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Financial instruments
 12 Months Ended
Dec. 31, 2021
Fair Value Disclosures [Abstract]  
Financial instruments Financial instruments
(a)Fair value of financial instruments
December 31, 2021Carrying
amount		Fair
value		Level 1Level 2Level 3
Long-term investments carried at fair value$1,848,456 $1,848,456 $1,753,210 $— $95,246 
Development loans and other receivables32,261 33,286 — 33,286 — 
Derivative instruments:
Energy contracts designated as a cash flow hedge15,362 15,362 — — 15,362 
Interest rate swap designated as a hedge1,581 1,581 — 1,581 — 
Commodity contracts for regulated operations1,721 1,721 — 1,721 — 
Cross currency swap designated as a net investment hedge1,958 1,958 — 1,958 — 
Total derivative instruments20,622 20,622 — 5,260 15,362 
Total financial assets$1,901,339 $1,902,364 $1,753,210 $38,546 $110,608 
Long-term debt$6,211,375 $6,543,933 $2,418,580 $4,125,352 $— 
Notes payable to related party25,808 25,808 — 25,808 — 
Convertible debentures277 519 519 — — 
Preferred shares, Series C13,348 14,580 — 14,580 — 
Derivative instruments:
Energy contracts designated as a cash flow hedge60,462 60,462 — — 60,462 
Energy contracts not designated as a cash flow hedge1,169 1,169 — — 1,169 
Cross-currency swap designated as a net investment hedge50,258 50,258 — 50,258 — 
Interest rate swaps designated as a hedge7,008 7,008 — 7,008 — 
Commodity contracts for regulated operations1,348 1,348 — 1,348 — 
Total derivative instruments120,245 120,245 — 58,614 61,631 
Total financial liabilities$6,371,053 $6,705,085 $2,419,099 $4,224,354 $61,631 
24.Financial instruments (continued)
(a)Fair value of financial instruments (continued)
December 31, 2020Carrying
amount		Fair
value		Level 1Level 2Level 3
Long-term investment carried at fair value$1,839,212 $1,839,212 $1,708,683 $20,015 $110,514 
Development loans and other receivables23,804 31,088 — 31,088 — 
Derivative instruments:
Energy contracts designated as a cash flow hedge51,525 51,525 — — 51,525 
Energy contracts not designated as a cash flow hedge388 388 — — 388 
Commodity contracts for regulatory operations194 194 — 194 — 
Total derivative instruments52,107 52,107 — 194 51,913 
Total financial assets$1,915,123 $1,922,407 $1,708,683 $51,297 $162,427 
Long-term debt$4,538,470 $5,140,059 $2,316,586 $2,823,473 $— 
Notes payable to related party30,493 30,493 — 30,493 — 
Convertible debentures295 623 623 — — 
Preferred shares, Series C13,698 15,565 — 15,565 — 
Derivative instruments:
Energy contracts designated as a cash flow hedge5,597 5,597 — — 5,597 
Energy contracts not designated as a cash flow hedge332 332 — — 332 
Cross-currency swap designated as a net investment hedge84,218 84,218 — 84,218 — 
Forward Interest rate swaps designated as a hedge19,649 19,649 — 19,649 — 
Commodity contracts for regulated operations614 614 — 614 — 
Total derivative instruments110,410 110,410 — 104,481 5,929 
Total financial liabilities$4,693,366 $5,297,150 $2,317,209 $2,974,012 $5,929 

The Company has determined that the carrying value of its short-term financial assets and liabilities approximates fair value as of December 31, 2021 and 2020 due to the short-term maturity of these instruments.
24.Financial instruments (continued)
(a)Fair value of financial instruments (continued)
The fair value of the investment in Atlantica (level 1) is measured at the closing price on the NASDAQ stock exchange.
The fair value of development loans and other receivables (level 2) is determined using a discounted cash flow method, using estimated current market rates for similar instruments adjusted for estimated credit risk as determined by management. 
The Company’s level 1 fair value of long-term debt is measured at the closing price on the NYSE and the Canadian over-the-counter closing price. The Company’s level 2 fair value of long-term debt at fixed interest rates and preferred shares, Series C has been determined using a discounted cash flow method and current interest rates. The Company's level 2 fair value of convertible debentures has been determined as the greater of their face value and the quoted value of AQN's common shares on a converted basis.
The Company’s level 2 fair value derivative instruments primarily consist of swaps, options, rights, subscription agreements and forward physical derivatives where market data for pricing inputs are observable. Level 2 pricing inputs are obtained from various market indices and utilize discounting based on quoted interest rate curves, which are observable in the marketplace.
The Company’s level 3 instruments consist of energy contracts for electricity sales and the fair value of the Company's investment in AYES Canada. The significant unobservable inputs used in the fair value measurement of energy contracts are the internally developed forward market prices ranging from $19.76 to $130.85 with a weighted average of $32.51 as of December 31, 2021. The weighted average forward market prices are developed based on the quantity of energy expected to be sold monthly and the expected forward price during that month. The change in the fair value of the energy contracts is detailed in notes 24(b)(ii) and 24(b)(iv). The fair value of the investment in AYES Canada is determined using a discounted cash flow approach combined with a binomial tree approach. The significant unobservable inputs used in the fair value measurement of the Company's AYES Canada investment are the expected cash flows, the discount rates applied to these cash flows ranging from 7.75% to 8.25% with a weighted average of 8.14%, and the expected volatility of Atlantica's share price ranging from 25.49% to 37.16% as of December 31, 2021. Significant increases (decreases) in expected cash flows or increases (decreases) in discount rate in isolation would have resulted in a significantly lower (higher) fair value measurement.
(b)Derivative instruments
Derivative instruments are recognized on the consolidated balance sheets as either assets or liabilities and measured at fair value at each reporting period.
(i)Commodity derivatives – regulated accounting
The Company uses derivative financial instruments to reduce the cash flow variability associated with the purchase price for a portion of future natural gas purchases associated with its regulated gas and electric service territories. The Company’s strategy is to minimize fluctuations in gas sale prices to regulated customers.
The following are commodity volumes, in dekatherms (“dths”), associated with the above derivative contracts:
 2021
Financial contracts: Swaps
3,239,873 
         Options165,671 
3,405,544 
24.Financial instruments (continued)
(b)Derivative instruments (continued)
(i)Commodity derivatives – regulated accounting (continued)
The accounting for these derivative instruments is subject to guidance for rate regulated enterprises. Therefore, the fair value of these derivatives is recorded as current or long-term assets and liabilities, with offsetting positions recorded as regulatory assets and regulatory liabilities in the consolidated balance sheets. Most of the gains or losses on the settlement of these contracts are included in the calculation of the fuel and commodity costs adjustments (note 7(a)). As a result, the changes in fair value of these natural gas derivative contracts and their offsetting adjustment to regulatory assets and liabilities had no earnings impact.

(ii)Cash flow hedges
The Company reduces the price risk on the expected future sale of power generation at the Sandy Ridge, Senate and Minonk Wind Facilities by entering into the following long-term energy derivative contracts. 
Notional quantity
(MW-hrs)		ExpiryReceive average
prices (per MW-hr)		Pay floating price
(per MW-hr)
4,585,008 September 2030$24.54Illinois Hub
527,931  December 2028$32.11PJM Western HUB
2,465,763  December 2027$23.67NI HUB
1,998,095  December 2027$36.46ERCORT North HUB

Upon the acquisition of the Sugar Creek Wind Facility (note 3(e)), the Company redesignated a long-term energy derivative contract to mitigate the price risk on the expected future sale of power generation. The fair value of the derivative on the redesignation date will be amortized into earnings over the remaining life of the contract.

The Company provides energy requirements to various customers under contracts at fixed rates. While the production from the Tinker Hydroelectric Facility is expected to provide a portion of the energy required to service these customers, AQN anticipates having to purchase a portion of its energy requirements at the ISO NE spot rates to supplement self-generated energy. The Company designated a contract with a notional quantity of 11,328 MW-hours, a price of $38.95 per MW-hr and expiring in February 2022 as a hedge to the price of energy purchases. The Company also mitigates the risk by using short-term financial forward energy purchase contracts. These short-term derivatives are not accounted for as hedges and changes in fair value are recorded in earnings as they occur (note 24(b)(iv)).
24.Financial instruments (continued)
(b)Derivative instruments (continued)
(ii)Cash flow hedges (continued)
In November 2020, upon the acquisition of Ascendant, (note 3(f)), the Company redesignated two interest rate swap contracts as cash flow hedges to mitigate the risk that LIBOR-based interest rates will increase over the life of Ascendant's term loan facilities. Under the terms of the interest rate swap contracts, the Company has fixed its LIBOR interest rate expense on $87,627 and $8,875 to 3.28% and 3.02%, respectively, on its two term loan facilities.
The Company is party to a forward-starting interest rate swap in order to reduce the interest rate risk related to the quarterly interest payments between July 1, 2024 and July 1, 2029 on the $350,000 subordinated unsecured notes. The Company designated the entire notional amount of the pay-variable and receive-fixed interest rate swaps as a hedge of the future quarterly variable-rate interest payments associated with the subordinated unsecured notes.
The following table summarizes OCI attributable to derivative financial instruments designated as a cash flow hedge: 
20212020
Effective portion of cash flow hedge$(97,103)$(13,418)
Amortization of cash flow hedge(2,132)(1,248)
Amounts reclassified from AOCI44,904 (9,616)
OCI attributable to shareholders of AQN$(54,331)$(24,282)
The Company expects unrealized loss of $1,843 and unrealized gains of $1,555 and $1,206 currently in AOCI to be reclassified, net of taxes into non-regulated energy sales, interest expense and derivative gains, respectively, within the next 12 months, as the underlying hedged transactions settle.
(iii)Foreign exchange hedge of net investment in foreign operation
The functional currency of most of AQN's operations is the U.S. dollar. The Company designates obligations denominated in Canadian dollars as a hedge of the foreign currency exposure of its net investment in its Canadian investments and subsidiaries. The related foreign currency transaction gain or loss designated as, and effective as, a hedge of the net investment in a foreign operation is reported in the same manner as the translation adjustment (in OCI) related to the net investment. A foreign currency loss of $168 for the year ended December 31, 2021 (2020 - loss of $656) was recorded in OCI.
On May 23, 2019, the Company entered into a cross-currency swap, coterminous with the subordinated unsecured notes issued on such date, to effectively convert the $350,000 U.S. dollar denominated offering into Canadian dollars. The change in the carrying amount of the notes due to changes in spot exchange rates is recognized each period in the consolidated statements of operations as loss (gain) on foreign exchange. The Company designated the entire notional amount of the cross-currency fixed-for-fixed interest rate swap as a hedge of the foreign currency exposure related to cash flows for the interest and principal repayments on the notes. Upon the change in functional currency of AQN to the U.S. dollar on January 1, 2020, this hedge was dedesignated. The OCI related to this hedge will be amortized into earnings in the period that future interest payments affect earnings over the remaining life of the original hedge. The Company redesignated this swap as a hedge of AQN's net investment in its Canadian subsidiaries. The related foreign currency transaction gain or loss designated as a hedge of the net investment in a foreign operation is reported in the same manner as the translation adjustment (in OCI) related to the net investment. The fair value of the derivative on the redesignation date will be amortized over the remaining life of the original hedge. A foreign currency loss of $4,232 for the year ended December 31, 2021 (2020 - loss of $13,256) was recorded in OCI.
24.Financial instruments (continued)
(b)Derivative instruments (continued)
(iii)Foreign exchange hedge of net investment in foreign operation (continued)
Canadian operations
The Company is exposed to currency fluctuations from its Canadian-based operations. AQN manages this risk primarily through the use of natural hedges by using Canadian long-term debt to finance its Canadian operations and a combination of foreign exchange forward contracts and spot purchases.
The Company’s Canadian operations are determined to have the Canadian dollar as their functional currency and are exposed to currency fluctuations from their U.S. dollar transactions. The Company designates obligations denominated in U.S. dollars as a hedge of the foreign currency exposure of its net investment in its U.S. investments and subsidiaries. The related foreign currency transaction gain or loss designated as, and effective as, a hedge of the net investment in a foreign operation is reported in the same manner as the translation adjustment (in OCI) related to the net investment. A foreign currency gain of $1,595 for the year ended December 31, 2021 (2020 - loss of $3,581) was recorded in OCI.
The Company is party to C$500,000 (December 31, 2020 - C$650,000) cross currency swaps to effectively convert Canadian dollar debentures into U.S. dollars. The Company designated the entire notional amount of the cross-currency fixed-for-fixed interest rate swap and related short-term U.S. dollar payables created by the monthly accruals of the swap settlement as a hedge of the foreign currency exposure of its net investment in the Renewable Energy Group's U.S. operations. The gain or loss related to the fair value changes of the swap and the related foreign currency gains and losses on the U.S. dollar accruals that are designated as, and are effective as, a hedge of the net investment in a foreign operation are reported in the same manner as the translation adjustment (in OCI) related to the net investment. A gain of $7,824 for the year ended December 31, 2021 (2020 - gain of $18,875) was recorded in OCI. On February 15, 2021, the Renewable Energy Group settled the related cross-currency swap related to its C$150,000 debenture that was repaid.
On April 9, 2021, the Renewable Energy Group entered into a fixed-for-fixed cross-currency interest rate swap, coterminous with the senior unsecured debentures issued on such date (note 9(g)), to effectively convert the C$400,000 Canadian-dollar-denominated offering into U.S. dollars. The Renewable Energy Group designated the entire notional amount of the fixed-for-fixed cross-currency interest rate swap as a hedge fair value changes of the swap are reported in the same manner as the translation adjustment (in OCI) related to the net investment. A loss of $1,925 for the year ended December 31, 2021 was recorded in OCI.
Chilean operations
The Company is exposed to currency fluctuations from its Chilean-based operations. The Company's Chilean operations are determined to have the Chilean peso as their functional currency. Chilean long-term debt used to finance the operations is denominated in Chilean Unidad de Fomento.
(iv)Other derivatives
Derivative financial instruments are used to manage certain exposures to fluctuations in exchange rates, interest rates and commodity prices. The Company does not enter into derivative financial agreements for speculative purposes.
The Company executed on currency forward contracts to manage the currency exposure to the Canadian dollar shares issuance (note 13(a)). A foreign currency gain of $2,329 (2020 - $2,363) was recorded as a result of the settlement.
For derivatives that are not designated as hedges, the changes in the fair value are immediately recognized in earnings.
24.Financial instruments (continued)
(b)Derivative instruments (continued)
(iv)Other derivatives (continued)
The effects on the consolidated statements of operations of derivative financial instruments not designated as hedges consist of the following:
20212020
Change in unrealized loss on derivative financial instruments:
Energy derivative contracts$(5,353)$(901)
Total change in unrealized loss on derivative financial instruments$(5,353)$(901)
Realized gain (loss) on derivative financial instruments:
Energy derivative contracts$(108)$(1,145)
Currency forward contract2,329 2,363 
Total realized loss on derivative financial instruments$2,221 $1,218 
Loss on derivative financial instruments not accounted for as hedges(3,132)317 
Amortization of AOCI gains frozen as a result of hedge dedesignation3,712 3,009 
$580 $3,326 
Amounts recognized in the consolidated statements of operations consist of:
Gain (loss) on derivative financial instruments $(1,749)$964 
Gain on foreign exchange2,329 2,362 
$580 $3,326 
(c)Risk management
In the normal course of business, the Company is exposed to financial risks that potentially impact its operating results. The Company employs risk management strategies with a view to mitigating these risks to the extent possible on a cost-effective basis. Derivative financial instruments are used to manage certain exposures to fluctuations in exchange rates, interest rates and commodity prices. The Company does not enter into derivative financial agreements for speculative purposes.
This note provides disclosures relating to the nature and extent of the Company’s exposure to risks arising from financial instruments, including credit risk and liquidity risk, and how the Company manages those risks.
Credit risk
Credit risk is the risk of an unexpected loss if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company’s financial instruments that are exposed to concentrations of credit risk are primarily cash and cash equivalents, accounts receivable, notes receivable and derivative instruments. The Company limits its exposure to credit risk with respect to cash equivalents by ensuring available cash is deposited with its senior lenders, all of which have a credit rating of A or better. The Company does not consider the risk associated with the accounts receivable to be significant as the majority of revenue from power generation is earned from large utility customers having a credit rating of Baa2 or better by Moody's, or BBB or higher by S&P, or BBB or higher by DBRS. Revenue is generally invoiced and collected within 45 days.
24.Financial instruments (continued)
(c)Risk management (continued)
Credit risk (continued)
The remaining revenue is primarily earned by the Regulated Services Group, which consists of water and wastewater, electric and gas utilities in the United States, Canada, Bermuda and Chile. In this regard, the credit risk related to Regulated Services Group accounts receivable balances of $293,895 is spread over thousands of customers. The Company has processes in place to monitor and evaluate this risk on an ongoing basis including background credit checks and security deposits from new customers. In addition, most of the Regulators of the Regulated Services Group allow for a reasonable bad debt expense to be incorporated in the rates and therefore recovered from rate payers.
As of December 31, 2021, the Company’s maximum exposure to credit risk for these financial instruments was as follows: 
 2021
Cash and cash equivalents and restricted cash$161,389 
Accounts receivable422,752 
Allowance for doubtful accounts(19,327)
Notes receivable31,468 
$596,282 
In addition, the Company monitors the creditworthiness of the counterparties to its foreign exchange, interest rate, and energy derivative contracts and assesses each counterparty’s ability to perform on the transactions set forth in the contracts. The counterparties consist primarily of financial institutions. This concentration of counterparties may impact the Company’s overall exposure to credit risk, either positively or negatively, in that the counterparties may be similarly affected by changes in economic, regulatory or other conditions.
Liquidity risk
Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they fall due. The Company’s approach to managing liquidity risk is to take steps to ensure, to the extent possible, that it will have sufficient liquidity to meet liabilities when due. As of December 31, 2021, in addition to cash on hand of $125,157, the Company had $1,826,256 available to be drawn on its revolving and term credit facilities. Each of the Company’s revolving credit facilities contain covenants that may limit amounts available to be drawn.
24.Financial instruments (continued)
(c)Risk management (continued)
Liquidity risk (continued)
The Company’s liabilities mature as follows: 
Due less
than 1 year		Due 2 to 3
years		Due 4 to 5
years		Due after
5 years		Total
Long-term debt obligations$834,645 $500,070 $1,217,235 $3,671,384 $6,223,334 
Interest on long-term debt196,824 348,479 297,461 1,004,448 1,847,212 
Purchase obligations614,024 — — — 614,024 
Environmental obligation12,751 23,876 1,066 19,474 57,167 
Advances in aid of construction1,706 — — 80,874 82,580 
Derivative financial instruments:
Cross-currency swap27,936 23,115 2,604 1,888 55,543 
Interest rate swaps2,145 2,141 1,335 1,394 7,015 
Energy derivative and commodity contracts8,489 20,148 16,517 17,826 62,980 
Contract adjustment payments on Green Equity Units75,555 112,025 — — 187,580 
Other obligations66,916 4,473 4,427 260,111 335,927 
Total obligations$1,840,991 $1,034,327 $1,540,645 $5,057,399 $9,473,362