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Clearway Energy (CWEN -4.22%)
This fall 2023 Earnings Call
Feb 22, 2024, 8:00 a.m. ET
Contents:
- Prepared Remarks
- Questions and Answers
- Call Participants
Prepared Remarks:
Good day, and thanks for standing by. Welcome to the Clearway Energy, Inc. fourth-quarter 2023 earnings name. At this time, all individuals are on a listen-only mode.
After the audio system’ presentation, there can be a question-and-answer session. [Operator instructions] Please be suggested that at present’s convention is being recorded. I’d now like at hand the convention over to your speaker at present, Chris Sotos, president and CEO of Clearway Energy, Inc. Please go forward.
Chris Sotos — Director, Investor Relations
Good morning. Let me first thanks for taking the time to hitch Clearway Energy, Inc.’s fourth-quarter name. Joining me this morning are Akil Marsh, director of investor relations; Sarah Rubenstein, CFO; and Craig Cornelius, president and CEO of Clearway Energy Group, our sponsor. Craig can be accessible for the Q&A portion of our presentation.
Before we start, I’d prefer to rapidly be aware that at present’s dialogue will comprise forward-looking statements, that are primarily based on the assumptions that we consider to be cheap as of this date. Actual outcomes might differ materially. Please evaluate the protected harbor in at present’s presentation in addition to the danger elements in our SEC filings. In addition, we’ll confer with each GAAP and non-GAAP monetary measures.
For data concerning our non-GAAP monetary measures and reconciliations to probably the most straight comparable GAAP measures, please confer with at present’s presentation. Turning to Page 4. Despite a troublesome yr from a renewable useful resource perspective, CWEN’s 2023 CAFD got here inside its revised steering vary of $330 million to $360 million at $342 million, with the fourth-quarter CAFD of $53 million. Commercial operations had been additionally achieved on Daggett 2 and Texas Solar Nova 1 within the fourth quarter, which can assist drive CAFD in 2024 and past.
CWEN additionally dedicated to roughly $215 million of recent company capital deployments in 2023, a median five-year annual CAFD yield of roughly 10%, whereas additional diversifying CWEN’s fleet. Looking to 2024, we’re saying a dividend enhance of 1.7% for the quarter, bringing our quarterly dividend to $0.4033 per share or $1.6132 on an annualized foundation, with focused group development of seven% for the total yr of 2024. Clearway can also be reaffirming a CAFD steering of $395 million for 2024, with CAFD outcomes consistent with expectations thus far. Clearway continues to execute on its long-term development targets of $2.15 of CAFD per share, and is reaffirming our means to realize the higher vary of 5% to eight% of development by means of 2026 while not having to boost exterior capital.
As we transition to give attention to development past 2026, we proceed to handle our RA contracting positions within the 2026 to 2030 time-frame, pursuing each worth and certainty to drive worth for shareholders. In addition, our sponsor’s 29-gigawatt renewable pipeline continues to develop, with roughly 7 gigawatts of late-stage tasks, focusing on CODs over the following 4 years. Clearway will proceed to execute towards its 2026 $2.15 CAFD per share goal throughout ’24, whereas additionally specializing in offering additional development visibility past this CAFD aim within the years to come back. Please flip to Page 5.
Page 5 offers a abstract of Clearway’s over $215 million of dedicated development investments introduced in 2023, a few of that are already operational with respect to Texas Solar Nova 1, with the rest to come back on-line throughout 2024. These investments are anticipated to generate five-year annual common CAFD yield of roughly 10%, underpinned by long-term contracts of 15 years and over. The belongings comprised various technology with roughly 620 megawatts of wind and photo voltaic technology added and roughly 150 megawatts of storage. These belongings are funded with the surplus thermal proceeds and continued Clearway’s execution for the $2.15 CAFD per share aim when these proceeds are totally developed.
Please flip to Page 6. Slide 6 demonstrates our path to $2.15 per share, with the remaining roughly $200 million of extra thermal proceeds to be deployed in roughly 10% five-year annual common CAFD yield. These remaining belongings ought to hit their business operation dates throughout 2025. As we transfer from ending the deployment of our extra thermal proceeds into development investments, we glance to further sources of development past 2026.
Our first avenue development is further drops from our sponsor. We will present further coloration on potential drops on the following slide, and later this yr, we might anticipate offering estimates on capital deployment and CAFD yields for brand spanking new tasks past these recognized right here to be used of the thermal proceeds. Additional avenue of development is useful resource adequacy awards and pricing in 2027 and past. As highlighted final name, we proceed so as to add size to our RA capability contracts as sturdy pricing to drive worth.
Lastly, third-party M&A is all the time a spotlight. And whereas attributable to capital market volatility in 2023, we did not execute on any third-party M&A. Clearway stays targeted on this market in 2024. Turning to Page 7.
In order to supply further coloration round alternatives from our sponsor’s late-stage pipeline for the 2026 to 2027 time-frame, we thought it was acceptable to supply a high-level abstract of additional potential drop-down exercise for these years. Our sponsor is engaged on over 4 gigawatts of fleet optimization and enlargement alternatives with CODs in 2026 and 2027, that are effectively diversified between wind repowerings, further new wind belongings, photo voltaic storage hybrid belongings, and stand-alone storage tasks. These investments are extremely diversified additionally by offtaker and market, and can profit from the power to deploy home content material and spend money on vitality communities underneath the IRA, thereby delivering competitively priced vitality to clients, whereas assembly return necessities and lowering danger to Clearway’s general fleet. In abstract, whereas it is too early to supply particulars when it comes to potential capital deployment return ranges, buyers will be assured there is a sturdy pipeline of development at our sponsor that ought to add vital belongings to Clearway Energy, Inc.’s portfolio by means of the center of the last decade.
As all the time, we’ll increase capital prudently, with a give attention to environment friendly execution to optimize accretion. Now, I’ll flip it over to Sarah.
Sarah Rubenstein — Chief Financial Officer
Thanks, Chris. On Slide 9, we offer an summary of our monetary outcomes, which incorporates full-year adjusted EBITDA of $1.058 billion and CAFD of $342 million, which was throughout the beforehand supplied revised steering vary of $330 million to $360 million. Fourth-quarter adjusted EBITDA was $201 million, and CAFD was $53 million, each per revised inner expectations up to date in August of 2023 to mirror renewable useful resource impression. Our fourth-quarter outcomes mirrored sturdy typical availability and the advantage of timing of upkeep, capital expenditures, and different gadgets, offset partially by decrease wind useful resource, which was a development noticed all through the trade within the fourth quarter.
Despite the challenges impacting 2023 full-year CAFD, the corporate stays effectively positioned for development with a powerful steadiness sheet, professional forma credit score metrics consistent with goal rankings, and 99% of its consolidated long-term debt with a set curiosity value. In addition, the corporate’s earliest company debt maturity is 2028, and there continues to be no exterior capital must fund the road of sight development to fulfill our dividend per share development goal by means of 2026. The remaining thermal sale proceeds can be found to fund dedicated 2023 investments and supplied tasks which can be anticipated to facilitate achievement of line of sight CAFD per share of $2.15. We are reiterating our 2024 CAFD steering at $395 million.
Among different elements, our 2024 CAFD steering continues to consider present P50 median manufacturing estimates, beforehand disclosed expectations for upkeep capital expenditures in 2024, and timing of dedicated development investments primarily based on estimated undertaking CODs, however excludes CAFD from dedicated development investments past 2024. Our professional forma CAFD outlook stays at $415 million, which, together with anticipated development investments utilizing the remaining thermal sale proceeds, helps our potential line of sight CAFD and dividend per share development goal. Now, I’ll flip it again to Chris for closing remarks.
Chris Sotos — Director, Investor Relations
Thanks, Sarah. Turning to Slide 11. Our objectives for 2024 are easy. First, to give attention to supply of our 2024 CAFD steering whereas attaining our 7% DPS development in 2024.
In order to do that, we’ll goal to enhance availability from the capex investments we’re making in a number of of our websites. Second, we proceed to execute towards our $2.15 of CAFD per share goal as soon as all the surplus thermal proceeds are deployed and totally operational whereas adhering to our underwriting requirements. Third, we wish to start the transfer in dialog round development to past 2026 by means of a mix of further RA contracting, offering visibility on additional drop-downs in 2026, 2027 interval as we progress by means of 2024, further enhancements within the current fleet by means of repowerings, and eventually, an eye fixed to proceed to pursue M&A at our disciplined capital targets. Operator, please open the road for questions.
Questions & Answers:
Operator
Thank you. [Operator instructions] Please stand by whereas we compile the Q&A roster. Our first query comes from the road of Michael Lonegan with Evercore ISI. Our line is now open.
Michael Lonegan — Evercore ISI — Analyst
Yeah, hello, good morning. Thanks for taking my query. So, you highlighted the shift within the timing of upkeep capex. It appears to be like like you might spend any further upkeep within the third quarter from the fourth quarter, between the 2 quarters.
You got here in at $22 million for the yr versus steering for $35 million, but you reiterated your upkeep capex forecast for 2024. Just questioning for those who might share extra element about this?
Chris Sotos — Director, Investor Relations
Sure. Probably not going to get into loads of particulars. Just as loads of these numbers are immaterial to general steering, and I’ll flip it over to Sarah when it comes to any additional readability. But for us, clearly, 2023 was a disappointing yr from technology general.
So, upkeep capex was not wanted as a lot attributable to decrease technology. So, I believe from our perspective, whereas we sort of gave steering for 2024 upkeep capex, to your level, we actually look comprehensively at what occurred in ’23. Some of the provision shortfalls we noticed for them the place we are able to sort of spend these {dollars} to enhance availability in ’24 to maneuver on. So, I believe these are actually sort of loads of the factors round upkeep capex.
It’s not a query of what we thought it was. Unfortunately, because of the technology sort of being decrease than we had focused, upkeep capex can also be thereby decrease and actually sort of placing these two collectively. But, Sarah, every other particulars?
Sarah Rubenstein — Chief Financial Officer
No, I believe you have lined it. I imply, perhaps simply to spotlight the $395 million of CAFD that we’re guiding to in 2024 consists of any quantity that we might probably have determined to not do in 2023 and to do in 2024. So, there’s nothing that we now have to fret about revising 2024 for. And to Chris’ level, I believe general, the approaching in decrease than finances for upkeep capex for 2023 actually simply displays our outcomes for 2023.
Michael Lonegan — Evercore ISI — Analyst
Great. Thank you. And then secondly for me, you reiterated that you simply nonetheless do not want exterior capital by means of 2026. You’ve been speaking about the way you’re focusing on 4 to 4.5 instances company debt to company EBITDA.
Just questioning, when you deploy all of the thermal proceeds, presumably, you will organically delever the steadiness sheet a bit of bit. Just questioning for those who might say the place you count on to be inside that leverage vary now. And for those who’re on the low finish, would you take into account deploying extra capital to focus on the midpoint, as an example?
Chris Sotos — Director, Investor Relations
Sure. I believe a few questions in there. So, hopefully, I’ll unpack it. The first level is it is not as if that we’re really going to relaxation on our laurels for $2.15 by 2026.
That’s simply the place the quantity falls out, given the exterior — given the capital from thermal. So, we really hope to do higher. But proper now, as we management a line of sight on only for some extent of readability. I believe as we take into consideration the general debt, there’s about $2.125 billion of bonds.
And as soon as we deploy all of the thermal proceeds on a run charge foundation, that is about $435 million of CAFD. You add again company curiosity of about, name it, $90 billion to $95 billion, you get about 4 instances, name it, company debt to company EBITDA. So, I believe to your query, there must be extra leverage capability to be truthful. I do not wish to pin the whole lot on one credit score stat.
That’s the best one we use to translate. Yeah, we’re in an 8% rate of interest setting, clearly, different issues transfer round. So, I believe to your query, we do assume we might be, as soon as all of the thermal capital is deployed, on the low finish of our goal 4 to 4.5. But additionally to be a bit of bit truthful to your query, there’s — sure, businesses use various different metrics.
It’s simply the only one to sort of stroll by means of. So, hopefully, that answered your query.
Michael Lonegan — Evercore ISI — Analyst
Yes, thanks. Appreciate the time.
Operator
Thank you. Our subsequent query comes from the road of Mark Jarvi with CIBC. Your line is now open.
Mark Jarvi — CIBC World Markets — Analyst
Yes. Good morning, everybody. Maybe simply coming again to the feedback round M&A, third-party, M&A transaction in 2023, however may be extra energetic in ’24. How would you type of body the setting proper now? It appeared prefer it was a little bit of a purchaser’s market final yr.
Anecdotally, we’re listening to it from another friends that issues are beginning to choose up when it comes to exercise ranges, a bit extra competitors. How would you body it proper now, Chris?
Chris Sotos — Director, Investor Relations
Sure. I believe from our view, 2023, I believe — due to that volatility, I imply, we’re effectively conscious sort of the place treasuries moved and in addition our inventory within the fourth quarter. It’s simply very troublesome for us to be ok with underwriting throughout that yr, on condition that volatility and understanding we might get accretion in being disciplined. So, for us and in addition I believe loads of sellers had been sort of ready to see the place these markets got here down to have the ability to transfer ahead with gross sales.
And I believe whereas, clearly, sort of the previous, name it, month, we most likely had 40-ish foundation factors of 10-year treasury volatility. That’s clearly a lot lower than we’re all experiencing within the fourth quarter of final yr. So, from my perspective, I believe the general goal for M&A is hopefully extra sturdy in ’24 than it was in ’23. And importantly, our means to execute.
I simply assume we had very unstable markets, which made sort of execution and underwriting very troublesome in ’23.
Mark Jarvi — CIBC World Markets — Analyst
And then how would you consider funding any M&A on prime of the RA current commitments?
Chris Sotos — Director, Investor Relations
Yeah. Depending on what dimension of it’s, we clearly have an unfunded revolver, which we might sort of use the warehouse first. And I believe to the earlier query, we all the time sort of use extra money. Whenever we borrow, for those who take a look at our extra money to mainly pay again first, then any extra debt capability, which was the earlier query, after which fairness final.
So, for us, relying on the place capital markets are on the time and dimension of the acquisition, we clearly have vital revolver capability, so we’re not compelled to go to the market at a sure dimension.
Mark Jarvi — CIBC World Markets — Analyst
Understood. And then as you look by means of the following three to 5 years, I do know in some unspecified time in the future, you guys will give us some extra readability on the place you assume the natural development or the drop-down development will come from. But moreover — is there anything on the CAFD profile associated to tax fairness partnerships? Are there any like notable flips developing, potential buyouts, something that type of adjustments the CAFD profile of the prevailing belongings over the following three to 5 years?
Chris Sotos — Director, Investor Relations
Those come up pretty frequently, like — however these, I would not say, are materials drivers of a paradigm-changing quantity. Like in our disclosure, you see us sort of do a kind of a yr. In normal, they are typically fairly small. So, to your query, these flips do come up, however they have a tendency to not be materials drivers of CAFD in the long run.
Mark Jarvi — CIBC World Markets — Analyst
OK. And final query for me. I simply — clearly, we noticed PPA costs rise during the last couple of years, return goals moved larger, together with our personal CAFD targets. Assuming that charges plateau or go decrease right here, simply up to date you when it comes to the place you assume returns are going to development over the following 12 months right here.
How are you seeing that? Maybe there’s perhaps at CEG stage when it comes to the place you are seeing PPA costs clear and most not too long ago when it comes to return potential?
Chris Sotos — Director, Investor Relations
Craig, for those who do not thoughts, communicate for CEG.
Craig Cornelius — President and Chief Executive Officer, Clearway Energy Group
Sure. I believe because the weighted common value of capital for sponsors and undertaking homeowners throughout the trade rose over fiscal yr 2023, the broad setting of trade individuals factored that elevated weighted common value of capital into the costs they supplied clients on new contracts. Those costs additionally took into consideration the gear pricing setting that, after the pandemic and different adjustments in commerce coverage, turned extra elevated. And in at present’s market, we see PPA costs remaining above the place they had been for comparable sources earlier than the beginning of 2023.
And we and different opponents, I believe, are discovering that clients nonetheless see worth in these elevated PPA costs. In specific, for purchasers who both as load serving entities or as end-use clients see rising load and worth the low emissions profile of the merchandise that we’re promoting. So, we do not foresee significant declines in PPA costs from the place they’re at present. And equally, as a result of it is a aggressive setting, we do not see an expectation for dramatic will increase in returns which can be produced for tasks, however we at the moment are in a position to assist larger inner charges of return and better CAFD yields on the brand new tasks that we’re creating, which take note of the elevated value of capital for the trade typically.
Mark Jarvi — CIBC World Markets — Analyst
Got it. So, any decline in PPA costs would actually be extra reflective of capex developments? And I assume, financing prices and never a lot a sacrifice in IRR goals?
Craig Cornelius — President and Chief Executive Officer, Clearway Energy Group
No, I do not assume so. I imply, I believe we have sought to be disciplined. We have to ship accretive development for Clearway Energy, Inc. And I believe, typically, the trade’s largest undertaking sponsors have entered an period the place we’re all being cautious in the best way tasks are configured and created.
And I believe the most important clients, having gone by means of all of the disruption of the final three or 4 years, more and more worth partaking with undertaking sponsors who can ship tasks with certainty.
Mark Jarvi — CIBC World Markets — Analyst
Got it. Thanks, Craig. Thanks, Chris.
Operator
Thank you. Our subsequent query comes from the road of Justin Clare with ROTH MKM. Your line is now open.
Justin Clare — ROTH MKM — Analyst
Yeah. Thanks for taking our questions right here. So, I used to be questioning for those who might perhaps simply replace us on the progress you make on contracting the open typical capability in 2027. Is it — might we see within the close to time period right here, some smaller quantities of that capability contracted? Or is it extra doubtless that one thing occurs in the summertime of this yr? And then past that, I used to be questioning for those who might perhaps simply discuss concerning the different levers that you simply’re targeted on for extending DPS development into 2027? I do know acquisitions is part of it, however anything significant that we must be contemplating?
Chris Sotos — Director, Investor Relations
Sure. So, for the primary a part of your query, like do not get me mistaken, the most important procurement initiative is sort of you bid as a part of the RFP processes on the utilities and the grid and the like, actually in sort of, name it, late first quarter, early second quarter, and you discover out about these awards, name it, third quarter once they’re binding late third quarter, perhaps early fourth. So, I believe to your level, when it comes to an actual paradigm change when it comes to very — way more vital capability, that is while you’d see it. That being mentioned, we’re continuously in communications with a wide range of counterparties on the smaller facet to attempt to transfer these numbers up at costs that we predict are good as effectively.
So, to your query, for those who had been to say, “Hey, Chris, when do we see a multiple 100-megawatt move?” That’s most likely way more as a part of that enormous procurement course of. That being mentioned, might you see smaller strikes within the interim? Yes. And then your second query about extending the opposite sources of development to ’27, to not decrease, it truly is these three sources. RA is the large a part of it, given pricing that we’re seeing.
We hope it holds. And just like the query I simply answered, we’ll look to see what occurs within the RFP processes sort of the spring and summer time. M&A is clearly important in addition to the repowerings and additional drop-downs with the 2026 and ’27 COD. And as soon as once more, we hope to supply extra coloration on these as we progress by means of the yr, and we really feel higher about what capital these merchandise are going to take, so on and so forth.
It’s a bit of bit early now to try this.
Justin Clare — ROTH MKM — Analyst
Got it. OK. Appreciate it. And then I did wish to ask concerning the non-recourse debt principal amortization schedule.
It appears to be like like the quantity in 2024 that’s anticipated moved up considerably, $1.7 billion. I believe final quarter, the expectation was $432 million. So, might you simply perhaps stroll us by means of the change there and assist us perceive that?
Chris Sotos — Director, Investor Relations
Let me get the schedule for a second.
Sarah Rubenstein — Chief Financial Officer
It’s the tasks underneath building.
Chris Sotos — Director, Investor Relations
Got it. Go forward, Sarah, why do not you simply reply.
Sarah Rubenstein — Chief Financial Officer
Yes. So, we had a number of tasks that we acquired. I believe you’ll be able to see Victory Pass and Arica is the most important piece of it, the 757, after which additionally the Rosie Class B. Those two quantities are for tasks underneath building.
And so, as soon as the development is accomplished, that can get changed by tax fairness, money fairness, extra everlasting financing. So, these maturities will go away on account of different proceeds from different financing preparations.
Justin Clare — ROTH MKM — Analyst
Got it.
Chris Sotos — Director, Investor Relations
The amortization on the prevailing undertaking debt is about the identical because it was earlier than. That’s actually simply as the 2 tasks transfer from building debt to everlasting financing.
Sarah Rubenstein — Chief Financial Officer
Yes, that is proper.
Justin Clare — ROTH MKM — Analyst
OK. Appreciate it. Thank you.
Operator
Thank you. Our subsequent query comes from the road of Noah Kaye with Oppenheimer & Company. Your line is now open. Noah Kaye with Oppenheimer & Company.
Noah Kaye — Oppenheimer and Company — Analyst
OK. Great. Yeah, they lower out for a second, so I simply wish to be sure that I’ve been known as on. Thank you for taking the questions.
I believe it goes a bit of bit to one of many earlier questions, however too quickly to speak about CAFD yield expectations for a few of these 2026, 2027 potential tasks? Any strategy to dimension that? And particularly, I do know one in every of your friends have talked about sort of the return expectations for repower. So, unsure for those who can parse that out for us a bit.
Chris Sotos — Director, Investor Relations
Yes. Be easy to your query, no. We assume it is too early. I believe as soon as once more, in case your query is, will it’s eight? Probably not.
But I believe for those who take a look at the place CAFD yield have moved — and I believe additionally you have seen that, hopefully, our sponsors have been supportive of transferring CAFD yields larger from the place we first thought they might be given the move-in treasuries that occurred. So, for those who look, I believe it was most likely August of 2022, we mainly indicated CAFD yield on a few of these drops can be about 8.5. And then we sort of moved them up in, I consider, it was the fourth quarter of ’22, moved them up additional in ’23. So, sure.
There’s a sense on that. Sizable they’ll transfer them to infinity. So, I believe for us, to not decrease your query, it truly is seeing the place the capital market is out at the moment and the place can we really feel snug underwriting. So, it’s too early to inform.
And I believe the tasks are a bit of bit too early stage presently to — all people be ok with the capital required and in addition what that value of capital may be.
Noah Kaye — Oppenheimer and Company — Analyst
Yes. It’s good to see that simply from a sponsor growth standpoint, I imply, the sort of amount of tasks for ’24 and ’25 appears to be like pretty constant quarter-to-quarter. I did discover what seems to be some shift of goal CODs ’26 into ’27. Anything we are able to perceive or learn into that? Does it communicate to IRA clarifications or sort of extra persistent in your connection bottlenecks, something like that? Maybe a Craig query.
Chris Sotos — Director, Investor Relations
Yes. Craig, for those who do not thoughts.
Craig Cornelius — President and Chief Executive Officer, Clearway Energy Group
Yeah. Yeah, perceptive query, Noah. Yeah. We — what that shift over ’26 to ’27 displays principally is deliberate for sure tasks to have the ability to make use of home content material options and conservatism in the best way that we’re planning these undertaking schedules, primarily based on when and the way the steering that is required for having the ability to finance these options would materialize.
But additionally simply forecasting of undertaking schedules in a means that we anticipate can be sturdy and in addition enabling a capitalization of the undertaking by CWEN underneath foreseeable monetary market circumstances. So, proper now, with respect to interconnection, we really feel fairly strong concerning the household of tasks that we’re advancing that underpin the core of that 2026, 2027 quantity for CWEN development enablement. We have in extra of 15 gigawatts price of late-stage interconnection queued positions and plenty of gigawatts price of high-voltage gear that we have secured to have the ability to assist the expansion there within the mid-decade. So, I believe we’re not ready the place we’re significantly involved about among the grid bottlenecks which have broadly impacted the trade to have the ability to assist development objectives for CWEN.
And as a substitute, proper now, as we’re prosecuting tasks for that mid-decade, are simply targeted on set tasks as much as maximize worth to assemble a portfolio that can be diversified and useful for CWEN and to set tasks up for building and funding schedules that present us with helpful flexibility for the way and when the tasks can be funded by CWEN.
Noah Kaye — Oppenheimer and Company — Analyst
Very useful, Craig. May I simply ask a fast follow-up to somebody who is aware of DC in addition to anyone on the planet. I simply wish to make clear whether or not or not you — the event entity remains to be sort of ready on finalization of home content material steering to make a few of these FIDs. And in that case, sort of while you’re pondering the steering may very well be revealed?
Craig Cornelius — President and Chief Executive Officer, Clearway Energy Group
I imply, I believe that we — it is a balancing act. As I believe you are alluding to, there are tasks that we now have deliberate for the — say, 2026 classic the place we might ideally prefer to allow the usage of further home content material options, that we predict can be conscious of U.S. coverage objectives and value-enhancing. But there are particular timetables that assist buyer wants that ultimately simply should be fulfilled.
So, what we do is we advise the workers of the varied businesses on the implications of the period of time it takes to problem steering for undertaking timetables that are not universally versatile within the trade. And assume it is understood by loads of the parents who should work by means of the coverage course of on home steering that we’re transferring by means of time home windows the place it might be useful for that clarification of home content material steering to be issued in the middle of the following two months if we wish to have the ability to catch the 2026 classic for a considerable fraction of the trade exercise. But for what we presently have deliberate for 2026, we now have locked in provide chain options that can permit these tasks to be accomplished in that timetable and are not counting on the issuance of that steering to have the ability to achieve this.
Noah Kaye — Oppenheimer and Company — Analyst
Very useful. Thank you.
Operator
Thank you. And I’m presently exhibiting no additional questions right now. I’d like at hand the decision again over to Chris Sotos for closing remarks.
Chris Sotos — Director, Investor Relations
Thank you. Once once more, I believe 2023 was a troublesome yr from a useful resource perspective, however we hope to sort of deliver issues again on observe in ’24 and see loads of progress over the course of the yr that we hope to have the ability to illustrate to you when it comes to driving CAFD ahead on a future foundation past ’26. So, I respect everybody’s endurance throughout ’23 and transferring on to ’24. Thank you, everybody.
Operator
[Operator signoff]
Call individuals:
Chris Sotos — Director, Investor Relations
Sarah Rubenstein — Chief Financial Officer
Michael Lonegan — Evercore ISI — Analyst
Mark Jarvi — CIBC World Markets — Analyst
Craig Cornelius — President and Chief Executive Officer, Clearway Energy Group
Justin Clare — ROTH MKM — Analyst
Noah Kaye — Oppenheimer and Company — Analyst
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