Regional Leadership Forum Advancing Sustainable Hydropower in Latin America and the Caribbean

1. Brookfield Renewable Energy Group
Focusing on Renewable Power Generation
HYDROPOWER
A TOOL FOR REGIONAL DEVELOPMENT

2. Cautionary Statement on Forward-Looking Information
This presentation contains forward-looking statements and information within the meaning of the Canadian securities laws. 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 Brookfield Renewable Energy Partners L.P. (“Brookfield Renewable”) and its anticipated ratings, the quality of Brookfield
Renewable’s assets and the resiliency of the cash flow they will generate, Brookfield Renewable’s anticipated financial performance, the future growth prospects and
distribution profile of Brookfield Renewable, the listing and liquidity of the Brookfield Renewable units, Brookfield Renewable’s access to capital and the
approval, successful completion and timing of the transaction. Forward-looking statements can be identified by the use of words such as
“will”, “expected”, “intend”, “continue”, and targets, or variations of such words and phrases. Although Brookfield Renewable believes its anticipated future
results, performance or achievements expressed or implied by the forward-looking statements and information are based upon reasonable assumptions and
expectations, they can give no assurance that such expectations will prove to have been correct. The reader 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 the actual
results, performance or achievements of Brookfield Renewable 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 risk
that the conditions precedent to be met, and the regulatory and third party approvals to be obtained, for the combination to occur, are not met or obtained, the fact
that Brookfield Renewable units will not be eligible for inclusion on any index, changes to hydrology at Brookfield Renewable’s hydroelectric stations or in wind
conditions at Brookfield Renewable’s wind energy facilities, the risk that counterparties to Brookfield Renewable’s contracts do not fulfill their obligations, and as
Brookfield Renewable’s contracts expire, it may not be able to replace them with agreements on similar terms, Brookfield Renewable’s operations being highly
regulated and exposed to increased regulation which could result in additional costs, the risk that Brookfield Renewable’s concessions and licenses will not be
renewed, the risk that a portion of Brookfield Renewable’s hydroelectric portfolio is subject to re-contracting and may become subject to price risk, the risk that
Brookfield Renewable may fail to comply with the conditions in, or may not be able to maintain, its governmental permits, the risk that future acquisitions may
subject Brookfield Renewable to additional risks, the risk that Brookfield Renewable may experience equipment failure, and other risks and factors detailed from time
to time in Brookfield Renewable’s public filings. We caution that the foregoing list of important factors that may affect future results is not exhaustive. Except as
required by law, Brookfield Renewable undertakes no obligation to publicly update or revise any forward-looking statements or information, whether written or
oral, that may be as a result of new information, future events or otherwise.
Non-GAAP Measures
This presentation contains references to “EBITDA” and “FFO”, which do not have a standardized meaning prescribed by GAAP and are therefore unlikely to be
comparable to similar measures used by other companies. Management believes that EBITDA and FFO are useful supplemental measures that may assist investors in
assessing financial performance and the cash generated that is available to unitholders for distribution. EBITDA and FFO should not be considered as the sole
measure of performance and should not be considered in isolation from, or a substitute for, analysis of the financial statements prepared in accordance with GAAP.
All amounts in U.S. dollars unless otherwise specified.
2 | Brookfield Renewable Energy Group

3. Brookfield Renewable Energy Group
Canada
• 32 hydropower stations
• 1 thermal station
• 3 wind farms
• 1 hydro station under construction
• 560 km of 44k to 230kV
United States
• 103 hydropower stations
• 1 thermal station Colombia
• 4 wind farms
• Distribution utility serving 350,000
customers
• 39 km operating HVDC submarine
cable;
• 600 km of 345kV under construction
Chile
• 8,800 km serving 98% of the
population Brazil
Generation • 36 hydropower stations
• 2 hydro stations under construction
Transmission/Distribution
3 | Brookfield Renewable Energy Group

4. Brookfield Renewable Energy Group - BRAZIL
Hydroelectric Power Plant Locations
~ 300 employees
 Brookfield one of the largest privately owned small
hydroelectric energy producers in Brazil
 36 power generating facilities in operation (626 MW)
 First hydro electric generator to commercialize
carbon credit certificates in Brazil Mato Grosso
Goiás Minas Gerais
 Focused on low social and environmental impact
Mato Grosso do Sul
Rio de Janeiro
assets
Paraná
 ~325 MW in greenfield projects in the pipeline Santa Catarina
Rio Grande do Sul
Head offices
Operating plants
SHPP Anna Maria, Minas Gerais SHPP Guary, Minas Gerais
4 | Brookfield Renewable Energy Group For Institutional Use Only

5. Poverty, sustainability and energy – developing hydropower – developing the country
BRAZIL –
FIGHTING POVERTY IS THE PATH TO SOCIAL AND ECONOMIC DEVELOPMENT
• The worst enemy of the nature is misery, and you can eliminate poverty only with sustainable social
and economic growth
• Hydropower with strong commitment for its sustainable construction and operation is a powerful tool
for economic and social development
• Hydropower is responsible for 85% of all renewable energy sources around the world
• Brazil is gifted with huge hydrographic basins and has a enormous hydropower potential estimated in
260 GW
• So Brazil has chosen its path to fight poverty and reach a sustainable social and economic
development, and the power behind it is clearly for us Brazilians Hydropower
• Today in Brazil from the 115 GW of installed capacity, 88GW are hydropower which represents more
than 70% of renewable in our electric matrix (one of the cleanest in the world)
5 | Brookfield Renewable Energy Group

6. Poverty, sustainability and energy – developing hydropower – developing the country
BRAZIL –
FIGHTING POVERTY IS THE PATH TO SOCIAL AND ECONOMIC DEVELOPMENT
• Brazil is developing big hydropower projects in the north region showing the world a new approach to
work, minimizing the impacts and maximizing the benefits to the local communities
• Regarding small hydropower there is a remaining potential of approximately 18 thousand MW to be
developed
• Brazilian industry has reach a mature situation regarding Hydropower having achieved conditions of
financing, services and equipment supply and energy market already well consolidated
• An opportunity like building a power plant can and must be used by the country as a tool for
local/regional development, bringing economical and social advantages for the local population in the
way to the real sustainable development of remote regions
• Companies that want to build and operate a power plant have to use a high degree of social and
environmental responsibility as a strategy for implementation and operation of the projects
6 | Brookfield Renewable Energy Group

7. Traditional Triple Bottom Line Analysis
Economic
Social Environmental
7 | Brookfield Renewable Energy Group

8. Traditional Triple Bottom Line Analysis X Multiple Bottom Line Analysis
ECONOMIC BOTTOM LINE CRITERIA
• Payback (typically months or years)
• Benefit / Cost ratio (BCR)
• Net present Value (NPV)
• Rate of Return (RoR)
• Cash Flow
ENVIRONMENTAL BOTTOM LINE CRITERIA
• Watershed-wide issues and impacts
• Project area issues and impacts
• Specific fauna and flora species issues (threatened or endangered)
8 | Brookfield Renewable Energy Group

9. Traditional Triple Bottom Line Analysis X Multiple Bottom Line Analysis
SOCIAL BOTTOM LINE CRITERIA
• Reliable Electricity
• Water Issues – Water Supply, Flood Control, Transportation, Irrigation
• Aboriginal (First Nations) Issues
• Sports & Recreation Issues – Fishing, Boating, Swimming
• Employment – local human resources
• Social and economic development
POSSIBLE BOTTOM LINE CRITERIA IN A MULTIPLE ANALYSIS
• Regulatory
• Dam Safety
• Sustainability
• Other major criteria appropriate to project owner / stakeholders / public
9 | Brookfield Renewable Energy Group

10. Traditional Triple Bottom Line Analysis X Multiple Bottom Line Analysis
Regulatory ?
Economic Dam Safety ?
Other Public ?
Social Environmental
10 | Brookfield Renewable Energy Group

11. Traditional Triple Bottom Line Analysis X Multiple Bottom Line Analysis
Regulatory ?
Economic Dam Safety ?
Other Public ?
Sustainability
Social Environmental
11 | Brookfield Renewable Energy Group

12. Multiple Bottom Line Analysis
MULTIPLE BOTTOM LINE CRITERIA
TOOL
REGIONAL DEVELOPMENT
12 | Brookfield Renewable Energy Group

13. Multiple Bottom Line/Regional Development Approach – Advantages
COMPETITION AMONG DEVELOPERS FOR THE BEST SITES
• The discussions with the main stakeholders (mainly local communities, first nations, rural workers and
land owners) set the stage for the need of a multiple bottom line/regional development approach in
the development of hydropower plants in the country
• In these discussions a Company want to have the stakeholders as partners playing in the same
side, once in the public hearings it can make the difference if company will implement the project
• The Governmental Agencies/Environmental Authorities (filled with NGO people) tend to speed the
licensing process to companies that are used to work with some kind of multiple bottom line /regional
development approach in the development of hydropower plants
FINANCING THE PROJECTS
• Companies that use a multiple bottom line/regional development approach, and for that can be
considered “transparent” or “sustainable” or “green” have access to better interest rates and grace
periods in the project financing
• Multilateral agencies and Local Development Banks offer not only better financing conditions but also
a fast track lane analysis process (that is the case of Brazilian BNDES – National Bank for Economic and
Social Development), also financing with special conditions the voluntary local development projects
13 | Brookfield Renewable Energy Group

14. Brookfield and BNDES – financing development projects
• Brookfield as many others private investors in the energy sector in Brazil
finances the construction of its power plants trough the BNDES – Brazilian
National Bank for Social and Economical Development, a Federal Government
Institution aimed to finance the development of the country
• Since 2008, BNDES has been approaching several borrowers trying to create a
partnership where in exchange of better financing conditions (smaller interest
rates, better grace periods and fast track in the loan analysis and approval), the
private investor would take a social loan to invest in social projects for the
communities
• These social projects financing would have a special interest rate, and the
money had to be used in social responsibility actions (voluntary actions not
linked with the impacts of the project)
14 | Brookfield Renewable Energy Group

15. Brookfield Brazil – Barra do Brauna HPP
• Barra do Braúna Hydroelectric Power Plant (49 MW) was the first one to use
this social financing
• From the total project finance (R$ 220 MI) Brookfield took 1% (R$ 2,2 MI) to
implement social projects
• As indicated by BNDES the projects should be located preferentially in the
region close to the power plant, but it was not mandatory
• 4 social projects were implemented, 3 in the southeast region (close to the
power plant) and 1 in the south region
Recreio’s town Waste and Residues Recycling Plant
15 | Brookfield Renewable Energy Group

16. Brookfield Brazil – Barra do Brauna HPP
Pomba River Valley Environmental Education Center
Laranjal’s town Community and Citizens Center
Dois Lajeados Municipal Hospital Geriatric Hall
16 | Brookfield Renewable Energy Group

17. Brookfield Brazil – Pezzi and Serra dos Cavalinhos II HPP
• With the success of the Barra do Braúna case BNDES invited Brookfield to
replicate the process in the financing of a small hydro plant in the Brazilian
southern region
• So Serra dos Cavalinhos II (29 MW) was the second case where social projects
were supported by BNDES
• From the total project finance (R$ 162 MI) Brookfield took 1% (R$ 1,6 MI) to
implement social projects
• 3 projects were selected and will be implemented during 2012 and 2013
17 | Brookfield Renewable Energy Group

18. Brookfield Brazil – Pezzi and Serra dos Cavalinhos II HPP
Volley ball Scholl for low income families' children
Agro forestry system producing organic food
Sustainability project for a small farmers union
18 | Brookfield Renewable Energy Group

19. Lessons learned: developing hydropower – developing the communities
• Companies showing its will to be a partner of the local community during the
environmental licensing process trough the early discussion and development
of actions that will lead to local/regional development
• Companies strongly believes that starting the process in partnership with the
local people will enhance the chances of success of a project
COMMUNITIES LOOKING
FORWARD TO HAVE THESE
INVESTMENTS IN ITS REGION
19 | Brookfield Renewable Energy Group

20. Final Remarks – Conclusions
FINAL REMARKS
• Hydropower is the energy behind Brazilian social and economic
development
• The importance of a commitment to the development of sustainable
hydropower in a country like Brazil
• Private investment in development, construction and operation of
Hydro Power Plants is one of the pillars of this commitment
• Using the development, construction and operation of Hydro Power
Plants as tool for regional development is fundamental to achieve this
commitment
20 | Brookfield Renewable Energy Group

21. Final Remarks – Conclusions
CONCLUSION
FOR A DEVELOPING COUNTRY SUCH AS BRAZIL, THE IMPLEMENTATION OF A
HYDROPOWER PLANT IS NOT JUST A CONSTRUCTION OF A NEW POWER
SOURCE (THAT IS VERY IMPORTANT AND NEEDED) BUT MORE THAN THAT IS A
GOLDEN OPPORTUNITY TO BRING KNOWLEDGE AND DEVELOPMENT TO
REMOTE REGIONS OTHERWISE OFTEN FORGOTTEN BY GOVERNMENTS AND
POLITICS. THE PEOPLE LIVING IN THESE AREAS WITH THE COMPANIES AND
PROFESSIONALS WORKING IN THIS FIELD ARE LEARNING HOW TO DEAL WITH
THIS SITUATION BEING ALL PART OF THE PROCESS FOR THE SAKE OF THE
PROJECT, THE ENVIRONMENT , THE COUNTRY AND THEIR OWN.
21 | Brookfield Renewable Energy Group

22. THANK YOU
Antonio Fonseca dos Santos
Environment Land and Social Responsibility Director
Brookfield Renewable Energy Group – Brazil
antonio.fonseca@brookfieldenergia.com
22 | Brookfield Renewable Energy Group