Brookfield Renewable Partners (BEP) C O R P O R AT E P R O F I L E A U G U S T

Transcription

1 Brookfield Renewable Partners (BEP) C O R P O R AT E P R O F I L E A U G U S T

2 Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements and information, within the meaning of Canadian securities laws and forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended, Section 21E of the U.S. Securities Exchange Act of 1934, as amended, safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995 and in any applicable Canadian securities regulations, concerning the business and operations of Brookfield Renewable. Forward-looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Forward-looking statements in this presentation include statements regarding the quality of Brookfield Renewable s assets and the resiliency of the cash flow they will generate, Brookfield Renewable s anticipated financial performance and payout ratio, future commissioning of assets, the contracted nature of our portfolio, technology diversification, acquisition opportunities, financing and refinancing opportunities, future energy prices and demand for electricity, 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 presentation are based upon reasonable assumptions and expectations, we cannot assure you that such expectations will prove to have been correct. You should not place undue reliance on forward-looking statements and information as such statements and information involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information. Factors that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include, but are not limited to, the following: we are not subject to the same disclosure requirements as a U.S. domestic issuer; the separation of economic interest from control or 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; changes to hydrology at our hydroelectric stations, to wind conditions at our wind energy facilities or to crop supply or weather generally at any biomass cogeneration facility; counterparties to our contracts not fulfilling their obligations; increases in water rental costs (or similar fees) or changes to the regulation of water supply; volatility in supply and demand in the energy market; the increasing amount of uncontracted generation in our portfolio; industry risks relating to the power markets in which we operate; increased regulation of our operations; contracts, concessions and licenses expiring and not being renewed or replaced on similar terms; increases in the cost of operating our plants; our failure to comply with conditions in, or our inability to maintain, governmental permits; equipment failures; dam failures and the costs of repairing such failures; force majeure events; uninsurable losses; adverse changes in currency exchange rates; availability and access to interconnection facilities and transmission systems; health, safety, security and environmental risks; disputes, governmental and regulatory investigations and litigation; our operations being affected by local communities; fraud, bribery, corruption, other illegal acts or inadequate or failed internal processes or systems; our reliance on computerized business systems; advances in technology that impair or eliminate the competitive advantage of our projects; newly developed technologies in which we invest not performing as anticipated; labour disruptions and economically unfavourable collective bargaining agreements; our inability to finance our operations due to the status of the capital markets; our inability to effectively manage our foreign currency exposure; operating and financial restrictions imposed on us by our loan, debt and security agreements; changes in our credit ratings; changes to government regulations that provide incentives for renewable energy; 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; our inability to develop existing sites or find new sites suitable for the development of greenfield projects; delays, cost overruns and other problems associated with the construction, development and operation of our generating facilities; 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; our lack of control over all our operations; our ability to issue equity or debt for future acquisitions and developments is dependent on capital markets; foreign laws or regulation to which we become subject as a result of future acquisitions in new markets; the departure of some or all of Brookfield Asset Management s key professionals; our relationship with, and our dependence on, Brookfield Asset Management and Brookfield Asset Management s significant influence over us; and risks related to changes in how Brookfield Asset Management elects to hold its ownership interests in the Partnership. 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 presentation 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. Cautionary Statement Regarding Use Of Non-IFRS Measures This presentation contains references to Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ( Adjusted EBITDA ), Funds From Operations ( FFO ) and Funds From Operations per Unit ( FFO per Unit ), which are not generally accepted accounting measures under IFRS and therefore may differ from definitions of Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit used by other entities. We believe that Adjusted EBITDA, Funds From Operations and Funds From Operations per Unit are useful supplemental measures that may assist investors in assessing the financial performance and the cash anticipated to be generated by our operating portfolio. Neither Adjusted EBITDA, Funds From Operations nor Funds From Operations per Unit should be considered as the sole measure of our performance and should not be considered in isolation from, or as a substitute for, analysis of our financial statements prepared in accordance with IFRS. References to Brookfield Renewable are to Brookfield Renewable Partners L.P. together with its subsidiary and operating entities unless the context reflects otherwise. All amounts are in U.S. dollars and presented on a consolidated basis unless otherwise specified. 2

3 Who We Are 3

4 Leader in Renewable Generation One of the largest public pure-play renewable businesses globally 100 years of experience in power generation Full operating, development and power marketing capabilities Over 2,000 operating employees $26 billion TOTAL POWER ASSETS 10,600 MEGAWATTS OF CAPACITY 88% HYDROELECTRIC GENERATION Z 261 power generating facilities 15 markets in 7 countries Situated on 82 river systems 4

5 Diversified Operating Portfolio Cash flows are supported by a strong contract profile and are well diversified by technology and geography Hydro Focused 11% 1% Growing Global Footprint 15% 5% Contracted Cash Flows 8% 15% 88% 65% 92% Hydro Wind Other North America Brazil Colombia Europe Contracted Merchant Based on LTA generation, proportionate to BEP 5

6 Attractive Risk-Adjusted Returns ~$10.5 Billion MARKET CAPITALIZATION BEP / BEP.UN NYSE / TSX DUAL LISTING ~5.5% DISTRIBUTION YIELD 5% 9% DISTRIBUTION GROWTH Annual Distribution Price Performance $ % CAGR $1.66 $1.78 $1.87 Annualized Total Return 1 1 yr 3 yr 5 yr BEP.UN (TSX) 14% 16% 14% BEP (NYSE) 14% 9% 8% $1.38 $1.45 S&P/TSX Composite 11% 3% 9% S&P % 10% 15% ) Source: Bloomberg, including reinvestment of dividends. At June 30, 2017 Our objective is to deliver long-term total returns of 12% 15% to shareholders annually 6

7 Multiple Levers to Drive Growth Targeted annual distribution increases of 5% 9% are supported by organic cash flow growth and proprietary project development Organic levers to grow cash flow Inflation escalation embedded in our revenues Track record of margin expansion Proprietary development pipeline that we continue to build out at premium returns Projected to deliver 5% 9% annual per unit cash flow growth Position the business for revenue growth Manage power and ancillary sales to benefit from market volatility Power Purchase Agreements rolling off at below market prices Opportunity to capture revenue upside from our merchant US hydro generation Opportunity to further grow per unit cash flows Deploying capital into global renewable opportunities Large investible universe We leverage our global footprint to source accretive transactions Adopt a contrarian approach, taking advantage of capital scarcity, to earn outsized returns Target $600 million of annual BEP equity deployment Underpinned by an investment grade balance sheet, significant liquidity and proven access to capital 7

8 Investment Highlights Best in class renewable portfolio providing stable cash flow growth and long-term capital appreciation with strong downside protection Largest independently owned hydroelectric portfolio globally Highest value renewable resource with significant barriers to entry Stable contracted cash flows with growing operating margins 92% contracted revenue profile, with 16 year inflation-linked, contract term* Robust balance sheet and access to global capital markets Over $2 billion of available liquidity to grow the business accretively Proven track record of value creation for shareholders 6% compound distribution growth, supported by per-unit cash flow growth, delivering a 14% annualized total return since inception *Proportionate to BEP 8

9 High Quality Assets 9

10 Global Operations with Local Presence We have integrated operating platforms on three continents with local operating and power marketing expertise 4,850MW 840MW 215MW NORTH AMERICA 1,100 employees $17 Billion in total power assets 480MW EUROPE 115 employees $1 Billion in total power assets 2,700MW 300MW Legend: Hydro Wind Other COLOMBIA 680 employees $5 Billion in total power assets 900MW 150MW 175MW BRAZIL 430 employees $3 Billion in total power assets 10

11 High Quality Assets and Low Risk Profile Diversified Operations Scarce, Irreplaceable Assets with High Barriers to Entry Predictable Cash Flows Real Assets, Proven Technologies Invested in 7 countries over 3 continents Geographic diversity reduces exposure to regulatory risk and currencies 261 generating stations spread across 82 river systems Low correlation between watersheds limits exposure to hydrology Market mechanisms in place to provide volume stability Highly regulated environment Significant build / replacement cost Site availability limited by physical and environmental constraints Significant operating expertise required Power marketing, scheduling / dispatch, regulatory compliance Long term customer contracts Adjusted EBITDA margins > 70% Low sustaining CAPEX 92% contracted cash flows with creditworthy counterparties* Embedded contract escalation linked to local inflation indices Perpetual hydroelectric dams Utility scale wind farms Biomass as a complementary technology *Proportionate to BEP 11

12 Highly Contracted Cash Flows Power is largely sold under long-term, fixed price, inflation linked contracts with an average proportionate term of 16 years The majority of PPAs are structured as take-or-pay contracts (no minimum volume risk) with investment grade counterparties with long-standing credit histories In Brazil and Colombia, power prices will continue to be supported by the need to build new supply to serve growing demand, and contracting is the only current mechanism to buy and sell power We therefore expect to capture rising prices as we re-contract over the medium term We expect to re-contract expiring PPAs at levels equal to or higher than roll off prices Current all-in power prices exceed our underwriting targets supporting embedded upside in our cash flows Generation (GWh) Contracted Remaining PPA Counterparty Ratings United States 3,547 7,464 6,817 6,817 6,609 Canada 2,958 6,248 6,248 4,781 4,288 Europe ,719 14,170 13,523 12,002 11,295 Uncontracted 318 1,531 2,178 3,699 4,406 84% 5% 11% LTA 7,037 15,701 15,701 15,701 15,701 % of generation 95% 90% 86% 76% 72% Investment Grade Non-Investment Grade Not Rated Amounts proportionate to BEP Note: The table above 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, and to maintain a contracted profile of approximately 90% and 70%, respectively. 12

13 Best in Class Hydro Portfolio We have a strong track record as a responsible owner, operator and developer of hydroelectric generation facilities Started investing in hydro over 20 years ago, prior to market deregulation in North America Hydroelectric generation is the highest value renewable asset class Our operating platforms position us to create value: Centralized system control Ability to sell power in multiple markets Optimization of resource through storage and ability to sell during peak demand periods Pezzi Rio Grande do Sul, Brazil Geographic diversity spread over 82 river systems Significant barriers to entry requiring deep operational knowledge and marketing expertise White Pine, United States 13

14 Modern Portfolio of High Quality Wind Assets Wind energy is one of the fastest growing and lowest cost sources of new renewable generation which complements our hydro portfolio Since developing our first wind farm in 2006, we have built a high-quality wind business Focused in areas with scarcity value Located in high-value power markets Benefit from long-term, utility-grade PPAs Prince Wind Farm, Canada Tier 1 turbine equipment (GE, Siemens, Vestas, Enercon, Nordex) In-house and full-scope turbine maintenance strategies Strategy has been to focus on project development or buying for value Brookfield now operates 36 wind facilities with an installed capacity of ~1,500 MW in six countries Sorne Wind Farm, Ireland 14

15 Deep Operational Expertise Asset Integration Generation Management, Planning and Dispatch 2,000 EXPERIENCED OPERATORS Regulatory Asset Integration Expertise Energy Marketing Expertise 140 POWER MARKETING EXPERTS 4 REGIONAL CONTROL CENTERS National Asset System Integration Control Engineering and Development Health, Safety, Asset Security and Integration Environmental Stakeholder Asset Engagement Integration 15

16 Organic Growth 16

17 Organic Cash Flow Growth BEP is focused on delivering 5% to 9% cash flow growth annually on a per unit basis Growth target can be achieved from organic initiatives and fully funded by internally generated cash flow We do not rely on M&A to achieve cash flow growth targets This does not account for the embedded optionality of our 2.5 TWh merchant hydro portfolio in the United States where each $10/MWh increase in revenue translates to $25 million in incremental FFO Embedded Inflation Escalation (1% to 2%) Expected Margin Expansion (1% to 2%) Advanced Development Pipeline + + = (3% to 5%) FFO per Unit Growth Potential (5% to 9%) 17

18 Development Pipeline Development Stage Technology Region 10% 20% 30% 40% 6,000 7,000 MW 1,000 50% 50% Early Advanced Hydro Wind Other North America LATAM Europe Focused on growing and advancing our development pipeline as a source of future growth at outsized returns 18

19 Construction and Advanced Projects We have over 300 MW of construction and construction-ready assets expected to contribute $45-50 million of annualized FFO once commissioned Project Region Technology Capacity (MW) Expected Commissioning Expected Annualized FFO ($ Million) Serra dos Cavalinhos 1 Brazil Hydro 25 Q Crockandun² Europe Wind 15 Q Shantavny Europe Wind 16 Q Silea Verde 4A Brazil Hydro 28 Q Slievecallan Europe Wind 28 Q Ballyhoura Europe Wind 19 Q Silea Verde 4 Brazil Hydro 19 Q Tralorg Europe Wind 19 Q Total 169 ~$21 M 1. Commissioned January 25, Commissioned May 1, 2017 In addition to the assets listed above, we have 154 MW of construction-ready projects expected to contribute an additional $25 to $30 million to FFO annually 19

20 Growth 20

21 Strong Track Record of Growth Targeting annual equity deployment of ~$500 - $600 million in high quality assets that present the opportunity to deliver 12% to 15% annual returns Continued global investment in renewables is creating a large investible universe We utilise our global network of investment professionals to originate acquisition opportunities Adopt a contrarian approach, identifying value opportunities where scarcity of capital reduces competition Leverage our deep operating expertise to diligence and underwrite assets Seeking to enhance our footprint in existing technologies while cautiously expanding into new technologies and geographies Since 2012, we have developed and acquired 6,300MW, deploying over $2.4 billion of BEP equity at accretive returns 21

22 Financial Profile 22

23 Robust Balance Sheet Significant Liquidity $1.6 billion committed corporate credit facility through % long-term target FFO payout ratio, significant free cash flows Diverse funding sources with access to public and private markets Staggered Debt Maturities No material near-term maturities Project debt has an average remaining term of 9 years on a proportionate basis ~80% proportionate, fixed rate with minimal floating rate exposure funded in local currency $5.5 $5.0 $4.5 $4.0 $3.5 $3.0 $2.5 $2.0 Debt Maturity Ladder ($BILLIONS) Conservative Capitalization 38% consolidated debt-to-capitalization ratio Primarily asset level debt, 78% of which is non-recourse to BEP Investment grade credit ratings with S&P and DBRS $1.5 $1.0 $0.5 $ After Non-Recourse Maturities Recourse Maturities 23

24 Conservative Capitalization BEP has consistently maintained a conservative debt to capitalization ratio Our high quality cash flow and strong remittance characteristics underscore our investment grade ratings The use of primarily non-recourse, fixed rate financings provides strong protection and credit stability to BEP lenders and investors 38% DEBT TO TOTAL CAPITALIZATION ~7.0X REMITTED CASH FLOW / INTEREST COVERAGE ~3.0X CONSOLIDATED EBITDA / INTEREST COVERAGE 4.5% AVERAGE INTEREST RATE ON CORPORATE BORROWINGS BBB+ BBB(high) We believe BEP s hydroelectric generation enjoys strong competitive interconnections to a diverse pool of power markets, and the availability of water storage facilities that enhance the partnership s operational flexibility and profitability. We view BEP s liquidity as adequate. The company has had good relationships with its banks and generally good standing in the credit markets. * S&P Research Update: August 16, 2017 The Company s long-term power sales contract (91% of generation on a proportionate basis in 2016) are expected to continue to provide stability and support in earnings over the medium term while renewable resources and production volume will continue to be key drivers of revenue and profit. BEP s key deconsolidated credit metrics remain supportive of the current rating. This reflects relatively low debt at the corporate level and solid gross operating cash flow from projects * DBRS Rating Report: May 17,

25 Investment Recap Best in class renewable portfolio providing stable cash flow growth and long-term capital appreciation with strong downside protection Largest independently owned hydroelectric portfolio globally Highest value renewable resource with significant barriers to entry Stable contracted cash flows with growing operating margins Upside tied to economic growth and identified margin expansion Robust balance sheet and access to global capital markets Approximately $2 billion of available liquidity to grow the business accretively Proven track record of value creation for shareholders 6% compound dividend growth and 15% annualized total return since

26 Contacts Contact Title Sachin Shah Chief Executive Officer Nick Goodman Chief Financial Officer Claire Holland Media & Communications Divya Biyani Investor Relations 26

27 Appendix 27

28 BEP Generation Overview As at June 30, 2017 Hydroelectric River Systems Facilities Capacity (MW) LTA (GWh) 1 Storage (GWh) North America ,847 17,775 4,879 Colombia ,732 14,476 3,703 Brazil ,647 Wind ,478 36,898 8,582 North America ,310 Europe ,220 Brazil ,468 4,118 Other Total ,636 41,401 8,582 1) LTA is calculated on a consolidated and an annualized basis from the beginning of the year, regardless of the acquisition or commercial operation date. 2) North America hydroelectric LTA is the expected average level of generation, as obtained from the results of a simulation based on historical inflow data performed over a period of typically 30 years 3) Colombia hydroelectric LTA is the expected average level of generation, as obtained from the results of a simulation based on historical inflow data performed over a period of typically 20 years. Colombia includes generation from both hydroelectric and Co-gen facilities. 4) Hydroelectric assets located in Brazil benefit from a market framework which levelizes generation risk across producers 5) Wind LTA is the expected average level of generation, as obtained from the results based on simulated historical wind speed data performed over a period of typically 10 years 6) Includes one Co-gen plant in Colombia (300 MW), two Co-gen plants in North America (215 MW) and four biomass facilities in Brazil (175 MW) 28

29 Hydro Assets We own and operate 218 hydro facilities with 8,500MW of capacity on 82 river systems North America 1,361 MW across 33 hydro facilities in Canada, fully contracted with investment grade counterparties 3,486 MW across 137 hydro facilities in the USA, over 80% currently under contract with strategic exposure to rising prices in our core markets Colombia 2,732 MW across 6 hydro facilities Modern, utility grade assets recently commissioned by the Colombian government Over 70% under contract in a short-term, mandatory rolling contract market Key attributes High cash margins Non-intermittent power Zero fuel input cost Significant barriers to entry Centrally operated by regional system control centres ~8,500GWh of storage capability Brazil 899 MW across 42 hydro facilities Predominantly small hydro (<30 MW) facilities that benefit from transmission discounts ~90% under contract with large DISCOs and industrial consumers 29

30 Wind Assets We own and operate 36 wind facilities with approximately 1,500MW of capacity North America 406 MW across 3 wind facilities in Canada 434 MW across 7 wind facilities in the USA Portfolio predominantly built by BEP over the past 10 years Over 95% contracted and weighted average duration of 14 years remaining Europe 355 MW across 19 wind facilities in Ireland and Northern Ireland 123 MW across 2 wind facilities in Portugal Over 95% contracted and weighted average duration of 9 years remaining Primarily contracted with government offtakes through REFIT programs Key attributes High cash margins Zero fuel input cost Centrally operated by regional system control centres Relatively low build cost and improving turbine efficiency Minimal ongoing capex requirements Simple to operate and outsourced O&M providers are available to financial buyers supporting our capital recycling program Brazil 150 MW across 5 wind facilities in Bahia Highest wind resource region in northern Brazil with above average capacity factors Average age off assets is less than 5 years Over 80% of generation under contract until

31 Corporate Structure Brookfield Asset Management (BAM) ~$39b Market Cap¹ (TSX, NYSE) 20% Management 75% 62% 60%⁵ 30% Brookfield Business Partners (BBU) Brookfield Property Partners (BPY) Brookfield Renewable Partners (BEP) 2 Brookfield Infrastructure Partners (BIP) 30%³ Private Fund 70%² LPs⁴ Company A Company B Company C Company D 1) Based on closing price on the NYSE on June 30, ) BEP funds Brookfield s commitment to renewables transactions in Private Funds 3) Subject to transaction size, co-investment, and other considerations 4) Third-party commitments 5) Approximate and reflective of ownership following 2017 equity issuance 31

32 Governance SENIOR MANAGEMENT TEAM Sachin Shah Chief Executive Officer Nick Goodman Chief Financial Officer Brookfield Renewable has entered into a Master Services Agreement with Brookfield Asset Management Provides comprehensive suite of services to Brookfield Renewable Partners Base management fee of $20 million adjusted annually for inflation Equity enhancement fee equal to 1.25% of the increase in BEP s capitalization Incentive distributions based upon increases in distributions paid to shareholders over pre-defined thresholds (Master Limited Partnerships (MLP) structure) 15% participation by Brookfield in distributions over $0.375/unit per quarter 25% participation by Brookfield in distributions over $0.4225/unit per quarter Brookfield Renewable s general partner has a majority of independent directors Brookfield Renewable s governance is structured to provide significant alignment of interests with its unitholders 32

33 Favourable Structure Relative to MLPs Brookfield Renewable is a Bermuda-based publicly traded partnership that indirectly owns holding corporations in the U.S., Canada and other jurisdictions. Brookfield Renewable is not a U.S. MLP 1 Chart below shows a comparison of Brookfield Renewable versus an MLP¹ Brookfield Renewable MLP 2 Type of entity Publicly traded partnership Publicly traded partnership UBTI 3 No Yes ECI 4 No Yes U.S. tax slip issued K1 K1 Tax profile of distributions Benefits from return of capital Benefits from depreciation Payout ratio ~70% of FFO 80%-90% of distributable cash flow 5 Incentive distributions 25% maximum 50% maximum Brookfield Renewable is committed to structuring its operations to avoid generating UBTI and ECI 1) MLP is Master Limited Partnership 2) Not all MLP s are the same. This represents Brookfield s understanding of common features with these types of vehicles 3) UBTI is unrelated business taxable income 4) ECI is effectively connected income 5) Source: Management estimates based on Barclays Capital Master Limited Partnerships MLP Trader Weekly 33

34 Leader in Green Energy & Sustainability BEP is the largest member by market capitalization of the S&P/TSX Renewable Energy and Clean Technology Index. BEP issued its inaugural green bond in July 2017, a US$475 million project financing secured against its 360MW White Pine hydroelectric portfolio. Citing BEP's environmental stewardship, commitment to renewable power, and use of proceeds towards renewable power generation, the green bond received an E-1 Green Evaluation score from S&P - the highest on its scale. BEP is committed to sustainable development principles that reduce the impact of our operations and help to manage the underlying water resources efficiently. Low Impact Hydropower Institute (LIHI) certification is a voluntary certification program designed to help identify and provide market incentives for hydropower operations that are minimizing their environmental impacts. BEP has received LIHI certification for 52 hydro facilities across the US, more than any other operator, making it the U.S. leader in low impact hydropower generation. The Environmental Choice Program is a comprehensive national program sponsored by Environment Canada. It certifies manufacturers and suppliers that produce products and services that are less harmful to the environment. These bear the EcoLogo registered trademark. 22 of our hydroelectric facilities in Ontario, Quebec, and British Columbia meet the strict standards of the Environmental Choice Program. The Brookfield Environmental Education Center was established in Guarani, Minas Gerais, Brazil, from a partnership between Brookfield Energia Renovável and the local community. The project aims to provide the entire population of the Pomba River Valley a place to develop environmental education projects. To make the project sustainable, the local community was trained to manage the Environmental Education Center and created a non-governmental organization to do it. 34