01:24 PM EDT, 05/29/2025 (MT Newswires) -- RBC Capital Markets hosted Brookfield Renewable Partners Chief Financial Officer Patrick Taylor, and VP Investor Relations Alex Jackson.

Key takeaways:

If there is a squeeze on the U.S. supply chain, management said large developers like BEP (access to capital and strong relationships with equipment suppliers and contractors) stand to benefit. If a tight supply chain (limited new generation coming to market) results in higher power prices, it could also benefit BEP, which has hydro generation capacity coming up for renewal. BEP also has an international footprint, and believes it can reallocate capital to development and M&A opportunities with the best risk-adjusted return.

Management expects to recontract about 1-2 GW/year of operating hydro capacity, and said hydro assets coming up for renewal are earning on average low US$70s/MWh, while hydro assets have recently been re-contracted for 15+ years in the US$80-90s/MWh, resulting in FFO upside. Management also plans to refinance the assets, freeing up cash to fund growth. Hydro generation has seen growing interest from big tech companies in the past year.

"Given the numerous policy changes in the U.S. under the Trump administration, investors were focused on management's view on the latest U.S. developments. Given the company's scale and the underlying U.S. power demand growth, we continue to believe that Brookfield Renewable is well-positioned to navigate through the policy changes and deploy capital at attractive returns," said analyst Nelson Ng.

Brookfield is rated Outperform, with a US$31 target.

Price: 33.27, Change: +0.09, Percent Change: +0.27