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PROPERTY, PLANT AND EQUIPMENT (Tables)
 12 Months Ended
Dec. 31, 2019
Disclosure of detailed information about property, plant and equipment [abstract]  
Summary of property, plant and equipment at fair value
The following table presents a reconciliation of property, plant and equipment at fair value:
(MILLIONS)
Notes
 
Hydroelectric

 
Wind

 
Solar

 
Other(1)

 
Total(2)

As at December 31, 2017
 
 
$
22,399

 
$
3,803

 
$
575

 
$
319

 
$
27,096

Additions
 
 
212

 
36

 
47

 
6

 
301

Acquisitions through business combinations
3
 
—

 
125

 
86

 
—

 
211

Transfer to assets held for sale
5
 
—

 
(58
)
 
(691
)
 
—

 
(749
)
Items recognized through OCI:
 
 
 
 
 
 
 
 
 
 


Change in fair value
 
 
3,775

 
466

 
313

 
4

 
4,558

Foreign exchange
 
 
(1,138
)
 
(256
)
 
(77
)
 
(41
)
 
(1,512
)
Items recognized through net income:
 
 
 
 
 
 
 
 
 
 


Change in fair value
 
 
(33
)
 
(20
)
 
—

 
(8
)
 
(61
)
Depreciation
 
 
(536
)
 
(236
)
 
(25
)
 
(22
)
 
(819
)
As at December 31, 2018
 
 
24,679

 
3,860

 
228

 
258

 
29,025

IFRS 16 adoption (3)
 
 
79

 
62

 
—

 
4

 
145

Additions
 
 
172

 
42

 
—

 
4

 
218

Disposals
4
 
—

 
(440
)
 
—

 
—

 
(440
)
Acquisitions through business combinations
3
 
—

 
550

 
—

 
—

 
550

Items recognized through OCI:
 
 
 
 
 
 
 
 
 
 


Change in fair value
 
 
1,521

 
460

 
(7
)
 
(3
)
 
1,971

Foreign exchange
 
 
108

 
(29
)
 
(10
)
 
(8
)
 
61

Items recognized through net income:
 
 
 
 
 
 
 
 
 
 


Change in fair value
 
 
(15
)
 
(1
)
 
(1
)
 
(1
)
 
(18
)
Depreciation
 
 
(520
)
 
(246
)
 
(13
)
 
(19
)
 
(798
)
As at December 31, 2019(4)
 
 
$
26,024

 
$
4,258

 
$
197

 
$
235

 
$
30,714

(1) 
Includes biomass and cogeneration.
(2) 
Includes intangible assets of $10 million (2018: $11 million) and assets under construction of $334 million (2018: $388 million).  
(3) 
On January 1, 2019 Brookfield Renewable adopted IFRS 16. See Note 1 - Basis of preparation and significant accounting policies for additional details regarding the impact of the new accounting standard adoption.
(4) 
Includes right-of-use assets not subject to revaluation of $71 million in our hydroelectric segment, $51 million in our wind segment and $3 million in our other segment.
Summary of discount rates, terminal capitalization rates and exit dates used in the valuation methodology
Discount rates, terminal capitalization rates and exit dates used in the valuation methodology are provided in the following table:
 
North America
 
Colombia
 
Brazil
 
Europe
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
 
2019
 
2018
Discount rate(1)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Contracted
4.6% - 5.1%
 
4.8% - 5.3%
 
9.0
%
 
9.6
%
 
8.2
%
 
9.0
%
 
3.5
%
 
4.0% - 4.3%
Uncontracted
6.2% - 6.7%
 
6.4% - 6.9%
 
10.3
%
 
10.9
%
 
9.5
%
 
10.3
%
 
5.3
%
 
5.8% - 6.1%
Terminal capitalization rate(2)
6.2% - 6.7%
 
6.1% - 6.8%
 
9.8
%
 
10.4
%
 
N/A

 
N/A

 
N/A

 
N/A
Exit date
2039
 
2038
 
2039

 
2038

 
2047

 
2047

 
2034

 
2033
(1) 
Discount rates are not adjusted for asset specific risks.
(2) 
The terminal capitalization rate applies only to hydroelectric assets in the United States, Canada and Colombia.
Summary in impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment
The following table summarizes the impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment:
 
2019
(MILLIONS)
North America

 
Colombia

 
Brazil

 
Europe

 
Total

25 bps increase in discount rates
$
(870
)
 
$
(190
)
 
$
(90
)
 
$
(10
)
 
$
(1,160
)
25 bps decrease in discount rates
940

 
250

 
70

 
10

 
1,270

5% increase in future energy prices
820

 
400

 
80

 
10

 
1,310

5% decrease in future energy prices
(820
)
 
(400
)
 
(80
)
 
(10
)
 
(1,310
)
25 bps increase in terminal capitalization rate(1)
(210
)
 
(40
)
 
—

 
—

 
(250
)
25 bps decrease in terminal capitalization rate(1)
220

 
40

 
—

 
—

 
260

 
2018
(MILLIONS)
North America

 
Colombia

 
Brazil

 
Europe

 
Total

25 bps increase in discount rates
$
(770
)
 
$
(180
)
 
$
(80
)
 
$
(20
)
 
$
(1,050
)
25 bps decrease in discount rates
840

 
190

 
80

 
20

 
1,130

5% increase in future energy prices
800

 
440

 
100

 
20

 
1,360

5% decrease in future energy prices
(800
)
 
(440
)
 
(100
)
 
(20
)
 
(1,360
)
25 bps increase in terminal capitalization rate(1)
(210
)
 
(30
)
 
—

 
—

 
(240
)
25 bps decrease in terminal capitalization rate(1)
230

 
30

 
—

 
—

 
260

(1) 
The terminal capitalization rate applies only to hydroelectric assets in the United States, Canada and Colombia.
Summary of the percentage of total generation contracted under power purchase agreements, power prices from long-term power purchase agreements that are linked specifically to the related power generating assets, and the estimates of future electricity prices
The following table summarizes the percentage of total generation contracted under power purchase agreements as at December 31, 2019:
 
North America

 
Colombia

 
Brazil

 
Europe

1 - 10 years
54
%
 
25
%
 
68
%
 
71
%
11 - 20 years
30
%
 
0
%
 
33
%
 
13
%

The following table summarizes average power prices from long-term power purchase agreements that are linked specifically to the related power generating assets:
Per MWh(1)
North America

 
Colombia
 
 
Brazil

 
Europe

1 - 10 years
$
87

 
COP
217,000

 
R$
295

 
€
82

11 - 20 years
77

 
 
272,000

 
407

 
102

(1) 
Assumes nominal prices based on weighted-average generation.
The following table summarizes the estimates of future electricity prices:
Per MWh(1)
North America

 
Colombia
 
 
Brazil

 
Europe

1 - 10 years
$
66

 
COP
257,000

 
R$
273

 
€
75

11 - 20 years
132

 
 
358,000

 
411

 
84

(1) 
Assumes nominal prices based on weighted-average generation.
Summary of Brookfield Renewables revalued property, plant and equipment
Had Brookfield Renewable’s revalued property, plant and equipment been measured on a historical cost basis, the carrying amounts, net of accumulated depreciation would have been as follows at December 31:
(MILLIONS)
2019

 
2018

Hydroelectric
$
11,816

 
$
11,888

Wind
2,705

 
2,753

Solar
138

 
260

Other(1)
234

 
246

 
$
14,893

 
$
15,147

(1) 
Includes biomass and cogeneration.