Capacity and Generation - As of December 31, 2024, the Company owned approximately 11.8 GW of gross capacity across 26 states, with 96% of total generation attributable to renewable energy and storage assets[18] - The Company generated approximately 86% of its total operating revenues in 2024 from non-GHG emitting sources, including renewable energy generation and grid reliability services[55] - In 2024, 96% of the Company's total generation was attributable to renewable energy and storage assets[55] - Total flexible generation capacity is 2,774 MW, with a net capacity of 2,584 MW, representing 93.1% ownership[184] - Total utility scale solar capacity is 3,740 MW, with a net capacity of 2,166 MW, indicating 57.9% ownership[185] - Total utility scale BESS capacity is 689 MW, with a net capacity of 256 MW, reflecting 37.2% ownership[185] - Total distributed solar capacity is 330 MW, fully owned[185] - Total wind capacity is 4,306 MW, with a net capacity of 3,807 MW, indicating 88.3% ownership[187] - The Company owns approximately 11.8 GW of gross capacity across 26 states, including 9 GW from wind, solar, and battery energy storage systems[204] Financial Performance - The Company's operating revenues for the year ended December 31, 2024, totaled $1,371 million, with $1,029 million from the Renewables segment and $342 million from the Flexible Generation segment[34] - The net income for the Company in 2024 was a loss of $63 million, compared to a loss of $14 million in 2023[34] - Operating revenues increased by $57 million in 2024, totaling $1,371 million compared to $1,314 million in 2023[212] - Energy and capacity revenues rose to $1,500 million in 2024, up from $1,382 million in 2023, while other revenues decreased to $90 million from $99 million[212] - Total operating costs and expenses increased to $1,175 million in 2024, compared to $1,051 million in 2023, driven by higher operations and maintenance expenses[212] - Operations and maintenance expenses increased by $32 million in 2024, primarily due to solar and BESS acquisitions[215] - Depreciation, amortization, and accretion rose by $101 million in 2024, totaling $627 million compared to $526 million in 2023[216] - The company reported a net loss of $63 million in 2024, compared to a net loss of $14 million in 2023, with net income attributable to Clearway Energy, Inc. at $88 million[212] Investments and Growth Strategy - The Company plans to grow its business through investments in operating power generation assets, with a focus on cash accretive and tax-advantaged investments[24] - The Company has committed investments in facilities including 114 MW BESS in California and 500 MW Solar/BESS in Texas, with estimated commercial operation dates in 2025 and 2026[24] - The Company issued $2,125 million in corporate green bonds to finance or refinance renewable energy projects[55] - The Company completed several acquisitions, including Daggett 2, Daggett 3, Victory Pass, and Arica solar and BESS facilities, contributing to revenue growth[213] - On November 25, 2024, the Company agreed to acquire the Tuolumne wind facility for approximately $219 million, with an expected long-term capital commitment of $70 million to $75 million[205] - The Company entered into an agreement to sell its membership interests in the Mt. Storm wind facility for $121 million, with a capacity increase to 335 MW expected after repowering[207] - The Company acquired the Class A membership interests in the Honeycomb Portfolio for $78 million, which includes four BESS facilities under construction with a total capacity of 320 MW[207] Customer and Revenue Concentration - The Company's largest customers accounted for approximately 24% (SCE) and 17% (PG&E) of consolidated revenue, with the next five largest customers representing a total of approximately 30%[50] - The largest customers, SCE and PG&E, represented 24% and 17% of total consolidated revenues for the year ended December 31, 2024[70] - The majority of the electric power generated is sold under long-term offtake agreements with a weighted average remaining duration of approximately 12 years[70] Debt and Financial Risks - The Company has approximately $7,235 million in total consolidated indebtedness as of December 31, 2024, with $5,110 million incurred by non-guarantor subsidiaries[75] - The Company's substantial debt may limit its ability to return capital to stockholders and could prevent cash dividends if financial covenants are not satisfied[76] - The inability to satisfy financial covenants may result in an event of default, potentially leading to accelerated repayment of indebtedness[77] - The Company is vulnerable to general economic conditions, requiring a significant portion of cash flow to service debt, which reduces available cash for dividends and operations[78] - The Company's ability to raise additional capital may be adversely affected by its existing indebtedness, limiting operational flexibility[75] - The Company may not be able to maintain or increase dividends if additional equity securities are issued for investments or acquisitions[66] Regulatory and Compliance Risks - The Company is subject to various federal and state regulations, including those from FERC and PUCT, affecting its operations in different markets[39] - The Company must comply with environmental laws and regulations, which have become increasingly stringent over time[45] - The Company is subject to various environmental regulations that could result in significant liabilities and operational challenges[122] - The Company’s market-based sales are at risk of losing market-based rate authority, which could require compliance with more stringent cost-of-service rate schedules, adversely affecting pricing and profitability[127] - The Company is classified as a "controlled company," exempting it from certain NYSE corporate governance requirements, which may limit stockholder protections[120] Cybersecurity and Operational Risks - The Company is actively managing cybersecurity risks through a comprehensive framework and collaboration with external experts[169] - The Board of Directors oversees cybersecurity risks and receives regular updates on the threat landscape and ongoing initiatives[175] - The Company has a defined incident response plan to mitigate the impact of cybersecurity incidents and prevent future occurrences[181] - The Company is committed to integrating cybersecurity considerations into its broader strategic objectives[176] - The Company is exposed to risks from interest rate swaps and energy-related financial instruments, which could impact financial condition and cash flows if market conditions change unexpectedly[93] Environmental, Social, and Governance (ESG) Commitments - The Company is committed to ESG matters, with its Board of Directors reviewing strategies and policies related to these issues[54] - Increased scrutiny on ESG practices may hinder the Company's access to capital and impact its reputation if sustainability goals are not met[125] - The Company must comply with stringent requirements to qualify for tax credits and incentives for clean energy facilities, which may require significant resources[161] Market and Economic Conditions - Electricity generation from renewable sources is highly dependent on favorable weather conditions, which are beyond the Company's control[81] - The Company may face challenges in accessing capital markets or obtaining financing for acquisitions if interest rates increase significantly[145] - Market interest rates may influence the value of the Company's common stock, with rising rates potentially leading to selling pressure if dividends cannot be increased[142] - Changes in government incentives for renewable power generation could negatively impact the Company's growth strategy and the attractiveness of renewable projects[133]
Clearway Energy(CWEN_A) - 2024 Q4 - Annual Report