launch and positive market reception thus far.

Results from Operations

During the second quarter, we generated FFO of $232 million, or $0.75 per unit, as the business benefited from recent acquisitions, strong operational performance, and execution on margin enhancement initiatives. On a normalized basis, our results are up 19% over last year.

With an increasingly diversified portfolio of operating assets, limited off-taker concentration risk, and a strong contract profile, our cash flows are highly resilient. While generation for the quarter was below the long-term average, driven largely by drier conditions in the New York and Colombia, generation so far this year has been roughly in line with long-term average. As we have reiterated, we expect this type of resource cyclicality, and therefore do not manage the business based on under-or over-performance of generation relative to the long-term average in any given period. Our focus continues to be on diversifying the business, which mitigates exposure to any single resource, market or counterparty.

We continue to be focused on maintaining a highly diversified, investment grade customer base with over 600 customers around the world under long-term power purchase agreements. For example, our commercial and industrial counterparties, which comprise less than 20% of our generation, are well diversified across regions and sectors, with our largest C&I customer representing only 2% of our total contracted generation. Our contract profile remains strong, with 95% of total generation contracted in 2020, and a weighted-average remaining contract length of 15 years. Therefore, our cash flows are well protected from exposure to short-term price volatility and are expected to remain stable over the long-term.

During the quarter, our hydroelectric segment delivered FFO of $193 million. In North America, we remain focused on securing short-term contracts in this low power price environment to retain upside optionality for when prices improve. In our Brazilian and Colombian portfolios, we continue to focus on extending the duration of our contract profile while maintaining a certain portion of uncontracted generation to mitigate hydrology risk. This quarter, we secured 17 new contracts in Latin America for a total of 432 gigawatt-hours per year, including one contract in Colombia with a seven-year term. The weighted-average remaining contract duration is now nine years in Brazil and three years in Colombia.

Our wind and solar segments generated a combined $85 million of FFO, representing a 29% increase over the prior year, as we continue to generate stable revenues from these assets and benefit from the diversification of our fleet and highly contracted cash flows with long duration power purchase agreements. This quarter, we commissioned almost 100 MW of solar projects and secured five long-term PPAs with investment grade counterparties to support our 1,500 MW wind development pipeline in the U.S. and Europe.



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Balance Sheet and Liquidity

Our liquidity position remains strong, with close to $3.4 billion of total available liquidity, which allows us to support our current operations as well as to opportunistically pursue new investments.

Our investment grade balance sheet has no material maturities over the next five years, an average overall debt duration of 10 years, and approximately 80% of our financings are non-recourse to BEP. During the quarter, we executed over $1.1 billion of financings across the business.

We also continued to execute our capital recycling strategy of selling mature, de-risked or non-core assets to lower cost of capital buyers and redeploying the proceeds into higher yielding opportunities. So far this year, we, together with our institutional partners, generated close to $500 million of proceeds ($85 million net to BEP) from these activities.

Outlook

Our business remains resilient, as we continue to actively look for opportunities to grow our portfolio on a value basis. As such, we remain firm in the belief that Brookfield Renewable is one of the strongest, best positioned platforms to contribute to the decarbonization of the globe through investment in multiple renewable technologies. In short, we believe the prospects for the growth of our business are better than they have ever been, and we remain well positioned to achieve our objective of delivering total returns on a per unit basis of 12% to 15% over the long term.

On behalf of the Board and management of Brookfield Renewable, we thank all our unitholders for their ongoing support.

Sincerely,

Sachin Shah

Chief Executive Officer

August 7, 2020



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OUR COMPETITIVE STRENGTHS

Brookfield Renewable Partners L.P. ("Brookfield Renewable") is a globally diversified, multi-technology, owner and operator of renewable power assets.

Our business model is to utilize our global reach to acquire and develop high quality renewable power assets below intrinsic value, finance them on a long-term, low-risk and investment grade basis through a conservative financing strategy and then optimize cash flows by applying our operating expertise to enhance value.

One of the largest, public pure play renewable businesses globally. Brookfield Renewable has a proven track record as a publicly-traded operator and investor in the renewable power sector for over 20 years. Today we have a large, multi-technology and globally diversified portfolio of pure-play renewable assets that are supported by approximately 3,000 experienced operators. Brookfield Renewable invests in renewable assets directly, as well as with institutional partners, joint venture partners and in other arrangements. Our portfolio consists of approximately 19,300 MW of installed capacity largely across four continents, a development pipeline of approximately 18,000 MW⁽¹⁾, and annualized long-term average generation on a proportionate basis of approximately 30,700 GWh.

The following charts illustrate annualized long-term average generation on a proportionate basis:

Helping to accelerate the decarbonization of the electricity girds. As the world transitions to renewable energy and looks to reduce CO2 consumption, we believe we are one of the entities of scale, with the track record and global capabilities to deliver investors a resilient, stable distribution plus meaningful growth through all market cycles. Our carbon footprint is one of the lowest in the sector, and our annual generation of 57 terawatt-hours avoids approximately 28 million metric tons of carbon dioxide emissions annually. As one of the largest issuers of green bonds globally, we offer debt investors the ability to invest in our renewable power portfolio or in particular assets directly. Finally, we offer customers the ability to procure renewable generation across multiple technologies, and in 2020, we have nearly 18,000 gigawatt-hours contracted with commercial and industrial customers, power authorities and utilities alike across all our core regions.

Stable, diversified and high-quality cash flows with attractive long-term value for LP Unitholders. We intend to maintain a highly stable, predictable cash flow profile sourced from a diversified portfolio of low operating cost, long-life hydroelectric, wind and solar assets that sell electricity under long-term, fixed price contracts with creditworthy counterparties. Approximately 95% of our proportionate generation output in 2020 was contracted with high-quality counterparties including public power authorities, load-serving utilities, industrial users or to affiliates of Brookfield. Our power purchase agreements have a weighted-average remaining duration of 15 years, on a proportionate basis, providing long-term cash flow visibility.

⁽¹⁾Includes projects that Brookfield Renewable has entered into an agreement to acquire. Transactions are expected to close in the second half of 2020.



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Strong financial profile and conservative financing strategy. Brookfield Renewable maintains a robust balance sheet, strong investment grade rating, and access to global capital markets to ensure cash flow resiliency through the cycle. Our approach to financing is to raise the majority of our debt in the form of asset-specific, non-recourse borrowings at our subsidiaries on an investment grade basis with no financial maintenance covenants. Substantially all of our debt is either investment grade rated or sized to investment grade. Our corporate debt to total capitalization is 19%, and approximately 80% of our proportionate borrowings are non-recourse. Corporate borrowings and proportionate non-recourse borrowings each have weighted-average terms of approximately ten years, with no material maturities over the next five years. Approximately 90% of our financings are fixed rate, and only 5% of our debt in North America and Europe is exposed to changes in interest rates. Our available liquidity as at June 30, 2020 is over $3 billion of cash and cash equivalents, investments in marketable securities and the available portion of credit facilities.

Best-in class operating expertise. Brookfield Renewable has approximately 3,000 operating employees and over 140 power marketing experts that are located across the globe to help optimize the performance and maximize the returns of all our assets. Our expertise in operating and managing power generation facilities spans over 100 years and includes full operating, development and power marketing capabilities.

Well positioned for cash flow growth. We are focused on driving cash flow growth from existing operations, fully funded by internally generated cash flow, including inflation escalations in our contracts, margin expansion through revenue growth and cost reduction initiatives, and building out our approximately 18,000 MW proprietary development pipeline at premium returns. While we do not rely on acquisitions to achieve our growth targets, our business seeks upside through engagement in mergers and acquisitions on an opportunistic basis. We employ a contrarian strategy, and our global scale and multi-technology capabilities allow us to rotate capital where it is scarce in order to earn strong risk-adjusted returns. We take a disciplined approach to allocating capital into development and acquisitions with a focus on downside protection and preservation of capital. In the last five years, we have deployed close to $2.5 billion in equity as we have invested in, acquired, or commissioned approximately 12,700 MW across hydroelectric, wind, solar and storage facilities. Our ability to develop and acquire assets is strengthened by our established operating and project development teams across the globe, strategic relationship with Brookfield, and our liquidity and capitalization profile. We have, in the past, and may continue in the future to pursue the acquisition or development of assets through arrangements with institutional investors in Brookfield sponsored or co-sponsored partnerships.

Attractive distribution profile. We pursue a strategy which we expect will provide for highly stable, predictable cash flows ensuring a sustainable distribution yield. We target a long-term distribution growth rate in the range of 5% to 9% annually.



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Management’s Discussion and Analysis

For the three and six months ended June 30, 2020

This Management’s Discussion and Analysis for the three and six months ended June 30, 2020 is provided as of August 7, 2020. Unless the context indicates or requires otherwise, the terms “Brookfield Renewable”, “we”, “us”, and “our” mean Brookfield Renewable Partners L.P. and its controlled entities. The ultimate parent of Brookfield Renewable 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.

Brookfield Renewable’s consolidated equity interests include the non-voting publicly traded limited partnership units (“LP Units”) held by public unitholders and Brookfield, redeemable/exchangeable partnership units held by Brookfield (“Redeemable/Exchangeable partnership units”) in Brookfield Renewable Energy L.P. (“BRELP”). a holding subsidiary of Brookfield Renewable, and general partnership interest (“GP interest”) in BRELP held by Brookfield. Holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units will be collectively referred to throughout as “Unitholders”, “Units”, or as “per Unit”, unless the context indicates or requires otherwise. The LP Units and Redeemable/Exchangeable partnership units have the same economic attributes in all respects. See – “Part 8 – Presentation to Stakeholders and Performance Measurement”.

Brookfield Renewable’s 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.

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

References to $, C$, €, R$, £, and COP are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, British pounds sterling 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 – Q2 2020 Highlights	11	Part 5 – Liquidity and Capital Resources	27
		Capitalization and available liquidity	27
Part 2 – Financial Performance Review on Consolidated Information	13	Borrowings	28
		Consolidated statements of cash flows	29
		Shares and units outstanding	31
Part 3 – Additional Consolidated Financial Information	15	Dividends and distributions	31
Summary consolidated statements of financial position	15	Contractual obligations	31
Related party transactions	16	Off-statement of financial position arrangements	32
Equity	17
		Part 6 – Selected Quarterly Information	33
Part 4 – Financial Performance Review on Proportionate Information	18	Summary of historical quarterly results	33

Proportionate results for the three months ended June 30	19	Part 7 – Critical Estimates, Accounting Policies and Internal Controls	38
Reconciliation of non-IFRS measures	23
Contract profile	26	Part 8 – Presentation to Stakeholders and Performance Measurement	41

		Part 9 – Cautionary Statements	45



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PART 1 – Q2 2020 HIGHLIGHTS



	Three months ended June 30					Six months ended June 30
(MILLIONS, EXCEPT AS NOTED)	2020			2019		2020			2019
Operational information
Capacity (MW)	19,317			17,482		19,317			17,482
Total generation (GWh)
Long-term average generation	15,527			14,252		29,678			27,745
Actual generation	13,264			14,881		27,528			29,006

Proportionate generation (GWh)
Long-term average generation	7,309			7,109		14,026			13,807
Actual generation	6,552			7,602		13,716			14,848
Average revenue ($ per MWh)	75			73		76			74

Selected financial information⁽¹⁾
Net income (loss) attributable to Unitholders	$	(44	)	$	17	$	(26	)	$	60
Basic income (loss) per LP Unit	(0.14		)	0.05		(0.08		)	0.19
Consolidated Adjusted EBITDA⁽²⁾	517			630		1,135			1,282
Proportionate Adjusted EBITDA⁽²⁾	396			400		787			795
Funds From Operations⁽²⁾	232			230		449			457
Funds From Operations per Unit⁽¹⁾⁽²⁾	0.75			0.74		1.44			1.47
Distribution per LP Unit	0.54			0.52		1.09			1.03


⁽¹⁾	For the three and six months ended June 30, 2020, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 311.3 million (2019: 311.2 million and 311.1 million, respectively).


⁽²⁾	Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure, See “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures” and “Part 9 – Cautionary Statements”.



(MILLIONS, EXCEPT AS NOTED)	June 30, 2020			December 31, 2019
Liquidity and Capital Resources
Available liquidity⁽¹⁾	$	$3,358		$	2,695
Debt to capitalization – Corporate		19	%		16	%
Debt to capitalization – Consolidated		35	%		32	%
Borrowings non-recourse to Brookfield Renewable on a proportionate basis		77	%		77	%
Floating rate debt exposure on a proportionate basis⁽²⁾		5	%		5	%
Medium term notes
Average debt term to maturity		10 years			10 years
Average interest rate		4.0	%		4.1	%
Non-recourse borrowings on a proportionate basis
Average debt term to maturity		10 years			10 years
Average interest rate		5.2	%		5.1	%


⁽¹⁾	Available liquidity is adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020.


⁽²⁾	Excludes 5% (2019: 7%) floating rate debt exposure of certain foreign regions outside of North America and Europe due to the high cost of hedging associated with those regions.



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Operations

We delivered Funds From Operations of $232 million or $0.75 per unit, which represents a 1% increase from the prior year as our operations benefited from:


•	Higher margins due to realization of margin enhancing initiatives across our business;


•	Relatively higher realized prices in Colombia, Brazil and Canada on the back of inflation escalation and our re-contracting and commercial initiatives;


•	Contributions from growth through both acquisitions and development activities; and


•	Offset by lower generation, primarily at our hydroelectric facilities in the northeast United States and Colombia (14% below long-term average and 23% lower than prior year generation on a same-store basis)

After deducting non-cash depreciation, net loss attributable to Unitholders for the three months ended June 30, 2020 was $44 million or $0.14 per LP Unit, compared to net income of $17 million or $0.05 per LP Unit in the prior year.

Continued to focus on extending our contract profile as we completed the following:


•	In Colombia, we secured eight inflation-indexed contracts for 288 GWh/year, including individual contracts with up to seven years in duration


•	In Brazil, we entered into nine new contracts to deliver 144 GWh/year, including individual contracts with up to five years in duration

Liquidity and Capital Resources

Remain well capitalized and backed by a resilient balance sheet:


•	Liquidity position remains robust, with close to $3.4 billion of total available liquidity, no material maturities over the next five years and a strong investment grade balance sheet (BBB+)


•	Capitalized on the low interest rate environment and sourced liquidity from diverse funding levers


◦	Secured over $1.1 billion of investment-grade non-recourse financings across our diverse portfolio


◦	Completed the issuance of approximately C$350 million of ten-year corporate green bonds at approximately 3.5%


•	So far this year, we generated close to $500 million of proceeds ($85 million net to BEP) from capital recycling activities

Growth and Development

Subsequent to quarter-end, we completed the special distribution of class A exchangeable subordinate voting shares of Brookfield Renewable Corporation (“BEPC”). The holders of Brookfield Renewable’s limited partnership units of record as of July 27, 2020 received one (1) Share of BEPC for every four (4) BEP units held, or 0.25 Shares for each BEP unit.

Following the special distribution of BEPC shares, we completed the acquisition of all of the outstanding Class A common stock of Terraform Power, Inc. (“TerraForm Power”), other than the approximately 62% already owned by Brookfield Renewable and its affiliates. TerraForm Power stockholders received BEPC shares or, at their election, BEP units as consideration.

Subsequent to quarter-end, we, together with our institutional partners, entered into an agreement to acquire a 1,200 MW construction ready solar development project in Brazil with a target date for commercial operation in early 2023.

Completed, together with our institutional and joint venture partners, the commissioning of almost 100 MW of development projects.

Continued to progress our development pipeline:


•	Continued to advance the construction of 2,400 MW of hydroelectric, wind, pumped storage, solar PV and rooftop solar development projects. These projects are expected to be commissioned between 2020 and 2023 and to generate annualized Funds From Operations net to Brookfield Renewable of approximately $53 million.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 12

PART 2 – FINANCIAL PERFORMANCE REVIEW ON CONSOLIDATED INFORMATION

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)	2020			2019			2020			2019
Revenues	$	651		$	787		$	1,443		$	1,612
Direct operating costs	(248		)	(252		)	(509		)	(506		)
Management service costs	(36		)	(23		)	(67		)	(44		)
Interest expense	(154		)	(178		)	(316		)	(351		)
Share of (loss) earnings from equity-accounted investments	(15		)	—			(31		)	32
Foreign exchange and unrealized financial instrument (loss) gain	(14		)	(12		)	6			(30		)
Depreciation	(192		)	(200		)	(398		)	(400		)
Income tax expense	13			(29		)	(5		)	(73		)
Net (loss) income attributable to Unitholders	$	(44	)	$	17		$	(26	)	$	60
	Average FX rates to USD
C$	1.39			1.34			1.36			1.33
€	0.91			0.89			0.91			0.89
R$	5.39			3.92			4.92			3.84
£	0.81			0.78			0.79			0.77
COP	3,846			3,240			3,689			3,188

Variance Analysis For The Three Months Ended June 30, 2020

Revenues totaling $651 million represents a decrease of $136 million over the prior year. On a same store, constant currency basis, revenues decreased $72 million, primarily due to below average hydrology conditions in the United States compared to prior year where we experienced higher than average generation (17% higher than long-term average) as well as low system-wide hydrology conditions in Colombia (66% of long-term average), partially offset by higher average realized revenue per MWh which benefited from inflation indexation, re-contracting initiatives and favorable generation mix. Recently acquired and commissioned facilities contributed 282 GWh and $18 million to revenues which was more than offset by recently completed asset sales that reduced generation by 170 GWh and revenues by $21 million.

The strengthening of the U.S. dollar relative to the prior period, primarily against the Brazilian reais and Colombian peso, reduced revenues by approximately $61 million, which was partially offset by a $47 million favorable foreign exchange impact on our operating, interest and depreciation expense for the quarter.

Direct operating costs totaling $248 million represents a decrease of $4 million over the prior year due to cost-saving initiatives across our business and the impact of foreign exchange movements noted above, partially offset by additional costs from growth from our recently acquired and commissioned facilities.

Management service costs totaling $36 million represents an increase of $13 million over the prior year due to the growth of our business.

Interest expense totaling $154 million represents a decrease of $24 million over the prior year due to the benefit of recent refinancing activities that reduced our average cost of borrowing and the foreign exchange movements noted above.

Share of loss from equity-accounted investments totaling $15 million represents a decrease of $15 million driven by higher non-cash depreciation expense due to the growth of our portfolio.

Income tax recovery totaled $13 million compared to an income tax expense of $29 million in the prior year due primarily to a decrease in net income before income taxes due to the above noted items.

Net loss attributable to Unitholders totaled $44 million compared to a net income attributable to Unitholders of $17 million in the prior year due to the above noted items.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 13

Variance Analysis For The Six Months Ended June 30, 2020

Revenues totaling $1,443 million represents a decrease of $169 million over the prior year. On a same store, constant currency basis, revenues decreased $52 million due to below average hydrology conditions in Colombia and North America, partially offset by higher average realized revenue per MWh which benefited from inflation indexation, re-contracting initiatives and favorable generation mix. Recently acquired and commissioned facilities contributed 529 GWh and $35 million to revenues which was more than offset by recently completed asset sales that reduced generation by 381 GWh and revenues by $50 million.

The strengthening of the U.S. dollar relative to the prior period, primarily against the Brazilian reais and Colombian peso, reduced revenues by approximately $102 million, which was partially offset by a $77 million favorable foreign exchange impact on our operating, interest and depreciation expense for the quarter.

Direct operating costs totaling $509 million represents an increase of $3 million over the prior year due to cost-saving initiatives across our business and the impact of foreign exchange movements noted above being more than offset by higher power purchases in Colombia, which are passed through to our customers, and additional costs due to growth from our recently acquired and commissioned facilities.

Management service costs totaling $67 million represents an increase of $23 million over the prior year due to the growth of our business.

Interest expense totaling $316 million represents a decrease of $35 million over the prior year due to the benefit of recent refinancing activities that reduced our average cost of borrowing and the foreign exchange movements noted above.

Share of loss from equity-accounted investments totaling $31 million compared to earnings from equity-accounted investments totaling $32 million in the prior year represents a decrease of $63 million driven by higher non-cash depreciation expense due to the growth of our portfolio and deferred tax expenses, as the prior year benefited from a deferred tax recovery relating to the recognition of operating loss carryforwards.

Income tax expense of $5 million represents a decrease of $68 million due primarily to a decrease in net income before income taxes due to the above noted items.

Net loss attributable to Unitholders totaled $26 million compared to a net income attributable to Unitholders of $60 million in the prior year due to the above noted items.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 14

PART 3 – ADDITIONAL CONSOLIDATED FINANCIAL INFORMATION

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, 2020		December 31, 2019
Assets held for sale	$	170	$	352
Current assets	1,410		1,474
Equity-accounted investments	1,779		1,889
Property, plant and equipment	28,527		30,714
Total assets	33,325		35,691
Liabilities directly associated with assets held for sale	94		137
Corporate borrowings	2,118		2,100
Non-recourse borrowings	8,762		8,904
Deferred income tax liabilities	4,237		4,537
Total liabilities and equity	33,325		35,691
	FX rates to USD
C$	1.36		1.30
€	0.89		0.89
R$	5.48		4.03
£	0.81		0.75
COP	3,759		3,277

Our balance sheet remains strong and reflects the stable nature of the business and our continued growth.

Assets held for sale

Assets held for sale totaled $170 million as at June 30, 2020 compared to $352 million as at December 31, 2019. The $182 million decrease was primarily attributable to the completed sale of our solar portfolio in Thailand during the period. The remaining assets held for sale at June 30, 2020 correspond to a 33 MW solar asset in South Africa and 19 MW of solar assets in Malaysia.

Property, plant and equipment

Property, plant and equipment totaled $28.5 billion as at June 30, 2020 compared to $30.7 billion as at December 31, 2019. The $2.2 billion decrease was primarily attributable to the impact of foreign exchange due to the strengthening of the U.S. dollar, which decreased property, plant and equipment by $2.2 billion and depreciation expense associated with property, plant and equipment of $398 million. The decrease was partially offset by the acquisition of 47 MW of operating solar capacity in India and 278 MW of solar development projects in Brazil during the first quarter of 2020 and our continued investments in the development of power generating assets and our sustaining capital expenditures, which increased property, plant and equipment by $154 million in aggregate. During the second quarter, we exercised our option to buy out the lease on our 192 MW hydroelectric facility in Louisiana and recognized a $247 million increase to the value of our corresponding property, plant and equipment.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 15

RELATED PARTY TRANSACTIONS

Brookfield Renewable's related party transactions are in the normal course of business, and are recorded at the exchange amount. Brookfield Renewable's related party transactions are primarily with Brookfield Asset Management.

Brookfield Renewable sells electricity to Brookfield through long-term power purchase agreements, or provides fixed price guarantees to provide contracted cash flow and reduce Brookfield Renewable’s exposure to electricity prices in deregulated power markets.

In 2011, on formation of Brookfield Renewable, Brookfield transferred certain development projects to Brookfield Renewable for no upfront consideration but is entitled to receive variable consideration on commercial operation or sale of these projects.

Brookfield Renewable has also entered into a number of voting agreements with Brookfield whereby Brookfield, as a managing member of entities related to Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III and Brookfield Infrastructure Fund IV, in which Brookfield Renewable holds investments in power generating operations with institutional partners, agreed to provide to Brookfield Renewable the authority to direct the election of the Boards of Directors of such entities. As a result, Brookfield Renewable controls and consolidates such investments.

Brookfield Renewable participates with institutional investors in Brookfield Americas Infrastructure Fund, Brookfield Infrastructure Fund II, Brookfield Infrastructure Fund III, Brookfield Infrastructure Fund IV and Brookfield Infrastructure Debt Fund (“Private Funds”), each of which is a Brookfield sponsored fund, and in connection therewith, Brookfield Renewable, together with our institutional investors, has access to short-term financing using the Private Funds’ credit facilities.

Brookfield Asset Management has provided a $400 million committed unsecured revolving credit facility maturing in December 2020 and the interest rate applicable on the draws is LIBOR plus up to 1.8%. During the current period there were no draws on the committed unsecured revolving credit facility provided by Brookfield Asset Management. Brookfield Asset Management may from time to time place funds on deposit with Brookfield Renewable which are repayable on demand including any interest accrued. There were no funds placed on deposit with Brookfield Renewable during the six months ended June 30, 2020 (2019: $600 million, which was fully repaid during the period). There was no interest expense on the Brookfield Asset Management revolving credit facility or deposit for the three and six months ended June 30, 2020, respectively (2019: nil and $3 million, respectively).

The following table reflects the related party agreements and transactions in the unaudited interim consolidated statements of income for the three and six months ended June 30, 2020:



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Revenues
Power purchase and revenue agreements	$	84		$	209		$	180		$	368
Wind levelization agreement	—			—			—			1
	$	84		$	209		$	180		$	369
Direct operating costs
Energy purchases	$	—		$	(2	)	$	—		$	(5	)
Energy marketing fee	(2		)	(6		)	(2		)	(12		)
Insurance services⁽¹⁾	(6		)	(7		)	(12		)	(14		)
	$	(8	)	$	(15	)	$	(14	)	$	(31	)
Interest expense
Borrowings	$	—		$	—		$	—		$	(3	)
Contract balance accretion	(4		)	(3		)	(8		)	(5		)
	$	(4	)	$	(3	)	$	(8	)	$	(8	)
Management service costs	$	(36	)	$	(23	)	$	(67	)	$	(44	)


⁽¹⁾	Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three and six months ended June 30, 2020 were less than $1 million (2019: less than $1 million).^.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 16

EQUITY

General partnership interest in a holding subsidiary held by Brookfield

Brookfield, as the owner of the 1% GP interest in BRELP, is entitled to regular distributions plus an incentive distribution based on the amount by which quarterly LP Unit distributions exceed specified target levels. As at June 30, 2020, to the extent that LP Unit distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that LP Unit distributions exceed $0.4225 per LP Unit per quarter, the incentive distribution is equal to 25% of distributions above this threshold. Incentive distributions of $15 million and $31 million were declared during the three and six months ended June 30, 2020, respectively (2019: $12 million and $25 million).

Preferred limited partners' equity

During the first quarter of 2020, Brookfield Renewable issued 8,000,000 Class A Preferred Limited Partnership Units, Series 17 (the “Series 17 Preferred Units”) at a price of $25 per unit for gross proceeds of $200 million. The holders of the Series 17 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.25%.

The preferred limited partners’ equity units do not have a fixed maturity date and are not redeemable at the option of the holders. As at June 30, 2020, none of the preferred limited partners’ equity units have been redeemed by Brookfield Renewable.

In July 2020, the Toronto Stock Exchange accepted notice of Brookfield Renewable's intention to renew the normal course issuer bid in connection with the outstanding Class A Preferred Limited Partnership Units for another year to July 8, 2021, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, Brookfield Renewable is permitted to repurchase up to 10% of the total public float for each respective series of its Class A Preference Units. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during the six months ended June 30, 2020.

Limited partners' equity

As at June 30, 2020, Brookfield Asset Management owns, directly and indirectly, 175,491,567 LP Units and Redeemable/Exchangeable partnership units, representing approximately 57% of Brookfield Renewable on a fully-exchanged basis and the remaining approximately 43% is held by public investors.

During the second quarter of 2020, certain affiliates of Brookfield Asset Management completed a secondary offering of 10,236,000 LP Units at a price of $48.85 per LP Unit, for gross proceeds of $500 million. Brookfield Renewable did not sell LP Units in the offering and will not receive any of the proceeds from the offering of LP Units.

During the three and six months ended June 30, 2020, Brookfield Renewable issued 30,458 LP Units and 69,636 LP Units, respectively (2019: 54,749 LP Units and 105,248 LP units, respectively) under the distribution reinvestment plan at a total value of $2 million and $3 million, respectively (2019: $1 million and $3 million, respectively).

In December 2019, Brookfield Renewable commenced a normal course issuer bid in connection with its LP Units. Under this normal course issuer bid Brookfield Renewable is permitted to repurchase up to 8.9 million LP Units, representing approximately 5% of the issued and outstanding LP Units, for capital management purposes. The bid will expire on December 11, 2020, or earlier should Brookfield Renewable complete its repurchases prior to such date. There were no LP units repurchased during the three months ended June 30, 2020 and 2019.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 17

PART 4 – FINANCIAL PERFORMANCE REVIEW ON PROPORTIONATE INFORMATION

SEGMENTED DISCLOSURES

Segmented information is prepared on the same basis that Brookfield Renewable's Chief Executive Officer and Chief Financial Officer (collectively, the chief operating decision maker or "CODM") manages the business, 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		LTA Generation		Revenues				Adjusted EBITDA					Funds From Operations						Net Income (Loss)
	2020	2019	2020	2019	2020		2019		2020		2019			2020			2019			2020			2019
Hydroelectric
North America	3,476	4,134	3,580	3,583	$	217	$	275	$	173	$	211		$	145		$	168		$	10		$	79
Brazil	924	1,066	998	998	39		58		35		42			29			33			9			16
Colombia	532	861	870	869	45		56		25		35			19			25			11			17
	4,932	6,061	5,448	5,450	301		389		233		288			193			226			30			112
Wind
North America	765	761	938	949	56		58		45		40			29			23			(11		)	(22		)
Europe	140	204	175	223	15		22		13		15			10			11			(9		)	(11		)
Brazil	142	147	168	141	7		9		6		6			5			4			—			4
Asia	110	52	118	51	7		3		6		2			4			1			2			2
	1,157	1,164	1,399	1,364	85		92		70		63			48			39			(18		)	(27		)
Solar	376	287	462	295	61		51		59		42			37			27			(6		)	4
Storage & Other	87	90	—	—	19		21		12		10			8			7			(1		)	1
Corporate	—	—	—	—	—		—		22		(3		)	(54		)	(69		)	(49		)	(73		)
Total	6,552	7,602	7,309	7,109	$	466	$	553	$	396	$	400		$	232		$	230		$	(44	)	$	17



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 18

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)	2020			2019
Generation (GWh) – LTA	5,448			5,450
Generation (GWh) – actual	4,932			6,061
Revenue	$	301		$	389
Other income	31			10
Direct operating costs	(99		)	(111)
Adjusted EBITDA	233			288
Interest expense	(40		)	(53		)
Current income taxes	—			(9		)
Funds From Operations	$	193		$	226
Depreciation	(80		)	(83		)
Deferred taxes and other	(83		)	(31		)
Net income	$	30		$	112

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



	Actual Generation (GWh)		Average revenue per MWh⁽¹⁾				Adjusted EBITDA				Funds From Operations				Net Income
(MILLIONS, EXCEPT AS NOTED)	2020	2019	2020		2019		2020		2019		2020		2019		2020			2019
North America
United States	2,612	3,223	$	61	$	64	$	109	$	147	$	91	$	117	$	(7	)	$	51
Canada	864	911	79		76		64		64		54		51		17			28
	3,476	4,134	66		66		173		211		145		168		10			79
Brazil	924	1,066	42		54		35		42		29		33		9			16
Colombia	532	861	93		65		25		35		19		25		11			17
Total	4,932	6,061	$	64	$	64	$	233	$	288	$	193	$	226	$	30		$	112


⁽¹⁾	Includes realized foreign exchange hedge gains of approximately $15 million included in other income.

North America

Funds From Operations at our North American business were $145 million versus $168 million in the prior year as the benefits from inflation indexation and cost reduction initiatives were more than offset by lower generation, primarily in the northeast United States, that was 3% below long-term average and 16% lower than prior year where we experienced very strong generation (15% above long-term average) and lower average revenue per MWh in the United States due primarily to generation mix.

Net income attributable to Unitholders decreased $69 million over the prior year primarily due to the above noted decrease to Funds From Operations and lower unrealized gains on our revenue hedging activities.

Brazil

Funds From Operations at our Brazilian business were $29 million versus $33 million in the prior year. On a local currency basis, Funds From Operations increased versus the prior year due to the benefits of cost saving initiatives and higher contracted pricing as a result of inflation indexation and re-contracting initiatives that were partly offset by lower generation relative to the prior year. These benefits were more than offset by the weakening of the Brazilian reais versus the U.S. dollar.

Net income attributable to Unitholders decreased $7 million over the prior year driven by the above noted decrease in Funds From Operations.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 19

Colombia

Funds From Operations at our Colombian business were $19 million versus $25 million in the prior year. We benefited from our cost reduction initiatives and a 43% increase in average revenue per MWh as a result of inflation indexation, re-contracting initiatives and favorable market prices realized on our uncontracted volumes, which were impacted by low system-wide hydrology (66% of long-term average). The increase was more than offset by lower generation and the weakening of the Colombian peso versus the U.S. dollar.

Net income attributable to Unitholders decreased by $6 million over the prior year primarily due to the above noted decrease in Funds From Operations.

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)	2020			2019
Generation (GWh) – LTA	1,399			1,364
Generation (GWh) – actual	1,157			1,164
Revenue	$	85		$	92
Other income	8			1
Direct operating costs	(23		)	(30		)
Adjusted EBITDA	70			63
Interest expense	(21		)	(23		)
Current income taxes	(1		)	(1		)
Funds From Operations	48			39
Depreciation	(52		)	(58		)
Deferred taxes and other	(14		)	(8		)
Net (loss) income	$	(18	)	$	(27	)

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



	Actual Generation (GWh)		Average revenue per MWh⁽¹⁾				Adjusted EBITDA				Funds From Operations				Net Income (Loss)
(MILLIONS, EXCEPT AS NOTED)	2020	2019	2020		2019		2020		2019		2020		2019		2020			2019
North America
United States	518	518	$	68	$	69	$	25	$	23	$	15	$	12	$	(8	)	$	(17	)
Canada	247	243	93		89		20		17		14		11		(3		)	(5		)
	765	761	76		75		45		40		29		23		(11		)	(22		)
Europe	140	204	115		108		13		15		10		11		(9		)	(11		)
Brazil	142	147	49		60		6		6		5		4		—			4
Asia	110	52	69		60		6		2		4		1		2			2
Total	1,157	1,164	$	77	$	80	$	70	$	63	$	48	$	39	$	(18	)	$	(27	)


⁽¹⁾	Includes realized foreign exchange hedge gains of approximately $4 million included in other income.

North America

Funds From Operations at our North American business were $29 million versus $23 million in the prior year due primarily to the benefit from our cost reduction and refinancing initiatives.

Net loss attributable to Unitholders decreased by $11 million primarily due to the above noted increase in Funds From Operations.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 20

Europe

Funds From Operations at our European business were $10 million versus $11 million in the prior year due to the sale of our Northern Ireland and certain Portuguese assets ($2 million and 39 GWh). On a same store basis, Funds From Operations were higher than the prior year as higher average revenues per MWh due to inflation indexation of our contracts and cost reduction initiatives were partially offset by lower wind resource.

Net loss attributable to Unitholders decreased by $2 million over the prior year as the above noted decrease in Funds From Operations was more than offset by lower non-cash depreciation as a result of the sale of the above noted assets.

Brazil

Funds From Operations at our Brazilian business of $5 million versus $4 million in the prior year. On a local currency basis, Funds from Operations was higher than the prior year due to inflation indexation of our contracts and cost saving initiatives. The increase was partially offset by the weakening of the Brazilian reais versus the U.S. dollar.

Net income attributable to Unitholders decreased $4 million versus the prior year due to higher non-cash accretion expenses.

Asia

Funds From Operations at our Asian business were $4 million versus $1 million in the prior year, due to the contribution from growth following the acquisition in the prior year of a 210 MW wind facility in India and a 200 MW wind portfolio in China ($3 million and 60 GWh). On a same store basis, our assets continue to perform in line with expectation and consistent with prior year.

Net income attributable to Unitholders was $2 million, consistent with the prior year as the above noted increase in Funds From Operations was offset by higher non-cash depreciation expenses due to growth.

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)	2020			2019
Generation (GWh) – LTA	462			295
Generation (GWh) – actual	376			287
Revenue	$	61		$	51
Other income	11			1
Direct operating costs	(13		)	(10		)
Adjusted EBITDA	59			42
Interest expense	(20		)	(15		)
Current income taxes	(2		)	—
Funds From Operations	$	37		$	27
Depreciation	(20		)	(15		)
Deferred taxes and other	(23		)	(8		)
Net (loss) income	$	(6	)	$	4

Funds From Operations at our solar business were $37 million versus $27 million in the prior year due to the contribution from acquisitions, net of disposals ($7 million and 134 GWh) and gain from the sale of a solar development project in the United States. These increases were partially offset by lower realized market prices.

Net loss attributable to Unitholders at our solar business was $6 million versus net income attributable to Unitholders of $4 million in the prior year as the above noted increase in Funds From Operations was more than offset by unrealized gains on our interest rate hedging activities that benefited the prior year.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 21

STORAGE & OTHER OPERATIONS ON PROPORTIONATE BASIS

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



(MILLIONS, EXCEPT AS NOTED)	2020			2019
Generation (GWh) – actual	87			90
Revenue	$	19		$	21
Other income	1			—
Direct operating costs	(8		)	(11		)
Adjusted EBITDA	12			10
Interest expense	(3		)	(3		)
Other	(1		)	—
Funds From Operations	$	8		$	7
Depreciation	(5		)	(6		)
Deferred taxes and other	(4		)	—
Net income	$	(1	)	$	1

Funds From Operations at our storage & other businesses were $8 million versus $7 million in the prior year as the value of grid stability services provided by our pumped storage assets continues to grow as baseload generation is impacted by intermittent renewable generation.

CORPORATE

The following table presents our results for corporate for the three months ended June 30:



(MILLIONS, EXCEPT AS NOTED)	2020			2019
Other income	$	28		$	2
Direct operating costs	(6		)	(5		)
Adjusted EBITDA	22			(3		)
Management service costs	(36		)	(23		)
Interest expense	(20		)	(25		)
Distributions on Preferred LP Units and Shares	(20		)	(18		)
Funds From Operations	$	(54	)	$	(69	)
Deferred taxes and other	5			(4		)
Net loss	$	(49	)	$	(73	)

Management service costs totaling $36 million increased $13 million compared to the prior year due to the growth of our business.

Interest expense decreased by $5 million compared to the prior year despite an increase in borrowings due to our refinancing initiatives focused on optimizing our capital structure and securing lower borrowing costs.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 22

RECONCILIATION OF NON-IFRS MEASURES

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) attributable to Unitholders for the three months ended June 30, 2020:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non-controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	217		39		45		56		15		7		7		61		19		—		466		(104	)	289		651
Other income	19		6		6		2		3		1		2		11		1		28		79		(7	)	(49	)	23
Direct operating costs	(63	)	(10	)	(26	)	(13	)	(5	)	(2	)	(3	)	(13	)	(8	)	(6	)	(149	)	25		(124	)	(248	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		86		5		91
Adjusted EBITDA	173		35		25		45		13		6		6		59		12		22		396		—		121
Management service costs	—		—		—		—		—		—		—		—		—		(36	)	(36	)	—		—		(36	)
Interest expense	(29	)	(4	)	(7	)	(15	)	(3	)	(1	)	(2	)	(20	)	(3	)	(20	)	(104	)	30		(80	)	(154	)
Current income taxes	1		(2	)	1		(1	)	—		—		—		(2	)	(1	)	—		(4	)	3		4		3
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(14	)	(14	)	—		—		(14	)
Preferred equity	—		—		—		—		—		—		—		—		—		(6	)	(6	)	—		—		(6	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(33	)	(5	)	(38	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(40	)	(40	)
Funds From Operations	145		29		19		29		10		5		4		37		8		(54	)	232		—		—
Depreciation	(59	)	(16	)	(5	)	(37	)	(10	)	(3	)	(2	)	(20	)	(5	)	(1	)	(158	)	43		(77	)	(192	)
Foreign exchange and unrealized financial instruments gain (loss)	(32	)	—		(6	)	(3	)	(8	)	—		—		(7	)	(5	)	10		(51	)	15		22		(14	)
Deferred income tax recovery (expense)	(2	)	—		(2	)	—		—		—		1		(1	)	—		4		—		2		8		10
Other	(42	)	(4	)	5		—		(1	)	(2	)	(1	)	(15	)	1		(8	)	(67	)	10		40		(17	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(70	)	2		(68	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		5		5
Net income (loss) attributable to Unitholders⁽²⁾	10		9		11		(11	)	(9	)	—		2		(6	)	(1	)	(49	)	(44	)	—		—		(44	)

⁽¹⁾

Share of loss from equity-accounted investments of $15 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $35 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 23

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) for the three months attributable to Unitholders ended June 30, 2019:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	275		58		56		58		22		9		3		51		21		—		553		(98	)	332		787
Other income	8		2		—		—		1		—		—		1		—		2		14		(2	)	5		17
Direct operating costs	(72	)	(18	)	(21	)	(18	)	(8	)	(3	)	(1	)	(10	)	(11	)	(5	)	(167	)	27		(112	)	(252	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		73		5		78
Adjusted EBITDA	211		42		35		40		15		6		2		42		10		(3	)	400		—		230
Management service costs	—		—		—		—		—		—		—		—		—		(23	)	(23	)	—		—		(23	)
Interest expense	(39	)	(6	)	(8	)	(16	)	(4	)	(2	)	(1	)	(15	)	(3	)	(25	)	(119	)	26		(85	)	(178	)
Current income taxes	(4	)	(3	)	(2	)	(1	)	—		—		—		—		—		—		(10	)	—		(5	)	(15	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(11	)	(11	)	—		—		(11	)
Preferred equity	—		—		—		—		—		—		—		—		—		(7	)	(7	)	—		—		(7	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(26	)	(5	)	(31	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(135	)	(135	)
Funds From Operations	168		33		25		23		11		4		1		27		7		(69	)	230		—		—
Depreciation	(56	)	(22	)	(5	)	(39	)	(13	)	(5	)	(1	)	(15	)	(6	)	(1	)	(163	)	36		(73	)	(200	)
Foreign exchange and unrealized financial instruments gain (loss)	1		4		(1	)	(1	)	(8	)	—		—		4		—		(12	)	(13	)	4		(3	)	(12	)
Deferred income tax recovery (expense)	(23	)	1		(2	)	1		1		—		—		—		—		12		(10	)	(1	)	(3	)	(14	)
Other	(11	)	—		—		(6	)	(2	)	5		2		(12	)	—		(3	)	(27	)	8		18		(1	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(47	)	—		(47	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		61		61
Net income (loss) attributable to Unitholders⁽²⁾	79		16		17		(22	)	(11	)	4		2		4		1		(73	)	17		—		—		17

⁽¹⁾

Share of earnings from equity-accounted investments of nil is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $74 million is comprised of amounts found on Share of Funds From Operations attributable to non-controlling interests and Net loss attributable to non-controlling interests.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 24

The following table reconciles the non-IFRS financial metrics to the most directly comparable IFRS measures. Net income attributable to Unitholders is reconciled to Funds From Operations and reconciled to Proportionate Adjusted EBITDA, and earnings per unit is reconciled to Funds From Operations per unit, for the three months ended June 30:



						Per unit
(MILLIONS, EXCEPT AS NOTED)	2020			2019		2020			2019
Net income attributable to:
Limited partners' equity	$	(25	)	$	9	$	(0.14	)	$	0.05
General partnership interest in a holding subsidiary held by Brookfield	—			1		—			—
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	(19		)	7		—			—
Net income attributable to Unitholders	$	(44	)	$	17	$	(0.14	)	$	0.05
Adjusted for proportionate share of:
Depreciation	158			164		0.51			0.54
Foreign exchange and unrealized financial instruments loss	51			13		0.16			0.04
Deferred income tax expense	—			10		—			0.03
Other	67			26		0.22			0.08
Funds From Operations	$	232		$	230	$	0.75		$	0.74
Distributions attributable to:
Preferred limited partners' equity	14			11
Preferred equity	6			7
Current income taxes	4			10
Interest expense	104			119
Management service costs	36			23
Proportionate Adjusted EBITDA	396			400
Attributable to non-controlling interests	121			230
Consolidated Adjusted EBITDA	$	517		$	630
Weighted average Units outstanding⁽¹⁾						311.3			311.2


⁽¹⁾	Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 25

CONTRACT PROFILE

We operate the business on a largely contracted basis to provide a high degree of predictability in Funds From Operations. We maintain a long-term view that electricity prices and the demand for electricity from renewable sources will rise due to a growing level of acceptance around climate change, the legislated requirements in some areas to diversify away from fossil fuel based generation and because they are becoming increasingly cost competitive.

In Brazil and Colombia, we also expect power prices will continue to be supported by the need to build new supply over the medium-to-long term to serve growing demand. In these markets, contracting for power is the only current mechanism to buy and sell power, and therefore we would expect to capture rising prices as we re-contract our power over the medium-term.

The following table sets out our contracts over the next five years for generation output in North America, Europe and certain other countries, assuming long-term average on a proportionate basis. The table excludes Brazil and Colombia, where we would expect the energy associated with maturing contracts to be re-contracted in the normal course given the construct of the respective power markets. In these countries we currently have a contracted profile of approximately 85% and 70%, respectively, of the long-term average and we would expect to maintain this going forward. Overall, our portfolio has a weighted-average remaining contract duration of 15 years on a proportionate basis.



(GWh, except as noted)	Balance of 2020			2021			2022			2023			2024
Hydroelectric
North America
United States⁽¹⁾	3,423			7,411			4,636			4,500			4,500
Canada⁽¹⁾	1,239			2,144			2,097			2,020			2,007
	4,662			9,555			6,733			6,520			6,507
Wind⁽²⁾
North America
United States	1,951			3,885			3,876			3,848			3,350
Canada	656			1,359			1,359			1,359			1,359
	2,607			5,244			5,235			5,207			4,709
Europe	605			1,299			1,299			1,289			1,229
Asia	217			400			400			400			400
	3,429			6,943			6,934			6,896			6,338
Solar⁽²⁾	1,386			2,716			2,705			2,701			2,690
Contracted on a proportionate basis	9,477			19,214			16,372			16,117			15,535
Uncontracted on a proportionate basis	977			3,576			6,418			6,673			7,255
	10,454			22,790			22,790			22,790			22,790
Contracted generation as a % of total generation on a proportionate basis	91		%	84		%	72		%	71		%	68		%
Price per MWh – total generation on a proportionate basis	$	87		$	87		$	94		$	96		$	98


⁽¹⁾	Includes generation of 989 GWh for 2020, 2,198 GWh for 2021 and 136 GWh for 2022 secured under financial contracts.


⁽²⁾	The proportionate generation of our wind and solar business includes the minority interest of TerraForm Power acquired in the merger completed in July 2020.

Weighted-average remaining contract durations on a proportionate basis are 16 years in North America, 14 years in Europe, 9 years in Brazil, 3 years in Colombia and 18 years across our remaining jurisdictions.

In North America, over the next five years, a number of contracts will expire at our hydroelectric facilities. Based on current market prices for energy and ancillary products, we do not foresee a negative impact to cash flows from contracts expiring over the next five years.

In our Brazilian and Colombian portfolios, we continue to focus on securing long-term contracts while maintaining a certain percentage of uncontracted generation to mitigate hydrology risk.

The majority of Brookfield Renewable’s long-term power purchase agreements within our North American and European businesses are with investment-grade rated or creditworthy counterparties. The economic exposure of our contracted generation on a proportionate basis is distributed as follows: power authorities (42%), distribution companies (24%), industrial users (18%) and Brookfield (16%).



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 26

PART 5 – LIQUIDITY AND CAPITAL RESOURCES

CAPITALIZATION

A key element of our financing strategy is to raise the majority of our debt in the form of asset-specific, non-recourse borrowings at our subsidiaries on an investment-grade basis. On a consolidated basis, substantially all of our debt is either investment grade rated or sized to investment grade and approximately 80% of debt is non-recourse.

The following table summarizes our capitalization:



	Corporate							Consolidated
(MILLIONS, EXCEPT AS NOTED)	June 30, 2020			December 31, 2019				June 30, 2020			December 31, 2019
Corporate credit facility⁽¹⁾	$	—		$	299			$	—		$	299
Debt
Commercial paper⁽¹⁾⁽²⁾	140			—			—	140			—
Medium term notes⁽³⁾	1,989			1,808				1,989			1,808
Non-recourse borrowings⁽⁴⁾	—			—				8,811			8,964
	1,989			1,808				10,800			10,772
Deferred income tax liabilities, net⁽⁵⁾	—			—				4,112			4,421
Equity
Non-controlling interest	—			—				7,813			8,742
Preferred equity	571			597				571			597
Preferred limited partners' equity	1,028			833				1,028			833
Unitholders equity	6,762			7,959				6,762			7,959
Total capitalization	$	10,350		$	11,197			$	31,086		$	33,324
Debt to total capitalization	19		%	16		%		35		%	32		%


⁽¹⁾	Draws on corporate credit facilities and commercial paper issuances are excluded from the debt to total capitalization ratios as they are not a permanent source of capital.


⁽²⁾	Our commercial paper program is supplemented by our $1.75 billion corporate credit facilities with a weighted average maturity of four years.


⁽³⁾	Medium term notes are unsecured and guaranteed by Brookfield Renewable and excludes $5 million (2019: $7 million) of deferred financing fees, net of unamortized premiums.


⁽⁴⁾	Consolidated non-recourse borrowings includes $117 million (2019: $142 million) borrowed under a subscription facility of a Brookfield sponsored private fund and excludes $49 million (2019: $60 million) of deferred financing fees, net of unamortized premiums.


⁽⁵⁾	Deferred income tax liabilities less deferred income assets.

AVAILABLE LIQUIDITY

The following table summarizes the available liquidity:



(MILLIONS, EXCEPT AS NOTED)	Pro Forma⁽¹⁾			June 30, 2020			December 31, 2019
Brookfield Renewable's share of cash and cash equivalents	$	291		$	193		$	143
Investments in marketable securities	229			229			95
Corporate credit facilities
Authorized credit facilities⁽²⁾	2,150			2,150			2,150
Draws on credit facilities	—			—			(299		)
Authorized letter of credit facility	400			400			400
Issued letters of credit	(258		)	(258		)	(266		)
Available portion of corporate credit facilities	2,292			2,292			1,985
Available portion of subsidiary credit facilities on a proportionate basis	546			446			472
Available group-wide liquidity	$	3,358		$	3,160		$	2,695


⁽¹⁾	Adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020.


⁽²⁾	Amounts are guaranteed by Brookfield Renewable.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 27

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, up-financings on non-recourse borrowings and proceeds from the issuance of various securities through public markets.

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, 2020						December 31, 2019
	Weighted-average						Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)		Term (years)	Total			Interest rate (%)		Term (years)	Total
Corporate borrowings
Medium term notes	4.0	%	10	$	1,989		4.1	%	10	$	1,808
Credit facilities	N/A		4	—			2.9	%	5	299
Commercial paper⁽¹⁾	0.6	%	<1	140			N/A		N/A	N/A
Proportionate subsidiary borrowings⁽²⁾
Hydroelectric	5.7	%	9	3,757			5.6	%	10	3,727
Wind	4.6	%	10	1,771			4.5	%	10	1,742
Solar	5.0	%	11	1,383			4.7	%	10	1,470
Storage & other	5.4	%	4	223			5.5	%	5	235
	5.2	%	10	7,134			5.1	%	10	7,174
				9,263						9,281
Proportionate deferred financing fees, net of unamortized premiums				(32		)				(46		)
				9,231						9,235
Equity-accounted borrowings				(2,306		)				(2,157		)
Non-controlling interests				3,961						3,926
As per IFRS Statements				$	10,886					$	11,004


⁽¹⁾	Our commercial paper program is supplemented by our $1.75 billion corporate credit facilities.


⁽²⁾	Excludes $9 million of proportionate debt associated with our portfolios that are classified as held for sale as at June 30, 2020 (2019: $11 million).



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 28

The following table summarizes our undiscounted principal repayments and scheduled amortization on a proportionate basis as at June 30, 2020:



(MILLIONS)	Balance of 2020		2021		2022		2023		2024		Thereafter		Total
Debt Principal repayments⁽¹⁾
Medium term notes⁽²⁾	$	—	$	—	$	295	$	—	$	—	$	1,694	$	1,989

Non-recourse borrowings
Credit facilities	7		6		32		71		13		—		129
Hydroelectric	—		—		207		377		79		2,094		2,757
Wind	—		—		—		87		—		347		434
Solar	—		148		—		122		—		333		603
Storage & other	—		57		—		—		—		152		209
	7		211		239		657		92		2,926		4,132
Amortizing debt principal repayments
Non-recourse borrowings
Hydroelectric	14		37		49		36		43		748		927
Wind	52		105		117		109		115		704		1,202
Solar	29		56		58		59		63		594		859
Storage & other	1		3		2		3		4		1		14
	96		201		226		207		225		2,047		3,002
Total	$	103	$	412	$	760	$	864	$	317	$	6,667	$	9,123


⁽¹⁾	Draws on corporate credit facilities and commercial paper issuances are excluded from the debt repayment schedule as they are not a permanent source of capital.


⁽²⁾	Medium term notes are unsecured and guaranteed by Brookfield Renewable and excludes $5 million (2019: $7 million) of deferred financing fees, net of unamortized premiums.

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 2024 on acceptable terms and will do so opportunistically based on the prevailing interest rate environment.

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)	2020			2019			2020			2019
Cash flow provided by (used in):
Operating activities	$	261		$	368		$	616		$	739
Financing activities	(249		)	(221		)	(380		)	(509		)
Investing activities	(72		)	5			(101		)	(74		)
Foreign exchange gain (loss) on cash	(1		)	1			(13		)	1
Increase (decrease) in cash and cash equivalents	$	(61	)	$	153		$	122		$	157

Operating Activities

Cash flows provided by operating activities for the three and six months ended June 30, 2020 totaled $261 million and $616 million, respectively, and $368 million and $739 million for the same periods in 2019, respectively, reflecting strong operating performance of our business during all periods.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 29

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)	2020			2019			2020			2019
Trade receivables and other current assets	$	49		$	52		$	47		$	58
Accounts payable and accrued liabilities	(17		)	(36		)	(29		)	(41		)
Other assets and liabilities	(19		)	12			(19		)	(15		)
	$	13		$	28		$	(1	)	$	2

Financing Activities

Cash flows used in financing activities totaled $249 million and $380 million for the three and six months ended June 30, 2020, respectively, as the proceeds raised from our inaugural $200 million Series 17 Preferred Units in the United States during the first quarter of 2020 and our issuance of C$350 million ($248 million) ten-year corporate green bonds and net up-financing proceeds received from non-recourse financings during the second quarter of 2020 were more than offset by the repayments of borrowings, primarily commercial paper and corporate credit facility, and the distributions noted below.

We increased our distributions to $2.17 per LP Unit on an annualized basis, an increase of $0.11 or 5% per LP Unit, which took effect in the first quarter of 2020.

Distributions paid during the three and six months ended June 30, 2020 to LP Unitholders and Redeemable/Exchangeable Unitholders were $183 million and $365 million, respectively (2019: $171 million and $342 million, respectively). The distributions paid to preferred shareholders, preferred limited partners' unitholders and participating non-controlling interests in operating subsidiaries totaled $192 million and $287 million, respectively (2019: $280 million and $429 million, respectively).

Investing Activities

Cash flows used in investing activities totaled $72 million and $101 million for the three and six months ended June 30, 2020, respectively. Our investments in financial assets and in the development of power generating assets and sustaining capital expenditures totaled $128 million and $191 million for the three and six months ended June 30, 2020, respectively.

Cash flows provided by (used in) investing activities totaled $5 million and $(74) million for the three and six months ended June 30, 2019, respectively. Our acquisitions and investments in the development of power generating assets and sustaining capital expenditures totaled $60 million and $89 million, respectively, that were more than offset in the second quarter of 2019 by proceeds received from the completed the sale of certain of our assets in South Africa.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 30

SHARES AND UNITS OUTSTANDING

Shares and units outstanding are as follows:



	June 30, 2020	December 31, 2019
Class A Preference Shares⁽¹⁾	31,035,967	31,035,967
Preferred Units⁽²⁾
Balance, beginning of year	44,885,496	37,885,496
Issuance	8,000,000	7,000,000
Balance, end of period/year	52,885,496	44,885,496
GP interest	2,651,506	2,651,506
Redeemable/Exchangeable partnership units	129,658,623	129,658,623
LP Units
Balance, beginning of year	178,977,800	178,821,204
Distribution reinvestment plan	69,636	176,596
Repurchase of LP Units for cancellation	—	(20,000	)
Balance, end of period/year	179,047,436	178,977,800
Total LP Units on a fully-exchanged basis⁽³⁾	308,706,059	308,636,423


⁽¹⁾	Class A Preference Shares are broken down by series as follows: 5,449,675 Series 1 Class A Preference Shares are outstanding; 4,510,389 Series 2 Class A Preference Shares are outstanding; 9,961,399 Series 3 Class A Preference Shares are outstanding; 4,114,504 Series 5 Class A Preference Shares are outstanding; and 7,000,000 Series 6 Class A Preference Shares are outstanding.

⁽²⁾

Preferred Units are broken down by series and certain series are convertible on a one for one basis at the option of the holder as follows: 2,885,496 Series 5 Preferred Units are outstanding; 7,000,000 Series 7 Preferred Units are outstanding (convertible for Series 8 Preferred Units beginning on January 31, 2021); 8,000,000 Series 9 Preferred Units are outstanding (convertible for Series 10 Preferred Units beginning on July 31, 2021); 10,000,000 Series 11 Preferred Units are outstanding (convertible for Series 12 Preferred Units beginning on April 30, 2022); 10,000,000 Series 13 Preferred Units are outstanding (convertible for Series 14 Preferred Units beginning on April 30, 2023); 7,000,000 Series 15 Preferred Units are outstanding (convertible for Series 16 Preferred Units beginning on April 30, 2024); and 8,000,000 Series 17 Preferred Units are outstanding.


⁽³⁾	The fully-exchanged amounts assume the exchange of all Redeemable/Exchangeable partnership units for LP Units.

DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions declared and paid are as follows:



	Three months ended June 30								Six months ended June 30
	Declared				Paid				Declared				Paid
(MILLIONS)	2020		2019		2020		2019		2020		2019		2020		2019
Class A Preference Shares	$	6	$	7	$	6	$	7	$	13	$	13	$	13	$	13
Class A Preferred LP Units	$	14	$	11	$	12	$	11	$	26	$	21	$	23	$	20
Participating non-controlling interests – in operating subsidiaries	$	174	$	262	$	174	$	262	$	251	$	396	$	251	$	396
GP interest and Incentive distributions	$	17	$	13	$	15	$	14	$	34	$	28	$	31	$	27
Redeemable/Exchangeable partnership units	$	70	$	67	$	71	$	67	$	142	$	135	$	142	$	134
LP Units	$	97	$	92	$	97	$	90	$	196	$	185	$	192	$	181

CONTRACTUAL OBLIGATIONS

Please see Note 17 – 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;



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 31


•	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

Brookfield Renewable 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.

Brookfield Renewable 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, 2020, letters of credit issued amounted to $258 million (2019: $266 million).



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 32

PART 6 – SELECTED QUARTERLY INFORMATION

SUMMARY OF HISTORICAL QUARTERLY RESULTS

The following is a summary of unaudited quarterly financial information for the last eight consecutive quarters on a consolidated basis:



	2020					2019										2018
(MILLIONS, EXCEPT AS NOTED)	Q2			Q1		Q4			Q3			Q2		Q1		Q4		Q3
Total Generation (GWh) – LTA	15,527			14,151		13,850			12,332			14,252		13,493		13,485		12,113
Total Generation (GWh) – actual	13,264			14,264		12,465			11,089			14,881		14,125		14,445		11,609
Proportionate Generation (GWh) – LTA	7,309			6,717		6,561			5,821			7,109		6,698		6,602		5,956
Proportionate Generation (GWh) – actual	6,552			7,164		5,977			5,213			7,602		7,246		7,052		5,552
Revenues	$	651		$	792	$	726		$	642		$	787	$	825	$	780	$	674
Net income (loss) attributable to Unitholders	(44		)	18		(66		)	(53		)	17		43		91		(55		)
Basic and diluted earnings (loss) per LP Unit	(0.14		)	0.06		0.21			(0.17		)	0.05		0.14		0.29		(0.18		)
Consolidated Adjusted EBITDA	517			618		550			507			630		652		604		494
Proportionate Adjusted EBITDA	396			391		348			301			400		395		371		277
Funds From Operations	232			217		171			133			230		227		206		105
Funds From Operations per Unit	0.75			0.70		0.55			0.43			0.74		0.73		0.66		0.33
Distribution per LP Unit	0.543			0.543		0.515			0.515			0.515		0.515		0.490		0.490



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 33

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		LTA Generation		Revenues				Adjusted EBITDA					Funds From Operations						Net Income (Loss)
	2020	2019	2020	2019	2020		2019		2020		2019			2020			2019			2020			2019
Hydroelectric
North America	7,198	7,983	6,813	6,883	$	482	$	539	$	371	$	406		$	301		$	320		$	86		$	146
Brazil	2,151	2,156	1,986	1,978	100		123		82		91			70			73			34			33
Colombia	1,241	1,626	1,668	1,667	105		118		61		73			44			51			34			37
	10,590	11,765	10,467	10,528	687		780		514		570			415			444			154			216
Wind
North America	1,596	1,611	1,882	1,909	116		121		93		88			58			52			(27		)	(18		)
Europe	360	478	428	531	37		50		26		35			21			28			(12		)	—
Brazil	212	253	294	260	11		16		9		11			6			6			(3		)	1
Asia	200	91	218	89	13		5		11		3			7			2			4			1
	2,368	2,433	2,822	2,789	177		192		139		137			92			88			(38		)	(16		)
Solar	616	486	737	490	110		89		95		74			55			45			(20		)	13
Storage & Other	142	164	—	—	37		45		20		21			14			14			—			1
Corporate	—	—	—	—	—		—		19		(7		)	(127		)	(134		)	(122		)	(154		)
Total	13,716	14,848	14,026	13,807	$	1,011	$	1,106	$	787	$	795		$	449		$	457		$	(26	)	$	60



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 34

RECONCILIATION OF NON-IFRS MEASURES

The following table reflects Adjusted EBITDA, Funds From Operations, Adjusted Funds From Operations and provides a reconciliation to net income (loss) attributable to Unitholders for the six months ended June 30, 2020:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non-controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage and Other		Corporate		Total
Revenues	482		100		105		116		37		11		13		110		37		—		1,011		(199	)	631		1,443
Other income	21		9		8		4		3		1		2		12		1		30		91		(9	)	(49	)	33
Direct operating costs	(132	)	(27	)	(52	)	(27	)	(14	)	(3	)	(4	)	(27	)	(18	)	(11	)	(315	)	53		(247	)	(509	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		155		13		168
Adjusted EBITDA	371		82		61		93		26		9		11		95		20		19		787		—		348
Management service costs	—		—		—		—		—		—		—		—		—		(67	)	(67	)	—		—		(67	)
Interest expense	(68	)	(8	)	(14	)	(34	)	(5	)	(2	)	(4	)	(37	)	(5	)	(40	)	(217	)	57		(156	)	(316	)
Current income taxes	(2	)	(4	)	(3	)	(1	)	—		(1	)	—		(3	)	(1	)	—		(15	)	7		(8	)	(16	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(64	)	(8	)	(72	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(176	)	(176	)
Funds From Operations	301		70		44		58		21		6		7		55		14		(127	)	449		—		—
Depreciation	(117	)	(36	)	(11	)	(79	)	(22	)	(7	)	(4	)	(42	)	(10	)	(2	)	(330	)	91		(159	)	(398	)
Foreign exchange and unrealized financial instrument loss	(14	)	7		(1	)	(5	)	(11	)	—		(1	)	(12	)	(4	)	(3	)	(44	)	19		31		6
Deferred income tax expense	(22	)	1		(3	)	(2	)	1		—		1		(2	)	—		20		(6	)	7		10		11
Other	(62	)	(8	)	5		1		(1	)	(2	)	1		(19	)	—		(10	)	(95	)	12		58		(25	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(129	)	2		(127	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		58		58
Net income (loss) attributable to Unitholders⁽²⁾	86		34		34		(27	)	(12	)	(3	)	4		(20	)	—		(122	)	(26	)	—		—		(26	)

⁽¹⁾

Share of loss from equity-accounted investments of $31 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $118 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.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 35



	Attributable to Unitholders																						Contribution from equity- accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage and Other		Corporate		Total
Revenues	539		123		118		121		50		16		5		89		45		—		1,106		(189	)	695		1,612
Other income	9		3		—		2		1		—		—		2		—		4		21		(6	)	10		25
Direct operating costs	(142	)	(35	)	(45	)	(35	)	(16	)	(5	)	(2	)	(17	)	(24	)	(11	)	(332	)	56		(230	)	(506	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		139		12		151
Adjusted EBITDA	406		91		73		88		35		11		3		74		21		(7	)	795		—		487
Management service costs	—		—		—		—		—		—		—		—		—		(44	)	(44	)	—		—		(44	)
Interest expense	(80	)	(12	)	(16	)	(35	)	(7	)	(4	)	(1	)	(29	)	(7	)	(49	)	(240	)	50		(161	)	(351	)
Current income taxes	(6	)	(6	)	(6	)	(1	)	—		(1	)	—		—		—		—		(20	)	1		(20	)	(39	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(21	)	(21	)	—		—		(21	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(51	)	(9	)	(60	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(297	)	(297	)
Funds From Operations	320		73		51		52		28		6		2		45		14		(134	)	457		—		—
Depreciation	(111	)	(44	)	(10	)	(79	)	(23	)	(9	)	(2	)	(28	)	(12	)	(2	)	(320	)	69		(149	)	(400	)
Foreign exchange and unrealized financial instrument loss	3		3		(1	)	(1	)	(9	)	(1	)	—		4		(1	)	(28	)	(31	)	5		(4	)	(30	)
Deferred income tax expense	(40	)	2		(4	)	17		6		—		(1	)	16		—		18		14		(36	)	(12	)	(34	)
Other	(26	)	(1	)	1		(7	)	(2	)	5		2		(24	)	—		(8	)	(60	)	21		36		(3	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(59	)	—		(59	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		129		129
Net income (loss) attributable to Unitholders⁽²⁾	146		33		37		(18	)	—		1		1		13		1		(154	)	60		—		—		60

⁽¹⁾

Share of earnings from equity-accounted investments of $32 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $168 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.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 36

The following table reconciles net income (loss) attributable to Limited partners' equity and earnings per LP Unit, the most directly comparable IFRS measures, to Funds From Operations, Funds From Operations per Unit, both non-IFRS financial metrics for the six months ended June 30:



							Per unit
(MILLIONS, EXCEPT AS NOTED)	2020			2019			2020			2019
Net (loss) income attributable to:
Limited partners' equity	$	(15	)	$	34		$	(0.08	)	$	0.19
General partnership interest in a holding subsidiary held by Brookfield	—			1			—			—
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	(11		)	25			—			—
Net (loss) income attributable to Unitholders	$	(26	)	$	60		$	(0.08	)	$	0.19
Adjusted for proportionate share of:
Depreciation	330			321			1.06			1.03
Foreign exchange and unrealized financial instruments loss	44			31			0.14			0.10
Deferred income tax expense (recovery)	6			(14		)	0.02			(0.04		)
Other	95			59			0.30			0.19
Funds From Operations	$	449		$	457		$	1.44		$	1.47
Distributions attributable to:
Preferred limited partners' equity	26			21
Preferred equity	13			13
Current income taxes	15			20
Interest expense	217			240
Management service costs	67			44
Proportionate Adjusted EBITDA	787			795
Attributable to non-controlling interests	348			487
Consolidated Adjusted EBITDA	$	1,135		$	1,282
Weighted average Units outstanding⁽¹⁾							311.3			311.1


⁽¹⁾	Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 37

PART 7 – CRITICAL ESTIMATES, ACCOUNTING POLICIES AND INTERNAL CONTROLS

CRITICAL ESTIMATES AND CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES

The unaudited interim consolidated financial statements are prepared in accordance with IAS 34, 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 preparation and significant accounting policies in our unaudited interim consolidated financial statements are considered critical accounting estimates as defined in Canadian National Instrument 51-102 – Continuous Disclosure Obligations with the exception of the estimates related to the valuation of property, plant and equipment 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 and operating and capital costs, the amount, the timing 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 report. 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 in our 2019 Annual Report and the additional risk factors as identified below. The interrelated nature of these factors prevents us from quantifying the overall impact of these movements on Brookfield Renewable’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.

Additional risk factors other than as described in the "Risk Factors" section of our 2019 Annual Report are as follows:

Risks Associated with the COVID-19 Pandemic

The rapid spread of the COVID-19 virus, which was declared by the World Health Organization to be a pandemic on March 11, 2020, and actions taken globally in response to COVID-19, have significantly disrupted international business activities. In addition, the Brookfield Renewable group’s business relies, to a certain extent, on free movement of goods, services, and capital from around the world, which has been significantly restricted as a result of COVID-19. The Brookfield Renewable group has implemented a response plan to maintain its operations despite the outbreak of the virus, including extra safety precautions with respect to our personnel and contingency plans with respect to our facilities. However, the Brookfield Renewable group may experience direct or indirect impacts from the pandemic, including delays in development or construction activities in its business and has some risk that its contract counterparties could fail to meet their obligations.

To date, the Brookfield Renewable group has not experienced the material impact to its operations, financial condition, cash flows or financial performance that has been experienced by many other businesses. Given the ongoing and dynamic nature of the circumstances surrounding COVID-19, it is difficult to predict how significant the impact of COVID-19, including any responses to it, will be on the global economy and the business of the Brookfield Renewable group or for how long any disruptions are likely to continue. The extent of such impact will depend on future developments, which are highly uncertain, rapidly evolving and difficult to predict, including new information which may emerge concerning the severity of COVID-19 and additional actions which may be taken to contain COVID-19. Such developments could have an adverse effect on the Brookfield Renewable group’s assets, liabilities, business, financial condition, results of operations and cash flow.

Despite these conditions and risks, our business is highly resilient given we are an owner, operator and investor in one of the most critical sectors in the world. We generate revenues that are predominantly backed by long-term contracts with well diversified creditworthy counterparties. The majority of our assets can be operated from centralized control centers and our operators around the world have implemented contingency plans to ensure operations, maintenance and capital programs continue with little disruption. We have a robust balance sheet with strong investment grade rating, over $3 billion of available liquidity and no material maturities over the next five years.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 38

NEW ACCOUNTING STANDARDS

There have been no new changes to IFRS with an impact on Brookfield Renewable in 2020.

FUTURE CHANGES IN ACCOUNTING POLICIES

There are currently no future changes to IFRS with potential impact on Brookfield Renewable.

INTERNAL CONTROL OVER FINANCIAL REPORTING

No changes were made in our internal control over financial reporting during the six months ended June 30, 2020, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. We have not experienced any material impact to our internal control over financial reporting due to the COVID-19 pandemic. We are continually monitoring and assessing the COVID-19 pandemic on our internal controls to minimize the impact on their design and operating effectiveness.

SUBSEQUENT EVENTS

Subsequent to quarter end, Brookfield Renewable, alongside institutional partners, entered into an agreement to acquire a 1,200 MW solar development portfolio in Brazil for approximately $50 million, which are targeted for commercial operations in early 2023. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, with Brookfield Renewable expected to hold a 25% interest.

On July 29, 2020, Brookfield Renewable contributed its renewable power assets in the United States, Brazil and Colombia (excluding a 10% interest in certain Brazilian and Colombian operations, which will continue to be held indirectly by Brookfield Renewable) to BEPC. On July 30, 2020, Brookfield Renewable completed a special distribution (the “special distribution”) whereby unitholders of record as of July 27, 2020 (the “Record Date”) received one class A exchangeable subordinate voting share (“BEPC exchangeable share") for every four units held. Immediately prior to the special distribution, Brookfield Renewable received BEPC exchangeable shares through a distribution by BRELP (the "BRELP" distribution) of the BEPC exchangeable shares to all of its unitholders. As a result of the BRELP Distribution, (i) Brookfield and its subsidiaries received approximately 33.1 million BEPC exchangeable shares and (ii) Brookfield Renewable received approximately 44.7 million class A shares, which it subsequently distributed to unitholders pursuant to the special distribution. Upon completion of the special distribution, (i) holders of units held approximately 42.8% of the issued and outstanding BEPC exchangeable shares (ii) Brookfield and its affiliates held approximately 57.2% of the issued and outstanding BEPC exchangeable shares, and (iii) a subsidiary of Brookfield Renewable owned all of the issued and outstanding class B multiple voting shares, or class B shares, which represent a 75.0% voting interest in BEPC, and all of the issued and outstanding class C non-voting shares, or class C shares, of BEPC, which entitle Brookfield Renewable to the residual value in BEPC after payment in full of the amount due to holders of BEPC exchangeable shares and class B shares. Brookfield Renewable directly and indirectly controlled BEPC prior to the special distribution and continues to control BEPC subsequent to the special distribution through its interests in the company. The BEPC exchangeable shares are listed on the New York Stock Exchange and the Toronto Stock Exchange under the symbol “BEPC”.

The thresholds used for the calculation of incentive distribution rights that Brookfield is entitled to as the owner of the 1% GP interest in BRELP will be reduced on the completion of the special distribution to give effect to the special distribution, to $0.300 and $0.338, respectively.

On July 31, 2020, shortly following the special distribution, Brookfield Renewable acquired all of the outstanding Class A common stock of TerraForm Power, other than the approximately 62% already owned by Brookfield Renewable and its affiliates, through a series of transactions (the "TerraForm Power acquisition"). Pursuant to the TerraForm Power acquisition, each holder of public shares of TerraForm Power was entitled to receive 0.47625 of a BEPC exchangeable share or, at the election of the holder, a LP Unit. As a result of the TerraForm Power acquisition, holders of public shares of TerraForm Power exchanged their shares for 37,035,241 exchangeable units of BEPC and 4,034,469 LP Units. After giving effect to the special distribution and the TERP acquisition, Brookfield and its affiliates, including Brookfield Renewable, through its ownership of BEPC exchangeable shares and class B shares, holds an approximate 84.7% voting interest in BEPC. Holders of BEPC exchangeable shares, excluding Brookfield and its affiliates and Brookfield Renewable, hold an approximate 15.3% aggregate voting interest in BEPC.

Concurrently with the TerraForm Power acquisition, Brookfield Renewable entered into a voting agreement with Brookfield whereby Brookfield agreed to provide Brookfield Renewable with a number of voting rights, including the authority to direct the election of the Boards of Directors of the Brookfield entity that owns shares in TerraForm Power. As a result, Brookfield Renewable controls and consolidates TerraForm Power.



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Following the closing of the TerraForm Power acquisition, Brookfield Asset Management owns, directly and indirectly, 220,030,707 LP Units and Redeemable/Exchangeable partnership units and BEPC exchangeable shares, representing approximately 51.5% of Brookfield Renewable on a fully-exchanged basis and the remaining approximately 48.5% is held by public investors.



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PART 8 – PRESENTATION TO STAKEHOLDERS AND PERFORMANCE MEASUREMENT

PRESENTATION TO PUBLIC STAKEHOLDERS

Equity

Brookfield Renewable’s consolidated equity interests include the non-voting LP Units held by public LP Unitholders and Brookfield, Redeemable/Exchangeable Limited Partnership Units in BRELP, a holding subsidiary of Brookfield Renewable, held by Brookfield, and GP interest in BRELP held by Brookfield. The LP Units and the Redeemable/Exchangeable Partnership Units have the same economic attributes in all respects, except that the Redeemable/Exchangeable Partnership Units provide Brookfield the right to request that their units be redeemed for cash consideration. In the event that Brookfield exercises this right, Brookfield Renewable has the right, at its sole discretion, to satisfy the redemption request with LP Units, rather than cash, on a one-for-one basis. Brookfield, as holder of Redeemable/Exchangeable Partnership Units, participates in earnings and distributions on a per unit basis equivalent to the per unit participation of the LP Units. As Brookfield Renewable, at its sole discretion, has the right to settle the obligation with LP Units, the Redeemable/Exchangeable Partnership Units are classified under equity, and not as a liability.

Given the exchange feature referenced above, we are presenting LP Units, Redeemable/Exchangeable Partnership Units, and the GP Interest as separate components of consolidated equity. This presentation does not impact the total income (loss), per unit or share information, or total consolidated equity.

As at the date of this report, Brookfield owns an approximate 51.5% LP Unit interest, on a fully-exchanged basis, and all general partnership interests in Brookfield Renewable, representing a 0.01% interest, while the remaining approximately 48.5% is held by the public.

Actual and Long-term Average Generation

For assets acquired, disposed or reaching commercial operation during the year, reported generation is calculated from the acquisition, disposition or commercial operation date and is not annualized. As it relates to Colombia only, generation includes both hydroelectric and cogeneration facilities. “Other” includes generation from North America cogeneration and Brazil biomass.

North America hydroelectric long-term average is the expected average level of generation based on the results of a simulation based on historical inflow data performed over a period of typically 30 years. Colombia hydroelectric long-term average is the expected average level of generation based on the results of a simulation based on historical inflow data performed over a period of typically 20 years. Hydroelectric assets located in Brazil benefit from a market framework which levelizes generation risk across producers. Wind long-term average is the expected average level of generation based on the results of simulated historical wind speed data performed over a period of typically 10 years. Solar long-term average is the expected average level of generation based on the results of a simulation using historical irradiance levels in the locations of our projects from the last 14 to 20 years combined with actual generation data during the operational period.

We compare actual generation levels against the long-term average to highlight the impact of an important factor that affects the variability of our business results. In the short-term, we recognize that hydrology, wind and irradiance conditions will vary from one period to the next; over time however, we expect our facilities will continue to produce in line with their long-term averages, which have proven to be reliable indicators of performance.

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.

Generation from our North American pumped storage and cogeneration facilities is highly dependent on market price conditions rather than the generating capacity of the facilities. Our European pumped storage facility generates on a dispatchable basis when required by our contracts for ancillary services. Generation from our biomass facilities is dependent



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on the amount of sugar cane harvested in a given year. For these reasons, we do not consider a long-term average for these facilities.

Voting Agreements with Affiliates

Brookfield Renewable has entered into voting agreements with Brookfield, whereby Brookfield Renewable gained control of the entities that own certain renewable power generating facilities in the United States, Brazil, Europe and Asia. Brookfield Renewable has also entered into a voting agreement with its consortium partners in respect of the Colombian business. The voting agreements provide Brookfield Renewable the authority to direct the election of the Boards of Directors of the relevant entities, among other things, and therefore provide Brookfield Renewable with control. Accordingly, Brookfield Renewable consolidates the accounts of these entities.

Brookfield Renewable has also entered into a voting agreement with Brookfield, whereby Brookfield Renewable gained certain rights in respect of the partnership that controls TerraForm Power and its subsidiaries. This voting agreement provides Brookfield Renewable the authority to direct the election of one member of the Board of Directors of the relevant entity, among other things, and therefore provides Brookfield Renewable with significant influence over the partnership that controls TerraForm Power. Accordingly, Brookfield Renewable equity accounts for the partnership that controls TerraForm Power.

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. Brookfield Renewable 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 December 31, 2019 audited 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) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of our strategic investment in Transalta Corporation. The corporate segment represents all activity performed above the individual segments for the business.

We report our results in accordance with these segments and present prior period segmented information in a consistent manner. See Note 5 - 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.

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” and “Part 6 – Selected Quarterly 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 Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder 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 Unitholders.



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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 Brookfield Renewable’s proportionate share of earnings 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.

Brookfield Renewable 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 Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.

Unless the context indicates or requires otherwise, information with respect to the MW attributable to Brookfield Renewable’s facilities, including development assets, is presented on a consolidated basis, including with respect to facilities whereby Brookfield Renewable 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.

Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred limited partners and other typical non-recurring items. Brookfield Renewable 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.

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

Funds From Operations and Funds From Operations per Unit

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.

Brookfield Renewable uses Funds From Operations to assess the performance of the business 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 our unaudited interim consolidated financial statements we use the revaluation approach in accordance with IAS 16, Property, Plant and Equipment, whereby depreciation is determined based on a revalued amount, thereby reducing comparability with our peers who do not report under IFRS as issued by the IASB or who do not employ



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the revaluation approach to measuring property, plant and equipment. We add back deferred income taxes on the basis that we do not believe this item reflects the present value of the actual tax obligations that we expect to incur over our long-term investment horizon.

Brookfield Renewable 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 per Unit is not a substitute measure of performance for earnings per share and does not represent amounts available for distribution to LP Unitholders.

Funds From Operations is not intended to be representative of cash provided by operating activities or results of operations determined in accordance with IFRS. Furthermore, this measure is not used by the CODM to assess Brookfield Renewable’s liquidity.

Proportionate Debt

Proportionate debt is presented based on the proportionate share of borrowings obligations relating to the investments of Brookfield Renewable 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 Brookfield Renewable'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 Brookfield Renewable has financed its businesses at the asset-level. Management believes that the proportionate presentation, when read in conjunction with Brookfield Renewable’ reported results under IFRS, including consolidated debt, provides a more meaningful assessment of how the operations of Brookfield Renewable are performing and capital is being managed. The presentation of proportionate debt 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 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 Brookfield Renewable and aggregate proportionate debt for all of the portfolio investments of Brookfield Renewable; and


•	Other companies may calculate proportionate debt differently.

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



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PART 9 – CAUTIONARY STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This Interim 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 Brookfield Renewable and BEPC. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this Interim Report include statements regarding the quality of Brookfield Renewable’s assets and the resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance, future commissioning of assets, contracted nature of our portfolio, technology diversification, acquisition opportunities, expected completion of acquisitions and dispositions, financing and refinancing opportunities, BEPC’s eligibility for index inclusion, BEPC’s ability to attract new investors as well as the future performance and prospects of BEPC and Brookfield Renewable, the prospects and benefits of the combination of Brookfield Renewable and TerraForm Power, including certain information regarding the combined company’s expected cash flow profile and liquidity, future energy prices and demand for electricity, economic recovery, achieving long-term average generation, project development and capital expenditure costs, energy policies, economic growth, growth potential of the renewable asset class, the future growth prospects and distribution profile of Brookfield Renewable and Brookfield Renewable’s access to capital. In some cases, forward looking statements can be identified by the use of words such as “plans”, “expects”, “scheduled”, “estimates”, “intends”, “anticipates”, “believes”, “potentially”, “tends”, “continue”, “attempts”, “likely”, “primarily”, “approximately”, “endeavours”, “pursues”, “strives”, “seeks”, “targets”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved. Although we believe that our anticipated future results, performance or achievements expressed or implied by the forward-looking statements and information in this Interim 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 changes to hydrology at our hydroelectric facilities, to wind conditions at our wind energy facilities, to irradiance at our solar facilities or to weather generally, as a result of climate change or otherwise, at any of our facilities; volatility in supply and demand in the energy markets; our inability to re-negotiate or replace expiring PPAs on similar terms; increases in water rental costs (or similar fees) or changes to the regulation of water supply; advances in technology that impair or eliminate the competitive advantage of our projects; an increase in the amount of uncontracted generation in our portfolio; industry risks relating to the power markets in which we operate; the termination of, or a change to, the MRE balancing pool in Brazil; increased regulation of our operations; concessions and licenses expiring and not being renewed or replaced on similar terms; our real property rights for wind and solar renewable energy facilities being adversely affected by the rights of lienholders and leaseholders that are superior to those granted to us; increases in the cost of operating our plants; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures, including relating to wind turbines and solar panels; dam failures and the costs and potential liabilities associated with such failures; force majeure events; uninsurable losses and higher insurance premiums; adverse changes in currency exchange rates and our inability to effectively manage foreign currency exposure; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; energy marketing risks; disputes, governmental and regulatory investigations and litigation; counterparties to our contracts not fulfilling their obligations; the time and expense of enforcing contracts against non-performing counter-parties and the uncertainty of success; our operations being affected by local communities; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; some of our acquisitions may be of distressed companies, which may subject us to increased risks, including the incurrence of legal or other expenses; our reliance on computerized business systems, which could expose us to cyber-attacks; newly developed technologies in which we invest not performing as anticipated; labor disruptions and economically unfavorable collective bargaining agreements; our inability to finance our operations due to the status of the capital markets; operating and financial restrictions imposed on us by our loan, debt and security agreements; changes to our credit ratings; our inability to identify sufficient investment opportunities and complete transactions; the growth of our portfolio and our inability to realize the expected benefits of our transactions or acquisitions, including the TerraForm Power acquisition and the special distribution of BEPC shares; our inability to develop greenfield projects or find new sites suitable



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for the development of greenfield projects; delays, cost overruns and other problems associated with the construction and operation of generating facilities and risks associated with the arrangements we enter into with communities and joint venture partners; Brookfield Asset Management’s election not to source acquisition opportunities for us and our lack of access to all renewable power acquisitions that Brookfield Asset Management identifies, including by reason of conflicts of interest; we do not have control over all our operations or investments; political instability or changes in government policy; foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; changes to government policies that provide incentives for renewable energy; a decline in the value of our investments in securities, including publicly traded securities of other companies; we are not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from control within our organizational structure; future sales and issuances of our LP Units, preferred limited partnership units or securities exchangeable for LP Units, or the perception of such sales or issuances, could depress the trading price of the LP Units or preferred limited partnership units; the incurrence of debt at multiple levels within our organizational structure; being deemed an “investment company” under the U.S. Investment Company Act of 1940; the effectiveness of our internal controls over financial reporting; our dependence on Brookfield Asset Management and Brookfield Asset Management’s significant influence over us; the departure of some or all of Brookfield Asset Management’s key professionals; changes in how Brookfield Asset Management elects to hold its ownership interests in Brookfield Renewable; Brookfield Asset Management acting in a way that is not in the best interests of Brookfield Renewable or its unitholders; the severity, duration and spread of the COVID-19 outbreak, as well as the direct and indirect impacts that the virus may have; broader impact of climate change; failure of BEPC’s systems technology; involvement in disputes, governmental and regulatory investigations and litigation; any changes in the market price of the BEP units; and the redemption of BEPC exchangeable shares by BEPC at any time or upon notice from the holder of BEPC class B shares.

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 Interim 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 Form 20-F and other risks and factors that are described therein.

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES

This Interim Report contains references to certain proportionate information, Adjusted EBITDA, Funds From Operations, Funds From Operations per Unit and Proportionate Debt (collectively, “Brookfield Renewable’s Non-IFRS Measures”) which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of proportionate information, Adjusted EBITDA, Funds From Operations, Funds From Operations per Unit, and Proportionate Debt 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 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 Brookfield Renewable’s Non-IFRS Measures are useful supplemental measures that may assist investors in assessing our financial performance. Brookfield Renewable’s Non-IFRS Measures should not be considered as the sole 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. A reconciliation of Adjusted EBITDA and Funds From Operations to net income is presented in our Management’s Discussion and Analysis. We have also provided a reconciliation of Adjusted EBITDA and Funds From Operations to net income in Note 5 - Segmented information in the unaudited interim consolidated financial statements.

A reconciliation of Adjusted EBITDA and Funds From Operations to net income is presented in our Management’s Discussion and Analysis. We have also provided a reconciliation of Adjusted EBITDA and Funds From Operations to net income in Note 5 – Segmented information in the unaudited interim consolidated financial statements.



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BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION



_UNAUDITED _(MILLIONS)	Notes	June 30, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents	13	$	229	$	115
Restricted cash	14	222		154
Trade receivables and other current assets	15	604		718
Financial instrument assets	4	72		75
Due from related parties	18	113		60
Assets held for sale	3	170		352
		1,410		1,474
Financial instrument assets	4	289		165
Equity-accounted investments	12	1,779		1,889
Property, plant and equipment	7	28,527		30,714
Goodwill		716		821
Deferred income tax assets	6	125		116
Other long-term assets		479		512
Total Assets		$	33,325	$	35,691
Liabilities
Current liabilities
Accounts payable and accrued liabilities	16	$	524	$	590
Financial instrument liabilities	4	57		139
Payables due to related parties	18	166		127
Corporate borrowings	8	140		—
Non-recourse borrowings	8	1,190		685
Liabilities directly associated with assets held for sale	3	94		137
		2,171		1,678
Financial instrument liabilities	4	157		39
Corporate borrowings	8	1,984		2,100
Non-recourse borrowings	8	7,572		8,219
Deferred income tax liabilities	6	4,237		4,537
Other long-term liabilities		1,030		987
Equity
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	7,813		8,742
General partnership interest in a holding subsidiary held by Brookfield	9	58		68
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	2,816		3,315
Preferred equity	9	571		597
Preferred limited partners' equity	10	1,028		833
Limited partners' equity	11	3,888		4,576
Total Equity		16,174		18,131
Total Liabilities and Equity		$	33,325	$	35,691

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



Approved on behalf of Brookfield Renewable Partners L.P.:

Patricia Zuccotti Director	David Mann Director



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BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF INCOME



_UNAUDITED _{(MILLIONS, EXCEPT PER UNIT INFORMATION)}		Three months ended June 30						Six months ended June 30
_UNAUDITED _{(MILLIONS, EXCEPT PER UNIT INFORMATION)}	Notes	2020			2019			2020			2019
Revenues	18	$	651		$	787		$	1,443		$	1,612
Other income		23			17			33			25
Direct operating costs		(248		)	(252		)	(509		)	(506		)
Management service costs	18	(36		)	(23		)	(67		)	(44		)
Interest expense	8	(154		)	(178		)	(316		)	(351		)
Share of (loss) earnings from equity-accounted investments	12	(15		)	—			(31		)	32
Foreign exchange and unrealized financial instrument gain (loss)	4	(14		)	(12		)	6			(30		)
Depreciation	7	(192		)	(200		)	(398		)	(400		)
Other		(17		)	(1		)	(25		)	(3		)
Income tax recovery (expense)
Current	6	3			(15		)	(16		)	(39		)
Deferred	6	10			(14		)	11			(34		)
		13			(29		)	(5		)	(73		)
Net income		$	11		$	109		$	131		$	262
Net income attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	$	35		$	74		$	118		$	168
General partnership interest in a holding subsidiary held by Brookfield	9	—			1			—			1
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	(19		)	7			(11		)	25
Preferred equity	9	6			7			13			13
Preferred limited partners' equity	10	14			11			26			21
Limited partners' equity	11	(25		)	9			(15		)	34
		$	11		$	109		$	131		$	262
Basic and diluted (loss) earnings per LP Unit		$	(0.14	)	$	0.05		$	(0.08	)	$	0.19

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



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BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



_UNAUDITED _(MILLIONS)		Three months ended June 30						Six months ended June 30
_UNAUDITED _(MILLIONS)	Notes	2020			2019			2020			2019
Net income		$	11		$	109		$	131		$	262
Other comprehensive income (loss) that will not be reclassified to net income
Actuarial loss on defined benefit plans		(4		)	(8		)	(2		)	(13		)
Deferred income taxes on above items		1			4			1			4
Total items that will not be reclassified to net income		(3		)	(4		)	(1		)	(9		)
Other comprehensive (loss) income that may be reclassified to net income
Foreign currency translation		222			33			(1,564		)	168
Gains (losses) arising during the period on financial instruments designated as cash-flow hedges	4	(16		)	6			2			2
Unrealized (loss) gain on foreign exchange swaps net investment hedge	4	(6		)	7			23			1
Unrealized gain (loss) on investments in equity securities	4	1			(3		)	(8		)	23
Reclassification adjustments for amounts recognized in net income	4	(12		)	(4		)	(31		)	—
Deferred income taxes on above items		5			2			5			1
Equity-accounted investments	12	15			—			(8		)	—
Total items that may be reclassified subsequently to net income		209			41			(1,581		)	195
Other comprehensive income (loss)		206			37			(1,582		)	186
Comprehensive income (loss)		$	217		$	146		$	(1,451	)	$	448
Comprehensive income (loss) attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	227			76			(670		)	253
General partnership interest in a holding subsidiary held by Brookfield	9	(1		)	—			(7		)	1
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	(21		)	18			(331		)	58
Preferred equity	9	26			17			(13		)	36
Preferred limited partners' equity	10	14			11			26			21
Limited partners' equity	11	$	(28	)	$	24		$	(456	)	$	79
		217			146			(1,451		)	448

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



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 49

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



				Accumulated other comprehensive income																					Non-controlling interests
UNAUDITED THREE MONTHS ENDED JUNE 30 (MILLIONS)	Limited partners' equity			Foreign currency translation			Revaluation surplus			Actuarial losses on defined benefit plans			Cash flow hedges			Investments in equity securities			Total limited partners' equity			Preferred limited partners' equity			Preferred equity			Participating non-controlling interests – in operating subsidiaries			General partnership interest in a holding subsidiary held by Brookfield			Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield			Total equity
Balance, as at March 31, 2020	$	(1,198	)	$	(1,130	)	$	6,413		$	(8	)	$	(38	)	$	(4	)	$	4,035		$	1,028		$	551		$	7,760		$	60		$	2,923		$	16,357
Net income	(25		)	—			—			—			—			—			(25		)	14			6			35			—			(19		)	11
Other comprehensive income (loss)	—			—			—			(1		)	(6		)	4			(3		)	—			20			192			(1		)	(2		)	206
Distributions or dividends declared	(97		)	—			—			—			—			—			(97		)	(14		)	(6		)	(174		)	(17		)	(70		)	(378		)
Distribution reinvestment plan	2			—			—			—			—			—			2			—			—			—			—			—			2
Other	(22		)	—			(1		)	—			(1		)	—			(24		)	—			—			—			16			(16		)	(24		)
Change in period	(142		)	—			(1		)	(1		)	(7		)	4			(147		)	—			20			53			(2		)	(107		)	(183		)
Balance as at June 30, 2020	$	(1,340	)	$	(1,130	)	$	6,412		$	(9	)	$	(45	)	$	—		$	3,888		$	1,028		$	571		$	7,813		$	58		$	2,816		$	16,174

Balance, as at March 31, 2019	$	(810	)	$	(644	)	$	5,921		$	(7	)	$	(36	)	$	18		$	4,442		$	833		$	580		$	8,456		$	66		$	3,221		17,598
Net income	9			—			—			—			—			—			9			11			7			74			1			7			109
Other comprehensive income (loss)	—			21			1			(2		)	(2		)	(3		)	15			—			10			2			(1		)	11			37
Capital contributions	—			—			—			—			—			—			—			—			—			10			—			—			10
Disposal	—			—			—			—			—			—			—			—			—			(53		)	—			—			(53		)
Distributions or dividends declared	(92		)	—			—			—			—			—			(92		)	(11		)	(7		)	(262		)	(13		)	(67		)	(452		)
Distribution reinvestment plan	1			—			—			—			—			—			1			—			—			—			—			—			1
Other	10			(2		)	(4		)	—			—			(10		)	(6		)	—			1			(1		)	12			(6		)	—
Change in period	(72		)	19			(3		)	(2		)	(2		)	(13		)	(73		)	—			11			(230		)	(1		)	(55		)	(348		)
Balance as at June 30, 2019	$	(882	)	$	(625	)	$	5,918		$	(9	)	$	(38	)	$	5		$	4,369		$	833		$	591		$	8,226		$	65		$	3,166		$	17,250

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



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 50

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



				Accumulated other comprehensive income																					Non-controlling interests
UNAUDITED SIX MONTHS ENDED JUNE 30 (MILLIONS)	Limited partners' equity			Foreign currency translation			Revaluation surplus			Actuarial losses on defined benefit plans			Cash flow hedges			Investments in equity securities			Total limited partners' equity			Preferred limited partners' equity			Preferred equity			Participating non-controlling interests – in operating subsidiaries			General partnership interest in a holding subsidiary held by Brookfield			Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield			Total equity
Balance, as at December 31, 2019	$	(1,119	)	$	(700	)	$	6,424		$	(9	)	$	(32	)	$	12		$	4,576		$	833		$	597		$	8,742		$	68		$	3,315		$	18,131
Net income	(15		)	—			—			—			—			—			(15		)	26			13			118			—			(11		)	131
Other comprehensive income (loss)	—			(428		)	—			—			(12		)	(1		)	(441		)	—			(26		)	(788		)	(7		)	(320		)	(1,582		)
Preferred LP Units issued (Note 10)	—			—			—			—			—			—			—			195			—			—			—			—			195
Capital contributions (Note 9)	—			—			—			—			—			—			—			—			—			8			—			—			8
Distributions or dividends declared	(196		)	—			—			—			—			—			(196		)	(26		)	(13		)	(251		)	(34		)	(142		)	(662		)
Distribution reinvestment plan	3			—			—			—			—			—			3			—			—			—			—			—			3
Other	(13		)	(2		)	(12		)	—			(1		)	(11		)	(39		)	—			—			(16		)	31			(26		)	(50		)
Change in period	(221		)	(430		)	(12		)	—			(13		)	(12		)	(688		)	195			(26		)	(929		)	(10		)	(499		)	(1,957		)
Balance as at June 30, 2020	$	(1,340	)	$	(1,130	)	$	6,412		$	(9	)	$	(45	)	$	—		$	3,888		$	1,028		$	571		$	7,813		$	58		$	2,816		$	16,174

Balance, as at December 31, 2018	(948		)	(652		)	6,120			(6		)	(34		)	4			4,484			707			568			8,129			66			3,252			17,206
Net income	34			—			—			—			—			—			34			21			13			168			1			25			262
Other comprehensive income (loss)	—			41			1			(4		)	(4		)	11			45			—			23			85			—			33			186
Preferred LP Units issued	—			—			—			—			—			—			—			126			—			—			—			—			126
LP Units purchased for cancellation	(1		)	—			—			—			—			—			(1		)	—			—			—			—			—			(1		)
Capital contributions	—			—			—			—			—			—			—			—			—			298			—			—			298
Disposal	—			—			—			—			—			—			—			—			—			(53		)	—			—			(53		)
Distributions or dividends declared	(185		)	—			—			—			—			—			(185		)	(21		)	(13		)	(396		)	(28		)	(135		)	(778		)
Distribution reinvestment plan	3			—			—			—			—			—			3			—			—			—			—			—			3
Other	215			(14		)	(203		)	1			—			(10		)	(11		)	—			—			(5		)	26			(9		)	1
Change in period	66			27			(202		)	(3		)	(4		)	1			(115		)	126			23			97			(1		)	(86		)	44
Balance as at June 30, 2019	$	(882	)	$	(625	)	$	5,918		$	(9	)	$	(38	)	$	5		$	4,369		$	833		$	591		$	8,226		$	65		$	3,166		$	17,250

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



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 51

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS



UNAUDITED		Three months ended June 30						Six months ended June 30
(MILLIONS)	Notes	2020			2019			2020			2019
Operating activities
Net income		$	11		$	109		$	131		$	262
Adjustments for the following non-cash items:
Depreciation	7	192			200			398			400
Unrealized foreign exchange and financial instruments loss (gain)	4	14			11			(7		)	31
Share of earnings from equity-accounted investments	12	15			—			31			(32		)
Deferred income tax (recovery) expense	6	(10		)	14			(11		)	34
Other non-cash items		4			33			26			50
Dividends received from equity-accounted investments	12	14			14			42			28
Changes in due to or from related parties		8			(41		)	7			(36		)
Net change in working capital balances		13			28			(1		)	2
		261			368			616			739
Financing activities
Proceeds from medium term notes	8	$	250		$	—		$	250		$	—
Commercial paper and corporate credit facilities, net	8	(198		)	(26		)	(159		)	(721		)
Proceeds from non-recourse borrowings	8	309			852			525			945
Repayment of non-recourse borrowings	8	(235		)	(573		)	(546		)	(666		)
Capital contributions from participating non-controlling interests – in operating subsidiaries	9	—			10			7			257
Issuance of preferred limited partners' units	10	—			—			195			126
Repurchase of LP Units	11	—			—			—			(1		)
Distributions paid:
To participating non-controlling interests – in operating subsidiaries	9	(174		)	(262		)	(251		)	(396		)
To preferred shareholders	9	(6		)	(7		)	(13		)	(13		)
To preferred limited partners' unitholders	10	(12		)	(11		)	(23		)	(20		)
To unitholders of Brookfield Renewable or BRELP	9,11	(183		)	(171		)	(365		)	(342		)
Borrowings from related party	18	—			322			—			922
Repayments to related party	18	—			(355		)	—			(600		)
		(249		)	(221		)	(380		)	(509		)
Investing activities
Investment in equity-accounted investments		(3		)	(4		)	(15		)	(4		)
Acquisitions net of cash and cash equivalents in acquired entity		—			(26		)	—			(26		)
Investment in property, plant and equipment	7	(57		)	(34		)	(110		)	(63		)
Proceeds from disposal of assets	2	11			82			105			82
Purchases of financial assets	4	(183		)	(93		)	(227		)	(93		)
Proceeds from financial assets		115			14			161			19
Restricted cash and other		45			66			(15		)	11
		(72		)	5			(101		)	(74		)
Foreign exchange loss on cash		(1		)	1			(13		)	1
Cash and cash equivalents
(Decrease) Increase		(61		)	153			122			157
Net change in cash classified within assets held for sale		(4		)	(8		)	(8		)	(8		)
Balance, beginning of period		294			177			115			173
Balance, end of period		$	229		$	322		$	229		$	322
Supplemental cash flow information:
Interest paid		$	167		$	176		$	317		$	319
Interest received		$	3		$	6		$	9		$	10
Income taxes paid		$	13		$	18		$	34		$	37

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



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 52

BROOKFIELD RENEWABLE PARTNERS L.P.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

The business activities of Brookfield Renewable Partners L.P. ("Brookfield Renewable") consist of owning a portfolio of renewable power generating facilities primarily in North America, Colombia, Brazil, Europe, India and China.

Unless the context indicates or requires otherwise, the term "Brookfield Renewable" means Brookfield Renewable Partners L.P. and its controlled entities.

Brookfield Renewable is a publicly traded limited partnership established under the laws of Bermuda pursuant to an amended and restated limited partnership agreement dated November 20, 2011.

The registered office of Brookfield Renewable is 73 Front Street, Fifth Floor, Hamilton HM12, Bermuda.

The immediate parent of Brookfield Renewable is its general partner, Brookfield Renewable Partners Limited ("BRPL"). The ultimate parent of Brookfield Renewable 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 these financial statements.

Brookfield Renewable's non-voting limited partnership units ("LP Units") are traded under the symbol "BEP" on the New York Stock Exchange and under the symbol "BEP.UN" on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 5, Series 7, Series 9, Series 11, Series 13, and Series 15 preferred limited partners' equity are traded under the symbols "BEP.PR.E", "BEP.PR.G", "BEP.PR.I", "BEP.PR.K", "BEP.PR.M" and "BEP.PR.O" respectively, on the Toronto Stock Exchange. Brookfield Renewable's Class A Series 17 preferred limited partners' equity is traded under the symbol "BEP.PR.A" on the New York Stock Exchange.



Notes to the consolidated financial statements		Page

1.	Basis of preparation and significant accounting policies	54
2.	Disposal of assets	55
3.	Assets held for sale	55
4.	Risk management and financial instruments	56
5.	Segmented information	59
6.	Income taxes	65
7.	Property, plant and equipment	65
8.	Borrowings	66
9.	Non-controlling interests	68
10.	Preferred limited partners' equity	71
11.	Limited partners' equity	71
12.	Equity-accounted investments	72
13.	Cash and cash equivalents	73
14.	Restricted cash	73
15.	Trade receivables and other current assets	73
16.	Accounts payable and accrued liabilities	73
17.	Commitments, contingencies and guarantees	74
18.	Related party transactions	75
19.	Subsidiary public issuers	76
20.	Subsequent events	77



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 53

1. BASIS OF PREPARATION 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 Brookfield Renewable’s December 31, 2019 audited consolidated financial statements. The interim consolidated statements have been prepared on a basis consistent with the accounting policies disclosed in the December 31, 2019 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 consolidated financial statements have been authorized for issuance by the Board of Directors of Brookfield Renewable’s general partner, BRPL, on August 7, 2020.

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

References to $, C$, €, R$, COP, INR, and THB are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, Colombian pesos, Indian Rupees, and Thai baht, respectively.

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

(b) Basis of preparation

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.

Consolidation

These interim consolidated financial statements include the accounts of Brookfield Renewable and its subsidiaries, which are the entities over which Brookfield Renewable 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 Brookfield Renewable’s subsidiaries are shown separately in equity in the interim consolidated statements of financial position.

Several amendments and interpretations apply for the first time in 2020, but do not have an impact on the consolidated financial statements of Brookfield Renewable. Brookfield Renewable has not early adopted any other standards, interpretations or amendments that have been issued but are not yet effective.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 54

2. DISPOSAL OF ASSETS

In March 2020, Brookfield Renewable, along with its institutional partners, completed the sale of a 39 MW portfolio of solar assets in Thailand. The total consideration was THB 3,079 million ($94 million) and Brookfield Renewable’s interest in the portfolio was approximately 31%. This resulted in a loss on disposition of $12 million ($4 million net to Brookfield Renewable) recognized in the consolidated statements of income under Other. Immediately prior to the classification of the portfolio as held for sale in 2018, Brookfield Renewable performed a revaluation of the property, plant & equipment, in line with its election to apply the revaluation method and recorded a fair value uplift of $42 million. As a result of the disposition, Brookfield Renewable's portion of the accumulated revaluation surplus of $13 million post-tax was reclassified from other comprehensive income directly to equity and noted as an Other item in the consolidated statements of changes in equity.

Summarized financial information relating to the disposal of the Thailand portfolio is shown below:



(MILLIONS)
Proceeds	$	94
Carrying value of net assets held for sale
Assets	114
Liabilities	(8		)
	106
Loss on disposal	$	(12	)

3. ASSETS HELD FOR SALE

As at June 30, 2020, assets held for sale within Brookfield Renewable's operating segments include solar facilities in South Africa and Asia.

The following is a summary of the major items of assets and liabilities classified as held for sale:



(MILLIONS)	June 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	6	$	14
Restricted cash	17		22
Trade receivables and other current assets	8		13
Property, plant and equipment	139		303
Assets held for sale	$	170	$	352
Liabilities
Current liabilities	$	12	$	18
Long-term debt	58		73
Other long-term liabilities	24		46
Liabilities directly associated with assets held for sale	$	94	$	137



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 55

4. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

RISK MANAGEMENT

Brookfield Renewable`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. Brookfield Renewable uses financial instruments primarily to manage these risks.

COVID-19 pandemic has impacted business across the globe and we are monitoring its impact on our business. While it is difficult to predict how significant the impact of COVID-19 will be, our business is highly resilient given we are an owner, operator and investor in one of the most critical sectors in the world and have a robust balance sheet with a strong investment grade rating. We generate revenues that are predominantly backed by long-term contracts with well diversified creditworthy counterparties. The majority of our assets can be operated from centralized control centers and our operators around the world have implemented contingency plans to ensure operations, maintenance and capital programs continue with little disruption.

There have been no other material changes in exposure to the risks Brookfield Renewable is exposed to since the December 31, 2019 audited consolidated financial statements.

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 Partners L.P.	Interim Report	June 30, 2020
		Page 56

The following table presents Brookfield Renewable's assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy:



	June 30, 2020												December 31, 2019
(MILLIONS)	Level 1			Level 2			Level 3			Total			Total
Assets measured at fair value:
Cash and cash equivalents	$	229		$	—		$	—		$	229		$	115
Restricted cash⁽¹⁾	233			—			—			233			173
Financial instrument assets⁽²⁾
Energy derivative contracts	—			60			14			74			76
Foreign exchange swaps	—			10			—			10			4
Investments in debt and equity securities	8			187			82			277			160
Property, plant and equipment	—			—			28,527			28,527			30,714
Liabilities measured at fair value:
Financial instrument liabilities⁽²⁾
Energy derivative contracts	—			(9		)	—			(9		)	(8		)
Interest rate swaps	—			(198		)	—			(198		)	(131		)
Foreign exchange swaps	—			(7		)	—			(7		)	(39		)
Contingent consideration⁽³⁾	—			—			(22		)	(22		)	(11		)
Assets for which fair value is disclosed:
Equity-accounted investments⁽⁴⁾	1,211			—			—			1,211			1,010
Liabilities for which fair value is disclosed:
Corporate borrowings	(2,190		)	(140		)	—			(2,330		)	(2,204		)
Non-recourse borrowing	(393		)	(9,145		)	—			(9,538		)	(9,573		)
Total	$	(902	)	$	(9,242	)	$	28,601		$	18,457		$	20,286


⁽¹⁾	Includes both the current amount and long-term amount included in Other long-term assets.


⁽²⁾	Includes both current and long-term amounts.


⁽³⁾	Amount relates to acquisitions with obligations lapsing in 2021 to 2024.


⁽⁴⁾	The fair value corresponds to Brookfield Renewable's investment in publicly-quoted common shares of TerraForm Power, Inc.

There were no transfers between levels during the six months ended June 30, 2020.

Financial instruments disclosures

The aggregate amount of Brookfield Renewable's net financial instrument positions are as follows:



	June 30, 2020							December 31, 2019
(MILLIONS)	Assets		Liabilities		Net Assets (Liabilities)			Net Assets (Liabilities)
Energy derivative contracts	$	74	$	9	$	65		$	68
Interest rate swaps	—		198		(198		)	(131		)
Foreign exchange swaps	10		7		3			(35		)
Investments in debt and equity securities	277		—		277			160
Total	361		214		147			62
Less: current portion	72		57		15			(64		)
Long-term portion	$	289	$	157	$	132		$	126



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 57

(a) Energy derivative contracts

Brookfield Renewable 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 Brookfield Renewable'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.

(b) Interest rate hedges

Brookfield Renewable has entered into interest rate hedge contracts primarily to minimize exposure to interest rate fluctuations on its variable rate debt or to lock in interest rates on future debt refinancing. All interest rate hedge contracts are recorded in the interim consolidated financial statements at fair value.

Brookfield Renewable 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.

(d) Investments in debt and equity securities

Brookfield Renewable's investments in debt and equity securities consist of investments in publicly-quoted and non-publicly quoted securities which are recorded on the statement of financial position at fair value.

The following table reflects the unrealized gains (losses) included in Foreign exchange and unrealized financial instrument loss 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)	2020			2019			2020			2019
Energy derivative contracts	$	(22	)	$	6		$	2		$	12
Interest rate swaps	(17		)	(19		)	(39		)	(32		)
Foreign exchange swaps	25			(8		)	79			(19		)
Foreign exchange gain (loss)	—			9			(36		)	9
	$	(14	)	$	(12	)	$	6		$	(30	)

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



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Energy derivative contracts	$	(7	)	$	25		$	33		$	38
Interest rate swaps	(9		)	(19		)	(31		)	(36		)
Foreign exchange swaps	$	—		$	—		$	—		$	—
	(16		)	6			2			2
Foreign exchange swaps – net investment	(6		)	7			23			1
Investments in debt and equity securities	1			(3		)	(8		)	23
	$	(21	)	$	10		$	17		$	26

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



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Energy derivative contracts	$	(16	)	$	(8	)	$	(38	)	$	(7	)
Interest rate swaps	4			4			7			7
	$	(12	)	$	(4	)	$	(31	)	$	—



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 58

5. SEGMENTED INFORMATION

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

Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of our strategic investment in TransAlta Corporation ("TransAlta"). The corporate segment represents all activity performed above the individual segments for the business.

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 Brookfield Renewable’s share from facilities which it accounts for using consolidation and the equity method whereby Brookfield Renewable either controls or exercises significant influence or joint control over the investment, respectively. Proportionate information provides a Unitholder (holders of the GP interest, Redeemable/Exchangeable partnership units, and LP Units) 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 Brookfield Renewable’s Unitholders.

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. 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 Brookfield Renewable’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 us apportioned to each of the above-noted items.

Brookfield Renewable 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 Brookfield Renewable’s legal claim to such items, and the removal of financial statement amounts that are attributable to non-controlling interests does not extinguish Brookfield Renewable’s legal claims or exposures to such items.

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

In accordance with IFRS 8, Operating Segments, Brookfield Renewable discloses information about its reportable segments based upon the measures used by the CODM in assessing performance. Except as it relates to proportionate financial information discussed above, the accounting policies of the reportable segments are the same as those described in Note 1 – Basis of preparation and significant accounting policies. Brookfield Renewable analyzes the performance of its operating segments based on revenues, Adjusted EBITDA, and Funds From Operations. Adjusted EBITDA and Funds From Operations are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA and Funds From Operations used by other entities.

Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred shareholders and preferred limited partners and other typical non-recurring items.

Brookfield Renewable uses Funds From Operations to assess the performance of its operations and is defined as Adjusted EBITDA less management service costs, interest and current income taxes, which is then adjusted for the cash portion of non-controlling interests and distributions to preferred shareholders and preferred limited partners.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 59

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 Brookfield Renewable's proportionate results to the consolidated statements of income on a line by line basis by aggregating the components comprising the earnings from Brookfield Renewable's investments in associates and reflecting the portion of each line item attributable to non-controlling interests for the three months ended June 30, 2020:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	217		39		45		56		15		7		7		61		19		—		466		(104	)	289		651
Other income	19		6		6		2		3		1		2		11		1		28		79		(7	)	(49	)	23
Direct operating costs	(63	)	(10	)	(26	)	(13	)	(5	)	(2	)	(3	)	(13	)	(8	)	(6	)	(149	)	25		(124	)	(248	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		86		5		91
Adjusted EBITDA	173		35		25		45		13		6		6		59		12		22		396		—		121
Management service costs	—		—		—		—		—		—		—		—		—		(36	)	(36	)	—		—		(36	)
Interest expense	(29	)	(4	)	(7	)	(15	)	(3	)	(1	)	(2	)	(20	)	(3	)	(20	)	(104	)	30		(80	)	(154	)
Current income taxes	1		(2	)	1		(1	)	—		—		—		(2	)	(1	)	—		(4	)	3		4		3
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(14	)	(14	)	—		—		(14	)
Preferred equity	—		—		—		—		—		—		—		—		—		(6	)	(6	)	—		—		(6	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(33	)	(5	)	(38	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(40	)	(40	)
Funds From Operations	145		29		19		29		10		5		4		37		8		(54	)	232		—		—
Depreciation	(59	)	(16	)	(5	)	(37	)	(10	)	(3	)	(2	)	(20	)	(5	)	(1	)	(158	)	43		(77	)	(192	)
Foreign exchange and unrealized financial instrument loss	(32	)	—		(6	)	(3	)	(8	)	—		—		(7	)	(5	)	10		(51	)	15		22		(14	)
Deferred income tax expense	(2	)	—		(2	)	—		—		—		1		(1	)	—		4		—		2		8		10
Other	(42	)	(4	)	5		—		(1	)	(2	)	(1	)	(15	)	1		(8	)	(67	)	10		40		(17	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(70	)	2		(68	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		5		5
Net income (loss) attributable to Unitholders⁽²⁾	10		9		11		(11	)	(9	)	—		2		(6	)	(1	)	(49	)	(44	)	—		—		(44	)

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 60



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	275		58		56		58		22		9		3		51		21		—		553		(98	)	332		787
Other income	8		2		—		—		1		—		—		1		—		2		14		(2	)	5		17
Direct operating costs	(72	)	(18	)	(21	)	(18	)	(8	)	(3	)	(1	)	(10	)	(11	)	(5	)	(167	)	27		(112	)	(252	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		73		5		78
Adjusted EBITDA	211		42		35		40		15		6		2		42		10		(3	)	400		—		230
Management service costs	—		—		—		—		—		—		—		—		—		(23	)	(23	)	—		—		(23	)
Interest expense	(39	)	(6	)	(8	)	(16	)	(4	)	(2	)	(1	)	(15	)	(3	)	(25	)	(119	)	26		(85	)	(178	)
Current income taxes	(4	)	(3	)	(2	)	(1	)	—		—		—		—		—		—		(10	)	—		(5	)	(15	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(11	)	(11	)	—		—		(11	)
Preferred equity	—		—		—		—		—		—		—		—		—		(7	)	(7	)	—		—		(7	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(26	)	(5	)	(31	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(135	)	(135	)
Funds From Operations	168		33		25		23		11		4		1		27		7		(69	)	230		—		—
Depreciation	(56	)	(22	)	(5	)	(39	)	(13	)	(5	)	(1	)	(15	)	(6	)	(1	)	(163	)	36		(73	)	(200	)
Foreign exchange and unrealized financial instrument loss	1		4		(1	)	(1	)	(8	)	—		—		4		—		(12	)	(13	)	4		(3	)	(12	)
Deferred income tax expense	(23	)	1		(2	)	1		1		—		—		—		—		12		(10	)	(1	)	(3	)	(14	)
Other	(11	)	—		—		(6	)	(2	)	5		2		(12	)	—		(3	)	(27	)	8		18		(1	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(47	)	—		(47	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		61		61
Net income (loss) attributable to Unitholders⁽²⁾	79		16		17		(22	)	(11	)	4		2		4		1		(73	)	17		—		—		17

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 61



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	482		100		105		116		37		11		13		110		37		—		1,011		(199	)	631		1,443
Other income	21		9		8		4		3		1		2		12		1		30		91		(9	)	(49	)	33
Direct operating costs	(132	)	(27	)	(52	)	(27	)	(14	)	(3	)	(4	)	(27	)	(18	)	(11	)	(315	)	53		(247	)	(509	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		155		13		168
Adjusted EBITDA	371		82		61		93		26		9		11		95		20		19		787		—		348
Management service costs	—		—		—		—		—		—		—		—		—		(67	)	(67	)	—		—		(67	)
Interest expense	(68	)	(8	)	(14	)	(34	)	(5	)	(2	)	(4	)	(37	)	(5	)	(40	)	(217	)	57		(156	)	(316	)
Current income taxes	(2	)	(4	)	(3	)	(1	)	—		(1	)	—		(3	)	(1	)	—		(15	)	7		(8	)	(16	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(64	)	(8	)	(72	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(176	)	(176	)
Funds From Operations	301		70		44		58		21		6		7		55		14		(127	)	449		—		—
Depreciation	(117	)	(36	)	(11	)	(79	)	(22	)	(7	)	(4	)	(42	)	(10	)	(2	)	(330	)	91		(159	)	(398	)
Foreign exchange and unrealized financial instrument loss	(14	)	7		(1	)	(5	)	(11	)	—		(1	)	(12	)	(4	)	(3	)	(44	)	19		31		6
Deferred income tax expense	(22	)	1		(3	)	(2	)	1		—		1		(2	)	—		20		(6	)	7		10		11
Other	(62	)	(8	)	5		1		(1	)	(2	)	1		(19	)	—		(10	)	(95	)	12		58		(25	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(129	)	2		(127	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		58		58
Net income (loss) attributable to Unitholders⁽²⁾	86		34		34		(27	)	(12	)	(3	)	4		(20	)	—		(122	)	(26	)	—		—		(26	)

⁽¹⁾

Share of loss from equity-accounted investments of $31 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $118 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.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 62



	Attributable to Unitholders																						Contribution from equity accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	539		123		118		121		50		16		5		89		45		—		1,106		(189	)	695		1,612
Other income	9		3		—		2		1		—		—		2		—		4		21		(6	)	10		25
Direct operating costs	(142	)	(35	)	(45	)	(35	)	(16	)	(5	)	(2	)	(17	)	(24	)	(11	)	(332	)	56		(230	)	(506	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		139		12		151
Adjusted EBITDA	406		91		73		88		35		11		3		74		21		(7	)	795		—		487
Management service costs	—		—		—		—		—		—		—		—		—		(44	)	(44	)	—		—		(44	)
Interest expense	(80	)	(12	)	(16	)	(35	)	(7	)	(4	)	(1	)	(29	)	(7	)	(49	)	(240	)	50		(161	)	(351	)
Current income taxes	(6	)	(6	)	(6	)	(1	)	—		(1	)	—		—		—		—		(20	)	1		(20	)	(39	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(21	)	(21	)	—		—		(21	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(51	)	(9	)	(60	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(297	)	(297	)
Funds From Operations	320		73		51		52		28		6		2		45		14		(134	)	457		—		—
Depreciation	(111	)	(44	)	(10	)	(79	)	(23	)	(9	)	(2	)	(28	)	(12	)	(2	)	(320	)	69		(149	)	(400	)
Foreign exchange and unrealized financial instrument loss	3		3		(1	)	(1	)	(9	)	(1	)	—		4		(1	)	(28	)	(31	)	5		(4	)	(30	)
Deferred income tax expense	(40	)	2		(4	)	17		6		—		(1	)	16		—		18		14		(36	)	(12	)	(34	)
Other	(26	)	(1	)	1		(7	)	(2	)	5		2		(24	)	—		(8	)	(60	)	21		36		(3	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(59	)	—		(59	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		129		129
Net income (loss) attributable to Unitholders⁽²⁾	146		33		37		(18	)	—		1		1		13		1		(154	)	60		—		—		60

⁽¹⁾

Share of loss from equity-accounted investments of $32 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests - in operating subsidiaries of $168 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.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 63

The following table presents information on a segmented basis about certain items in Brookfield Renewable's statements of financial position:



	Attributable to Unitholders																						Contribution from equity-accounted investments			Attributable to non- controlling interests		As per IFRS financials
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia
As at June 30, 2020
Cash and cash equivalents	$	23	$	13	$	26	$	22	$	12	$	2	$	5	$	70	$	12	$	8	$	193	$	(101	)	$	137	$	229
Property, plant and equipment	11,401		1,407		1,536		2,443		649		266		173		2,168		710		—		20,753		(4,289		)	12,063		28,527
Total assets	12,166		1,545		1,774		2,579		733		282		218		2,376		751		255		22,679		(3,102		)	13,748		33,325
Total borrowings	3,186		158		413		1,265		319		66		121		1,383		223		2,129		9,263		(2,306		)	3,929		10,886
Other liabilities	2,893		102		434		556		112		8		23		345		40		446		4,959		(771		)	2,077		6,265
For the six months ended June 30, 2020:
Additions to property, plant and equipment	226		15		1		4		4		1		—		20		6		1		278		(14		)	137		401
As at December 31, 2019
Cash and cash equivalents	$	10	$	7	$	10	$	18	$	21	$	2	$	5	$	63	$	6	$	1	$	143	$	(89	)	$	61	$	115
Property, plant and equipment	11,488		1,938		1,773		2,556		628		368		187		2,018		732		—		21,688		(4,147		)	13,173		30,714
Total assets	12,218		2,126		2,027		2,705		692		391		233		2,266		780		103		23,541		(2,872		)	15,022		35,691
Total borrowings	3,070		208		449		1,221		326		71		124		1,470		235		2,107		9,281		(2,157		)	3,880		11,004
Other liabilities	2,877		148		499		597		100		10		28		335		31		248		4,873		(715		)	2,398		6,556
For the six months ended June 30, 2019:
Additions to property, plant and equipment	21		1		12		12		2		—		—		—		8		1		57		(13		)	24		68



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 64

Geographical Information

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



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
United States	$	231	$	294	$	530	$	596
Colombia	189		231		436		488
Canada	97		97		187		181
Brazil	71		99		156		199
Europe	16		27		43		69
Asia	47		39		91		79
	$	651	$	787	$	1,443	$	1,612

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



(MILLIONS)	June 30, 2020		December 31, 2019
United States	$	14,942	$	14,952
Colombia	6,370		7,353
Canada	4,026		4,268
Brazil	2,659		3,631
Europe	1,455		1,539
Asia	854		860
	$	30,306	$	32,603

6. INCOME TAXES

Brookfield Renewable's effective income tax rate was 3.7% for the six months ended June 30, 2020 (2019: 21.8%). The effective tax rate is different than the statutory rate primarily due to rate differentials and non-controlling interests' income not subject to tax.

7. PROPERTY, PLANT AND EQUIPMENT

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



(MILLIONS)	Hydroelectric			Wind			Solar			Storage & other⁽¹⁾			Total⁽²⁾
As at December 31, 2019	$	26,024		$	4,258		$	197		$	235		$	30,714
Additions⁽³⁾	316			12			72			1			401
Items recognized through OCI
Foreign currency translation	(1,777		)	(342		)	(5		)	(55		)	(2,179		)
Items recognized through net income
Changes in fair value	(4		)	(3		)	(4		)	—			(11		)
Depreciation	(254		)	(130		)	(7		)	(7		)	(398		)
As at June 30, 2020⁽⁴⁾	$	24,305		$	3,795		$	253		$	174		$	28,527


⁽¹⁾	Includes biomass and cogeneration.


⁽²⁾	Includes intangible assets of $8 million (2019: $10 million) and assets under construction of $397 million (2019: $334 million).


⁽³⁾	Brookfield Renewable exercised the option to buy out the lease on its 192 MW hydroelectric facility in Louisiana and recognized an $247 million adjustment to its corresponding right-of-use asset.


⁽⁴⁾	Includes right-of-use assets not subject to revaluation of $63 million (2019: $71 million) in our hydroelectric segment, $50 million (2019: $51 million) in our wind segment, $1 million (2019: nil) in our solar segment, and $3 million (2019: $3 million) in our storage & other segment.



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8. BORROWINGS

Corporate Borrowings

The composition of corporate borrowings is presented in the following table:



	June 30, 2020							December 31, 2019
	Weighted-average							Weighted- average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)	Term (years)	Carrying value			Estimated fair value		Interest rate (%)	Term (years)	Carrying value			Estimated fair value
Credit facilities	N/A	4	$	—		$	—	2.9	5	$	299		$	299
Commercial paper	0.6	< 1	140			140		N/A	N/A	N/A			N/A
Medium Term Notes:
Series 4 (C$150)	5.8	16	110			143		5.8	17	115			142
Series 8 (C$400)	4.8	2	295			310		4.8	2	308			324
Series 9 (C$400)	3.8	5	295			318		3.8	5	308			322
Series 10 (C$500)	3.6	7	368			402		3.6	7	384			400
Series 11 (C$475)	4.3	9	350			397		4.3	9	231			248
Series 12 (C$475)	3.4	10	350			372		3.4	10	231			232
Series 13 (C$300)	4.3	29	221			248		4.3	30	231			237
	4.0	10	$	1,989		$	2,190	4.1	10	$	1,808		$	1,905
Total corporate borrowings			2,129			$	2,330			2,107			$	2,204
Add: Unamortized premiums⁽¹⁾			6							—
Less: Unamortized financing fees⁽¹⁾			(11		)					(7		)
Less: Current portion			(140		)					—
			$	1,984						$	2,100


⁽¹⁾	Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.

Brookfield Renewable had $140 million commercial paper outstanding as at June 30, 2020 (2019: nil). The commercial paper program is supplemented by our $1.75 billion corporate credit facilities.

Brookfield Renewable 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, 2020, there were no letters of credit issued that utilized the corporate credit facility (2019: nil).

Brookfield Renewable and its subsidiaries issue letters of credit from some of their credit facilities for general corporate and operating purposes which include, but are not limited to, security deposits, performance bonds and guarantees for debt service reserve accounts. See Note 17 – Commitments, contingencies and guarantees for letters of credit issued by subsidiaries.

The following table summarizes the available portion of credit facilities:



(MILLIONS)	June 30, 2020			December 31, 2019
Authorized corporate credit facilities⁽¹⁾	$	2,150		$	2,150
Draws on corporate credit facilities⁽¹⁾	—			(299		)
Authorized letter of credit facility	400			400
Issued letters of credit	(258		)	(266		)
Available portion of corporate credit facilities	$	2,292		$	1,985


⁽¹⁾	Amounts are guaranteed by Brookfield Renewable.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 66

Medium term notes

Medium term notes are obligations of a finance subsidiary of Brookfield Renewable, Brookfield Renewable Partners ULC (“Finco”) (Note 19 – Subsidiary public issuers). Finco may redeem some or all of the borrowings from time to time, pursuant to the terms of the indenture. The balance is payable upon maturity, and interest on corporate borrowings is paid semi-annually. The term notes payable by Finco are unconditionally guaranteed by Brookfield Renewable, Brookfield Renewable Energy L.P. (“BRELP”) and certain other subsidiaries.

On April 3, 2020, Brookfield Renewable completed the issuance of C$175 million ($124 million) Series 11 medium term notes and C$175 million ($124 million) Series 12 medium term notes. The medium term notes were issued as a re-opening on identical terms, other than issue date and the price to the public, to the 4.25% Series 11 medium term notes and the 3.38% Series 12 medium term notes that were issued in September 2018 and 2019, respectively.

Non-recourse borrowings

Non-recourse borrowings are typically asset-specific, long-term, non-recourse borrowings denominated in the domestic currency of the subsidiary. Non-recourse borrowings in North America and Europe consist of both fixed and floating interest rate debt indexed to the London Interbank Offered Rate (“LIBOR”), the Euro Interbank Offered Rate ("EURIBOR") and the Canadian Dollar Offered Rate (“CDOR”). Brookfield Renewable uses interest rate swap agreements in North America and Europe 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, or Interbank Deposit Certificate rate (“CDI”), plus a margin. Non-recourse borrowings in Colombia consist of both fixed and floating interest rates indexed to Indicador Bancario de Referencia rate (IBR), the Banco Central de Colombia short-term interest rate, and Colombian Consumer Price Index (IPC), Colombia inflation rate, plus a margin. Non-recourse borrowings in India consist of fixed interest rate debt. Non-recourse borrowings in China consist of floating interest rates of People's Bank of China ("PBOC").

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



	June 30, 2020							December 31, 2019
	Weighted-average							Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)	Term (years)	Carrying value			Estimated fair value		Interest rate (%)	Term (years)	Carrying value			Estimated fair value
Non-recourse borrowings⁽¹⁾
Hydroelectric⁽²⁾	5.9	9	$	6,569		$	7,196	5.9	10	$	6,616		$	7,106
Wind	5.2	10	1,861			1,961		5.2	11	1,899			2,006
Solar	5.2	5	304			302		5.1	5	355			363
Storage & other	3.3	1	77			79		3.9	4	94			98
Total	5.7	9	$	8,811		$	9,538	5.7	10	$	8,964		$	9,573
Add: Unamortized premiums⁽³⁾			8							9
Less: Unamortized financing fees⁽³⁾			(57		)					(69		)
Less: Current portion			(1,190		)					(685		)
			$	7,572						$	8,219


⁽¹⁾	Includes $117 million (2019: $142 million) borrowed under a subscription facility of a Brookfield sponsored private fund.


⁽²⁾	Includes a lease liability of $554 million associated with a hydroelectric facility included in property, plant and equipment, at fair value, which is subject to revaluation. During the quarter, Brookfield Renewable exercised the buy out option related to this lease liability. The transaction is expected to close in 2020.


⁽³⁾	Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.

In March 2020, Brookfield Renewable completed a refinancing of COP 200 billion ($50 million). The debt, drawn in two tranches, bears interest at the applicable base rate plus an average margin of 2.36% and matures in March 2027.

In March 2020, Brookfield Renewable completed a refinancing totaling INR 1,460 million ($20 million) associated with a solar portfolio in India. A portion of the loan bears interest at the applicable base rate plus a margin of 1.45% and the remaining portion bears a fixed rate of 9.75%. The loans mature between 2032 to 2037.

In May 2020, Brookfield Renewable completed a bridge financing totaling R$250 million ($46 million) associated with a solar development project in Brazil. The loan bears interest at a fixed rate of 5.3% and matures in 2021.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 67

In June 2020, Brookfield Renewable completed a financing totaling C$23 million ($17 million) associated with a hydroelectric facility in Canada. The loan bears interest at a fixed rate of 3.5% and matures in 2044.

9. NON-CONTROLLING INTERESTS

Brookfield Renewable`s non-controlling interests are comprised of the following:



(MILLIONS)	June 30, 2020		December 31, 2019
Participating non-controlling interests – in operating subsidiaries	$	7,813	$	8,742
General partnership interest in a holding subsidiary held by Brookfield	58		68
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	2,816		3,315
Preferred equity	571		597
	$	11,258	$	12,722



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		Page 68

Participating non-controlling interests – in operating subsidiaries

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			Canadian Hydroelectric Portfolio			The Catalyst Group			Isagen institutional investors			Isagen public non-controlling interests			Other			Total
As at December 31, 2018	$	900		$	1,929		$	2,469		$	—		$	276		$	124		$	2,212		$	15		$	204		$	8,129
Net income (loss)	—			(13		)	73			6			19			17			154			1			5			262
OCI	46			134			330			(3		)	61			(41		)	266			2			—			795
Capital contributions	—			—			2			159			268			—			—			(2		)	3			430
Disposal	—			(87		)	—			—			—			—			—			—			(85		)	(172		)
Distributions	(24		)	(120		)	(274		)	—			(1		)	(11		)	(259		)	(1		)	(16		)	(706		)
Other	—			8			(3		)	1			(5		)	—			2			(2		)	3			4
As at December 31, 2019	$	922		$	1,851		$	2,597		$	163		$	618		$	89		$	2,375		$	13		$	114		$	8,742
Net income (loss)	(5		)	(6		)	22			14			19			14			60			—			—			118
OCI	(38		)	(114		)	(283		)	1			(26		)	—			(312		)	(2		)	(14		)	(788		)
Capital contributions	—			3			2			19			(18		)	—			—			—			2			8
Distributions	(5		)	(25		)	(123		)	—			—			(9		)	(81		)	—			(8		)	(251		)
Other	2			1			(14		)	(2		)	(1		)	(1		)	2			(1		)	(2		)	(16		)
As at June 30, 2020	$	876		$	1,710		$	2,201		$	195		$	592		$	93		$	2,044		$	10		$	92		$	7,813
Interests held by third parties	75%-80%			43%-60%			23%-71%			75		%	50		%	25		%	53		%	0.3		%	20%-50%



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		Page 69

General partnership interest in a holding subsidiary held by Brookfield and Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield

Brookfield, as the owner of the 1% general partnership interest in BRELP held by Brookfield (“GP interest”), is entitled to regular distributions plus an incentive distribution based on the amount by which quarterly distributions exceed specified target levels. To the extent that LP Unit distributions exceed $0.375 per LP Unit per quarter, the incentive is 15% of distributions above this threshold. To the extent that quarterly LP Unit distributions exceed $0.4225 per LP Unit, the incentive distribution is equal to 25% of distributions above this threshold.

As at June 30, 2020, general partnership units, and Redeemable/Exchangeable partnership units outstanding were 2,651,506 (December 31, 2019: 2,651,506) and 129,658,623 (December 31, 2019: 129,658,623), respectively.

Distributions

The composition of the distributions for the three and six months ended June 30 is presented in the following table:



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
General partnership interest in a holding subsidiary held by Brookfield	$	2	$	1	$	3	$	3
Incentive distribution	15		12		31		25
	17		13		34		28
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	70		67		142		135
	$	87	$	80	$	176	$	163

Preferred equity

Brookfield Renewable`s preferred equity consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as follows:



(MILLIONS EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	Distributions declared for the six months ended June 30				Carrying value as at
				Distributions declared for the six months ended June 30				Carrying value as at
				2020		2019		June 30, 2020		December 31, 2019
Series 1 (C$136)	5.45	3.36	Apr 2020	$	2	$	2	$	100	$	105
Series 2 (C$113)⁽¹⁾	4.51	2.85	Apr 2020	2		2		82		86
Series 3 (C$249)	9.96	4.40	Jul 2019	4		4		183		192
Series 5 (C$103)	4.11	5.00	Apr 2018	2		2		76		79
Series 6 (C$175)	7.00	5.00	Jul 2018	3		3		130		135
	31.03			$	13	$	13	$	571	$	597


⁽¹⁾	Dividend rate represents annualized distribution based on the most recent quarterly floating rate.

The Class A Preference Shares do not have a fixed maturity date and are not redeemable at the option of the holders. As at June 30, 2020, none of the issued Class A Preference Shares have been redeemed by BRP Equity.

Class A Preference Shares – Normal Course Issuer Bid

In July 2020, the Toronto Stock Exchange accepted notice of BRP Equity's intention to renew the normal course issuer in connection with its outstanding Class A Preference Shares for another year to July 8, 2021, or earlier should the repurchases be completed prior to such date. Under this normal course issuer bid, it is permitted to repurchase up to 10% of the total public float for each respective series of the Class A Preference Shares. Unitholders may receive a copy of the notice, free of charge, by contacting Brookfield Renewable. No shares were repurchased during the six months ended June 30, 2020.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 70

10. PREFERRED LIMITED PARTNERS' EQUITY

Brookfield Renewable’s preferred limited partners’ equity comprises of Class A Preferred LP Units as follows:



(MILLIONS, EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	Distributions declared for the six months ended June 30				Carrying value as at
(MILLIONS, EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	2020		2019		June 30, 2020		December 31, 2019
Series 5 (C$72)	2.89	5.59	Apr 2018	$	1	$	2	$	49	$	49
Series 7 (C$175)	7.00	5.50	Jan 2021	4		4		128		128
Series 9 (C$200)	8.00	5.75	Jul 2021	4		4		147		147
Series 11 (C$250)	10.00	5.00	Apr 2022	5		5		187		187
Series 13 (C$250)	10.00	5.00	Apr 2023	5		4		196		196
Series 15 (C$175)	7.00	5.75	Apr 2024	4		2		126		126
Series 17 ($200)	8.00	5.25	Mar 2025	3		—		$	195	$	—
	52.89			$	26	$	21	$	1,028	$	833

On February 24, 2020, Brookfield Renewable issued 8,000,000 Class A Preferred Limited Partnership Units, Series 17 (the “Series 17 Preferred Units”) at a price of $25 per unit for gross proceeds of $200 million. Brookfield Renewable incurred $5 million in related transaction costs inclusive of fees paid to underwriters. The holders of the Series 17 Preferred Units are entitled to receive a cumulative quarterly fixed distribution yielding 5.25%.

As at June 30, 2020, none of the Class A, Series 5 Preferred Limited Partnership Units have been redeemed.

11. LIMITED PARTNERS' EQUITY

Limited partners’ equity

As at June 30, 2020, 179,047,436 LP Units were outstanding (December 31, 2019: 178,977,800 LP Units) including 45,832,944 LP Units (December 31, 2019: 56,068,944 LP Units) held by Brookfield. Brookfield owns all general partnership interests in Brookfield Renewable representing a 0.01% interest.

During the three and six months ended June 30, 2020, 30,458 and 69,636 LP Units (2019: 54,749 and 105,248 LP Units) were issued under the distribution reinvestment plan at a total cost of $1 million and $3 million, respectively (2019: $1 million and $3 million).

As at June 30, 2020, Brookfield Asset Management’s direct and indirect interest of 175,491,567 LP Units and Redeemable/Exchangeable partnership units represents approximately 57% of Brookfield Renewable on a fully-exchanged basis and the remaining approximate 43% is held by public investors.

On an unexchanged basis, Brookfield holds a 26% direct limited partnership interest in Brookfield Renewable, a 42% direct interest in BRELP through the ownership of Redeemable/Exchangeable partnership units and a direct 1% GP interest in BRELP as at June 30, 2020.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
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repurchased during the three and six months ended June 30, 2020. During the six months ended June 30, 2019, there were 20,000 LP Units repurchased at a total cost of $1 million.

Distributions

The composition of the limited partners' equity distributions for the three and six months ended June 30 is presented in the following table:



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
Brookfield	$	29	$	29	$	60	$	58
External LP Unitholders	68		63		136		127
	$	97	$	92	$	196	$	185

In January 2020, Unitholder distributions were increased to $2.17 per LP Unit on an annualized basis, an increase of $0.11 per LP Unit, which took effect with the distribution payable in March 2020.

12. EQUITY-ACCOUNTED INVESTMENTS

The following are Brookfield Renewable’s equity-accounted investments for the six months ended June 30, 2020:



(MILLIONS)
Opening balance	$	1,889
Acquisition	15
Share of net income (loss)	(31		)
Share of other comprehensive income	(8		)
Dividends received	(42		)
Foreign exchange translation and other	(44		)
Ending balance	$	1,779

The following table summarizes gross revenues and net income of equity-accounted investments in aggregate:



	Three months ended June 30						Six months ended June 30
_(MILLIONS)	2020			2019			2020			2019
Revenue	$	371		$	356		$	755		$	715
Net income (loss)	(81		)	(9		)	(153		)	101
Share of net income (loss)⁽¹⁾	(15		)	—			(31		)	32


⁽¹⁾	Brookfield Renewable's ownership interest in these entities ranges from 14% to 50%.

The following table summarizes gross assets and liabilities of equity-accounted investments in aggregate at 100%:



_(MILLIONS)	June 30, 2020		December 31, 2019
Current assets	$	1,118	$	1,102
Property, plant and equipment	16,938		16,256
Other assets	537		571
Current liabilities	1,303		1,279
Non-recourse borrowings	7,905		7,365
Other liabilities	3,153		2,580



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13. CASH AND CASH EQUIVALENTS

Brookfield Renewable’s cash and cash equivalents are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Cash	$	216	$	103
Short-term deposits	13		12
	$	229	$	115

14. RESTRICTED CASH

Brookfield Renewable’s restricted cash is as follows:



(MILLIONS)	June 30, 2020			December 31, 2019
Operations	$	104		$	87
Credit obligations	81			69
Development projects	48			17
Total	233			173
Less: non-current	(11		)	(19		)
Current	$	222		$	154

15. TRADE RECEIVABLES AND OTHER CURRENT ASSETS

Brookfield Renewable's trade receivables and other current assets are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Trade receivables	$	333	$	406
Prepaids and other	82		119
Other short-term receivables	139		142
Current portion of contract asset	50		51
	$	604	$	718

Brookfield Renewable receives payment 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.

16. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Brookfield Renewable's accounts payable and accrued liabilities are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Operating accrued liabilities	$	207	$	237
Accounts payable	76		111
Interest payable on borrowings	71		73
Deferred consideration	39		60
LP Unitholders distributions, preferred limited partnership unit distributions and preferred dividends payable⁽¹⁾	39		33
Current portion of lease liabilities	15		15
Other	77		61
	$	524	$	590


⁽¹⁾	Includes amounts payable only to external LP Unitholders. Amounts payable to Brookfield are included in due to related parties.



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		Page 73

17. COMMITMENTS, CONTINGENCIES AND GUARANTEES

Commitments

In the course of its operations, Brookfield Renewable and its subsidiaries have 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.

Together with institutional partners, Brookfield Renewable is committed to invest C$400 million in TransAlta's convertible securities in October 2020. We also agreed, subject to certain terms and conditions, to maintain an ownership of TransAlta common shares to 9% up to a price ceiling.

Brookfield Renewable, alongside institutional partners, entered into a commitment to invest approximately $37 million to acquire a 210 MW solar development portfolio in Brazil. The transaction is expected to close in the third quarter of 2020, subject to customary closing conditions, with Brookfield Renewable expected to hold a 25% interest.

Subsequent to quarter end, Brookfield Renewable, alongside institutional partners, entered into a commitment to acquire a 1,200 MW solar development portfolio in Brazil for approximately $50 million, which are targeted for commercial operations in early 2023. The transaction is expected to close in the fourth quarter of 2020, subject to customary closing conditions, with Brookfield Renewable expected to hold a 25% interest.

An integral part of Brookfield Renewable’s strategy is to participate with institutional investors in Brookfield-sponsored private equity funds that target acquisitions that suit Brookfield Renewable’s profile. In the normal course of business, Brookfield Renewable has made commitments to Brookfield-sponsored private equity funds to participate in these target acquisitions in the future, if and when identified.

Contingencies

Brookfield Renewable 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 Brookfield Renewable’s consolidated financial position or results of operations.

Brookfield Renewable, on behalf of Brookfield Renewable’s subsidiaries, and the 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 activity on the issued letters of credit by Brookfield Renewable can be found in Note 8 – Borrowings.

Brookfield Renewable, 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, the Brookfield Infrastructure Fund III, and the Brookfield Infrastructure Fund IV. Brookfield Renewable’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 Brookfield Renewable along with institutional investors and its subsidiaries were as at the following dates:



(MILLIONS)	June 30, 2020		December 31, 2019
Brookfield Renewable along with institutional investors	$	48	$	50
Brookfield Renewable's subsidiaries	248		286
	$	296	$	336

Guarantees

In the normal course of operations, Brookfield Renewable and its subsidiaries execute agreements that provide for indemnification and guarantees to third parties of transactions such as business dispositions, capital project purchases, business acquisitions, and sales and purchases of assets and services. Brookfield Renewable has also agreed to indemnify its directors and certain of its officers and employees. The nature of substantially all of the indemnification undertakings prevents Brookfield Renewable from making a reasonable estimate of the maximum potential amount that Brookfield Renewable 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



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 74

time. Historically, neither Brookfield Renewable nor its subsidiaries have made material payments under such indemnification agreements.

18. RELATED PARTY TRANSACTIONS

Brookfield Renewable`s related party transactions are recorded at the exchange amount. Brookfield Renewable`s related party transactions are primarily with Brookfield Asset Management.

Brookfield Asset Management has provided a $400 million committed unsecured revolving credit facility maturing in December 2020 and the interest rate applicable on the draws is LIBOR plus up to 1.8%. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield Asset Management. Brookfield Asset Management may from time to time place funds on deposit with Brookfield Renewable which are repayable on demand including any interest accrued. There were no funds placed on deposit with Brookfield Renewable in six months ended June 30, 2020 (2019: $600 million, which was fully repaid within the period). There was no interest expense on the Brookfield Asset Management revolving credit facility or deposit for the three and six months ended June 30, 2020 (2019: nil and $3 million).

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)	2020			2019			2020			2019
Revenues
Power purchase and revenue agreements	$	84		$	209		$	180		$	368
Wind levelization agreement	—			—			—			1
	$	84		$	209		$	180		$	369
Direct operating costs
Energy purchases	$	—		$	(2	)	$	—		$	(5	)
Energy marketing fee	(2		)	(6		)	(2		)	(12		)
Insurance services⁽¹⁾	(6		)	(7		)	(12		)	(14		)
	$	(8	)	$	(15	)	$	(14	)	$	(31	)
Interest expense
Borrowings	$	—		$	—		$	—		$	(3	)
Contract balance accretion	(4		)	(3		)	$	(8	)	$	(5	)
	$	(4	)	$	(3	)	$	(8	)	$	(8	)
Management service costs	$	(36	)	$	(23	)	$	(67	)	$	(44	)


⁽¹⁾	Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three and six months ended June 30, 2020 were less than $1 million (2019: less than $1 million).



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 75

19. SUBSIDIARY PUBLIC ISSUERS

The following tables provide consolidated summary financial information for Brookfield Renewable, BRP Equity, and Finco:



(MILLIONS)	Brookfield Renewable⁽¹⁾		BRP Equity		Finco		Holding Entities⁽¹⁾⁽²⁾		Other Subsidiaries⁽¹⁾⁽³⁾		Consolidating adjustments⁽⁴⁾			Brookfield Renewable consolidated
As at June 30, 2020
Current assets	$	36	$	390	$	2,016	$	250	$	3,313	$	(4,595	)	$	1,410
Long-term assets	4,936		240		2		22,708		32,152		(28,123		)	31,915
Current liabilities	45		6		26		4,232		2,455		(4,593		)	2,171
Long-term liabilities	—		—		1,984		139		13,500		(643		)	14,980
Participating non-controlling interests – in operating subsidiaries	—		—		—		—		7,813		—			7,813
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	—		—		—		2,816		—		—			2,816
Preferred equity	—		571		—		—		—		—			571
Preferred limited partners' equity	1,028		—		—		1,039		—		(1,039		)	1,028
As at December 31, 2019
Current assets	$	32	$	408	$	1,832	$	133	$	3,230	$	(4,161	)	$	1,474
Long-term assets	5,428		251		2		25,068		34,500		(31,032		)	34,217
Current liabilities	40		7		24		3,918		1,852		(4,163		)	1,678
Long-term liabilities	—		—		1,801		300		14,440		(659		)	15,882
Participating non-controlling interests – in operating subsidiaries	—		—		—		—		8,742		—			8,742
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	—		—		—		3,315		—		—			3,315
Preferred equity	—		597		—		—		—		—			597
Preferred limited partners' equity	833		—		—		844		—		(844		)	833


⁽¹⁾	Includes investments in subsidiaries under the equity method.


⁽²⁾	Includes BRELP, BRP Bermuda Holdings I Limited, Brookfield BRP Holdings (Canada) Inc., Brookfield BRP Europe Holdings Limited and Brookfield Renewable Investments Limited, together the "Holding Entities".


⁽³⁾	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco and the Holding Entities.


⁽⁴⁾	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 76



(MILLIONS)	Brookfield Renewable⁽¹⁾			BRP Equity		Finco		Holding Entities⁽¹⁾⁽²⁾			Other Subsidiaries⁽¹⁾⁽³⁾		Consolidating adjustments⁽⁴⁾			Brookfield Renewable consolidated
Three months ended June 30, 2020
Revenues	$	—		$	—	$	—	$	—		$	651	$	—		$	651
Net income (loss)	(11		)	—		1		28			358		(365		)	11
Three months ended June 30, 2019
Revenues	$	—		$	—	$	—	$	1		$	786	$	—		$	787
Net income (loss)	21			—		—		44			414		(370		)	109
Six months ended June 30, 2020
Revenues	$	—		$	—	$	—	$	—		$	1,443	$	—		$	1,443
Net income (loss)	11			—		1		(35		)	690		(536		)	131
Six months ended June 30, 2019
Revenues	$	—		$	—	$	—	$	—		$	1,612	$	—		$	1,612
Net income (loss)	56			—		2		55			746		(597		)	262


⁽¹⁾	Includes investments in subsidiaries under the equity method.


⁽²⁾	Includes the Holding Entities.


⁽³⁾	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco, and the Holding Entities.


⁽⁴⁾	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.

See Note 8 – Borrowings for additional details regarding the medium-term borrowings issued by Finco. See Note 9 – Non-controlling interests for additional details regarding Class A Preference Shares issued by BRP Equity.

20. SUBSEQUENT EVENTS



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 77



Brookfield Renewable Partners L.P.	Interim Report	June 30, 2020
		Page 78



GENERAL INFORMATION
Corporate Office 73 Front Street Fifth Floor Hamilton, HM12 Bermuda Tel: (441) 294-3304 Fax: (441) 516-1988 https://bep.brookfield.com Officers of Brookfield Renewable Partners L.P.`s Service Provider, BRP Energy Group L.P. Sachin Shah Chief Executive Officer Wyatt Hartley Chief Financial Officer Transfer Agent & Registrar Computershare Trust Company of Canada 100 University Avenue 9th floor Toronto, Ontario, M5J 2Y1 Tel Toll Free: (800) 564-6253 Fax Toll Free: (888) 453-0330 www.computershare.com		Directors of the General Partner of Brookfield Renewable Partners L.P. Jeffrey Blidner Eleazar de Carvalho Filho Nancy Dorn David Mann Lou Maroun Patricia Zuccotti Stephen Westwell Exchange Listing NYSE: BEP (LP Units) TSX: BEP.UN (LP Units) TSX: BEP.PR.E (Preferred LP Units - Series 5) TSX: BEP.PR.G (Preferred LP Units - Series 7) TSX: BEP.PR.I (Preferred LP Units - Series 9) TSX: BEP.PR.K (Preferred LP Units - Series 11) TSX: BEP.PR.M (Preferred LP Units - Series 13) TSX: BEP.PR.O (Preferred LP Units - Series 15) NYSE: BEP.PR.A (Preferred LP Units - Series 17) TSX: BRF.PR.A (Preferred shares - Series 1) TSX: BRF.PR.B (Preferred shares - Series 2) TSX: BRF.PR.C (Preferred shares - Series 3) TSX: BRF.PR.E (Preferred shares - Series 5) TSX: BRF.PR.F (Preferred shares - Series 6) Investor Information Visit Brookfield Renewable online at https://bep.brookfield.com for more information. The 2019 Annual Report and Form 20-F are also available online. For detailed and up-to-date news and information, please visit the News Release section. 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. Shareholder enquiries should be directed to the Investor Relations Department at (416) 369-2616 or enquiries@brookfieldrenewable.com

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION



_UNAUDITED _(MILLIONS)	Notes	June 30, 2020		December 31, 2019
Assets
Current assets
Cash and cash equivalents	13	$	229	$	115
Restricted cash	14	222		154
Trade receivables and other current assets	15	604		718
Financial instrument assets	4	72		75
Due from related parties	18	113		60
Assets held for sale	3	170		352
		1,410		1,474
Financial instrument assets	4	289		165
Equity-accounted investments	12	1,779		1,889
Property, plant and equipment	7	28,527		30,714
Goodwill		716		821
Deferred income tax assets	6	125		116
Other long-term assets		479		512
Total Assets		$	33,325	$	35,691
Liabilities
Current liabilities
Accounts payable and accrued liabilities	16	$	524	$	590
Financial instrument liabilities	4	57		139
Payables due to related parties	18	166		127
Corporate borrowings	8	140		—
Non-recourse borrowings	8	1,190		685
Liabilities directly associated with assets held for sale	3	94		137
		2,171		1,678
Financial instrument liabilities	4	157		39
Corporate borrowings	8	1,984		2,100
Non-recourse borrowings	8	7,572		8,219
Deferred income tax liabilities	6	4,237		4,537
Other long-term liabilities		1,030		987
Equity
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	7,813		8,742
General partnership interest in a holding subsidiary held by Brookfield	9	58		68
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	2,816		3,315
Preferred equity	9	571		597
Preferred limited partners' equity	10	1,028		833
Limited partners' equity	11	3,888		4,576
Total Equity		16,174		18,131
Total Liabilities and Equity		$	33,325	$	35,691

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



Approved on behalf of Brookfield Renewable Partners L.P.:

Patricia Zuccotti Director	David Mann Director

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF INCOME



_UNAUDITED _{(MILLIONS, EXCEPT PER UNIT INFORMATION)}		Three months ended June 30						Six months ended June 30
_UNAUDITED _{(MILLIONS, EXCEPT PER UNIT INFORMATION)}	Notes	2020			2019			2020			2019
Revenues	18	$	651		$	787		$	1,443		$	1,612
Other income		23			17			33			25
Direct operating costs		(248		)	(252		)	(509		)	(506		)
Management service costs	18	(36		)	(23		)	(67		)	(44		)
Interest expense	8	(154		)	(178		)	(316		)	(351		)
Share of (loss) earnings from equity-accounted investments	12	(15		)	—			(31		)	32
Foreign exchange and unrealized financial instrument gain (loss)	4	(14		)	(12		)	6			(30		)
Depreciation	7	(192		)	(200		)	(398		)	(400		)
Other		(17		)	(1		)	(25		)	(3		)
Income tax recovery (expense)
Current	6	3			(15		)	(16		)	(39		)
Deferred	6	10			(14		)	11			(34		)
		13			(29		)	(5		)	(73		)
Net income		$	11		$	109		$	131		$	262
Net income attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	$	35		$	74		$	118		$	168
General partnership interest in a holding subsidiary held by Brookfield	9	—			1			—			1
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	(19		)	7			(11		)	25
Preferred equity	9	6			7			13			13
Preferred limited partners' equity	10	14			11			26			21
Limited partners' equity	11	(25		)	9			(15		)	34
		$	11		$	109		$	131		$	262
Basic and diluted (loss) earnings per LP Unit		$	(0.14	)	$	0.05		$	(0.08	)	$	0.19

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



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 2

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)



_UNAUDITED _(MILLIONS)		Three months ended June 30						Six months ended June 30
_UNAUDITED _(MILLIONS)	Notes	2020			2019			2020			2019
Net income		$	11		$	109		$	131		$	262
Other comprehensive income (loss) that will not be reclassified to net income
Actuarial loss on defined benefit plans		(4		)	(8		)	(2		)	(13		)
Deferred income taxes on above items		1			4			1			4
Total items that will not be reclassified to net income		(3		)	(4		)	(1		)	(9		)
Other comprehensive (loss) income that may be reclassified to net income
Foreign currency translation		222			33			(1,564		)	168
Gains (losses) arising during the period on financial instruments designated as cash-flow hedges	4	(16		)	6			2			2
Unrealized (loss) gain on foreign exchange swaps net investment hedge	4	(6		)	7			23			1
Unrealized gain (loss) on investments in equity securities	4	1			(3		)	(8		)	23
Reclassification adjustments for amounts recognized in net income	4	(12		)	(4		)	(31		)	—
Deferred income taxes on above items		5			2			5			1
Equity-accounted investments	12	15			—			(8		)	—
Total items that may be reclassified subsequently to net income		209			41			(1,581		)	195
Other comprehensive income (loss)		206			37			(1,582		)	186
Comprehensive income (loss)		$	217		$	146		$	(1,451	)	$	448
Comprehensive income (loss) attributable to:
Non-controlling interests
Participating non-controlling interests – in operating subsidiaries	9	227			76			(670		)	253
General partnership interest in a holding subsidiary held by Brookfield	9	(1		)	—			(7		)	1
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	9	(21		)	18			(331		)	58
Preferred equity	9	26			17			(13		)	36
Preferred limited partners' equity	10	14			11			26			21
Limited partners' equity	11	$	(28	)	$	24		$	(456	)	$	79
		217			146			(1,451		)	448

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



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 3

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



				Accumulated other comprehensive income																					Non-controlling interests
UNAUDITED THREE MONTHS ENDED JUNE 30 (MILLIONS)	Limited partners' equity			Foreign currency translation			Revaluation surplus			Actuarial losses on defined benefit plans			Cash flow hedges			Investments in equity securities			Total limited partners' equity			Preferred limited partners' equity			Preferred equity			Participating non-controlling interests – in operating subsidiaries			General partnership interest in a holding subsidiary held by Brookfield			Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield			Total equity
Balance, as at March 31, 2020	$	(1,198	)	$	(1,130	)	$	6,413		$	(8	)	$	(38	)	$	(4	)	$	4,035		$	1,028		$	551		$	7,760		$	60		$	2,923		$	16,357
Net income	(25		)	—			—			—			—			—			(25		)	14			6			35			—			(19		)	11
Other comprehensive income (loss)	—			—			—			(1		)	(6		)	4			(3		)	—			20			192			(1		)	(2		)	206
Distributions or dividends declared	(97		)	—			—			—			—			—			(97		)	(14		)	(6		)	(174		)	(17		)	(70		)	(378		)
Distribution reinvestment plan	2			—			—			—			—			—			2			—			—			—			—			—			2
Other	(22		)	—			(1		)	—			(1		)	—			(24		)	—			—			—			16			(16		)	(24		)
Change in period	(142		)	—			(1		)	(1		)	(7		)	4			(147		)	—			20			53			(2		)	(107		)	(183		)
Balance as at June 30, 2020	$	(1,340	)	$	(1,130	)	$	6,412		$	(9	)	$	(45	)	$	—		$	3,888		$	1,028		$	571		$	7,813		$	58		$	2,816		$	16,174

Balance, as at March 31, 2019	$	(810	)	$	(644	)	$	5,921		$	(7	)	$	(36	)	$	18		$	4,442		$	833		$	580		$	8,456		$	66		$	3,221		17,598
Net income	9			—			—			—			—			—			9			11			7			74			1			7			109
Other comprehensive income (loss)	—			21			1			(2		)	(2		)	(3		)	15			—			10			2			(1		)	11			37
Capital contributions	—			—			—			—			—			—			—			—			—			10			—			—			10
Disposal	—			—			—			—			—			—			—			—			—			(53		)	—			—			(53		)
Distributions or dividends declared	(92		)	—			—			—			—			—			(92		)	(11		)	(7		)	(262		)	(13		)	(67		)	(452		)
Distribution reinvestment plan	1			—			—			—			—			—			1			—			—			—			—			—			1
Other	10			(2		)	(4		)	—			—			(10		)	(6		)	—			1			(1		)	12			(6		)	—
Change in period	(72		)	19			(3		)	(2		)	(2		)	(13		)	(73		)	—			11			(230		)	(1		)	(55		)	(348		)
Balance as at June 30, 2019	$	(882	)	$	(625	)	$	5,918		$	(9	)	$	(38	)	$	5		$	4,369		$	833		$	591		$	8,226		$	65		$	3,166		$	17,250

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



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 4

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY



				Accumulated other comprehensive income																					Non-controlling interests
UNAUDITED SIX MONTHS ENDED JUNE 30 (MILLIONS)	Limited partners' equity			Foreign currency translation			Revaluation surplus			Actuarial losses on defined benefit plans			Cash flow hedges			Investments in equity securities			Total limited partners' equity			Preferred limited partners' equity			Preferred equity			Participating non-controlling interests – in operating subsidiaries			General partnership interest in a holding subsidiary held by Brookfield			Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield			Total equity
Balance, as at December 31, 2019	$	(1,119	)	$	(700	)	$	6,424		$	(9	)	$	(32	)	$	12		$	4,576		$	833		$	597		$	8,742		$	68		$	3,315		$	18,131
Net income	(15		)	—			—			—			—			—			(15		)	26			13			118			—			(11		)	131
Other comprehensive income (loss)	—			(428		)	—			—			(12		)	(1		)	(441		)	—			(26		)	(788		)	(7		)	(320		)	(1,582		)
Preferred LP Units issued (Note 10)	—			—			—			—			—			—			—			195			—			—			—			—			195
Capital contributions (Note 9)	—			—			—			—			—			—			—			—			—			8			—			—			8
Distributions or dividends declared	(196		)	—			—			—			—			—			(196		)	(26		)	(13		)	(251		)	(34		)	(142		)	(662		)
Distribution reinvestment plan	3			—			—			—			—			—			3			—			—			—			—			—			3
Other	(13		)	(2		)	(12		)	—			(1		)	(11		)	(39		)	—			—			(16		)	31			(26		)	(50		)
Change in period	(221		)	(430		)	(12		)	—			(13		)	(12		)	(688		)	195			(26		)	(929		)	(10		)	(499		)	(1,957		)
Balance as at June 30, 2020	$	(1,340	)	$	(1,130	)	$	6,412		$	(9	)	$	(45	)	$	—		$	3,888		$	1,028		$	571		$	7,813		$	58		$	2,816		$	16,174

Balance, as at December 31, 2018	(948		)	(652		)	6,120			(6		)	(34		)	4			4,484			707			568			8,129			66			3,252			17,206
Net income	34			—			—			—			—			—			34			21			13			168			1			25			262
Other comprehensive income (loss)	—			41			1			(4		)	(4		)	11			45			—			23			85			—			33			186
Preferred LP Units issued	—			—			—			—			—			—			—			126			—			—			—			—			126
LP Units purchased for cancellation	(1		)	—			—			—			—			—			(1		)	—			—			—			—			—			(1		)
Capital contributions	—			—			—			—			—			—			—			—			—			298			—			—			298
Disposal	—			—			—			—			—			—			—			—			—			(53		)	—			—			(53		)
Distributions or dividends declared	(185		)	—			—			—			—			—			(185		)	(21		)	(13		)	(396		)	(28		)	(135		)	(778		)
Distribution reinvestment plan	3			—			—			—			—			—			3			—			—			—			—			—			3
Other	215			(14		)	(203		)	1			—			(10		)	(11		)	—			—			(5		)	26			(9		)	1
Change in period	66			27			(202		)	(3		)	(4		)	1			(115		)	126			23			97			(1		)	(86		)	44
Balance as at June 30, 2019	$	(882	)	$	(625	)	$	5,918		$	(9	)	$	(38	)	$	5		$	4,369		$	833		$	591		$	8,226		$	65		$	3,166		$	17,250

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



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 5

BROOKFIELD RENEWABLE PARTNERS L.P.

CONSOLIDATED STATEMENTS OF CASH FLOWS



UNAUDITED		Three months ended June 30						Six months ended June 30
(MILLIONS)	Notes	2020			2019			2020			2019
Operating activities
Net income		$	11		$	109		$	131		$	262
Adjustments for the following non-cash items:
Depreciation	7	192			200			398			400
Unrealized foreign exchange and financial instruments loss (gain)	4	14			11			(7		)	31
Share of earnings from equity-accounted investments	12	15			—			31			(32		)
Deferred income tax (recovery) expense	6	(10		)	14			(11		)	34
Other non-cash items		4			33			26			50
Dividends received from equity-accounted investments	12	14			14			42			28
Changes in due to or from related parties		8			(41		)	7			(36		)
Net change in working capital balances		13			28			(1		)	2
		261			368			616			739
Financing activities
Proceeds from medium term notes	8	$	250		$	—		$	250		$	—
Commercial paper and corporate credit facilities, net	8	(198		)	(26		)	(159		)	(721		)
Proceeds from non-recourse borrowings	8	309			852			525			945
Repayment of non-recourse borrowings	8	(235		)	(573		)	(546		)	(666		)
Capital contributions from participating non-controlling interests – in operating subsidiaries	9	—			10			7			257
Issuance of preferred limited partners' units	10	—			—			195			126
Repurchase of LP Units	11	—			—			—			(1		)
Distributions paid:
To participating non-controlling interests – in operating subsidiaries	9	(174		)	(262		)	(251		)	(396		)
To preferred shareholders	9	(6		)	(7		)	(13		)	(13		)
To preferred limited partners' unitholders	10	(12		)	(11		)	(23		)	(20		)
To unitholders of Brookfield Renewable or BRELP	9,11	(183		)	(171		)	(365		)	(342		)
Borrowings from related party	18	—			322			—			922
Repayments to related party	18	—			(355		)	—			(600		)
		(249		)	(221		)	(380		)	(509		)
Investing activities
Investment in equity-accounted investments		(3		)	(4		)	(15		)	(4		)
Acquisitions net of cash and cash equivalents in acquired entity		—			(26		)	—			(26		)
Investment in property, plant and equipment	7	(57		)	(34		)	(110		)	(63		)
Proceeds from disposal of assets	2	11			82			105			82
Purchases of financial assets	4	(183		)	(93		)	(227		)	(93		)
Proceeds from financial assets		115			14			161			19
Restricted cash and other		45			66			(15		)	11
		(72		)	5			(101		)	(74		)
Foreign exchange loss on cash		(1		)	1			(13		)	1
Cash and cash equivalents
(Decrease) Increase		(61		)	153			122			157
Net change in cash classified within assets held for sale		(4		)	(8		)	(8		)	(8		)
Balance, beginning of period		294			177			115			173
Balance, end of period		$	229		$	322		$	229		$	322
Supplemental cash flow information:
Interest paid		$	167		$	176		$	317		$	319
Interest received		$	3		$	6		$	9		$	10
Income taxes paid		$	13		$	18		$	34		$	37

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



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 6

BROOKFIELD RENEWABLE PARTNERS L.P.

NOTES TO THE UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS

Unless the context indicates or requires otherwise, the term "Brookfield Renewable" means Brookfield Renewable Partners L.P. and its controlled entities.

Brookfield Renewable is a publicly traded limited partnership established under the laws of Bermuda pursuant to an amended and restated limited partnership agreement dated November 20, 2011.

The registered office of Brookfield Renewable is 73 Front Street, Fifth Floor, Hamilton HM12, Bermuda.



Notes to the consolidated financial statements		Page

1.	Basis of preparation and significant accounting policies	8
2.	Disposal of assets	9
3.	Assets held for sale	9
4.	Risk management and financial instruments	10
5.	Segmented information	13
6.	Income taxes	19
7.	Property, plant and equipment	19
8.	Borrowings	20
9.	Non-controlling interests	22
10.	Preferred limited partners' equity	25
11.	Limited partners' equity	25
12.	Equity-accounted investments	26
13.	Cash and cash equivalents	27
14.	Restricted cash	27
15.	Trade receivables and other current assets	27
16.	Accounts payable and accrued liabilities	27
17.	Commitments, contingencies and guarantees	28
18.	Related party transactions	29
19.	Subsidiary public issuers	30
20.	Subsequent events	31



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 7

1. BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING POLICIES

(a) Statement of compliance

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

These consolidated financial statements have been authorized for issuance by the Board of Directors of Brookfield Renewable’s general partner, BRPL, on August 7, 2020.

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

References to $, C$, €, R$, COP, INR, and THB are to United States (“U.S.”) dollars, Canadian dollars, Euros, Brazilian reais, Colombian pesos, Indian Rupees, and Thai baht, respectively.

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

(b) Basis of preparation

Consolidation



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 8

2. DISPOSAL OF ASSETS

Summarized financial information relating to the disposal of the Thailand portfolio is shown below:



(MILLIONS)
Proceeds	$	94
Carrying value of net assets held for sale
Assets	114
Liabilities	(8		)
	106
Loss on disposal	$	(12	)

3. ASSETS HELD FOR SALE

As at June 30, 2020, assets held for sale within Brookfield Renewable's operating segments include solar facilities in South Africa and Asia.

The following is a summary of the major items of assets and liabilities classified as held for sale:



(MILLIONS)	June 30, 2020		December 31, 2019
Assets
Cash and cash equivalents	$	6	$	14
Restricted cash	17		22
Trade receivables and other current assets	8		13
Property, plant and equipment	139		303
Assets held for sale	$	170	$	352
Liabilities
Current liabilities	$	12	$	18
Long-term debt	58		73
Other long-term liabilities	24		46
Liabilities directly associated with assets held for sale	$	94	$	137



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 9

4. RISK MANAGEMENT AND FINANCIAL INSTRUMENTS

RISK MANAGEMENT

There have been no other material changes in exposure to the risks Brookfield Renewable is exposed to since the December 31, 2019 audited consolidated financial statements.

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.

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.

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 Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 10

The following table presents Brookfield Renewable's assets and liabilities measured and disclosed at fair value classified by the fair value hierarchy:



	June 30, 2020												December 31, 2019
(MILLIONS)	Level 1			Level 2			Level 3			Total			Total
Assets measured at fair value:
Cash and cash equivalents	$	229		$	—		$	—		$	229		$	115
Restricted cash⁽¹⁾	233			—			—			233			173
Financial instrument assets⁽²⁾
Energy derivative contracts	—			60			14			74			76
Foreign exchange swaps	—			10			—			10			4
Investments in debt and equity securities	8			187			82			277			160
Property, plant and equipment	—			—			28,527			28,527			30,714
Liabilities measured at fair value:
Financial instrument liabilities⁽²⁾
Energy derivative contracts	—			(9		)	—			(9		)	(8		)
Interest rate swaps	—			(198		)	—			(198		)	(131		)
Foreign exchange swaps	—			(7		)	—			(7		)	(39		)
Contingent consideration⁽³⁾	—			—			(22		)	(22		)	(11		)
Assets for which fair value is disclosed:
Equity-accounted investments⁽⁴⁾	1,211			—			—			1,211			1,010
Liabilities for which fair value is disclosed:
Corporate borrowings	(2,190		)	(140		)	—			(2,330		)	(2,204		)
Non-recourse borrowing	(393		)	(9,145		)	—			(9,538		)	(9,573		)
Total	$	(902	)	$	(9,242	)	$	28,601		$	18,457		$	20,286


⁽¹⁾	Includes both the current amount and long-term amount included in Other long-term assets.


⁽²⁾	Includes both current and long-term amounts.


⁽³⁾	Amount relates to acquisitions with obligations lapsing in 2021 to 2024.


⁽⁴⁾	The fair value corresponds to Brookfield Renewable's investment in publicly-quoted common shares of TerraForm Power, Inc.

There were no transfers between levels during the six months ended June 30, 2020.

Financial instruments disclosures

The aggregate amount of Brookfield Renewable's net financial instrument positions are as follows:



	June 30, 2020							December 31, 2019
(MILLIONS)	Assets		Liabilities		Net Assets (Liabilities)			Net Assets (Liabilities)
Energy derivative contracts	$	74	$	9	$	65		$	68
Interest rate swaps	—		198		(198		)	(131		)
Foreign exchange swaps	10		7		3			(35		)
Investments in debt and equity securities	277		—		277			160
Total	361		214		147			62
Less: current portion	72		57		15			(64		)
Long-term portion	$	289	$	157	$	132		$	126



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 11

(a) Energy derivative contracts

(b) Interest rate hedges

(d) Investments in debt and equity securities



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Energy derivative contracts	$	(22	)	$	6		$	2		$	12
Interest rate swaps	(17		)	(19		)	(39		)	(32		)
Foreign exchange swaps	25			(8		)	79			(19		)
Foreign exchange gain (loss)	—			9			(36		)	9
	$	(14	)	$	(12	)	$	6		$	(30	)

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



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Energy derivative contracts	$	(7	)	$	25		$	33		$	38
Interest rate swaps	(9		)	(19		)	(31		)	(36		)
Foreign exchange swaps	$	—		$	—		$	—		$	—
	(16		)	6			2			2
Foreign exchange swaps – net investment	(6		)	7			23			1
Investments in debt and equity securities	1			(3		)	(8		)	23
	$	(21	)	$	10		$	17		$	26

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



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Energy derivative contracts	$	(16	)	$	(8	)	$	(38	)	$	(7	)
Interest rate swaps	4			4			7			7
	$	(12	)	$	(4	)	$	(31	)	$	—



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 12

5. SEGMENTED INFORMATION

Our operations are segmented by – 1) hydroelectric, 2) wind, 3) solar, 4) storage & other (cogeneration and biomass), and 5) corporate – with hydroelectric and wind further segmented by geography (i.e., North America, Colombia, Brazil, Europe and Asia). This best reflects the way in which the CODM reviews results, manages operations and allocates resources. The Colombia segment aggregates the financial results of its hydroelectric and cogeneration facilities. The Canada segment includes the financial results of our strategic investment in TransAlta Corporation ("TransAlta"). The corporate segment represents all activity performed above the individual segments for the business.

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

Brookfield Renewable uses Adjusted EBITDA to assess the performance of its operations before the effects of interest expense, income taxes, depreciation, management service costs, non-controlling interests, unrealized gain or loss on financial instruments, non-cash gain or loss from equity-accounted investments, distributions to preferred shareholders and preferred limited partners and other typical non-recurring items.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 13



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	217		39		45		56		15		7		7		61		19		—		466		(104	)	289		651
Other income	19		6		6		2		3		1		2		11		1		28		79		(7	)	(49	)	23
Direct operating costs	(63	)	(10	)	(26	)	(13	)	(5	)	(2	)	(3	)	(13	)	(8	)	(6	)	(149	)	25		(124	)	(248	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		86		5		91
Adjusted EBITDA	173		35		25		45		13		6		6		59		12		22		396		—		121
Management service costs	—		—		—		—		—		—		—		—		—		(36	)	(36	)	—		—		(36	)
Interest expense	(29	)	(4	)	(7	)	(15	)	(3	)	(1	)	(2	)	(20	)	(3	)	(20	)	(104	)	30		(80	)	(154	)
Current income taxes	1		(2	)	1		(1	)	—		—		—		(2	)	(1	)	—		(4	)	3		4		3
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(14	)	(14	)	—		—		(14	)
Preferred equity	—		—		—		—		—		—		—		—		—		(6	)	(6	)	—		—		(6	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(33	)	(5	)	(38	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(40	)	(40	)
Funds From Operations	145		29		19		29		10		5		4		37		8		(54	)	232		—		—
Depreciation	(59	)	(16	)	(5	)	(37	)	(10	)	(3	)	(2	)	(20	)	(5	)	(1	)	(158	)	43		(77	)	(192	)
Foreign exchange and unrealized financial instrument loss	(32	)	—		(6	)	(3	)	(8	)	—		—		(7	)	(5	)	10		(51	)	15		22		(14	)
Deferred income tax expense	(2	)	—		(2	)	—		—		—		1		(1	)	—		4		—		2		8		10
Other	(42	)	(4	)	5		—		(1	)	(2	)	(1	)	(15	)	1		(8	)	(67	)	10		40		(17	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(70	)	2		(68	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		5		5
Net income (loss) attributable to Unitholders⁽²⁾	10		9		11		(11	)	(9	)	—		2		(6	)	(1	)	(49	)	(44	)	—		—		(44	)

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 14



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	275		58		56		58		22		9		3		51		21		—		553		(98	)	332		787
Other income	8		2		—		—		1		—		—		1		—		2		14		(2	)	5		17
Direct operating costs	(72	)	(18	)	(21	)	(18	)	(8	)	(3	)	(1	)	(10	)	(11	)	(5	)	(167	)	27		(112	)	(252	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		73		5		78
Adjusted EBITDA	211		42		35		40		15		6		2		42		10		(3	)	400		—		230
Management service costs	—		—		—		—		—		—		—		—		—		(23	)	(23	)	—		—		(23	)
Interest expense	(39	)	(6	)	(8	)	(16	)	(4	)	(2	)	(1	)	(15	)	(3	)	(25	)	(119	)	26		(85	)	(178	)
Current income taxes	(4	)	(3	)	(2	)	(1	)	—		—		—		—		—		—		(10	)	—		(5	)	(15	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(11	)	(11	)	—		—		(11	)
Preferred equity	—		—		—		—		—		—		—		—		—		(7	)	(7	)	—		—		(7	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(26	)	(5	)	(31	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(135	)	(135	)
Funds From Operations	168		33		25		23		11		4		1		27		7		(69	)	230		—		—
Depreciation	(56	)	(22	)	(5	)	(39	)	(13	)	(5	)	(1	)	(15	)	(6	)	(1	)	(163	)	36		(73	)	(200	)
Foreign exchange and unrealized financial instrument loss	1		4		(1	)	(1	)	(8	)	—		—		4		—		(12	)	(13	)	4		(3	)	(12	)
Deferred income tax expense	(23	)	1		(2	)	1		1		—		—		—		—		12		(10	)	(1	)	(3	)	(14	)
Other	(11	)	—		—		(6	)	(2	)	5		2		(12	)	—		(3	)	(27	)	8		18		(1	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(47	)	—		(47	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		61		61
Net income (loss) attributable to Unitholders⁽²⁾	79		16		17		(22	)	(11	)	4		2		4		1		(73	)	17		—		—		17

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 15



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	482		100		105		116		37		11		13		110		37		—		1,011		(199	)	631		1,443
Other income	21		9		8		4		3		1		2		12		1		30		91		(9	)	(49	)	33
Direct operating costs	(132	)	(27	)	(52	)	(27	)	(14	)	(3	)	(4	)	(27	)	(18	)	(11	)	(315	)	53		(247	)	(509	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		155		13		168
Adjusted EBITDA	371		82		61		93		26		9		11		95		20		19		787		—		348
Management service costs	—		—		—		—		—		—		—		—		—		(67	)	(67	)	—		—		(67	)
Interest expense	(68	)	(8	)	(14	)	(34	)	(5	)	(2	)	(4	)	(37	)	(5	)	(40	)	(217	)	57		(156	)	(316	)
Current income taxes	(2	)	(4	)	(3	)	(1	)	—		(1	)	—		(3	)	(1	)	—		(15	)	7		(8	)	(16	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity accounted investments	—		—		—		—		—		—		—		—		—		—		—		(64	)	(8	)	(72	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(176	)	(176	)
Funds From Operations	301		70		44		58		21		6		7		55		14		(127	)	449		—		—
Depreciation	(117	)	(36	)	(11	)	(79	)	(22	)	(7	)	(4	)	(42	)	(10	)	(2	)	(330	)	91		(159	)	(398	)
Foreign exchange and unrealized financial instrument loss	(14	)	7		(1	)	(5	)	(11	)	—		(1	)	(12	)	(4	)	(3	)	(44	)	19		31		6
Deferred income tax expense	(22	)	1		(3	)	(2	)	1		—		1		(2	)	—		20		(6	)	7		10		11
Other	(62	)	(8	)	5		1		(1	)	(2	)	1		(19	)	—		(10	)	(95	)	12		58		(25	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(129	)	2		(127	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		58		58
Net income (loss) attributable to Unitholders⁽²⁾	86		34		34		(27	)	(12	)	(3	)	4		(20	)	—		(122	)	(26	)	—		—		(26	)

⁽¹⁾

Share of loss from equity-accounted investments of $31 million is comprised of amounts found on the share of Adjusted EBITDA, share of interest and cash taxes and share of earnings lines. Net income attributable to participating non-controlling interests – in operating subsidiaries of $118 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.


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 16



	Attributable to Unitholders																						Contribution from equity accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	539		123		118		121		50		16		5		89		45		—		1,106		(189	)	695		1,612
Other income	9		3		—		2		1		—		—		2		—		4		21		(6	)	10		25
Direct operating costs	(142	)	(35	)	(45	)	(35	)	(16	)	(5	)	(2	)	(17	)	(24	)	(11	)	(332	)	56		(230	)	(506	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		139		12		151
Adjusted EBITDA	406		91		73		88		35		11		3		74		21		(7	)	795		—		487
Management service costs	—		—		—		—		—		—		—		—		—		(44	)	(44	)	—		—		(44	)
Interest expense	(80	)	(12	)	(16	)	(35	)	(7	)	(4	)	(1	)	(29	)	(7	)	(49	)	(240	)	50		(161	)	(351	)
Current income taxes	(6	)	(6	)	(6	)	(1	)	—		(1	)	—		—		—		—		(20	)	1		(20	)	(39	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(21	)	(21	)	—		—		(21	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(51	)	(9	)	(60	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(297	)	(297	)
Funds From Operations	320		73		51		52		28		6		2		45		14		(134	)	457		—		—
Depreciation	(111	)	(44	)	(10	)	(79	)	(23	)	(9	)	(2	)	(28	)	(12	)	(2	)	(320	)	69		(149	)	(400	)
Foreign exchange and unrealized financial instrument loss	3		3		(1	)	(1	)	(9	)	(1	)	—		4		(1	)	(28	)	(31	)	5		(4	)	(30	)
Deferred income tax expense	(40	)	2		(4	)	17		6		—		(1	)	16		—		18		14		(36	)	(12	)	(34	)
Other	(26	)	(1	)	1		(7	)	(2	)	5		2		(24	)	—		(8	)	(60	)	21		36		(3	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(59	)	—		(59	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		129		129
Net income (loss) attributable to Unitholders⁽²⁾	146		33		37		(18	)	—		1		1		13		1		(154	)	60		—		—		60

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 17

The following table presents information on a segmented basis about certain items in Brookfield Renewable's statements of financial position:



	Attributable to Unitholders																						Contribution from equity-accounted investments			Attributable to non- controlling interests		As per IFRS financials
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia
As at June 30, 2020
Cash and cash equivalents	$	23	$	13	$	26	$	22	$	12	$	2	$	5	$	70	$	12	$	8	$	193	$	(101	)	$	137	$	229
Property, plant and equipment	11,401		1,407		1,536		2,443		649		266		173		2,168		710		—		20,753		(4,289		)	12,063		28,527
Total assets	12,166		1,545		1,774		2,579		733		282		218		2,376		751		255		22,679		(3,102		)	13,748		33,325
Total borrowings	3,186		158		413		1,265		319		66		121		1,383		223		2,129		9,263		(2,306		)	3,929		10,886
Other liabilities	2,893		102		434		556		112		8		23		345		40		446		4,959		(771		)	2,077		6,265
For the six months ended June 30, 2020:
Additions to property, plant and equipment	226		15		1		4		4		1		—		20		6		1		278		(14		)	137		401
As at December 31, 2019
Cash and cash equivalents	$	10	$	7	$	10	$	18	$	21	$	2	$	5	$	63	$	6	$	1	$	143	$	(89	)	$	61	$	115
Property, plant and equipment	11,488		1,938		1,773		2,556		628		368		187		2,018		732		—		21,688		(4,147		)	13,173		30,714
Total assets	12,218		2,126		2,027		2,705		692		391		233		2,266		780		103		23,541		(2,872		)	15,022		35,691
Total borrowings	3,070		208		449		1,221		326		71		124		1,470		235		2,107		9,281		(2,157		)	3,880		11,004
Other liabilities	2,877		148		499		597		100		10		28		335		31		248		4,873		(715		)	2,398		6,556
For the six months ended June 30, 2019:
Additions to property, plant and equipment	21		1		12		12		2		—		—		—		8		1		57		(13		)	24		68



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 18

Geographical Information

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



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
United States	$	231	$	294	$	530	$	596
Colombia	189		231		436		488
Canada	97		97		187		181
Brazil	71		99		156		199
Europe	16		27		43		69
Asia	47		39		91		79
	$	651	$	787	$	1,443	$	1,612

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



(MILLIONS)	June 30, 2020		December 31, 2019
United States	$	14,942	$	14,952
Colombia	6,370		7,353
Canada	4,026		4,268
Brazil	2,659		3,631
Europe	1,455		1,539
Asia	854		860
	$	30,306	$	32,603

6. INCOME TAXES

7. PROPERTY, PLANT AND EQUIPMENT

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



(MILLIONS)	Hydroelectric			Wind			Solar			Storage & other⁽¹⁾			Total⁽²⁾
As at December 31, 2019	$	26,024		$	4,258		$	197		$	235		$	30,714
Additions⁽³⁾	316			12			72			1			401
Items recognized through OCI
Foreign currency translation	(1,777		)	(342		)	(5		)	(55		)	(2,179		)
Items recognized through net income
Changes in fair value	(4		)	(3		)	(4		)	—			(11		)
Depreciation	(254		)	(130		)	(7		)	(7		)	(398		)
As at June 30, 2020⁽⁴⁾	$	24,305		$	3,795		$	253		$	174		$	28,527


⁽¹⁾	Includes biomass and cogeneration.


⁽²⁾	Includes intangible assets of $8 million (2019: $10 million) and assets under construction of $397 million (2019: $334 million).


⁽³⁾	Brookfield Renewable exercised the option to buy out the lease on its 192 MW hydroelectric facility in Louisiana and recognized an $247 million adjustment to its corresponding right-of-use asset.


⁽⁴⁾	Includes right-of-use assets not subject to revaluation of $63 million (2019: $71 million) in our hydroelectric segment, $50 million (2019: $51 million) in our wind segment, $1 million (2019: nil) in our solar segment, and $3 million (2019: $3 million) in our storage & other segment.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 19

8. BORROWINGS

Corporate Borrowings

The composition of corporate borrowings is presented in the following table:



	June 30, 2020							December 31, 2019
	Weighted-average							Weighted- average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)	Term (years)	Carrying value			Estimated fair value		Interest rate (%)	Term (years)	Carrying value			Estimated fair value
Credit facilities	N/A	4	$	—		$	—	2.9	5	$	299		$	299
Commercial paper	0.6	< 1	140			140		N/A	N/A	N/A			N/A
Medium Term Notes:
Series 4 (C$150)	5.8	16	110			143		5.8	17	115			142
Series 8 (C$400)	4.8	2	295			310		4.8	2	308			324
Series 9 (C$400)	3.8	5	295			318		3.8	5	308			322
Series 10 (C$500)	3.6	7	368			402		3.6	7	384			400
Series 11 (C$475)	4.3	9	350			397		4.3	9	231			248
Series 12 (C$475)	3.4	10	350			372		3.4	10	231			232
Series 13 (C$300)	4.3	29	221			248		4.3	30	231			237
	4.0	10	$	1,989		$	2,190	4.1	10	$	1,808		$	1,905
Total corporate borrowings			2,129			$	2,330			2,107			$	2,204
Add: Unamortized premiums⁽¹⁾			6							—
Less: Unamortized financing fees⁽¹⁾			(11		)					(7		)
Less: Current portion			(140		)					—
			$	1,984						$	2,100


⁽¹⁾	Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.

Brookfield Renewable had $140 million commercial paper outstanding as at June 30, 2020 (2019: nil). The commercial paper program is supplemented by our $1.75 billion corporate credit facilities.

Brookfield Renewable 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, 2020, there were no letters of credit issued that utilized the corporate credit facility (2019: nil).

The following table summarizes the available portion of credit facilities:



(MILLIONS)	June 30, 2020			December 31, 2019
Authorized corporate credit facilities⁽¹⁾	$	2,150		$	2,150
Draws on corporate credit facilities⁽¹⁾	—			(299		)
Authorized letter of credit facility	400			400
Issued letters of credit	(258		)	(266		)
Available portion of corporate credit facilities	$	2,292		$	1,985


⁽¹⁾	Amounts are guaranteed by Brookfield Renewable.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 20

Medium term notes

Non-recourse borrowings

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



	June 30, 2020							December 31, 2019
	Weighted-average							Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)	Term (years)	Carrying value			Estimated fair value		Interest rate (%)	Term (years)	Carrying value			Estimated fair value
Non-recourse borrowings⁽¹⁾
Hydroelectric⁽²⁾	5.9	9	$	6,569		$	7,196	5.9	10	$	6,616		$	7,106
Wind	5.2	10	1,861			1,961		5.2	11	1,899			2,006
Solar	5.2	5	304			302		5.1	5	355			363
Storage & other	3.3	1	77			79		3.9	4	94			98
Total	5.7	9	$	8,811		$	9,538	5.7	10	$	8,964		$	9,573
Add: Unamortized premiums⁽³⁾			8							9
Less: Unamortized financing fees⁽³⁾			(57		)					(69		)
Less: Current portion			(1,190		)					(685		)
			$	7,572						$	8,219


⁽¹⁾	Includes $117 million (2019: $142 million) borrowed under a subscription facility of a Brookfield sponsored private fund.


⁽²⁾	Includes a lease liability of $554 million associated with a hydroelectric facility included in property, plant and equipment, at fair value, which is subject to revaluation. During the quarter, Brookfield Renewable exercised the buy out option related to this lease liability. The transaction is expected to close in 2020.


⁽³⁾	Unamortized premiums and unamortized financing fees are amortized over the terms of the borrowing.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 21

9. NON-CONTROLLING INTERESTS

Brookfield Renewable`s non-controlling interests are comprised of the following:



(MILLIONS)	June 30, 2020		December 31, 2019
Participating non-controlling interests – in operating subsidiaries	$	7,813	$	8,742
General partnership interest in a holding subsidiary held by Brookfield	58		68
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	2,816		3,315
Preferred equity	571		597
	$	11,258	$	12,722



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 22

Participating non-controlling interests – in operating subsidiaries

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			Canadian Hydroelectric Portfolio			The Catalyst Group			Isagen institutional investors			Isagen public non-controlling interests			Other			Total
As at December 31, 2018	$	900		$	1,929		$	2,469		$	—		$	276		$	124		$	2,212		$	15		$	204		$	8,129
Net income (loss)	—			(13		)	73			6			19			17			154			1			5			262
OCI	46			134			330			(3		)	61			(41		)	266			2			—			795
Capital contributions	—			—			2			159			268			—			—			(2		)	3			430
Disposal	—			(87		)	—			—			—			—			—			—			(85		)	(172		)
Distributions	(24		)	(120		)	(274		)	—			(1		)	(11		)	(259		)	(1		)	(16		)	(706		)
Other	—			8			(3		)	1			(5		)	—			2			(2		)	3			4
As at December 31, 2019	$	922		$	1,851		$	2,597		$	163		$	618		$	89		$	2,375		$	13		$	114		$	8,742
Net income (loss)	(5		)	(6		)	22			14			19			14			60			—			—			118
OCI	(38		)	(114		)	(283		)	1			(26		)	—			(312		)	(2		)	(14		)	(788		)
Capital contributions	—			3			2			19			(18		)	—			—			—			2			8
Distributions	(5		)	(25		)	(123		)	—			—			(9		)	(81		)	—			(8		)	(251		)
Other	2			1			(14		)	(2		)	(1		)	(1		)	2			(1		)	(2		)	(16		)
As at June 30, 2020	$	876		$	1,710		$	2,201		$	195		$	592		$	93		$	2,044		$	10		$	92		$	7,813
Interests held by third parties	75%-80%			43%-60%			23%-71%			75		%	50		%	25		%	53		%	0.3		%	20%-50%



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 23

General partnership interest in a holding subsidiary held by Brookfield and Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield

Distributions

The composition of the distributions for the three and six months ended June 30 is presented in the following table:



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
General partnership interest in a holding subsidiary held by Brookfield	$	2	$	1	$	3	$	3
Incentive distribution	15		12		31		25
	17		13		34		28
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	70		67		142		135
	$	87	$	80	$	176	$	163

Preferred equity

Brookfield Renewable`s preferred equity consists of Class A Preference Shares of Brookfield Renewable Power Preferred Equity Inc. ("BRP Equity") as follows:



(MILLIONS EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	Distributions declared for the six months ended June 30				Carrying value as at
				Distributions declared for the six months ended June 30				Carrying value as at
				2020		2019		June 30, 2020		December 31, 2019
Series 1 (C$136)	5.45	3.36	Apr 2020	$	2	$	2	$	100	$	105
Series 2 (C$113)⁽¹⁾	4.51	2.85	Apr 2020	2		2		82		86
Series 3 (C$249)	9.96	4.40	Jul 2019	4		4		183		192
Series 5 (C$103)	4.11	5.00	Apr 2018	2		2		76		79
Series 6 (C$175)	7.00	5.00	Jul 2018	3		3		130		135
	31.03			$	13	$	13	$	571	$	597


⁽¹⁾	Dividend rate represents annualized distribution based on the most recent quarterly floating rate.

Class A Preference Shares – Normal Course Issuer Bid



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 24

10. PREFERRED LIMITED PARTNERS' EQUITY

Brookfield Renewable’s preferred limited partners’ equity comprises of Class A Preferred LP Units as follows:



(MILLIONS, EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	Distributions declared for the six months ended June 30				Carrying value as at
(MILLIONS, EXCEPT AS NOTED)	Shares outstanding	Cumulative distribution rate (%)	Earliest permitted redemption date	2020		2019		June 30, 2020		December 31, 2019
Series 5 (C$72)	2.89	5.59	Apr 2018	$	1	$	2	$	49	$	49
Series 7 (C$175)	7.00	5.50	Jan 2021	4		4		128		128
Series 9 (C$200)	8.00	5.75	Jul 2021	4		4		147		147
Series 11 (C$250)	10.00	5.00	Apr 2022	5		5		187		187
Series 13 (C$250)	10.00	5.00	Apr 2023	5		4		196		196
Series 15 (C$175)	7.00	5.75	Apr 2024	4		2		126		126
Series 17 ($200)	8.00	5.25	Mar 2025	3		—		$	195	$	—
	52.89			$	26	$	21	$	1,028	$	833

As at June 30, 2020, none of the Class A, Series 5 Preferred Limited Partnership Units have been redeemed.

11. LIMITED PARTNERS' EQUITY

Limited partners’ equity



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 25

repurchased during the three and six months ended June 30, 2020. During the six months ended June 30, 2019, there were 20,000 LP Units repurchased at a total cost of $1 million.

Distributions

The composition of the limited partners' equity distributions for the three and six months ended June 30 is presented in the following table:



	Three months ended June 30				Six months ended June 30
(MILLIONS)	2020		2019		2020		2019
Brookfield	$	29	$	29	$	60	$	58
External LP Unitholders	68		63		136		127
	$	97	$	92	$	196	$	185

In January 2020, Unitholder distributions were increased to $2.17 per LP Unit on an annualized basis, an increase of $0.11 per LP Unit, which took effect with the distribution payable in March 2020.

12. EQUITY-ACCOUNTED INVESTMENTS

The following are Brookfield Renewable’s equity-accounted investments for the six months ended June 30, 2020:



(MILLIONS)
Opening balance	$	1,889
Acquisition	15
Share of net income (loss)	(31		)
Share of other comprehensive income	(8		)
Dividends received	(42		)
Foreign exchange translation and other	(44		)
Ending balance	$	1,779

The following table summarizes gross revenues and net income of equity-accounted investments in aggregate:



	Three months ended June 30						Six months ended June 30
_(MILLIONS)	2020			2019			2020			2019
Revenue	$	371		$	356		$	755		$	715
Net income (loss)	(81		)	(9		)	(153		)	101
Share of net income (loss)⁽¹⁾	(15		)	—			(31		)	32


⁽¹⁾	Brookfield Renewable's ownership interest in these entities ranges from 14% to 50%.

The following table summarizes gross assets and liabilities of equity-accounted investments in aggregate at 100%:



_(MILLIONS)	June 30, 2020		December 31, 2019
Current assets	$	1,118	$	1,102
Property, plant and equipment	16,938		16,256
Other assets	537		571
Current liabilities	1,303		1,279
Non-recourse borrowings	7,905		7,365
Other liabilities	3,153		2,580



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 26

13. CASH AND CASH EQUIVALENTS

Brookfield Renewable’s cash and cash equivalents are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Cash	$	216	$	103
Short-term deposits	13		12
	$	229	$	115

14. RESTRICTED CASH

Brookfield Renewable’s restricted cash is as follows:



(MILLIONS)	June 30, 2020			December 31, 2019
Operations	$	104		$	87
Credit obligations	81			69
Development projects	48			17
Total	233			173
Less: non-current	(11		)	(19		)
Current	$	222		$	154

15. TRADE RECEIVABLES AND OTHER CURRENT ASSETS

Brookfield Renewable's trade receivables and other current assets are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Trade receivables	$	333	$	406
Prepaids and other	82		119
Other short-term receivables	139		142
Current portion of contract asset	50		51
	$	604	$	718

16. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Brookfield Renewable's accounts payable and accrued liabilities are as follows:



(MILLIONS)	June 30, 2020		December 31, 2019
Operating accrued liabilities	$	207	$	237
Accounts payable	76		111
Interest payable on borrowings	71		73
Deferred consideration	39		60
LP Unitholders distributions, preferred limited partnership unit distributions and preferred dividends payable⁽¹⁾	39		33
Current portion of lease liabilities	15		15
Other	77		61
	$	524	$	590


⁽¹⁾	Includes amounts payable only to external LP Unitholders. Amounts payable to Brookfield are included in due to related parties.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 27

17. COMMITMENTS, CONTINGENCIES AND GUARANTEES

Commitments

Contingencies

Letters of credit issued by Brookfield Renewable along with institutional investors and its subsidiaries were as at the following dates:



(MILLIONS)	June 30, 2020		December 31, 2019
Brookfield Renewable along with institutional investors	$	48	$	50
Brookfield Renewable's subsidiaries	248		286
	$	296	$	336

Guarantees



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 28

time. Historically, neither Brookfield Renewable nor its subsidiaries have made material payments under such indemnification agreements.

18. RELATED PARTY TRANSACTIONS

Brookfield Renewable`s related party transactions are recorded at the exchange amount. Brookfield Renewable`s related party transactions are primarily with Brookfield Asset Management.

Brookfield Asset Management has provided a $400 million committed unsecured revolving credit facility maturing in December 2020 and the interest rate applicable on the draws is LIBOR plus up to 1.8%. During the current period, there were no draws on the committed unsecured revolving credit facility provided by Brookfield Asset Management. Brookfield Asset Management may from time to time place funds on deposit with Brookfield Renewable which are repayable on demand including any interest accrued. There were no funds placed on deposit with Brookfield Renewable in six months ended June 30, 2020 (2019: $600 million, which was fully repaid within the period). There was no interest expense on the Brookfield Asset Management revolving credit facility or deposit for the three and six months ended June 30, 2020 (2019: nil and $3 million).

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)	2020			2019			2020			2019
Revenues
Power purchase and revenue agreements	$	84		$	209		$	180		$	368
Wind levelization agreement	—			—			—			1
	$	84		$	209		$	180		$	369
Direct operating costs
Energy purchases	$	—		$	(2	)	$	—		$	(5	)
Energy marketing fee	(2		)	(6		)	(2		)	(12		)
Insurance services⁽¹⁾	(6		)	(7		)	(12		)	(14		)
	$	(8	)	$	(15	)	$	(14	)	$	(31	)
Interest expense
Borrowings	$	—		$	—		$	—		$	(3	)
Contract balance accretion	(4		)	(3		)	$	(8	)	$	(5	)
	$	(4	)	$	(3	)	$	(8	)	$	(8	)
Management service costs	$	(36	)	$	(23	)	$	(67	)	$	(44	)


⁽¹⁾	Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three and six months ended June 30, 2020 were less than $1 million (2019: less than $1 million).



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 29

19. SUBSIDIARY PUBLIC ISSUERS

The following tables provide consolidated summary financial information for Brookfield Renewable, BRP Equity, and Finco:



(MILLIONS)	Brookfield Renewable⁽¹⁾		BRP Equity		Finco		Holding Entities⁽¹⁾⁽²⁾		Other Subsidiaries⁽¹⁾⁽³⁾		Consolidating adjustments⁽⁴⁾			Brookfield Renewable consolidated
As at June 30, 2020
Current assets	$	36	$	390	$	2,016	$	250	$	3,313	$	(4,595	)	$	1,410
Long-term assets	4,936		240		2		22,708		32,152		(28,123		)	31,915
Current liabilities	45		6		26		4,232		2,455		(4,593		)	2,171
Long-term liabilities	—		—		1,984		139		13,500		(643		)	14,980
Participating non-controlling interests – in operating subsidiaries	—		—		—		—		7,813		—			7,813
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	—		—		—		2,816		—		—			2,816
Preferred equity	—		571		—		—		—		—			571
Preferred limited partners' equity	1,028		—		—		1,039		—		(1,039		)	1,028
As at December 31, 2019
Current assets	$	32	$	408	$	1,832	$	133	$	3,230	$	(4,161	)	$	1,474
Long-term assets	5,428		251		2		25,068		34,500		(31,032		)	34,217
Current liabilities	40		7		24		3,918		1,852		(4,163		)	1,678
Long-term liabilities	—		—		1,801		300		14,440		(659		)	15,882
Participating non-controlling interests – in operating subsidiaries	—		—		—		—		8,742		—			8,742
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	—		—		—		3,315		—		—			3,315
Preferred equity	—		597		—		—		—		—			597
Preferred limited partners' equity	833		—		—		844		—		(844		)	833


⁽¹⁾	Includes investments in subsidiaries under the equity method.


⁽²⁾	Includes BRELP, BRP Bermuda Holdings I Limited, Brookfield BRP Holdings (Canada) Inc., Brookfield BRP Europe Holdings Limited and Brookfield Renewable Investments Limited, together the "Holding Entities".


⁽³⁾	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco and the Holding Entities.


⁽⁴⁾	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 30



(MILLIONS)	Brookfield Renewable⁽¹⁾			BRP Equity		Finco		Holding Entities⁽¹⁾⁽²⁾			Other Subsidiaries⁽¹⁾⁽³⁾		Consolidating adjustments⁽⁴⁾			Brookfield Renewable consolidated
Three months ended June 30, 2020
Revenues	$	—		$	—	$	—	$	—		$	651	$	—		$	651
Net income (loss)	(11		)	—		1		28			358		(365		)	11
Three months ended June 30, 2019
Revenues	$	—		$	—	$	—	$	1		$	786	$	—		$	787
Net income (loss)	21			—		—		44			414		(370		)	109
Six months ended June 30, 2020
Revenues	$	—		$	—	$	—	$	—		$	1,443	$	—		$	1,443
Net income (loss)	11			—		1		(35		)	690		(536		)	131
Six months ended June 30, 2019
Revenues	$	—		$	—	$	—	$	—		$	1,612	$	—		$	1,612
Net income (loss)	56			—		2		55			746		(597		)	262


⁽¹⁾	Includes investments in subsidiaries under the equity method.


⁽²⁾	Includes the Holding Entities.


⁽³⁾	Includes subsidiaries of Brookfield Renewable, other than BRP Equity, Finco, and the Holding Entities.


⁽⁴⁾	Includes elimination of intercompany transactions and balances necessary to present Brookfield Renewable on a consolidated basis.

20. SUBSEQUENT EVENTS



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 31



Brookfield Renewable Partners L.P.	Q2 2020 Interim Consolidated Financial Statements and Notes	June 30, 2020
	Q2 2020 Interim Consolidated Financial Statements and Notes	Page 32



GENERAL INFORMATION
Corporate Office 73 Front Street Fifth Floor Hamilton, HM12 Bermuda Tel: (441) 294-3304 Fax: (441) 516-1988 https://bep.brookfield.com Officers of Brookfield Renewable Partners L.P.`s Service Provider, BRP Energy Group L.P. Sachin Shah Chief Executive Officer Wyatt Hartley Chief Financial Officer Transfer Agent & Registrar Computershare Trust Company of Canada 100 University Avenue 9th floor Toronto, Ontario, M5J 2Y1 Tel Toll Free: (800) 564-6253 Fax Toll Free: (888) 453-0330 www.computershare.com		Directors of the General Partner of Brookfield Renewable Partners L.P. Jeffrey Blidner Eleazar de Carvalho Filho Nancy Dorn David Mann Lou Maroun Patricia Zuccotti Stephen Westwell Exchange Listing NYSE: BEP (LP Units) TSX: BEP.UN (LP Units) TSX: BEP.PR.E (Preferred LP Units - Series 5) TSX: BEP.PR.G (Preferred LP Units - Series 7) TSX: BEP.PR.I (Preferred LP Units - Series 9) TSX: BEP.PR.K (Preferred LP Units - Series 11) TSX: BEP.PR.M (Preferred LP Units - Series 13) TSX: BEP.PR.O (Preferred LP Units - Series 15) NYSE: BEP.PR.A (Preferred LP Units - Series 17) TSX: BRF.PR.A (Preferred shares - Series 1) TSX: BRF.PR.B (Preferred shares - Series 2) TSX: BRF.PR.C (Preferred shares - Series 3) TSX: BRF.PR.E (Preferred shares - Series 5) TSX: BRF.PR.F (Preferred shares - Series 6) Investor Information Visit Brookfield Renewable online at https://bep.brookfield.com for more information. The 2019 Annual Report and Form 20-F are also available online. For detailed and up-to-date news and information, please visit the News Release section. 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. Shareholder enquiries should be directed to the Investor Relations Department at (416) 369-2616 or enquiries@brookfieldrenewable.com

Management’s Discussion and Analysis

For the three and six months ended June 30, 2020

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



Organization of the Management’s Discussion and Analysis

Part 1 – Q2 2020 Highlights	3	Part 5 – Liquidity and Capital Resources	19
		Capitalization and available liquidity	19
Part 2 – Financial Performance Review on Consolidated Information	5	Borrowings	20
		Consolidated statements of cash flows	21
		Shares and units outstanding	23
Part 3 – Additional Consolidated Financial Information	7	Dividends and distributions	23
Summary consolidated statements of financial position	7	Contractual obligations	23
Related party transactions	8	Off-statement of financial position arrangements	24
Equity	9
		Part 6 – Selected Quarterly Information	25
Part 4 – Financial Performance Review on Proportionate Information	10	Summary of historical quarterly results	25

Proportionate results for the three months ended June 30	11	Part 7 – Critical Estimates, Accounting Policies and Internal Controls	30
Reconciliation of non-IFRS measures	15
Contract profile	18	Part 8 – Presentation to Stakeholders and Performance Measurement	33

		Part 9 – Cautionary Statements	37



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 2

PART 1 – Q2 2020 HIGHLIGHTS



	Three months ended June 30					Six months ended June 30
(MILLIONS, EXCEPT AS NOTED)	2020			2019		2020			2019
Operational information
Capacity (MW)	19,317			17,482		19,317			17,482
Total generation (GWh)
Long-term average generation	15,527			14,252		29,678			27,745
Actual generation	13,264			14,881		27,528			29,006

Proportionate generation (GWh)
Long-term average generation	7,309			7,109		14,026			13,807
Actual generation	6,552			7,602		13,716			14,848
Average revenue ($ per MWh)	75			73		76			74

Selected financial information⁽¹⁾
Net income (loss) attributable to Unitholders	$	(44	)	$	17	$	(26	)	$	60
Basic income (loss) per LP Unit	(0.14		)	0.05		(0.08		)	0.19
Consolidated Adjusted EBITDA⁽²⁾	517			630		1,135			1,282
Proportionate Adjusted EBITDA⁽²⁾	396			400		787			795
Funds From Operations⁽²⁾	232			230		449			457
Funds From Operations per Unit⁽¹⁾⁽²⁾	0.75			0.74		1.44			1.47
Distribution per LP Unit	0.54			0.52		1.09			1.03


⁽¹⁾	For the three and six months ended June 30, 2020, weighted average LP Units, Redeemable/Exchangeable partnership units and GP interest totaled 311.3 million (2019: 311.2 million and 311.1 million, respectively).


⁽²⁾	Non-IFRS measures. For reconciliations to the most directly comparable IFRS measure, See “Part 4 – Financial Performance Review on Proportionate Information – Reconciliation of non-IFRS measures” and “Part 9 – Cautionary Statements”.



(MILLIONS, EXCEPT AS NOTED)	June 30, 2020			December 31, 2019
Liquidity and Capital Resources
Available liquidity⁽¹⁾	$	$3,358		$	2,695
Debt to capitalization – Corporate		19	%		16	%
Debt to capitalization – Consolidated		35	%		32	%
Borrowings non-recourse to Brookfield Renewable on a proportionate basis		77	%		77	%
Floating rate debt exposure on a proportionate basis⁽²⁾		5	%		5	%
Medium term notes
Average debt term to maturity		10 years			10 years
Average interest rate		4.0	%		4.1	%
Non-recourse borrowings on a proportionate basis
Average debt term to maturity		10 years			10 years
Average interest rate		5.2	%		5.1	%


⁽¹⁾	Available liquidity is adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020.


⁽²⁾	Excludes 5% (2019: 7%) floating rate debt exposure of certain foreign regions outside of North America and Europe due to the high cost of hedging associated with those regions.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 3

Operations

We delivered Funds From Operations of $232 million or $0.75 per unit, which represents a 1% increase from the prior year as our operations benefited from:


•	Higher margins due to realization of margin enhancing initiatives across our business;


•	Relatively higher realized prices in Colombia, Brazil and Canada on the back of inflation escalation and our re-contracting and commercial initiatives;


•	Contributions from growth through both acquisitions and development activities; and


•	Offset by lower generation, primarily at our hydroelectric facilities in the northeast United States and Colombia (14% below long-term average and 23% lower than prior year generation on a same-store basis)

Continued to focus on extending our contract profile as we completed the following:


•	In Colombia, we secured eight inflation-indexed contracts for 288 GWh/year, including individual contracts with up to seven years in duration


•	In Brazil, we entered into nine new contracts to deliver 144 GWh/year, including individual contracts with up to five years in duration

Liquidity and Capital Resources

Remain well capitalized and backed by a resilient balance sheet:


•	Liquidity position remains robust, with close to $3.4 billion of total available liquidity, no material maturities over the next five years and a strong investment grade balance sheet (BBB+)


•	Capitalized on the low interest rate environment and sourced liquidity from diverse funding levers


◦	Secured over $1.1 billion of investment-grade non-recourse financings across our diverse portfolio


◦	Completed the issuance of approximately C$350 million of ten-year corporate green bonds at approximately 3.5%


•	So far this year, we generated close to $500 million of proceeds ($85 million net to BEP) from capital recycling activities

Growth and Development

Completed, together with our institutional and joint venture partners, the commissioning of almost 100 MW of development projects.

Continued to progress our development pipeline:


•	Continued to advance the construction of 2,400 MW of hydroelectric, wind, pumped storage, solar PV and rooftop solar development projects. These projects are expected to be commissioned between 2020 and 2023 and to generate annualized Funds From Operations net to Brookfield Renewable of approximately $53 million.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 4

PART 2 – FINANCIAL PERFORMANCE REVIEW ON CONSOLIDATED INFORMATION

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)	2020			2019			2020			2019
Revenues	$	651		$	787		$	1,443		$	1,612
Direct operating costs	(248		)	(252		)	(509		)	(506		)
Management service costs	(36		)	(23		)	(67		)	(44		)
Interest expense	(154		)	(178		)	(316		)	(351		)
Share of (loss) earnings from equity-accounted investments	(15		)	—			(31		)	32
Foreign exchange and unrealized financial instrument (loss) gain	(14		)	(12		)	6			(30		)
Depreciation	(192		)	(200		)	(398		)	(400		)
Income tax expense	13			(29		)	(5		)	(73		)
Net (loss) income attributable to Unitholders	$	(44	)	$	17		$	(26	)	$	60
	Average FX rates to USD
C$	1.39			1.34			1.36			1.33
€	0.91			0.89			0.91			0.89
R$	5.39			3.92			4.92			3.84
£	0.81			0.78			0.79			0.77
COP	3,846			3,240			3,689			3,188

Variance Analysis For The Three Months Ended June 30, 2020

Management service costs totaling $36 million represents an increase of $13 million over the prior year due to the growth of our business.

Share of loss from equity-accounted investments totaling $15 million represents a decrease of $15 million driven by higher non-cash depreciation expense due to the growth of our portfolio.

Income tax recovery totaled $13 million compared to an income tax expense of $29 million in the prior year due primarily to a decrease in net income before income taxes due to the above noted items.

Net loss attributable to Unitholders totaled $44 million compared to a net income attributable to Unitholders of $17 million in the prior year due to the above noted items.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 5

Variance Analysis For The Six Months Ended June 30, 2020

Management service costs totaling $67 million represents an increase of $23 million over the prior year due to the growth of our business.

Income tax expense of $5 million represents a decrease of $68 million due primarily to a decrease in net income before income taxes due to the above noted items.

Net loss attributable to Unitholders totaled $26 million compared to a net income attributable to Unitholders of $60 million in the prior year due to the above noted items.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 6

PART 3 – ADDITIONAL CONSOLIDATED FINANCIAL INFORMATION

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, 2020		December 31, 2019
Assets held for sale	$	170	$	352
Current assets	1,410		1,474
Equity-accounted investments	1,779		1,889
Property, plant and equipment	28,527		30,714
Total assets	33,325		35,691
Liabilities directly associated with assets held for sale	94		137
Corporate borrowings	2,118		2,100
Non-recourse borrowings	8,762		8,904
Deferred income tax liabilities	4,237		4,537
Total liabilities and equity	33,325		35,691
	FX rates to USD
C$	1.36		1.30
€	0.89		0.89
R$	5.48		4.03
£	0.81		0.75
COP	3,759		3,277

Our balance sheet remains strong and reflects the stable nature of the business and our continued growth.

Assets held for sale

Property, plant and equipment



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 7

RELATED PARTY TRANSACTIONS

The following table reflects the related party agreements and transactions in the unaudited interim consolidated statements of income for the three and six months ended June 30, 2020:



	Three months ended June 30						Six months ended June 30
(MILLIONS)	2020			2019			2020			2019
Revenues
Power purchase and revenue agreements	$	84		$	209		$	180		$	368
Wind levelization agreement	—			—			—			1
	$	84		$	209		$	180		$	369
Direct operating costs
Energy purchases	$	—		$	(2	)	$	—		$	(5	)
Energy marketing fee	(2		)	(6		)	(2		)	(12		)
Insurance services⁽¹⁾	(6		)	(7		)	(12		)	(14		)
	$	(8	)	$	(15	)	$	(14	)	$	(31	)
Interest expense
Borrowings	$	—		$	—		$	—		$	(3	)
Contract balance accretion	(4		)	(3		)	(8		)	(5		)
	$	(4	)	$	(3	)	$	(8	)	$	(8	)
Management service costs	$	(36	)	$	(23	)	$	(67	)	$	(44	)


⁽¹⁾	Insurance services are paid to a subsidiary of Brookfield Asset Management that brokers external insurance providers on behalf of Brookfield Renewable. The fees paid to the subsidiary of Brookfield Asset Management for the three and six months ended June 30, 2020 were less than $1 million (2019: less than $1 million).^.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 8

EQUITY

General partnership interest in a holding subsidiary held by Brookfield

Preferred limited partners' equity

Limited partners' equity



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 9

PART 4 – FINANCIAL PERFORMANCE REVIEW ON PROPORTIONATE INFORMATION

SEGMENTED DISCLOSURES

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		LTA Generation		Revenues				Adjusted EBITDA					Funds From Operations						Net Income (Loss)
	2020	2019	2020	2019	2020		2019		2020		2019			2020			2019			2020			2019
Hydroelectric
North America	3,476	4,134	3,580	3,583	$	217	$	275	$	173	$	211		$	145		$	168		$	10		$	79
Brazil	924	1,066	998	998	39		58		35		42			29			33			9			16
Colombia	532	861	870	869	45		56		25		35			19			25			11			17
	4,932	6,061	5,448	5,450	301		389		233		288			193			226			30			112
Wind
North America	765	761	938	949	56		58		45		40			29			23			(11		)	(22		)
Europe	140	204	175	223	15		22		13		15			10			11			(9		)	(11		)
Brazil	142	147	168	141	7		9		6		6			5			4			—			4
Asia	110	52	118	51	7		3		6		2			4			1			2			2
	1,157	1,164	1,399	1,364	85		92		70		63			48			39			(18		)	(27		)
Solar	376	287	462	295	61		51		59		42			37			27			(6		)	4
Storage & Other	87	90	—	—	19		21		12		10			8			7			(1		)	1
Corporate	—	—	—	—	—		—		22		(3		)	(54		)	(69		)	(49		)	(73		)
Total	6,552	7,602	7,309	7,109	$	466	$	553	$	396	$	400		$	232		$	230		$	(44	)	$	17



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 10

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)	2020			2019
Generation (GWh) – LTA	5,448			5,450
Generation (GWh) – actual	4,932			6,061
Revenue	$	301		$	389
Other income	31			10
Direct operating costs	(99		)	(111)
Adjusted EBITDA	233			288
Interest expense	(40		)	(53		)
Current income taxes	—			(9		)
Funds From Operations	$	193		$	226
Depreciation	(80		)	(83		)
Deferred taxes and other	(83		)	(31		)
Net income	$	30		$	112

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



	Actual Generation (GWh)		Average revenue per MWh⁽¹⁾				Adjusted EBITDA				Funds From Operations				Net Income
(MILLIONS, EXCEPT AS NOTED)	2020	2019	2020		2019		2020		2019		2020		2019		2020			2019
North America
United States	2,612	3,223	$	61	$	64	$	109	$	147	$	91	$	117	$	(7	)	$	51
Canada	864	911	79		76		64		64		54		51		17			28
	3,476	4,134	66		66		173		211		145		168		10			79
Brazil	924	1,066	42		54		35		42		29		33		9			16
Colombia	532	861	93		65		25		35		19		25		11			17
Total	4,932	6,061	$	64	$	64	$	233	$	288	$	193	$	226	$	30		$	112


⁽¹⁾	Includes realized foreign exchange hedge gains of approximately $15 million included in other income.

North America

Brazil

Net income attributable to Unitholders decreased $7 million over the prior year driven by the above noted decrease in Funds From Operations.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 11

Colombia

Net income attributable to Unitholders decreased by $6 million over the prior year primarily due to the above noted decrease in Funds From Operations.

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)	2020			2019
Generation (GWh) – LTA	1,399			1,364
Generation (GWh) – actual	1,157			1,164
Revenue	$	85		$	92
Other income	8			1
Direct operating costs	(23		)	(30		)
Adjusted EBITDA	70			63
Interest expense	(21		)	(23		)
Current income taxes	(1		)	(1		)
Funds From Operations	48			39
Depreciation	(52		)	(58		)
Deferred taxes and other	(14		)	(8		)
Net (loss) income	$	(18	)	$	(27	)

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



	Actual Generation (GWh)		Average revenue per MWh⁽¹⁾				Adjusted EBITDA				Funds From Operations				Net Income (Loss)
(MILLIONS, EXCEPT AS NOTED)	2020	2019	2020		2019		2020		2019		2020		2019		2020			2019
North America
United States	518	518	$	68	$	69	$	25	$	23	$	15	$	12	$	(8	)	$	(17	)
Canada	247	243	93		89		20		17		14		11		(3		)	(5		)
	765	761	76		75		45		40		29		23		(11		)	(22		)
Europe	140	204	115		108		13		15		10		11		(9		)	(11		)
Brazil	142	147	49		60		6		6		5		4		—			4
Asia	110	52	69		60		6		2		4		1		2			2
Total	1,157	1,164	$	77	$	80	$	70	$	63	$	48	$	39	$	(18	)	$	(27	)


⁽¹⁾	Includes realized foreign exchange hedge gains of approximately $4 million included in other income.

North America

Funds From Operations at our North American business were $29 million versus $23 million in the prior year due primarily to the benefit from our cost reduction and refinancing initiatives.

Net loss attributable to Unitholders decreased by $11 million primarily due to the above noted increase in Funds From Operations.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 12

Europe

Brazil

Net income attributable to Unitholders decreased $4 million versus the prior year due to higher non-cash accretion expenses.

Asia

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)	2020			2019
Generation (GWh) – LTA	462			295
Generation (GWh) – actual	376			287
Revenue	$	61		$	51
Other income	11			1
Direct operating costs	(13		)	(10		)
Adjusted EBITDA	59			42
Interest expense	(20		)	(15		)
Current income taxes	(2		)	—
Funds From Operations	$	37		$	27
Depreciation	(20		)	(15		)
Deferred taxes and other	(23		)	(8		)
Net (loss) income	$	(6	)	$	4



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 13

STORAGE & OTHER OPERATIONS ON PROPORTIONATE BASIS

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



(MILLIONS, EXCEPT AS NOTED)	2020			2019
Generation (GWh) – actual	87			90
Revenue	$	19		$	21
Other income	1			—
Direct operating costs	(8		)	(11		)
Adjusted EBITDA	12			10
Interest expense	(3		)	(3		)
Other	(1		)	—
Funds From Operations	$	8		$	7
Depreciation	(5		)	(6		)
Deferred taxes and other	(4		)	—
Net income	$	(1	)	$	1

CORPORATE

The following table presents our results for corporate for the three months ended June 30:



(MILLIONS, EXCEPT AS NOTED)	2020			2019
Other income	$	28		$	2
Direct operating costs	(6		)	(5		)
Adjusted EBITDA	22			(3		)
Management service costs	(36		)	(23		)
Interest expense	(20		)	(25		)
Distributions on Preferred LP Units and Shares	(20		)	(18		)
Funds From Operations	$	(54	)	$	(69	)
Deferred taxes and other	5			(4		)
Net loss	$	(49	)	$	(73	)

Management service costs totaling $36 million increased $13 million compared to the prior year due to the growth of our business.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 14

RECONCILIATION OF NON-IFRS MEASURES

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) attributable to Unitholders for the three months ended June 30, 2020:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non-controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	217		39		45		56		15		7		7		61		19		—		466		(104	)	289		651
Other income	19		6		6		2		3		1		2		11		1		28		79		(7	)	(49	)	23
Direct operating costs	(63	)	(10	)	(26	)	(13	)	(5	)	(2	)	(3	)	(13	)	(8	)	(6	)	(149	)	25		(124	)	(248	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		86		5		91
Adjusted EBITDA	173		35		25		45		13		6		6		59		12		22		396		—		121
Management service costs	—		—		—		—		—		—		—		—		—		(36	)	(36	)	—		—		(36	)
Interest expense	(29	)	(4	)	(7	)	(15	)	(3	)	(1	)	(2	)	(20	)	(3	)	(20	)	(104	)	30		(80	)	(154	)
Current income taxes	1		(2	)	1		(1	)	—		—		—		(2	)	(1	)	—		(4	)	3		4		3
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(14	)	(14	)	—		—		(14	)
Preferred equity	—		—		—		—		—		—		—		—		—		(6	)	(6	)	—		—		(6	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(33	)	(5	)	(38	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(40	)	(40	)
Funds From Operations	145		29		19		29		10		5		4		37		8		(54	)	232		—		—
Depreciation	(59	)	(16	)	(5	)	(37	)	(10	)	(3	)	(2	)	(20	)	(5	)	(1	)	(158	)	43		(77	)	(192	)
Foreign exchange and unrealized financial instruments gain (loss)	(32	)	—		(6	)	(3	)	(8	)	—		—		(7	)	(5	)	10		(51	)	15		22		(14	)
Deferred income tax recovery (expense)	(2	)	—		(2	)	—		—		—		1		(1	)	—		4		—		2		8		10
Other	(42	)	(4	)	5		—		(1	)	(2	)	(1	)	(15	)	1		(8	)	(67	)	10		40		(17	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(70	)	2		(68	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		5		5
Net income (loss) attributable to Unitholders⁽²⁾	10		9		11		(11	)	(9	)	—		2		(6	)	(1	)	(49	)	(44	)	—		—		(44	)

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 15

The following table reflects Adjusted EBITDA, Funds From Operations and provides reconciliation to net income (loss) for the three months attributable to Unitholders ended June 30, 2019:



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage & Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage & Other		Corporate		Total
Revenues	275		58		56		58		22		9		3		51		21		—		553		(98	)	332		787
Other income	8		2		—		—		1		—		—		1		—		2		14		(2	)	5		17
Direct operating costs	(72	)	(18	)	(21	)	(18	)	(8	)	(3	)	(1	)	(10	)	(11	)	(5	)	(167	)	27		(112	)	(252	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		73		5		78
Adjusted EBITDA	211		42		35		40		15		6		2		42		10		(3	)	400		—		230
Management service costs	—		—		—		—		—		—		—		—		—		(23	)	(23	)	—		—		(23	)
Interest expense	(39	)	(6	)	(8	)	(16	)	(4	)	(2	)	(1	)	(15	)	(3	)	(25	)	(119	)	26		(85	)	(178	)
Current income taxes	(4	)	(3	)	(2	)	(1	)	—		—		—		—		—		—		(10	)	—		(5	)	(15	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(11	)	(11	)	—		—		(11	)
Preferred equity	—		—		—		—		—		—		—		—		—		(7	)	(7	)	—		—		(7	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(26	)	(5	)	(31	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(135	)	(135	)
Funds From Operations	168		33		25		23		11		4		1		27		7		(69	)	230		—		—
Depreciation	(56	)	(22	)	(5	)	(39	)	(13	)	(5	)	(1	)	(15	)	(6	)	(1	)	(163	)	36		(73	)	(200	)
Foreign exchange and unrealized financial instruments gain (loss)	1		4		(1	)	(1	)	(8	)	—		—		4		—		(12	)	(13	)	4		(3	)	(12	)
Deferred income tax recovery (expense)	(23	)	1		(2	)	1		1		—		—		—		—		12		(10	)	(1	)	(3	)	(14	)
Other	(11	)	—		—		(6	)	(2	)	5		2		(12	)	—		(3	)	(27	)	8		18		(1	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(47	)	—		(47	)
Net loss attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		61		61
Net income (loss) attributable to Unitholders⁽²⁾	79		16		17		(22	)	(11	)	4		2		4		1		(73	)	17		—		—		17

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 16



						Per unit
(MILLIONS, EXCEPT AS NOTED)	2020			2019		2020			2019
Net income attributable to:
Limited partners' equity	$	(25	)	$	9	$	(0.14	)	$	0.05
General partnership interest in a holding subsidiary held by Brookfield	—			1		—			—
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	(19		)	7		—			—
Net income attributable to Unitholders	$	(44	)	$	17	$	(0.14	)	$	0.05
Adjusted for proportionate share of:
Depreciation	158			164		0.51			0.54
Foreign exchange and unrealized financial instruments loss	51			13		0.16			0.04
Deferred income tax expense	—			10		—			0.03
Other	67			26		0.22			0.08
Funds From Operations	$	232		$	230	$	0.75		$	0.74
Distributions attributable to:
Preferred limited partners' equity	14			11
Preferred equity	6			7
Current income taxes	4			10
Interest expense	104			119
Management service costs	36			23
Proportionate Adjusted EBITDA	396			400
Attributable to non-controlling interests	121			230
Consolidated Adjusted EBITDA	$	517		$	630
Weighted average Units outstanding⁽¹⁾						311.3			311.2


⁽¹⁾	Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 17

CONTRACT PROFILE



(GWh, except as noted)	Balance of 2020			2021			2022			2023			2024
Hydroelectric
North America
United States⁽¹⁾	3,423			7,411			4,636			4,500			4,500
Canada⁽¹⁾	1,239			2,144			2,097			2,020			2,007
	4,662			9,555			6,733			6,520			6,507
Wind⁽²⁾
North America
United States	1,951			3,885			3,876			3,848			3,350
Canada	656			1,359			1,359			1,359			1,359
	2,607			5,244			5,235			5,207			4,709
Europe	605			1,299			1,299			1,289			1,229
Asia	217			400			400			400			400
	3,429			6,943			6,934			6,896			6,338
Solar⁽²⁾	1,386			2,716			2,705			2,701			2,690
Contracted on a proportionate basis	9,477			19,214			16,372			16,117			15,535
Uncontracted on a proportionate basis	977			3,576			6,418			6,673			7,255
	10,454			22,790			22,790			22,790			22,790
Contracted generation as a % of total generation on a proportionate basis	91		%	84		%	72		%	71		%	68		%
Price per MWh – total generation on a proportionate basis	$	87		$	87		$	94		$	96		$	98


⁽¹⁾	Includes generation of 989 GWh for 2020, 2,198 GWh for 2021 and 136 GWh for 2022 secured under financial contracts.


⁽²⁾	The proportionate generation of our wind and solar business includes the minority interest of TerraForm Power acquired in the merger completed in July 2020.

In our Brazilian and Colombian portfolios, we continue to focus on securing long-term contracts while maintaining a certain percentage of uncontracted generation to mitigate hydrology risk.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 18

PART 5 – LIQUIDITY AND CAPITAL RESOURCES

CAPITALIZATION

The following table summarizes our capitalization:



	Corporate							Consolidated
(MILLIONS, EXCEPT AS NOTED)	June 30, 2020			December 31, 2019				June 30, 2020			December 31, 2019
Corporate credit facility⁽¹⁾	$	—		$	299			$	—		$	299
Debt
Commercial paper⁽¹⁾⁽²⁾	140			—			—	140			—
Medium term notes⁽³⁾	1,989			1,808				1,989			1,808
Non-recourse borrowings⁽⁴⁾	—			—				8,811			8,964
	1,989			1,808				10,800			10,772
Deferred income tax liabilities, net⁽⁵⁾	—			—				4,112			4,421
Equity
Non-controlling interest	—			—				7,813			8,742
Preferred equity	571			597				571			597
Preferred limited partners' equity	1,028			833				1,028			833
Unitholders equity	6,762			7,959				6,762			7,959
Total capitalization	$	10,350		$	11,197			$	31,086		$	33,324
Debt to total capitalization	19		%	16		%		35		%	32		%


⁽¹⁾	Draws on corporate credit facilities and commercial paper issuances are excluded from the debt to total capitalization ratios as they are not a permanent source of capital.


⁽²⁾	Our commercial paper program is supplemented by our $1.75 billion corporate credit facilities with a weighted average maturity of four years.


⁽³⁾	Medium term notes are unsecured and guaranteed by Brookfield Renewable and excludes $5 million (2019: $7 million) of deferred financing fees, net of unamortized premiums.


⁽⁴⁾	Consolidated non-recourse borrowings includes $117 million (2019: $142 million) borrowed under a subscription facility of a Brookfield sponsored private fund and excludes $49 million (2019: $60 million) of deferred financing fees, net of unamortized premiums.


⁽⁵⁾	Deferred income tax liabilities less deferred income assets.

AVAILABLE LIQUIDITY

The following table summarizes the available liquidity:



(MILLIONS, EXCEPT AS NOTED)	Pro Forma⁽¹⁾			June 30, 2020			December 31, 2019
Brookfield Renewable's share of cash and cash equivalents	$	291		$	193		$	143
Investments in marketable securities	229			229			95
Corporate credit facilities
Authorized credit facilities⁽²⁾	2,150			2,150			2,150
Draws on credit facilities	—			—			(299		)
Authorized letter of credit facility	400			400			400
Issued letters of credit	(258		)	(258		)	(266		)
Available portion of corporate credit facilities	2,292			2,292			1,985
Available portion of subsidiary credit facilities on a proportionate basis	546			446			472
Available group-wide liquidity	$	3,358		$	3,160		$	2,695


⁽¹⁾	Adjusted for the acquisition of a 38% interest in TerraForm Power, Inc. completed on July 31, 2020.


⁽²⁾	Amounts are guaranteed by Brookfield Renewable.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 19

BORROWINGS



	June 30, 2020						December 31, 2019
	Weighted-average						Weighted-average
(MILLIONS EXCEPT AS NOTED)	Interest rate (%)		Term (years)	Total			Interest rate (%)		Term (years)	Total
Corporate borrowings
Medium term notes	4.0	%	10	$	1,989		4.1	%	10	$	1,808
Credit facilities	N/A		4	—			2.9	%	5	299
Commercial paper⁽¹⁾	0.6	%	<1	140			N/A		N/A	N/A
Proportionate subsidiary borrowings⁽²⁾
Hydroelectric	5.7	%	9	3,757			5.6	%	10	3,727
Wind	4.6	%	10	1,771			4.5	%	10	1,742
Solar	5.0	%	11	1,383			4.7	%	10	1,470
Storage & other	5.4	%	4	223			5.5	%	5	235
	5.2	%	10	7,134			5.1	%	10	7,174
				9,263						9,281
Proportionate deferred financing fees, net of unamortized premiums				(32		)				(46		)
				9,231						9,235
Equity-accounted borrowings				(2,306		)				(2,157		)
Non-controlling interests				3,961						3,926
As per IFRS Statements				$	10,886					$	11,004


⁽¹⁾	Our commercial paper program is supplemented by our $1.75 billion corporate credit facilities.


⁽²⁾	Excludes $9 million of proportionate debt associated with our portfolios that are classified as held for sale as at June 30, 2020 (2019: $11 million).



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 20

The following table summarizes our undiscounted principal repayments and scheduled amortization on a proportionate basis as at June 30, 2020:



(MILLIONS)	Balance of 2020		2021		2022		2023		2024		Thereafter		Total
Debt Principal repayments⁽¹⁾
Medium term notes⁽²⁾	$	—	$	—	$	295	$	—	$	—	$	1,694	$	1,989

Non-recourse borrowings
Credit facilities	7		6		32		71		13		—		129
Hydroelectric	—		—		207		377		79		2,094		2,757
Wind	—		—		—		87		—		347		434
Solar	—		148		—		122		—		333		603
Storage & other	—		57		—		—		—		152		209
	7		211		239		657		92		2,926		4,132
Amortizing debt principal repayments
Non-recourse borrowings
Hydroelectric	14		37		49		36		43		748		927
Wind	52		105		117		109		115		704		1,202
Solar	29		56		58		59		63		594		859
Storage & other	1		3		2		3		4		1		14
	96		201		226		207		225		2,047		3,002
Total	$	103	$	412	$	760	$	864	$	317	$	6,667	$	9,123


⁽¹⁾	Draws on corporate credit facilities and commercial paper issuances are excluded from the debt repayment schedule as they are not a permanent source of capital.


⁽²⁾	Medium term notes are unsecured and guaranteed by Brookfield Renewable and excludes $5 million (2019: $7 million) of deferred financing fees, net of unamortized premiums.

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)	2020			2019			2020			2019
Cash flow provided by (used in):
Operating activities	$	261		$	368		$	616		$	739
Financing activities	(249		)	(221		)	(380		)	(509		)
Investing activities	(72		)	5			(101		)	(74		)
Foreign exchange gain (loss) on cash	(1		)	1			(13		)	1
Increase (decrease) in cash and cash equivalents	$	(61	)	$	153		$	122		$	157

Operating Activities



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 21

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)	2020			2019			2020			2019
Trade receivables and other current assets	$	49		$	52		$	47		$	58
Accounts payable and accrued liabilities	(17		)	(36		)	(29		)	(41		)
Other assets and liabilities	(19		)	12			(19		)	(15		)
	$	13		$	28		$	(1	)	$	2

Financing Activities

We increased our distributions to $2.17 per LP Unit on an annualized basis, an increase of $0.11 or 5% per LP Unit, which took effect in the first quarter of 2020.

Investing Activities

Cash flows used in investing activities totaled $72 million and $101 million for the three and six months ended June 30, 2020, respectively. Our investments in public equity securities and in the development of power generating assets and sustaining capital expenditures totaled $128 million and $191 million for the three and six months ended June 30, 2020, respectively.

Cash flows provided by (used in) investing activities totaled $5 million and $(74) million for the three and six months ended June 30, 2019, respectively. Our acquisitions and investments financial assets and in the development of power generating assets and sustaining capital expenditures totaled $60 million and $89 million, respectively, that were more than offset in the second quarter of 2019 by proceeds received from the completed the sale of certain of our assets in South Africa.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 22

SHARES AND UNITS OUTSTANDING

Shares and units outstanding are as follows:



	June 30, 2020	December 31, 2019
Class A Preference Shares⁽¹⁾	31,035,967	31,035,967
Preferred Units⁽²⁾
Balance, beginning of year	44,885,496	37,885,496
Issuance	8,000,000	7,000,000
Balance, end of period/year	52,885,496	44,885,496
GP interest	2,651,506	2,651,506
Redeemable/Exchangeable partnership units	129,658,623	129,658,623
LP Units
Balance, beginning of year	178,977,800	178,821,204
Distribution reinvestment plan	69,636	176,596
Repurchase of LP Units for cancellation	—	(20,000	)
Balance, end of period/year	179,047,436	178,977,800
Total LP Units on a fully-exchanged basis⁽³⁾	308,706,059	308,636,423


⁽¹⁾	Class A Preference Shares are broken down by series as follows: 5,449,675 Series 1 Class A Preference Shares are outstanding; 4,510,389 Series 2 Class A Preference Shares are outstanding; 9,961,399 Series 3 Class A Preference Shares are outstanding; 4,114,504 Series 5 Class A Preference Shares are outstanding; and 7,000,000 Series 6 Class A Preference Shares are outstanding.

⁽²⁾


⁽³⁾	The fully-exchanged amounts assume the exchange of all Redeemable/Exchangeable partnership units for LP Units.

DIVIDENDS AND DISTRIBUTIONS

Dividends and distributions declared and paid are as follows:



	Three months ended June 30								Six months ended June 30
	Declared				Paid				Declared				Paid
(MILLIONS)	2020		2019		2020		2019		2020		2019		2020		2019
Class A Preference Shares	$	6	$	7	$	6	$	7	$	13	$	13	$	13	$	13
Class A Preferred LP Units	$	14	$	11	$	12	$	11	$	26	$	21	$	23	$	20
Participating non-controlling interests – in operating subsidiaries	$	174	$	262	$	174	$	262	$	251	$	396	$	251	$	396
GP interest and Incentive distributions	$	17	$	13	$	15	$	14	$	34	$	28	$	31	$	27
Redeemable/Exchangeable partnership units	$	70	$	67	$	71	$	67	$	142	$	135	$	142	$	134
LP Units	$	97	$	92	$	97	$	90	$	196	$	185	$	192	$	181

CONTRACTUAL OBLIGATIONS

Please see Note 17 – 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;



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 23


•	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



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 24

PART 6 – SELECTED QUARTERLY INFORMATION

SUMMARY OF HISTORICAL QUARTERLY RESULTS

The following is a summary of unaudited quarterly financial information for the last eight consecutive quarters on a consolidated basis:



	2020					2019										2018
(MILLIONS, EXCEPT AS NOTED)	Q2			Q1		Q4			Q3			Q2		Q1		Q4		Q3
Total Generation (GWh) – LTA	15,527			14,151		13,850			12,332			14,252		13,493		13,485		12,113
Total Generation (GWh) – actual	13,264			14,264		12,465			11,089			14,881		14,125		14,445		11,609
Proportionate Generation (GWh) – LTA	7,309			6,717		6,561			5,821			7,109		6,698		6,602		5,956
Proportionate Generation (GWh) – actual	6,552			7,164		5,977			5,213			7,602		7,246		7,052		5,552
Revenues	$	651		$	792	$	726		$	642		$	787	$	825	$	780	$	674
Net income (loss) attributable to Unitholders	(44		)	18		(66		)	(53		)	17		43		91		(55		)
Basic and diluted earnings (loss) per LP Unit	(0.14		)	0.06		0.21			(0.17		)	0.05		0.14		0.29		(0.18		)
Consolidated Adjusted EBITDA	517			618		550			507			630		652		604		494
Proportionate Adjusted EBITDA	396			391		348			301			400		395		371		277
Funds From Operations	232			217		171			133			230		227		206		105
Funds From Operations per Unit	0.75			0.70		0.55			0.43			0.74		0.73		0.66		0.33
Distribution per LP Unit	0.543			0.543		0.515			0.515			0.515		0.515		0.490		0.490



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 25

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		LTA Generation		Revenues				Adjusted EBITDA					Funds From Operations						Net Income (Loss)
	2020	2019	2020	2019	2020		2019		2020		2019			2020			2019			2020			2019
Hydroelectric
North America	7,198	7,983	6,813	6,883	$	482	$	539	$	371	$	406		$	301		$	320		$	86		$	146
Brazil	2,151	2,156	1,986	1,978	100		123		82		91			70			73			34			33
Colombia	1,241	1,626	1,668	1,667	105		118		61		73			44			51			34			37
	10,590	11,765	10,467	10,528	687		780		514		570			415			444			154			216
Wind
North America	1,596	1,611	1,882	1,909	116		121		93		88			58			52			(27		)	(18		)
Europe	360	478	428	531	37		50		26		35			21			28			(12		)	—
Brazil	212	253	294	260	11		16		9		11			6			6			(3		)	1
Asia	200	91	218	89	13		5		11		3			7			2			4			1
	2,368	2,433	2,822	2,789	177		192		139		137			92			88			(38		)	(16		)
Solar	616	486	737	490	110		89		95		74			55			45			(20		)	13
Storage & Other	142	164	—	—	37		45		20		21			14			14			—			1
Corporate	—	—	—	—	—		—		19		(7		)	(127		)	(134		)	(122		)	(154		)
Total	13,716	14,848	14,026	13,807	$	1,011	$	1,106	$	787	$	795		$	449		$	457		$	(26	)	$	60



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 26

RECONCILIATION OF NON-IFRS MEASURES



	Attributable to Unitholders																						Contribution from equity-accounted investments		Attributable to non-controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage and Other		Corporate		Total
Revenues	482		100		105		116		37		11		13		110		37		—		1,011		(199	)	631		1,443
Other income	21		9		8		4		3		1		2		12		1		30		91		(9	)	(49	)	33
Direct operating costs	(132	)	(27	)	(52	)	(27	)	(14	)	(3	)	(4	)	(27	)	(18	)	(11	)	(315	)	53		(247	)	(509	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		155		13		168
Adjusted EBITDA	371		82		61		93		26		9		11		95		20		19		787		—		348
Management service costs	—		—		—		—		—		—		—		—		—		(67	)	(67	)	—		—		(67	)
Interest expense	(68	)	(8	)	(14	)	(34	)	(5	)	(2	)	(4	)	(37	)	(5	)	(40	)	(217	)	57		(156	)	(316	)
Current income taxes	(2	)	(4	)	(3	)	(1	)	—		(1	)	—		(3	)	(1	)	—		(15	)	7		(8	)	(16	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(26	)	(26	)	—		—		(26	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(64	)	(8	)	(72	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(176	)	(176	)
Funds From Operations	301		70		44		58		21		6		7		55		14		(127	)	449		—		—
Depreciation	(117	)	(36	)	(11	)	(79	)	(22	)	(7	)	(4	)	(42	)	(10	)	(2	)	(330	)	91		(159	)	(398	)
Foreign exchange and unrealized financial instrument loss	(14	)	7		(1	)	(5	)	(11	)	—		(1	)	(12	)	(4	)	(3	)	(44	)	19		31		6
Deferred income tax expense	(22	)	1		(3	)	(2	)	1		—		1		(2	)	—		20		(6	)	7		10		11
Other	(62	)	(8	)	5		1		(1	)	(2	)	1		(19	)	—		(10	)	(95	)	12		58		(25	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(129	)	2		(127	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		58		58
Net income (loss) attributable to Unitholders⁽²⁾	86		34		34		(27	)	(12	)	(3	)	4		(20	)	—		(122	)	(26	)	—		—		(26	)

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 27



	Attributable to Unitholders																						Contribution from equity- accounted investments		Attributable to non- controlling interests		As per IFRS financials⁽¹⁾
	Hydroelectric						Wind								Solar		Storage and Other		Corporate		Total
(MILLIONS)	North America		Brazil		Colombia		North America		Europe		Brazil		Asia		Solar		Storage and Other		Corporate		Total
Revenues	539		123		118		121		50		16		5		89		45		—		1,106		(189	)	695		1,612
Other income	9		3		—		2		1		—		—		2		—		4		21		(6	)	10		25
Direct operating costs	(142	)	(35	)	(45	)	(35	)	(16	)	(5	)	(2	)	(17	)	(24	)	(11	)	(332	)	56		(230	)	(506	)
Share of Adjusted EBITDA from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		139		12		151
Adjusted EBITDA	406		91		73		88		35		11		3		74		21		(7	)	795		—		487
Management service costs	—		—		—		—		—		—		—		—		—		(44	)	(44	)	—		—		(44	)
Interest expense	(80	)	(12	)	(16	)	(35	)	(7	)	(4	)	(1	)	(29	)	(7	)	(49	)	(240	)	50		(161	)	(351	)
Current income taxes	(6	)	(6	)	(6	)	(1	)	—		(1	)	—		—		—		—		(20	)	1		(20	)	(39	)
Distributions attributable to
Preferred limited partners equity	—		—		—		—		—		—		—		—		—		(21	)	(21	)	—		—		(21	)
Preferred equity	—		—		—		—		—		—		—		—		—		(13	)	(13	)	—		—		(13	)
Share of interest and cash taxes from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(51	)	(9	)	(60	)
Share of Funds From Operations attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		(297	)	(297	)
Funds From Operations	320		73		51		52		28		6		2		45		14		(134	)	457		—		—
Depreciation	(111	)	(44	)	(10	)	(79	)	(23	)	(9	)	(2	)	(28	)	(12	)	(2	)	(320	)	69		(149	)	(400	)
Foreign exchange and unrealized financial instrument loss	3		3		(1	)	(1	)	(9	)	(1	)	—		4		(1	)	(28	)	(31	)	5		(4	)	(30	)
Deferred income tax expense	(40	)	2		(4	)	17		6		—		(1	)	16		—		18		14		(36	)	(12	)	(34	)
Other	(26	)	(1	)	1		(7	)	(2	)	5		2		(24	)	—		(8	)	(60	)	21		36		(3	)
Share of earnings from equity-accounted investments	—		—		—		—		—		—		—		—		—		—		—		(59	)	—		(59	)
Net income attributable to non-controlling interests	—		—		—		—		—		—		—		—		—		—		—		—		129		129
Net income (loss) attributable to Unitholders⁽²⁾	146		33		37		(18	)	—		1		1		13		1		(154	)	60		—		—		60

⁽¹⁾


⁽²⁾	Net income (loss) attributable to Unitholders includes net income (loss) attributable to GP interest, Redeemable/Exchangeable partnership units and LP Units. Total net income (loss) includes amounts attributable to Unitholders, non-controlling interests, preferred limited partners equity and preferred equity.



Brookfield Renewable Partners L.P.	Management's Discussion and Analysis	June 30, 2020
		Page 28



							Per unit
(MILLIONS, EXCEPT AS NOTED)	2020			2019			2020			2019
Net (loss) income attributable to:
Limited partners' equity	$	(15	)	$	34		$	(0.08	)	$	0.19
General partnership interest in a holding subsidiary held by Brookfield	—			1			—			—
Participating non-controlling interests – in a holding subsidiary – Redeemable/Exchangeable units held by Brookfield	(11		)	25			—			—
Net (loss) income attributable to Unitholders	$	(26	)	$	60		$	(0.08	)	$	0.19
Adjusted for proportionate share of:
Depreciation	330			321			1.06			1.03
Foreign exchange and unrealized financial instruments loss	44			31			0.14			0.10
Deferred income tax expense (recovery)	6			(14		)	0.02			(0.04		)
Other	95			59			0.30			0.19
Funds From Operations	$	449		$	457		$	1.44		$	1.47
Distributions attributable to:
Preferred limited partners' equity	26			21
Preferred equity	13			13
Current income taxes	15			20
Interest expense	217			240
Management service costs	67			44
Proportionate Adjusted EBITDA	787			795
Attributable to non-controlling interests	348			487
Consolidated Adjusted EBITDA	$	1,135		$	1,282
Weighted average Units outstanding⁽¹⁾							311.3			311.1


⁽¹⁾	Includes GP interest, Redeemable/Exchangeable partnership units, and LP Units.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 29

PART 7 – CRITICAL ESTIMATES, ACCOUNTING POLICIES AND INTERNAL CONTROLS

CRITICAL ESTIMATES AND CRITICAL JUDGMENTS IN APPLYING ACCOUNTING POLICIES

Additional risk factors other than as described in the "Risk Factors" section of our 2019 Annual Report are as follows:

Risks Associated with the COVID-19 Pandemic



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 30

NEW ACCOUNTING STANDARDS

There have been no new changes to IFRS with an impact on Brookfield Renewable in 2020.

FUTURE CHANGES IN ACCOUNTING POLICIES

There are currently no future changes to IFRS with potential impact on Brookfield Renewable.

INTERNAL CONTROL OVER FINANCIAL REPORTING

SUBSEQUENT EVENTS



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 31



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 32

PART 8 – PRESENTATION TO STAKEHOLDERS AND PERFORMANCE MEASUREMENT

PRESENTATION TO PUBLIC STAKEHOLDERS

Equity

Actual and Long-term Average Generation



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 33

on the amount of sugar cane harvested in a given year. For these reasons, we do not consider a long-term average for these facilities.

Voting Agreements with Affiliates

PERFORMANCE MEASUREMENT

Segment Information

Proportionate Information



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 34

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.

Net Income (Loss)

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

Adjusted EBITDA

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

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

Funds From Operations and Funds From Operations per Unit



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 35

Proportionate Debt

•


•	Other companies may calculate proportionate debt differently.



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 36

PART 9 – CAUTIONARY STATEMENTS

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
		Page 37

CAUTIONARY STATEMENT REGARDING USE OF NON-IFRS MEASURES



Brookfield Renewable Partners L.P.	Management’s Discussion and Analysis	June 30, 2020
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GENERAL INFORMATION
Corporate Office 73 Front Street Fifth Floor Hamilton, HM12 Bermuda Tel: (441) 294-3304 Fax: (441) 516-1988 https://bep.brookfield.com Officers of Brookfield Renewable Partners L.P.`s Service Provider, BRP Energy Group L.P. Sachin Shah Chief Executive Officer Wyatt Hartley Chief Financial Officer Transfer Agent & Registrar Computershare Trust Company of Canada 100 University Avenue 9th floor Toronto, Ontario, M5J 2Y1 Tel Toll Free: (800) 564-6253 Fax Toll Free: (888) 453-0330 www.computershare.com		Directors of the General Partner of Brookfield Renewable Partners L.P. Jeffrey Blidner Eleazar de Carvalho Filho Nancy Dorn David Mann Lou Maroun Patricia Zuccotti Stephen Westwell Exchange Listing NYSE: BEP (LP Units) TSX: BEP.UN (LP Units) TSX: BEP.PR.E (Preferred LP Units - Series 5) TSX: BEP.PR.G (Preferred LP Units - Series 7) TSX: BEP.PR.I (Preferred LP Units - Series 9) TSX: BEP.PR.K (Preferred LP Units - Series 11) TSX: BEP.PR.M (Preferred LP Units - Series 13) TSX: BEP.PR.O (Preferred LP Units - Series 15) NYSE: BEP.PR.A (Preferred LP Units - Series 17) TSX: BRF.PR.A (Preferred shares - Series 1) TSX: BRF.PR.B (Preferred shares - Series 2) TSX: BRF.PR.C (Preferred shares - Series 3) TSX: BRF.PR.E (Preferred shares - Series 5) TSX: BRF.PR.F (Preferred shares - Series 6) Investor Information Visit Brookfield Renewable online at https://bep.brookfield.com for more information. The 2019 Annual Report and Form 20-F are also available online. For detailed and up-to-date news and information, please visit the News Release section. 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. Shareholder enquiries should be directed to the Investor Relations Department at (416) 369-2616 or enquiries@brookfieldrenewable.com



Exhibit

99.1	Q2 2020 Interim Report

99.2	Interim Consolidated Financial Statements and Notes as at June 30, 2020 and December 31, 2019 and for the Three and Six Months Ended June 30, 2020 and 2019

99.3	Management's Discussion and Analysis for the Three and Six Months Ended June 30, 2020 and 2019

99.4	Form 52-109F2 – Certification of Interim Filings – CEO

99.5	Form 52-109F2 – Certification of Interim Filings – CFO



	BROOKFIELD RENEWABLE PARTNERS L.P. by its general partner, Brookfield Renewable Partners Limited



Date: August 7, 2020	By:	/s/ Jane Sheere
		Name: Jane Sheere Title: Secretary


1.	Review: I have reviewed the interim financial report and interim MD&A (together, the "interim filings") of Brookfield Renewable Partners L.P., (the "issuer") for the interim period ended June 30, 2020.


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 (2013 Framework) published by The Committee of Sponsoring Organizations of the Treadway Commission.


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, 2020 and ended on June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer's ICFR.



Date: August 7, 2020

/s/ Sachin Shah
Name:	Sachin Shah
Title:	Chief Executive Officer of its Service Provider, BRP Energy Group L.P.
(Principal Executive Officer)



Date: August 7, 2020

/s/ Wyatt Hartley
Name:	Wyatt Hartley
Title:	Chief Financial Officer of its Service Provider, BRP Energy Group L.P.
(Principal Executive Officer)