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Long-term investments (Tables) | 12 Months Ended
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Dec. 31, 2023
Disclosure Long Term Investments And Notes Receivable [Abstract] |
Schedule of Long-term Investments | Long-term investments consist of the following:
| December 31, 2023 |  | December 31, 2022
Long-term investments carried at fair value |  |  |
Atlantica (a) | $ | 1,052,703 |  |  | $ | 1,268,140 |
Atlantica Yield Energy Solutions Canada Inc. (b) | 61,064 |  |  | 74,083 |
Other | 1,962 |  |  | 1,984 |
| $ | 1,115,729 |  |  | $ | 1,344,207 |
Other long-term investments |  |  |
Equity-method investees (c) | $ | 456,393 |  |  | $ | 381,802 |
Development loans receivable from equity-method investees (d) | 158,110 |  |  | 52,923 |
San Antonio Water System and other (e) | 27,417 |  |  | 27,600 |
| $ | 641,920 |  |  | $ | 462,325 |
Schedule of Income from Long-term Investments | Fair value change, income (loss) and impairment expense related to long-term investments from the years ended December 31 is as follows:
|  |  | Year ended December 31,
|  |  |  |  | 2023 |  | 2022
Fair value loss on investments carried at fair value |  |  |  |  |  |  |
Atlantica |  |  |  |  | $ | (215,437) |  |  | $ | (482,774) |
Atlantica Yield Energy Solutions Canada Inc. |  |  |  |  | (14,684) |  |  | (16,018) |
Other |  |  |  |  | 133 |  |  | (333) |
|  |  |  |  | $ | (229,988) |  |  | $ | (499,125) |
Dividend and interest income from investments carried at fair value |  |  |  |  |  |  |
Atlantica |  |  |  |  | $ | 87,154 |  |  | $ | 86,664 |
Atlantica Yield Energy Solutions Canada Inc. |  |  |  |  | 16,604 |  |  | 20,443 |
Other |  |  |  |  | 49 |  |  | 36 |
|  |  |  |  | $ | 103,807 |  |  | $ | 107,143 |
Other long-term investments |  |  |  |  |  |  |
Equity method loss (c) |  |  |  |  | $ | (5,936) |  |  | $ | (21,416) |
Impairment of equity-method investee (c) |  |  |  |  | — |  |  | (75,910) |
Interest and other income |  |  |  |  | 7,143 |  |  | 5,923 |
|  |  |  |  | $ | 1,207 |  |  | $ | (91,403) |
Fair value change, income (loss) and impairment expense related to long-term investments |  |  |  |  | $ | (124,974) |  |  | $ | (483,385) |
8.Long-term investments (continued) (a)Investment in Atlantica Liberty (AY Holdings) B.V. (“AY Holdings”), an entity controlled and consolidated by AQN, has a share ownership in Atlantica Sustainable Infrastructure PLC (“Atlantica”) of approxim ately 42% (2022 - 42%). AQN has the flexibility, subject to certain conditions, to increase its ownership of Atlantic a up to 48.5%. The total cost for the Atlantica shares as of December 31, 2023 is $1,167,444 (2022 - $1,167,444). The Company has elected the fair value option under ASC 825, Financial Instruments to account for its investment in Atlantica, with changes in fair value reflected in the consolidated statements of operations. (b)Investment in Atlantica Yield Energy Solutions Canada Inc. AQN and Atlantica own Atlantica Yield Energy Solutions Canada Inc. (“AYES Canada”), a vehicle to channel co-investment opportunities in which Atlantica holds the majority of voting rights. AYES Canada invested in Windlectric Inc. (“Windlectric”). The investment by AYES Canada in Windlectric is presented as a non-controlling interest held by a related party. AYES Canada is considered to be a VIE based on the disproportionate voting and economic interests of the shareholders. Atlantica is considered to be the primary beneficiary of AYES Canada. Accordingly, AQN's investment in AYES Canada is considered an equity-method investment. Under the AYES Canada shareholders agreement, AQN has the option to exchange approxima tely 3,500,000 shares of AYES Canada into ordinary shares of Atlantica on a one-for-one basis, subject to certain conditions. Consistent with the treatment of the Atlantica shares, the Company has elected the fair value option under ASC 825, Financial Instruments to account for its investment in AYES Canada, with changes in fair value reflected in the consolidated statements of operations. As of December 31, 2023, the Company's maximum exposure to loss is $61,064 (2022 - $74,083), which represents the fair value of the investment. (c)Equity-method investees The Renewable Energy Group has non-controlling interests in operating renewable energy facilities and projects under construction with a total carrying value of $343,712 (2022 - $310,103). The Regulated Services Group has non-controlling interest of $112,180 (2022 - $56,199) in a power transmission line project under construction and other non-regulated operating entities owned by its utilities. The Liberty Development JV Inc. platform for non-regulated renewable energy, water and other sectors has a carrying value of $501 and (2022 - $15,500) is reported under Corporate. Operating entities: The Company has interests in the operating entities listed below. The Company is not considered the primary beneficiary as the two partners have joint control and all key decisions must be unanimous. As such, the Company accounts for its interests using the eq uity method.
| Economic interest |  | Capacity
Texas Coastal Wind Facilities | 51 | % |  | 861 MW
Blue Hill Wind Facility | 20 | % |  | 175 MW
Red Lily Wind Facility | 75 | % |  | 26.4 MW
Val-Eo Wind Facility | 50 | % |  | 24 MW
During 2021, the Company acquired a 51% interest in four wind facilities located in Texas (“Texas Coastal Wind Facilities”) for $344,883. All facilities achieved commercial operations in 2021. During the fourth quarter of 2022, the Company concluded that primarily as a result of continued challenges with congestion at the facilities, the carrying value of the interest in the Texas Coastal Wind Facilities was other-than-temporarily impaired. Accordingly, the Company performed a fair value analysis based on the income approach and recorded an impairment charge of $75,910 to reduce the carrying value of its equity investment in the Texas Coastal Wind Facilities from $282,726 to $206,816. Changes in assumptions of revenue forecasts, driven by expected production, basis difference and resulting spot prices, projected operating and capital expenditures would affect the estimated fair value. 8.Long-term investments (continued) (c)Equity-method investees (continued) As at December 31, 2023, the Company has issued $113,630 (2022 - $113,630) in letters of credit and guarantees of performance obligations under energy purchase agreements and decommissioning obligations on behalf of the Texas Coastal Wind Facilities. Development: Pursuant to an agreement between AQN and funds managed by the Infrastructure and Power strategy of Ares Management, LLC (“Ares”), in November 2021 Ares became AQN’s new partner in its non-regulated development platform for renewable energy, water and other sectors as both parties contributed cash or assets of $19,688 to Liberty Development JV Inc. The Company is not considered the primary beneficiary as the two partners have joint control and all key decisions must be unanimous. As such, the Company accounts for its interests using the eq uity method. On July 5, 2023, the Company provided a $35,000 non-interest-bearing loan to Liberty Development JV Inc. The joint venture used these funds to return equity to its shareholders through which the Company received $17,500. Further, the Company recognized an impairment loss on its note receivable of $18,911 as it no longer expects to pursue development under this joint venture arrangement and the development fees are no longer expected to be realized. The impairment is recorded within asset impairment charge in the consolidated statements of operations. Subsequent to year-end, on January 4, 2024, the Company purchased Ares’ 50% interest in Liberty Development JV Inc. and Liberty Development Energy Solutions B.V. Construction: The Renewable Energy Group has 50% equi ty interests in several wind and solar power electric construction projects. AQN and Ares have formed Liberty Construction (US) JV LLC (“Liberty Construction JV”) to jointly construct projects under the Renewable Energy Group. During the year, the Company contributed several projects to joint entities. The Company holds an option to acquire the remaining interest in most construction projects at a pre-agreed price. The Company is not considered the primary beneficiary as the partners have joint control and all key decisions must be unanimous. As such, the Company accounts for its interests using the eq uity method. Changes in the carrying value of equity method investees were as follows:
| 2023 |  | 2022
Carrying value, January 1 | $ | 381,802 |  |  | $ | 433,850 |
Additional investments | 91,205 |  |  | 110,441 |
Net loss attributable to AQN | (5,936) |  |  | (21,416) |
OCI attributable to AQN (a) | 7,693 |  |  | (67,110) |
Dividend received | (4,600) |  |  | (1,183) |
Impairment | — |  |  | (75,910) |
Other | (13,771) |  |  | 3,130 |
Carrying value, December 31 | $ | 456,393 |  |  | $ | 381,802 |
(a) OCI represents the Company’s proportion of the change in fair value, recorded in OCI at the investee level, on energy derivative financial instruments designated as a cash flow hedge 8.Long-term investments (continued) (c)Equity-method investees (continued) Summarized combined information for AQN's equity method investees as of December 31 is as follows:
| 2023 |  | 2022
Total assets | $ | 3,235,474 |  |  | $ | 2,740,132 |
Total liabilities | 1,962,115 |  | 1,507,079
Net assets | 1,273,359 |  | 1,233,053
AQN's ownership interest in the entities | 388,993 |  | 332,663
Difference between investment carrying amount and underlying equity in net assets(a) | 67,400 |  | 49,139
Total carrying value | $ | 456,393 |  |  | $ | 381,802 |
(a) The difference between the investment carrying amount and the underlying equity in net assets relates primarily to interest capitalized while the projects are under construction, the fair value of guarantees provided by the Company in regards to the investments, development fees and transaction costs. Summarized combined information for AQN's equity method investees for the year ended December 31 (presented at 100%) is as follows:
| 2023 |  | 2022
Revenue | $ | 111,446 |  |  | $ | 65,025 |
Net loss | $ | (3,633) |  |  | $ | (31,070) |
OCI (a) | $ | 12,026 |  |  | $ | (130,729) |
Net loss attributable to AQN | $ | (5,936) |  |  | $ | (21,416) |
OCI attributable to AQN (a) | $ | 7,693 |  |  | $ | (67,110) |
(a) OCI represents the Company’s proportion of the change in fair value, recorded in OCI at the investee level, on energy derivative financial instruments designated as a cash flow hedge Except for Liberty Global Energy Solutions B.V. (formerly Abengoa-Algonquin Global Energy Solutions B.V.) (“Liberty Global Energy Solutions”), Liberty Development JV Inc. and all construction 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 of December 31, 2023, the Company has issued letters of credit and guarantees of performance obligations: under a security of performance for a development opportunity; wind turbine or solar panel supply agreements; engineering, procurement, and construction agreements; interconnection agreements; energy purchase agreements; renewable energy credit agreements; and construction loan agreements. The fair value of the support provided recorded as of December 31, 2023 amounts to $12,666 (2022 - $8,824). 8.Long-term investments (continued) (c)Equity-method investees (continued) Summarized combined information for AQN's VIEs as of December 31 is as follows:
| 2023 |  | 2022
AQN's maximum exposure in regards to VIEs |  |  |
Carrying amount | $ | 179,728 |  |  | $ | 122,752 |
Development loans receivable (d) | 158,110 |  |  | 52,923 |
Indirect guarantees of debt on behalf of VIEs | 740,866 |  |  | 436,790 |
Other indirect guarantees and commitments on behalf of VIEs | 303,641 |  |  | 221,433 |
| $ | 1,382,345 |  |  | $ | 833,898 |
The commitments are presented on a gross basis assuming no recoverable value in the assets of the VIEs. The majority of the amounts committed on behalf of VIEs in the above relate to wind turbine or solar panel supply agreements as well as engineering, procurement, and construction agreements. (d)Development loans receivable from equity investees The Renewable Energy Group 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 (in the form of letters of credit, escrowed cash, guarantees or indemnities) in amounts necessary for the continued development and construction of the equity investees' projects. The loans generally mature on the twelfth anniversary of the development agreement or commercial operation date. (e)San Antonio Water System and other The Company does not have significant influence over San Antonio Water System investments. It is accounted for using the cost method and as at December 31, 2023, it is recorded at the cost of $25,634 (2022 - $25,634).
Summary of Operating Entities | Company accounts for its interests using the eq uity method.
| Economic interest |  | Capacity
Texas Coastal Wind Facilities | 51 | % |  | 861 MW
Blue Hill Wind Facility | 20 | % |  | 175 MW
Red Lily Wind Facility | 75 | % |  | 26.4 MW
Val-Eo Wind Facility | 50 | % |  | 24 MW
Equity Method Investments | Changes in the carrying value of equity method investees were as follows:
| 2023 |  | 2022
Carrying value, January 1 | $ | 381,802 |  |  | $ | 433,850 |
Additional investments | 91,205 |  |  | 110,441 |
Net loss attributable to AQN | (5,936) |  |  | (21,416) |
OCI attributable to AQN (a) | 7,693 |  |  | (67,110) |
Dividend received | (4,600) |  |  | (1,183) |
Impairment | — |  |  | (75,910) |
Other | (13,771) |  |  | 3,130 |
Carrying value, December 31 | $ | 456,393 |  |  | $ | 381,802 |
(a) OCI represents the Company’s proportion of the change in fair value, recorded in OCI at the investee level, on energy derivative financial instruments designated as a cash flow hedge Summarized combined information for AQN's equity method investees for the year ended December 31 (presented at 100%) is as follows:
| 2023 |  | 2022
Revenue | $ | 111,446 |  |  | $ | 65,025 |
Net loss | $ | (3,633) |  |  | $ | (31,070) |
OCI (a) | $ | 12,026 |  |  | $ | (130,729) |
Net loss attributable to AQN | $ | (5,936) |  |  | $ | (21,416) |
OCI attributable to AQN (a) | $ | 7,693 |  |  | $ | (67,110) |
(a) OCI represents the Company’s proportion of the change in fair value, recorded in OCI at the investee level, on energy derivative financial instruments designated as a cash flow hedge
Schedule of Investments in Partnerships and Joint Ventures | Summarized combined information for AQN's equity method investees as of December 31 is as follows:
| 2023 |  | 2022
Total assets | $ | 3,235,474 |  |  | $ | 2,740,132 |
Total liabilities | 1,962,115 |  | 1,507,079
Net assets | 1,273,359 |  | 1,233,053
AQN's ownership interest in the entities | 388,993 |  | 332,663
Difference between investment carrying amount and underlying equity in net assets(a) | 67,400 |  | 49,139
Total carrying value | $ | 456,393 |  |  | $ | 381,802 |
(a) The difference between the investment carrying amount and the underlying equity in net assets relates primarily to interest capitalized while the projects are under construction, the fair value of guarantees provided by the Company in regards to the investments, development fees and transaction costs.
Schedule of Variable Interest Entities | Summarized combined information for AQN's VIEs as of December 31 is as follows:
| 2023 |  | 2022
AQN's maximum exposure in regards to VIEs |  |  |
Carrying amount | $ | 179,728 |  |  | $ | 122,752 |
Development loans receivable (d) | 158,110 |  |  | 52,923 |
Indirect guarantees of debt on behalf of VIEs | 740,866 |  |  | 436,790 |
Other indirect guarantees and commitments on behalf of VIEs | 303,641 |  |  | 221,433 |
| $ | 1,382,345 |  |  | $ | 833,898 |

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- Definition Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 3 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481203/810-10-50-3 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 5A -Publisher FASB -URI https://asc.fasb.org//1943274/2147481203/810-10-50-5A Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 9 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481203/810-10-50-9 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 4 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481203/810-10-50-4 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 810 -SubTopic 10 -Section 50 -Paragraph 6 -Publisher FASB -URI https://asc.fasb.org//1943274/2147481203/810-10-50-6 + Details
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