Northland Power Inc.

Welcome to the Northland Power Conference call to discuss the second quarter 2026 results. As a reminder, this call is being recorded on Thursday, August 13th, 2026 at 10 a.m. Eastern. Present for the call are Christine Healy, President and CEO, Jeff Hart, Chief Financial Officer, and Adam Beaumont, Head of Capital Markets. Before we begin, Northam's management has asked me to remind listeners that all figures presented during today's call are in Canadian dollars and to caution that certain information presented and responses to questions may contain forward-looking statements that include assumptions and are subject to various risks. Actual results may differ materially from management's expected or forecasted results. Please read the forward-looking statements section in yesterday's news release Announcing Northland Power's results and be guided by its contents when making investment decisions or recommendations. The release is available at www.northlandpower.com. I will now turn the call over to Ms. Christine Healy. Please go ahead.

Christine Healy Thank you. Good morning, everyone, and thank you for joining us. Northland continued to execute on our strategy this quarter, delivering strong operating performance advancing our projects in construction and progressing the opportunities that will drive our next phase of growth. I'll provide some construction updates and Jeff will then walk through the financials in more detail and we will open the line for questions. But before jumping into our results, I wanted to take a moment to comment on our broader market backdrop. Across our core markets, we're seeing a level of electricity demand growth that has not been present for decades. That growth is being driven by industrial activity, Data Centers, Electrification, Urbanization, and more importantly over time, energy security. The energy security point is particularly important in Europe. For the Canadians and Americans on the call, the current European market reality is quite different. North American natural gas prices remain relatively low and are largely disconnected from European and Asian gas pricing. In markets such as Germany, though, natural gas remains a key driver of electricity prices. which means volatility in global gas markets continues to flow into power markets and resulting pricing. That's why the discussion in Europe has moved beyond simply adding renewable capacity. The focus is on building an electricity system that's secure, affordable and able to support the electrification, industrial needs and the data center demand. This matters for Northland. It validates our multi-technology approach and reinforces the importance of investing based on what an electricity system needs. We don't start with a technology and look for somewhere to deploy it. We start with market fundamentals, system needs, and risk-adjusted returns. And we invest selectively where our capabilities can deliver results. We don't see this as a short-term cycle. We see a structural shift in electricity markets, recognizing, of course, that the pace and shape of that shift will vary by market. Northland is well positioned to respond through our differentiated development, construction, and operating capabilities across renewables, gas-fired power, and storage. And I will note here as well that Northland does have a particularly differentiated capability in offshore wind, demonstrated by the delivery of our two world-class projects in construction and our projects in operation. We have the people, partnerships, and execution capability to deliver this necessary and growing source of energy. I will add that not a single electron gets added to the grid through policy and discussion alone. It requires capable owners and operators who can build and run the infrastructure our markets need, and this is where Northline delivers. Turning now to our operations over the quarter, I've noted on these calls in the past that our goal is to be ready when the wind blows and the sun shines. And in the past quarter, our availability was very strong. In the case of our gas assets, we are ready to dispatch when the market needs us. In Q2, wind resources across Europe, particularly in the North Sea, were at the low end of historic averages. This was partially offset by our Spanish onshore renewables portfolio, where solar and onshore wind resources were generally in line with the same period last year. Against that backdrop, our operational performance was strong with 96% availability, ensuring we were well positioned to capture the resource when available. Importantly, the low European wind was a second quarter story. Year-to-date generation is in line with historical average levels, and you will recall there were strong wind conditions in Q1. As a result, we are reaffirming our full year 2026 adjusted EBITDA and free cash flow per share guidance. Turning to our projects in construction, just a few weeks ago, we made history in Poland. Our 1.1 gigawatt Baltic Power offshore wind project achieved first power, delivering the first electrons ever produced from an offshore wind project to Polish homes and businesses. This was a major milestone for the project, for Northland, our partner Orlan, and for Poland. Many Polish and Canadian dignitaries were in attendance to mark the significance of this landmark event. Today, 61 out of 76 turbines are installed and 15 are generating power. The project is on track for commercial operations later this year with costs aligned to original expectations. Poland is a priority market for Northland. We have built local partnerships, established in-country expertise, and continue to see compelling market fundamentals driven by robust economic growth and the need for additional energy infrastructure. Our battery storage projects in Poland are a natural extension of these capabilities and an attractive opportunity to further expand our presence in the market. During the quarter, we commenced construction on those battery storage projects, Kamiełka and Mieczysława. Both projects represent a combined 300 megawatt four-hour duration or 1,200 megawatt hours of capacity. Site preparations and foundation work are underway. Major equipment has been ordered and both projects are on track for commercial operations in 2028. These projects deepen our platform in Poland and build on the expertise gained through the successful execution of Oneida and the ongoing construction of Jurassic Bess. We are leveraging lessons learned and our proven capabilities in development, construction and operations to support project delivery and create long-term value for shareholders. Turning to Heilong, our one gigawatt offshore wind project in Taiwan. We expanded the existing power purchase agreement with the corporate customer to 100% of the output through a 30-year contract. And earlier this week, we announced that Heilong secured a $2.4 billion financing package, Through this, we've optimized the project, attracted new local banks, and accessed lower financing costs. We are encouraged by the increased participation from local banks in this financing. Their involvement reflects the confidence and support for the Heilong project in the Taiwanese market and reinforces the importance of aligning long-term infrastructure investments with domestic stakeholders. Construction continues to progress as 71 out of Heilong's 73 turbines are installed, with 59 generating power. We expect all turbines will be generating power later this year and full commercial operations will be achieved in 2027. Shifting to Canada, our 80 megawatt, 160 megawatt hour Jurassic Best project in Alberta is in construction. All the major equipment has been installed and we are in the final stages of commissioning with commercial operations expected shortly. Once complete, Jurassic Best will be the largest battery storage project in Alberta and Northline's second operating battery storage facility, following from Oneida's successful commissioning in Ontario last year. Together, these five projects in construction add approximately 2.5 gigawatts of new capacity to our future operating portfolio and will deliver a meaningful increase in EBITDA and cash flow as they come online. Beyond our current construction program, we are focused on converting this backdrop, the macro backdrop I spoke of earlier, into the next phase of disciplined growth, particularly through opportunities where Northland already has operating experience, development capability, or established relationships. In Canada, we are encouraged by the improving policy dialogue and the growing alignment between federal and provincial governments on the need for new infrastructure. We are watching carefully for regulatory improvements that can help unlock the next phase of investment. For Northland, this could create a compelling opportunity set in our home market, particularly where our development, construction, and operating capabilities can be applied with discipline. In Europe, our focus remains on markets where long-term policy direction system needs and Northland's capabilities come together to support attractive investment opportunities. and we see opportunities to deploy capital for strong risk-adjusted returns across our core markets, including Poland, Spain and the UK. We will pursue growth where market fundamentals, risk-adjusted returns and Northlands capabilities align. We will provide a fuller update on our growth priorities with our third quarter results. For now, our message is that the opportunity set is broadening and our approach will remain disciplined. Our recent Poland Best acquisition is a good example of our approach. We identified and secured mature opportunities in a core market, and we have been able to execute on them very well. Value enhancement is also an important part of our growth strategy. As an owner and operator, Northland has visibility across the full asset lifecycle, which allows us to identify opportunities to increase returns from existing infrastructure, grid connections, and development rights. These initiatives can offer attractive risk-adjusted returns with lower capital intensity and execution risk than fully new build development. Work is ongoing, including evaluating hybridization opportunities, repowering, recontracting, and capacity optimization initiatives across our fleet. We are focused on delivering the opportunities in front of us and creating long-term value for shareholders. And with that, I'll turn it over to Jeff to walk through our financial results.

Thanks Christine and good morning everyone. I'll provide some further color on our Q2 results. Northland generated adjusted EBITDA of $259 million, a 6% increase compared to the second quarter of 2025. And that increase was driven by revenue contributions from Heilong and a full quarter of Oneida operations combined with lower operating costs at our natural gas facilities. As Christine noted earlier, Those increases were partially offset by lower offshore wind production in Europe, which was approximately 11% below the long-term average. The resulting second quarter free cash flow was $23 million. This was approximately 60% lower than the same quarter last year. And the primary contributing factor to the decrease in free cash flow was a one-time benefit from a German trade tax refund recognized in the second quarter of 2025. And on a per share basis, free cash flow in the second quarter was $0.09, compared to 22 cents in the second quarter of 25. Our net loss was $54 million for the quarter, which was in line with the second quarter of 2025. I will note in July, one of Gemini's two export cables had a circuit failure and was taken out of service. Gemini's production has continued via the second export cable and the subsea repair of the other cable is underway with completion expected this year. We expect the impact on our folio results to be immaterial net of insurance proceeds. And turning to our investment program, at our offshore construction projects, Baltic Power and Heilong, both are on track for commercial operations with overall costs aligned with original expectations. At Baltic Power, as Christine mentioned, we achieved first power in early July and expect to achieve full commercial operations later this year. And at Heilong, we have secured a 20-year incremental debt financing of 2.4 billion Canadian dollars and this financing strengthened the project's capital structure and provides an alternate source of lower cost funding. Approximately $900 million of the $2.4 billion represents incremental funding capacity available through project completion. The remaining proceeds will be used to refinance the approximately $1.5 billion of higher cost debt. The financing attracted a number of new local lenders, further reflecting the quality of the project and execution. Heilong's construction remains on track and the forecasted pre-completion revenue combined with the incremental debt is expected to cover the project's funding requirements. We are reaffirming our 2026 financial guidance with adjusted EBITDA expected in the range of $1.45 to $1.65 billion and free cash flow per share in the range of $1.05 to $1.25 per share. And I'd like to close by acknowledging that with nearly $1 billion of available liquidity combined with our investment grade balance sheet, we are well positioned to execute on our plan. With that, I'll hand it back to Christine.

Thank you, Jeff. Northland's strategy is simple. We build in markets where we have earned the right to operate and then operate well. The progress we've delivered this quarter demonstrates that strategy in action. We have reaffirmed full-year guidance. Baltic Power is generating power for the Polish grid. Heilong is fully contracted and financed. Jurassic Best is in the final stages of commissioning. and construction is underway on Kamionka and Miecz Słowo, our two Poland best projects. Operational reliability continues to be strong. Simply put, we are efficiently and effectively delivering. As we look ahead, the second half of 2026 will be defined by two milestones. We expect both Baltic Power and Heilong to have all turbines generating. Marking the start of cash flow after years of project investment and execution. With full year guidance reaffirmed and major projects approaching commercial operations, Northland is well positioned to deliver long-term value. This concludes our prepared remarks. Operator, can you please open the line for questions?

Thank you. To ask a question, please press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. Please stand by while we compile the Q&A roster. And our first question comes from Baltaj Haddou of National Bank of Canada. Your line is open.

Hi, good morning, everyone. Just a few questions from me. So there's been clearly strong momentum at High Longwood, effectively all of the turbines now installed. If we look at the energy cadence since Q1, roughly call it a couple of turbines per week, it would seem as possible to have the full park energized by the end of September, absent any weather or other disruptions. Is that a reasonable way to think about the remaining commissioning cycle? Yeah, go ahead.

Baltaj, thanks very much for the question. I'm going to say to you, nothing's done until it's done because we're in the project land, but the teams are executing very well. I see the same pattern that you mentioned there, that the performance has been good, the execution has been good. We have had some weather that's rolled through. The teams have adapted to that quite well. So we see things on track, and you can see we're getting pretty close to the finish line on that.

Yeah, and I think, Baltaz, just to add on, is that we are consistent with that, and we articulated, I think, last quarter that we expected all the turbines to be turning in Q4. So it's good to see that progress, and we're pleased by it.

Great, and just a follow-up for you, Jeff. Great to see the refinancing earlier this week. Just given if the current energization piece continues, does that change how you're thinking about the PCR shortfall, appreciating that when they're strongest in Q4 and Q1?

Yeah, I know. And, you know, we articulated, I think, you know, last year, $150 to $200 million our share Canadian dollar impact on the PCRs. And and the incremental financing or funding, it's funding, it's capacity, so we don't necessarily have to draw on it. This is $300 million, our share. I think we're right on where we expect guidance to be within that range for our PCR generation and we out looked at earlier this year. So we're on on the PCRs the way we laid out. I think if wind performs in Q4, we're probably ahead of that $150 to $200 million impact and can negate some of it. Plus, we have the incremental funding and capacity there, so we feel like we're in a good place on that project. But as Christine said, you're not done until you're done.

Great. Thanks, Jeff. And Christine, with roughly two-thirds of North Sea one-off still available, you touched on the German power pricing and natural gas dynamics there. How are you looking to balance locking in today's attractive German power prices against preserving merchant upside? If you were to recontract more of that asset, how supportive would that be to pull some liquidity or up-finance that asset?

So, Baltaz, we're always looking at that and what makes the most sense. I will say that the market is in a high level of disruption right now, so you see quite a variance in terms of different folks' forecasts on what the long-term pricing is going to look like. So, certainly we're watching it, and if we see a good opportunity, then we will consider contracting. but our strategy was clear that we contracted a third so that we had stability on the cash flows that we needed to see in that asset and then we were prepared to have the other two-thirds be merchant exposed. As you know across our entire portfolio we have very low merchant exposure and so the portfolio can actually absorb some merchant exposure. We're comfortable with that right now but we do continue to scan for If there's a better opportunity to contract it in and that makes sense for us, we of course will take advantage of that. But right now, we're happy with what we have.

Okay, thank you. I'll pass the line.

Thank you. And our next question comes from Sean Stewart of TD Cowan. Your line is open.

Thanks. Good morning, everyone. Christine, there was a mention made of Growth Aspirations in Europe. I think we have a pretty good sense of what you're focused on in Poland. But you mentioned Spain and the UK as well. Can you give us an update on potential for organic growth in those two markets and any perspective on scale and potential timing of moving those types of initiatives along?

Sure. Sean, we'll be talking more about that, I think, with Q3 results because we've been focused this time around on Project Delivery, given that it was such a huge quarter on the project side. So, of course, we continue to be very interested in Poland. Poland is just a really attractive market for us, and I think it's probably, for companies who are not there, then entering Poland is a different decision, but we are there, and it's great underlying demand growth, supportive policies. We have some great partnerships. We really like Poland. In Spain, we have a strong position in Spain, and we see that Spain really needs a lot more batteries, that without batteries, there will continue to be a great deal of variability. So the batteries make a pretty great business case just on the accessing shoulder pricing because there's such a variation in pricing during the day. So we like the hybridization on existing platforms. We like some standalone battery opportunities. So we're evaluating that. But the message I'll give here is the same as what I say in our investment committee all the time. is that every opportunity in Northland has to compete for capital. So we have to see that it's the best use of our capital and more importantly, the best use of our talent within the company as well. So we continue to assess those opportunities. Personally, I do like batteries in Spain, but we'll see if they run the gauntlet and investment committee successfully. And then in the UK, as you know, we have an offshore wind project in Scotland called Spirit Numera. That project was submitted for the consent process. So we'll wait and see what comes from that. But we do see that in the UK market, there are some very interesting opportunities that we're looking at. And both, I would say, our own offshore project, but then some onshore opportunities as well. So again, we don't like to have a single asset orphaned in any one particular location. We like to build out a bit of a cluster around it. So that sort of gives you a guidepost to the types of areas where we're looking.

Okay, thanks for that detail. And Christine, wondering if you can comment on the Ontario LT2 process, read throughs on the outcome there and perspective on prioritizing growth in this province versus other regions going forward.

You know, Sean, this one actually causes me some amount of consternation as a Canadian because I would love to deploy more capital in Canada. but we just see that the returns are better in our other markets. And so we bid projects on the basis of what returns we would need for those projects to be competitive in our portfolio. And you know what, it's probably properly and effective functioning markets if there are others who think or can actually deliver those better or at lower cost. I would say though, we have a lot of experience at Northland and we have a very good track record of delivering projects exactly the way that we say and I would say that the carry-on of that is it means that we're pretty effective at pricing the risk. And so I'm comfortable with how we bid into LT2. I'm also comfortable that our projects didn't make it through and I'm okay with that because we have other places to deploy our capital where we can get that rate of return. And we also, you know, so we watch carefully for the future, but it remains a question of where are going to be the really attractive opportunities in Canada. So the team is active on that. I'm as a Canadian very hopeful that we will see some places where we can really deploy, but we have to, you know, we keep saying risk-adjusted returns. Part of that risk is the regulatory process, the time it takes to get projects approved, the layers of approvals that are required for even quite simple projects. When we put all that in and stack it up, you know, the Canadian projects have to compete, and right now we see other better opportunities in the portfolio.

Understood. That's all I have for right now. Thanks very much.

Thank you. And our next question comes from Benjamin Pham of BMO. Your line is open.

Hi, thanks. Good morning. I know you mentioned the incremental debt funding, the pre-completion revenues. That's more than enough to cover the high long funding needs. But is there a scenario where I guess first off, can you confirm your confidence in not needing additional equity contributions to the project and then just what conditions you would have to see for that scenario to occur?

Yeah, Benny, it's Jeff here. I'll point to the execution of the turbine count and the amount of turbines we've actually got generating power and the trajectory of the execution. I think that gives us confidence here leading into Q4. and so I'm we're really pleased with that and and you know our forecast is is look you need the wind turning and the turbines uh installed and we're well on our way with that and and turning so we're happy with that I think we're really you know we're confident that we won't require an equity injection but look as we get in and we see the wind in Q4 that'll be the key item and that's why we've got some incremental capacity there as well that's prudent and that provides us flexibility and but we fully expect to be on and on in Q4 and it really comes down to wind but we've got capacity there that we talked about earlier so we're feeling like we're in a good place on that.

I would guess I would add to that Ben that if it's helpful that because of the way the project is designed too many of the parts of the project operate independently of one another so even if we had a problem with a turbine or two it's not going to affect the whole field so that redundancy and that design I think is actually an advantage that probably it's maybe deep into the details but it means that because of that it's not sort of off a cliff in terms of if there's a turbine that's out of commission for some days or weeks that the overall picture from the field is strong.

Got it. Thanks for that. I just want to shift to the battery stored side of NPI and Yeah, you referenced the Jurassic Fest project now nearing commissioning. Can you talk perhaps, I think, for with the larger Polish storage project founder construction, is there any lessons you can share with us in the investment community coming off of Jurassic and maybe with Fondata as well?

Well, you know what? Every project we try to learn as we go through the project and then how do we get better? And we spend a lot of time inside the company on lessons learned and try to harvest all the things that we think we did well and the things that we would like to improve. So, you know, if we were, one of the tests I always ask myself and to the teams is if we were building Oneida today, for instance, would we build it differently? And I think we would do it better. I think we did Oneida very, very well, but we, there were a lot of things we didn't know. So we built in Thank you for joining us. We've done a very good job, I would say. I don't say that often, but I think on those battery projects. Oneida was first of its kind, but I think we see now with Jurassic, once we see two in a row, that starts to make a bit of a pattern.

Okay, that's good context. Thank you.

Thank you. And our next question comes from Nelson Ng of RBC Capital Markets. Your line is open.

Great thanks and good morning everyone. So just a quick one on Heilong. So in terms of the new debt financing or additional debt financing for Heilong, can you just comment in terms of how much room there is to optimize the existing debt in the future and also the new debt that was raised, is there room to optimize that in terms of the credit margin? I know in your European Offshore Wind Farms. There have been several opportunities to narrow the credit margin over time. So just wondering in terms of near-term and longer-term opportunities to optimize the debt there.

Yeah, and that's something we're always looking at. And what I'll say is we view that always as is upside to the plan and optimizations that we can then, you know, I think, you know, ultimately optimize our funding capabilities in those projects. But yeah, that's something that we look at long term. I mean, the tenor on the debt is about 20 years. We've got longer dated contracts than that. So there's always ways to manage that. And I think, you know, we kind of typically look at two times where you can do like you really are obvious at COD and then after a little bit of operations. I think with the execution we've been seeing and the way the project is performing, it allowed us to maybe get out in advance of COD and work things, number one. And then number two, as we get in and we see operations here and continue to execute, I think there's time. At that time, we can go back with the operating performance and tighten there. And like I've said, we've got room on the tenor as well.

Got it. Thanks. And then, Christine, you mentioned that the Ontario market sounds promising. Pretty competitive since you weren't really hitting your return hurdles in the last round of bids. But moving to Alberta, I know those projects are structured differently. But now with Jurassic, the battery storage project nearing completion, can you just provide a bit of an update on the other projects in Alberta like Jurassic Solar and Colossard?

Yeah, so we have an overall discussion ongoing here around Alberta. I think it's a really interesting market. I think that certainly there's the potential for a lot of demand growth in Alberta. It's a little bit a question of timing and making sure that we can deliver effectively there. I like our position in Alberta right now. I think that we have a position that we can grow on. It's just a question really of what's the right sequencing and timing for that. and we're continuing to look at other opportunities in Alberta because, frankly, I think the team has done a really good job on Jurassic Best, which gives me again more confidence to be delivering on projects in Alberta. So we're looking at that pretty closely, but I don't have a lot more to say about it right now.

Great. Thanks. We'll wait for the more fulsome update in Q3. I'll leave it there.

Thanks. Thank you. and our next question comes from Robert Hope of Scotiabank. Your line is open.

Morning everyone. Let's start off with Canada. So we've covered Alberta and Ontario. Let's go out a little east. Northland was named as a qualified entity for Wind West. What would you need to see to be, we'll call it, more enthusiastic on offshore wind in Canada, potentially Nova Scotia?

Thanks for the question. Well, I will say, you know, this is where the heart and the brain maybe go in two different directions because, of course, I am myself from Newfoundland. I would love for us to be doing offshore wind in Atlantic Canada. It would make my heart sing. But the numbers need to make my brain happy, too. And the numbers fundamentally come back to it's back to pricing the risk. And I would say our recent experiences, Poland is an example of a market where we are the first offshore wind project and We know what it took to get there and to do that and it's frankly no small feat. We also have in parallel the Heilong Project in Taiwan where we were not the first in the market but it is a more geographically remote market where there's not the same build-out of supportive capabilities that we see in Europe because in Europe there's been offshore wind developed for a long time. So we saw even just practically speaking maybe a little anecdotal sort of example is that if we needed an expert to have a look at something and give us an answer, for Poland, we can get them there in two hours. And in Taiwan, it would take a day and a half or maybe two days. And that seems like on an individual case, not a big deal. But when you're talking about a one gigawatt project, that starts to sequentially add time all the time. So for all of that is a long way of saying for Nova Scotia, great wind resource, which is sort of the starting of the conversation, But it is not an area that has a lot of experience, any experience in offshore wind. The permitting process is frankly a bit opaque. We see the government trying to do some things around that and we're hopeful that that's going to be clear all the way through. And I think we need to see a pricing structure that gives us the certainty we need as an investor. And so we're working with government on that. We've been involved in that process for quite a while. We will continue to be involved. I think there's a high level of goodwill amongst everybody to find good solutions. it's frankly a great resource and it would be a shame to leave it untapped. So I would very much like to see it, but you know, we gotta understand the terms a bit better.

I appreciate that. And then maybe a bit more of a broader question, you know, what does the M&A environment look like right now, either for operating assets or development assets? Is that something you're focusing on as well as, you know, could we see some monetizations as well as a funding mechanism on a longer term basis?

You know what? We're always in the M&A market. We're always scanning for opportunities. We talk internally about the fact that I've been very happy with these Polish battery projects. We bought those at the right time for us. So it was before major contracts had been entered into. It was when we could still shape the project. But a lot of the early phase work had been done and done very well by the original proponent. So that's a good space for us to come into. We can execute on that really well. and we can deliver the projects very well and then operate them over the long term. So I like that space for us. So we continue to look for things that sort of hit that sweet spot for us in a variety of markets. And then on the other side of divestments, we are always looking at what are the right opportunities and are we the right owner? And because we're in a stable financial situation, there's no urgency or panic around that, but certainly there are some areas where we could optimize.

Thank you.

Thank you. And our next question comes from Mark Jarvie of CIBC. Your line is open.

Thanks. Good morning, everyone. Christina, how would you frame how growth efforts have materialized since the Investor Day? I know you're going to give an update with Q3, but in terms of what you're seeing out there as achievable returns, some of the enhancement projects you tabled at the Investor Day, how do you feel like this is all progressing at this point?

So I'm pretty pleased actually. So we did internally a restructure in the company to create one growth organization so that back to the sort of, there's an internal competition for capital. We had previously been divided by technology and a little bit subdivided by geography. So people were bringing forward sort of the best opportunity in Ontario as opposed to the best opportunity in the global portfolio. and so I felt like that was not being as efficient as we needed to be and it meant that our teams were sort of chasing some things that ultimately we knew were not going to meet our thresholds so not to pick on any one particular geography by the way but we just need to look at that holistically across the whole portfolio so we reorganized to create this this global approach and we also have put the value enhancement projects under that same umbrella so in fact the new projects are also in competition with the value enhancement initiatives so You'll probably see that our next announcements will be more around value enhancement projects just because they're shorter cycle, less capital intensity. But there are other, I would say, development and construction projects coming right behind them, sort of greenfield. No, I'm not allowed to say greenfield and brownfield. We say value enhancements and new builds. But okay, new build projects are also coming quickly through the pipeline. That tension on the line is exactly something that we want to keep. So we do see, to answer your question much more briefly than I have so far, is that we do see quite a few opportunities where we can deploy our capital.

And when you give the update in the fall, are these specific project updates or is this general just sort of a re-ranking of priority markets or opportunities and timelines?

Well, you know what, I'm not going to front run our investment committee decisions, but I think there will probably be a bit of a combination of both.

Got it. And then just how do you think about Asia right now? You know, commentary on the MD&A around Korea is, again, that you've kind of walked back from that market, didn't see a path forward. Are you looking to apply into the tenders in Taiwan? Are your partners presenting any interesting opportunities in the area?

So we've been very focused on Europe and Canada in the near term. I guess when I sort of look at it in horizons, you know, so in the near term horizon, it's executing on the projects that we have. Then the medium term is sort of the next phase of growth projects. And then longer term, I am very enthusiastic about Asia. It's just a question of when and the scale of project. There are some really, I think I mentioned before, there are some large interconnection projects that are are being undertaken in Southeast Asia that open up a lot more market accessibility and attractive pricing. So we're watching that with some keen interest. And we like being in Asia. We would like to do more in Asia. It's a question of when. And right now we just see attractive opportunities to deploy to quickly and with good returns in Europe and in Canada.

So are you continuing to put some development dollars, early stage dollars to work in Asia? Do you keep staffing up there or do you just kind of run lean for the time being in that region?

So we have leaders who are in Asia right now who are looking after and running our high long project. And part of their mandate is also to be continually scanning and looking at other opportunities. We have ongoing discussions with partners and potential partners. Thanks for the time today. Thank you.

And our next question comes from Heidi House of BNP Paribas. Your line is open.

Heidi House Good morning. Thanks for taking my question. There's been a recent announcement from some of your Canadian Power peers on agreements to provide PowerDot hyperscalers. How do you view the opportunity to contract directly with hyperscalers? This is a future new build, be it in Alberta or elsewhere. Is there appetite for that? Are you in discussions with hyperscalers? Just kind of curious how you're thinking about that.

Yeah, thanks for the question. We do talk to the hyperscalers. I think that the decisions in Alberta around the tethering rules actually open up a lot more possibilities and give us more certainty as an investor. So that's helpful. That was a positive change. So we continue to have discussions with them. And I think that we can deliver solutions that match some of their needs. You know, at what pace those are going to mature and in what geographies? I think it would be a bit early or premature for me to say.

That's helpful. Thanks. And just one quick one. Quarter to date, how has offshore generation trended across your existing offshore wind projects?

Yeah, so this quarter is pretty well up the middle, up the middle of the fairway, I would say. Normally, as we've talked about before, You know, Q4 and Q1 tend to be big wind months in a lot of our geographies. You know, Q3 right now, we're sort of, you know, I guess I'm not a golfer, but it's kind of up the middle of the fairway. And, you know, so we'll see. And then, you know, what happens through Q4. But right now it's pretty straightforward. Great. Thank you.

Thank you. I show no further questions at this time. I'd like to turn it back to Christine Healy for closing remarks.

Well, thank you everyone for joining us today. Thank you for your continued support. And we look forward to speaking with you in November for third quarter results. Thanks again.

This concludes today's conference call. Thank you for participating and you may now disconnect.