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PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE
 12 Months Ended
Dec. 31, 2021
Disclosure of detailed information about property, plant and equipment [abstract]  
PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE PROPERTY, PLANT AND EQUIPMENT, AT FAIR VALUE
The following table presents a reconciliation of property, plant and equipment at fair value:
(MILLIONS)NotesHydroelectricWindSolar
Other(1)
Total
Property, plant and equipment, at fair value
As at December 31, 2019$25,797 $9,183 $5,501 $233 $40,714 
Additions313 88 142 1 544 
Transfer from construction work-in-progress139 37 — 1 177 
Acquisitions through business combinations3— — 661 — 661 
Disposals— (160)— — (160)
Items recognized through OCI:
Change in fair value
3,152 409 573 (21)4,113 
Foreign exchange
10(693)(185)307 (44)(615)
Items recognized through net income:
Change in fair value
12 (25)(54)(8)(75)
Depreciation
(514)(550)(290)(13)(1,367)
As at December 31, 202028,206 8,797 6,840 149 43,992 
Additions576 490 78 9 1,153 
Transfer from construction work-in-progress118 187 258 1 564 
Acquisitions through business combinations3— 1,643 679 — 2,322 
Disposals4— (1,208)— — (1,208)
Items recognized through OCI:
Change in fair value
4,306 (51)101 73 4,429 
Foreign exchange
10(1,133)(124)(221)(9)(1,487)
Items recognized through net income:
Change in fair value
(13)(19)(3)(24)(59)
Depreciation
(547)(600)(343)(11)(1,501)
As at December 31, 2021$31,513 $9,115 $7,389 $188 $48,205 
Construction work-in-progress
As at December 31, 2019$218 $117 $4 $2 $341 
Additions161 103 160 — 424 
Transfer to property, plant and equipment(139)(37)— (1)(177)
Items recognized through OCI:
Change in fair value
(13)12 — — (1)
Foreign exchange
10(15)18 8 — 11 
As at December 31, 2020212 213 172 1 598 
Additions194 357 575 6 1,132 
Transfer to property, plant and equipment(118)(187)(258)(1)(564)
Acquisitions through business combinations
3— — 44 — 44 
Disposals4— (104)— — (104)
Items recognized through OCI:
Change in fair value
— 17 127 — 144 
Foreign exchange
10(10)(1)(11)(1)(23)
As at December 31, 2021$278 $295 $649 $5 $1,227 
Total property, plant and equipment, at fair value
As at December 31, 2020(2)
$28,418 $9,010 $7,012 $150 $44,590 
As at December 31, 2021(2)
$31,791 $9,410 $8,038 $193 $49,432 
(1)Includes biomass and cogeneration.
(2)Includes right-of-use assets not subject to revaluation of $69 million (2020: $74 million) in hydroelectric, $174 million (2020: $185 million) in wind, $186 million (2020: $152 million) in solar and $2 million (2020: $3 million) in other.
During the year, Brookfield Renewable, together with its institutional partners, completed the acquisition of 189 MW operating hydroelectric assets in Colombia. The investments are accounted for as asset acquisitions as they do not constitute business combinations under IFRS 3, with $536 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 24% economic interest.
During the year, Brookfield Renewable, together with its institutional partners, completed the acquisition of two operating wind portfolios in China for a total capacity of 312 MW. The investments are accounted for as asset acquisitions as they do not constitute business combinations under IFRS 3, with $495 million of property, plant and equipment included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable’s economic interest ranges from 14% to 25%.
During the year, Brookfield Renewable, together with its institutional partners, completed the acquisition of 12 MW operating solar asset in Europe. The investment is accounted for as an asset acquisition as it does not constitute a business combination under IFRS 3, with $94 million of property, plant and equipment was included in the consolidated statements of financial position at the acquisition date. Brookfield Renewable holds a 64% economic interest.
The fair value of Brookfield Renewable’s property, plant and equipment is calculated as described in Notes 1(g) – and 1(q)(i) – Critical estimates – Property, plant and equipment. Judgment is involved in determining the appropriate estimates and assumptions in the valuation of Brookfield Renewable’s property, plant and equipment. See Note 1(r)(iii) – Critical judgments in applying accounting policies – Property, plant and equipment. Brookfield Renewable has classified its property, plant and equipment under level 3 of the fair value hierarchy.
Discount rates, terminal capitalization rates and terminal years used in the valuation methodology are provided in the following table:
North AmericaColombiaBrazilEurope
20212020202120202021202020212020
Discount rate(1)
Contracted
4.1% - 4.3%
4.1% - 4.5%
7.9 %8.1 %7.2 %7.3 %
3.9%
3.0% - 3.6%
Uncontracted
5.4% - 5.6%
5.6% - 6.0%
9.2 %9.4 %8.5 %8.6 %
3.9%
3.6% - 4.7%
Terminal capitalization rate(2)
4.8% - 5.1%
5.8% - 6.2%
8.0 %8.9 %N/AN/AN/AN/A
Terminal year(3)
20422041204120402048204820362035
(1)Discount rates are not adjusted for asset specific risks.
(2)The terminal capitalization rate applies only to hydroelectric assets in the United States, Canada and Colombia.
(3)For hydroelectric assets, terminal year refers to the valuation date of the terminal value.
The following table summarizes the impact of a change in discount rates, electricity prices and terminal capitalization rates on the fair value of property, plant and equipment:
2021
(MILLIONS)North AmericaColombiaBrazilEuropeTotal
25 bps increase in discount rates$(1,510)$(240)$(100)$(60)$(1,910)
25 bps decrease in discount rates1,690 330 100 60 2,180 
5% increase in future energy prices1,100 410 80 — 1,590 
5% decrease in future energy prices(1,100)(410)(80)— (1,590)
25 bps increase in terminal capitalization rate(390)(70)— — (460)
25 bps decrease in terminal capitalization rate430 70 — — 500 
2020
(MILLIONS)North AmericaColombiaBrazilEuropeTotal
25 bps increase in discount rates$(1,190)$(230)$(60)$(80)$(1,560)
25 bps decrease in discount rates1,300 310 60 80 1,750 
5% increase in future energy prices1,020 430 80 10 1,540 
5% decrease in future energy prices(1,020)(430)(80)(10)(1,540)
25 bps increase in terminal capitalization rate(280)(60)— — (340)
25 bps decrease in terminal capitalization rate310 60 — — 370 
Terminal values are included in the valuation of hydroelectric assets in the United States, Canada and Colombia. For the hydroelectric assets in Brazil, cash flows have been included based on the duration of the authorization or useful life of a concession asset plus a one-time 30-year renewal term for the majority of the hydroelectric assets. The weighted-average remaining duration of the authorization or useful life of a concession asset at December 31, 2021, including a one-time 30-year renewal for applicable hydroelectric assets, is 31 years (2020: 32 years). Consequently, there is no terminal value attributed to the hydroelectric assets in Brazil at the end of the authorization term.
The following table summarizes the percentage of total generation contracted under power purchase agreements as at December 31, 2021:
North AmericaColombiaBrazilEurope
1 - 5 years69 %51 %85 %100 %
6 - 10 years57 %7 %81 %88 %
Thereafter31 %1 %61 %66 %
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 AmericaColombiaBrazilEurope
1 - 10 years$82 COP251,000 R$306 €44 
11 - 20 years71 313,000 358 39 
(1)Assumes nominal prices based on weighted-average generation.

The following table summarizes the estimates of future electricity prices:
Per MWh(1)
North AmericaColombiaBrazilEurope
1 - 10 years$77 COP290,000 R$282 €34 
11 - 20 years114 439,000 345 39 
(1)Assumes nominal prices based on weighted-average generation.
Brookfield Renewable’s long-term view is anchored to the cost of securing new energy from renewable sources to meet future demand growth between 2025 and 2035. A further one year change would increase or decrease the fair value of property, plant and equipment by approximately $173 million (2020: $236 million). 
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)20212020
Hydroelectric$11,135 $11,330 
Wind7,719 6,625 
Solar6,467 5,583 
Other(1)
155 175 
$25,476 $23,713 
(1)Includes biomass and cogeneration.