Long-term investments

6 Months Ended

Jun. 30, 2022

Disclosure Long Term Investments And Notes Receivable [Abstract]

Long-term investments consist of the following:


	June 30,		December 31,
	2022		2021
Long-term investments carried at fair value
Atlantica	$	1,579,544	$	1,750,914

Atlantica Yield Energy Solutions Canada Inc.	81,506		95,246
Other	2,042		2,296
	$	1,663,092	$	1,848,456

Other long-term investments
Equity-method investees (a)	$	396,305	$	433,850
Development loans receivable from equity-method investees (a)	99,770		31,468
Other	27,676		30,508
	$	523,751	$	495,826

Income (loss) from long-term investments from the three and six months ended June 30 is as follows:


	Three months ended June 30				Six months ended June 30
	2022		2021		2022		2021
Fair value gain (loss) on investments carried at fair value
Atlantica	$	(137,586)	$	28,888	$	(171,370)	$	(35,545)

Atlantica Yield Energy Solutions Canada Inc.	(5,815)		(1,948)		(12,395)		(9,259)


Other	(121)		402		(264)		402
	$	(143,522)	$	27,342	$	(184,029)	$	(44,402)
Dividend and interest income from investments carried at fair value
Atlantica	$	21,543	$	21,054	$	43,087	$	41,618
Atlantica Yield Energy Solutions Canada Inc.	5,397		4,376		12,691		8,721


Other	12		315		10		315
	$	26,952	$	25,745	$	55,788	$	50,654
Other long-term investments
Equity method loss	(2,918)		(2,816)		(7,449)		(8,370)
Interest and other income	6,108		10,235		11,621		12,117
	$	3,190	$	7,419	$	4,172	$	3,747
Income (loss) from long-term investments	$	(113,380)	$	60,506	$	(124,069)	$	9,999

(a)Equity-method investees and development loans receivable from equity investees

The Company has non-controlling interests in various corporations, partnerships and joint ventures with a total carrying value of $396,305 (December 31, 2021 - $433,850), including investments in variable interest entities ("VIEs") of $105,941 (December 31, 2021 - $86,202).

During 2021, the Company acquired a 51% interest in four operating wind facilities located in Texas (“Texas Coastal Wind Facilities”). All facilities have achieved commercial operations. The Company does not control the entities and therefore accounts for its 51% interest using the equity method. As at June 30, 2022, the Company had issued $119,750 in letters of credit and guarantees of performance obligations under energy purchase agreements and decommissioning obligations on behalf of the Texas Coastal Wind Facilities.

6.Long-term investments (continued)

Summarized combined information for AQN's investments in significant partnerships and joint ventures is as follows:


	June 30,		December 31,
	2022		2021
Total assets	$	2,347,076	$	2,126,934
Total liabilities	1,282,385		945,971
Net assets	$	1,064,691	$	1,180,963
AQN's ownership interest in the entities	278,664		327,555
Difference between investment carrying amount and underlying equity in net assets(a)	117,641		106,295
AQN's investment carrying amount for the entities	$	396,305	$	433,850

(a) The difference between the investment carrying amount and the underlying equity in net assets relates primarily to development fees, interest capitalized while the projects are under construction, the fair value of guarantees provided by the Company in regards to the investments and transaction costs.

Except for Liberty Global Energy Solutions B.V. (“Liberty Global Energy Solutions”), the development projects are considered VIEs due to the level of equity at risk and the disproportionate voting and economic interests of the shareholders. The Company has committed loan and credit support facilities with some of its equity investees. During construction, the Company has agreed to provide cash advances and credit support for the continued development and construction of the equity investees' projects. As at June 30, 2022, the Company had issued letters of credit and guarantees of performance obligations under: a security of performance for a development opportunity; wind turbine and solar panel supply agreements; interconnection agreements; engineering, procurement and construction agreements; energy purchase agreements; and construction loan agreements. The fair value of the support provided recorded as at June 30, 2022 amounts to $6,535 (December 31, 2021 - $4,612).

Summarized combined information for AQN's VIEs is as follows:


	June 30,		December 31,
	2022		2021
AQN's maximum exposure in regards to VIEs
Carrying amount	$	105,941	$	86,202
Development loans receivable	99,770		31,468
Performance guarantees and other commitments on behalf of VIEs	456,217		409,232
	$	661,928	$	526,902

The commitments are presented on a gross basis assuming no recoverable value in the assets of the VIEs.