CWEN.A

The following discussion analyzes the Company’s historical financial condition and results of operations. As you read this discussion and analysis, refer to the Company’s consolidated financial statements to this Form 10-Q, which present the results of operations for the three and six months ended June 30, 2026 and 2025. Also refer to the Company’s 2025 Form 10-K, which includes detailed discussions of various items impacting the Company’s business, results of operations and financial condition. The discussion and analysis below has been organized as follows: •Executive Summary, including a description of the business and significant events that are important to understanding the results of operations and financial condition; •Results of operations, including an explanation of significant differences between the periods in the specific line items of the consolidated statements of operations; •Financial condition addressing liquidity position, sources and uses of cash, capital resources and requirements, commitments and off-balance sheet arrangements; •Known trends that may affect the Company’s results of operations and financial condition in the future; and •Critical accounting policies which are most important to both the portrayal of the Company’s financial condition and results of operations, and which require management’s most difficult, subjective or complex judgment. 36 Executive Summary Introduction and Overview Clearway Energy, Inc., together with its consolidated subsidiaries, or the Company, is a publicly-traded energy infrastructure investor with a focus on investments in clean energy and owner of modern, sustainable and long-term contracted assets across North America. The Company is sponsored by Clearway Energy Group LLC, or CEG. The Company is one of the largest owners of clean energy generation assets in the U.S. The Company’s portfolio comprises approximately 13.9 GW of gross capacity in 27 states, including approximately 11.1 GW of wind, solar and battery energy storage systems, or BESS, and approximately 2.8 GW of dispatchable combustion-based power generation assets included in the Flexible Generation segment that provide critical grid reliability services. Through this environmentally-sound, diversified and primarily contracted portfolio, the Company endeavors to provide its investors with stable and growing dividend income. The majority of the Company’s revenues are derived from long-term contractual arrangements for the output or capacity from these assets. The weighted average remaining contract duration of the Company’s Renewables & Storage segment offtake agreements was approximately 12 years as of June 30, 2026 based on CAFD. As of June 30, 2026, the Company’s operating assets are comprised of the following facilities: Capacity Percentage Rated Net Contract Facilities Ownership MW MW (a) Counterparty Expiration Flexible Generation Carlsbad 100 % 523 523 SDG&E 2038 El Segundo 100 % 546 546 Various 2027 - 2029 GenConn Devon 50 % 190 95 Connecticut Light & Power 2040 GenConn Middletown 50 % 190 95 Connecticut Light & Power 2041 Marsh Landing 100 % 820 820 Various 2026 - 2030 Walnut Creek 100 % 501 501 Various 2026 - 2027 Total Flexible Generation 2,770 2,580 Utility Scale Solar Agua Caliente 51 % 290 148 PG&E 2039 Alpine 100 % 66 66 PG&E 2033 Arica (b) 40 % 263 105 Various 2036 - 2041 Avenal 50 % 45 23 PG&E 2031 Buckthorn Solar (b) 100 % 150 150 City of Georgetown, TX 2043 Cardinal Portfolio JV (c) 50 % 95 48 Various 2035 - 2041 Catalina (d) —% (d) 109 109 SDG&E 2038 Conetoe (c) 100 % 80 80 Corning Inc. and Lockheed Martin 2040 CVSR 100 % 250 250 PG&E 2038 Daggett 2 (b) 25 % 182 46 Various 2038 Daggett 3 (b) 25 % 300 75 Various 2033 - 2038 Desert Sunlight 250 25 % 250 63 SCE 2034 Desert Sunlight 300 25 % 300 75 PG&E 2039 Enterprise 100 % 80 80 PacifiCorp 2036 Escalante I 100 % 80 80 PacifiCorp 2036 Escalante II 100 % 80 80 PacifiCorp 2036 Escalante III 100 % 80 80 PacifiCorp 2036 Granite Mountain East 100 % 80 80 PacifiCorp 2036 Granite Mountain West 100 % 50 50 PacifiCorp 2036 Iron Springs 100 % 80 80 PacifiCorp 2036 Luna Valley (b) 100 % 200 200 Various 2040 - 2045 Mililani I (b) 50 % 39 20 Hawaiian Electric Company 2042 Oahu Solar (b) 100 % 61 61 Hawaiian Electric Company 2041 Pine Forest (b) 50 % 300 150 Various 2040 - 2045 37 Rosamond Central (b) 50 % 192 96 Various 2038 - 2047 Rosamond South I (b) 50 % 140 70 Various 2040 Shoreham (b) (c) 100 % 25 25 Long Island Power Authority 2038 Texas Solar Nova 1 (b) 50 % 252 126 Verizon 2042 Texas Solar Nova 2 (b) 50 % 200 100 Verizon 2042 Victory Pass (b) 40 % 200 80 Various 2039 Waiawa (b) 50 % 36 18 Hawaiian Electric Company 2043 Other Utility Scale Solar 100 % 175 175 Various 2029 - 2038 Total Utility Scale Solar 4,730 2,889 Utility Scale BESS Arica (b) 40 % 136 54 Various 2039 - 2041 Daggett 1 (b) 100 % 114 114 SDG&E 2040 Daggett 2 (b) 25 % 131 33 Various 2038 Daggett 3 (b) 25 % 149 37 Various 2033 - 2038 Honeycomb Portfolio (b) 100 % 320 320 PacifiCorp 2046 Mililani I (b) 50 % 39 20 Hawaiian Electric Company 2042 Pine Forest (b) 50 % 200 100 N/A Rosamond Central (b) 50 % 147 74 SCE 2039 Rosamond South I (b) 50 % 117 59 Various 2035 - 2040 Victory Pass (b) 40 % 50 20 Various 2039 Waiawa (b) 50 % 36 18 Hawaiian Electric Company 2043 Total Utility Scale BESS 1,439 849 Distributed Solar Cardinal Portfolio (c) 100 % 239 239 Various 2027 - 2040 Cardinal Portfolio JV (c) 50 % 130 65 Various 2033 - 2041 DGPV Funds (b) 100 % 286 286 Various 2030 - 2044 Solar Power Partners (SPP) 100 % 24 24 Various 2026 - 2037 Other DG Facilities 100 % 20 20 Various 2026 - 2039 Total Distributed Solar 699 634 Utility Scale Wind Alta I - V 100 % 720 720 SCE 2035 Alta X - XI 100 % 227 227 SCE 2038 Black Rock (b) 50 % 115 58 Toyota and Google 2036 Broken Bow 100 % 80 80 Nebraska Public Power District 2032 Cedar Creek (b) 100 % 160 160 PacifiCorp 2049 Cedro Hill (b) 100 % 160 160 CPS Energy 2045 Crofton Bluffs 100 % 42 42 Nebraska Public Power District 2032 Dan’s Mountain (b) 50 % 55 28 Constellation Energy Generation 2037 Elbow Creek (b) 100 % 122 122 Various 2041 Elkhorn Ridge 66.7 % 81 54 Nebraska Public Power District 2029 Goat Mountain (e) 99 % 150 149 N/A Langford (b) 100 % 160 160 Various 2041 Laredo Ridge 100 % 81 81 Nebraska Public Power District 2031 Mesquite Sky (b) 50 % 340 170 Various 2041 Mesquite Star (b) 50 % 419 210 Various 2032 - 2035 Mountain Wind 1 100 % 61 61 PacifiCorp 2033 Mountain Wind 2 100 % 80 80 PacifiCorp 2033 Ocotillo 100 % 55 55 N/A Pinnacle (b) 100 % 54 54 Maryland Department of General Services and University System of Maryland 2031 38 Rattlesnake (b) (f) 100 % 160 160 Avista Corporation 2040 San Juan Mesa 75 % 120 90 Southwestern Public Service Company 2026 Sleeping Bear 100 % 95 95 Public Service Company of Oklahoma 2032 South Trent 100 % 101 101 AEP Energy Partners 2029 Spring Canyon II and III 100 % 63 63 Platte River Power Authority 2039 Taloga 100 % 130 130 Oklahoma Gas & Electric 2031 Tuolumne 100 % 137 137 Turlock Irrigation District 2040 Wildorado (b) 100 % 161 161 Southwestern Public Service Company 2030 Other Utility Scale Wind 100 % 105 105 Various 2027 - 2033 Total Wind 4,234 3,713 Total Clearway Energy, Inc. 13,872 10,665 (a) For owned facilities, net capacity represents the maximum, or rated, generating or storage capacity of the facility multiplied by the Company’s percentage ownership in the facility as of June 30, 2026. (b) Facilities are part of tax equity arrangements, as further described in Note 4, Investments Accounted for by the Equity Method and Variable Interest Entities. (c) Facilities are part of the Cardinal Portfolio acquisition, which closed on March 30, 2026, as further described in Note 3, Acquisitions. (d) The Company leases 100% of the interests in the Catalina solar facility through a facility lease agreement that expires in October 2043. (e) The Goat Mountain wind facility commenced repowering activities in February 2026 and was taken offline. Repowering commercial operations is expected to occur in the second half of 2027. (f) Rattlesnake has a deliverable capacity of 144 MW. 39 Significant Events Third-Party Acquisitions •On March 30, 2026, the Company, through its indirect subsidiaries, Cardinal Purchaser LLC and Cardinal JV Purchaser LLC, completed the acquisition of the Cardinal Portfolio for net cash consideration of $322 million, which includes post-closing adjustments of $2 million. Of the net consideration, $242 million was paid by Cardinal Purchaser LLC related to facilities consolidated by the Company and $80 million was paid by Cardinal JV Purchaser LLC related to facilities held through a joint venture with a third-party investor, recorded as an equity method investment. After factoring in cash acquired, transaction expenses and proceeds from the related financing activities, the Company estimates its net capital investment in the Cardinal Portfolio will be approximately $240 million. See Note 3, Acquisitions, for further discussion of the transaction. Financing Activities •The Company completed restructuring activities related to certain long-term commodity contracts associated with the Elbow Creek, Langford and Mesquite Sky wind facilities. In connection with each restructuring, the Company entered into a new 15-year PPA with a commercial or investment-grade counterparty. See Note 7, Long-term Debt, for further discussion of the restructuring activities. •On May 1, 2026, when the Honeycomb Portfolio BESS facilities reached substantial completion, the Company paid $81 million to Clearway Renew as additional purchase price in connection with the Company’s acquisition of Honeycomb TargetCo from Clearway Renew, which occurred on October 15, 2025. The Company’s total capital investment in Honeycomb TargetCo was $97 million. Also, on May 1, 2026, the tax equity investor in Honeycomb TE Holdco LLC contributed an additional $254 million, which was utilized along with the $60 million previously held in escrow, to repay the tax equity bridge loan and to pay associated fees with the remaining proceeds distributed to CEG. See Note 7, Long-term Debt, for further discussion of the transaction. •On March 30, 2026, the Company, through its indirect subsidiary, Cardinal Investment Holdco LLC, borrowed $100 million under a new financing arrangement that was entered into in February 2026 to partially fund the acquisition of the Cardinal Portfolio. In connection with the acquisition, the Company also assumed non-recourse facility-level debt associated with certain of the acquired facilities. On April 27, 2026, the Company made an early partial repayment of $17 million of the assumed facility-level debt. See Note 7, Long-term Debt, for further discussion of the financing arrangement and assumed non-recourse facility-level debt. •On February 27, 2026, the Company, through its indirect subsidiaries, Goat Mountain Class B Holdco LLC and Goat Wind LLC, as co-borrowers, entered into a financing arrangement for non-recourse debt for a total commitment of $703 million. The Company made initial borrowings under the arrangement to fund costs associated with the Goat Mountain repowering, including payments under the development services agreement with Clearway Renew. See Note 7, Long-term Debt, and Note 12, Related Party Transactions, for further discussion. •On January 15, 2026, the Company repaid the $231 million outstanding on the Pine Forest tax credit transfer bridge loan utilizing the proceeds received from the sale of transferable ITCs and distributed the remaining $51 million to CEG, as further described in Note 7, Long-term Debt, and Note 11, Income Taxes. •On January 13, 2026, Clearway Energy Operating LLC completed the sale of $600 million aggregate principal amount of 5.75% senior unsecured notes due 2034, or the 2034 Senior Notes. See Note 7, Long-term Debt, for further discussion of the 2034 Senior Notes. Environmental Matters The Company is subject to a wide range of environmental laws during the development, construction, ownership and operation of facilities. These existing and future laws generally require that governmental permits and approvals be obtained before construction and maintained during operation of facilities. The Company is obligated to comply with all environmental laws and regulations applicable within each jurisdiction and required to implement environmental programs and procedures to monitor and control risks associated with the construction, operation and decommissioning of regulated or permitted energy assets. Federal, state and local environmental laws have historically become more stringent over time, although this trend has recently shifted at the federal level. The Company’s environmental matters are further described in the Company’s 2025 Form 10-K in Item 1, Business — Environmental Matters and Item 1A, Risk Factors. 40 Regulatory Matters The Company’s regulatory matters are described in Item 1, Business — Regulatory Matters and Item 1A, Risk Factors, of the Company’s 2025 Form 10-K. 41 Consolidated Results of Operations The following table provides selected financial information: Three months ended June 30, Six months ended June 30, (In millions) 2026 2025 Change 2026 2025 Change Operating Revenues Energy and capacity revenues $ 505 $ 428 $ 77 $ 863 $ 761 $ 102 Other revenues 25 22 3 41 42 (1) Contract amortization (51) (45) (6) (101) (89) (12) Mark-to-market for economic hedges 2 (13) 15 32 (24) 56 Total operating revenues 481 392 89 835 690 145 Operating Costs and Expenses Cost of fuels 2 1 1 3 3 — Operations and maintenance 118 101 17 224 194 30 Other costs of operations 29 29 — 56 56 — Depreciation, amortization and accretion 196 163 33 378 326 52 General and administrative 15 11 4 26 21 5 Transaction and integration costs 5 2 3 12 5 7 Total operating costs and expenses 365 307 58 699 605 94 Operating Income 116 85 31 136 85 51 Other Income (Expense) Equity in earnings of unconsolidated affiliates 11 7 4 16 12 4 Other income, net 8 8 — 16 15 1 Loss on debt extinguishment (3) — (3) (5) — (5) Derivative interest income (expense) 7 2 5 7 (32) 39 Other interest expense (112) (85) (27) (213) (167) (46) Total other expense, net (89) (68) (21) (179) (172) (7) Income (Loss) Before Income Taxes 27 17 10 (43) (87) 44 Income tax (benefit) expense (3) 5 (8) (5) 5 (10) Net Income (Loss) 30 12 18 (38) (92) 54 Less: Net (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests (92) (18) (74) 3 (119) 122 Net Income (Loss) Attributable to Clearway Energy, Inc. $ 122 $ 30 $ 92 $ (41) $ 27 $ (68) Three months ended June 30, Six months ended June 30, Business metrics: 2026 2025 2026 2025 Solar MWh generated/sold (in thousands) (a) 3,585 2,800 5,882 4,718 Wind MWh generated/sold (in thousands) (a) 3,282 3,145 6,256 6,144 Solar & Wind MWh generated/sold (in thousands) (a) (b) 6,867 5,945 12,138 10,862 Solar weighted-average capacity factor (c) 35.6 % 36.9 % 30.4 % 31.3 % Wind weighted-average capacity factor (d) 36.8 % 33.6 % 35.4 % 33.6 % Flexible Generation MWh generated (in thousands) 55 55 89 120 Flexible Generation equivalent availability factor 97.5 % 95.0 % 93.1 % 92.2 % (a) Volumes do not include the MWh generated/sold by the Company’s equity method investments. (b) MWh generated/sold includes 651 and 354 MWh (in thousands) associated with curtailment activities for the three months ended June 30, 2026 and 2025, respectively, and 1,027 and 790 for the six months ended June 30, 2026 and 2025, respectively. (c) Typical average capacity factors for solar facilities is 25%. The weighted-average capacity factors can vary based on seasonality and weather. (d) Typical average capacity factors for wind facilities is 25-45%. The weighted-average capacity factors can vary based on seasonality and weather. 42 Management’s Discussion of the Results of Operations for the Three Months Ended June 30, 2026 and 2025 Operating Revenues Operating revenues increased by $89 million during the three months ended June 30, 2026, compared to the same period in 2025, due to a combination of the drivers summarized in the table below: (In millions) Renewables & Storage Segment Increase primarily driven by the Daggett 1 BESS, Luna Valley solar, Pine Forest solar and BESS and Rosamond South I solar and BESS acquisitions, which reached commercial operations in the second half of 2025, the Honeycomb BESS facilities which reached commercial operations in April 2026, as well as the Catalina solar and Cardinal solar acquisitions in July 2025 and March 2026, respectively. $ 73 Increase primarily driven by the Tuolumne wind acquisition in April 2025, as well as the Dan’s Mountain wind acquisition, which reached commercial operations in May 2025. 7 Contract amortization Decrease primarily driven by additional amortization from the Tuolumne wind, Catalina solar and Cardinal solar acquisitions in April 2025, July 2025 and March 2026, respectively. (6) Mark-to-market economic hedging activities Increase in heat rate call option contracts primarily driven by changes in forward power and natural gas market prices. 36 Decrease primarily driven by an increase in forward power prices in the ERCOT market. (17) Decrease driven by the Mt. Storm hedge buy-out, which occurred during the second and third quarters of 2025. (4) $ 89 Operations and Maintenance Expense Operations and maintenance expense increased by $17 million during the three months ended June 30, 2026 , compared to the same period in 2025, due to a combination of the drivers summarized in the table below: (In millions) Renewables & Storage Segment Increase primarily driven by the solar and BESS acquisitions referenced above. $ 12 Increase driven by the Tuolumne wind acquisition in April 2025. 5 $ 17 Depreciation, Amortization and Accretion Depreciation, amortization and accretion increased by $33 million during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to the solar and BESS acquisitions referenced above. Interest Expense Interest expense increased by $22 million during the three months ended June 30, 2026, compared to the same period in 2025, primarily due to the following: (In millions) Increase in interest expense for the Renewables & Storage segment primarily due to an increase in principal balances from the solar and BESS acquisitions referenced above $ 19 Increase in interest expense for the Corporate segment primarily due to the issuance of the 2034 Senior Notes 8 Change in fair value of interest rate swaps due to changes in interest rates (5) $ 22 43 Income Tax (Benefit) Expense For the three months ended June 30, 2026, the Company recorded an income tax benefit of $3 million on pretax income of $27 million. For the same period in 2025, the Company recorded an income tax expense of $5 million on pretax income of $17 million. The $8 million decrease in income taxes during the three months ended June 30, 2026, compared to the same period in 2025, was primarily due to the allocation of taxable earnings and losses, which includes the effect of applying the HLBV method of accounting for book purposes for certain partnerships. Net Loss Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests For the three months ended June 30, 2026, the Company had a net loss of $92 million attributable to noncontrolling interests and redeemable noncontrolling interests comprised of the following: (In millions) Losses attributable to tax equity financing arrangements and the application of the HLBV method (primarily due to Daggett 1 TE Holdco LLC and Honeycomb TE Holdco LLC HLBV losses) $ (213) CEG’s economic interest in Clearway Energy LLC 106 Income attributable to third-party partnerships 15 $ (92) For the three months ended June 30, 2025, the Company had a net loss of $18 million attributable to noncontrolling interests and redeemable noncontrolling interests comprised of the following: (In millions) Losses attributable to tax equity financing arrangements and the application of the HLBV method $ (40) Losses attributable to third-party partnerships (4) CEG’s economic interest in Clearway Energy LLC 26 $ (18) 44 Management’s Discussion of the Results of Operations for the Six Months Ended June 30, 2026 and 2025 Operating Revenues Operating revenues increased by $145 million during the six months ended June 30, 2026, compared to the same period in 2025, due to a combination of the drivers summarized in the table below: (In millions) Renewables & Storage Segment Increase primarily driven by the Daggett 1 BESS, Luna Valley solar, Pine Forest solar and BESS and Rosamond South I solar and BESS acquisitions, which reached commercial operations in the second half of 2025, the Honeycomb BESS facilities, which reached commercial operations in April 2026, and the Catalina solar and Cardinal solar acquisitions in July 2025 and March 2026, respectively. $ 105 Increase driven by the Tuolumne wind acquisition in April 2025, as well as the Dan’s Mountain wind acquisition, which reached commercial operations in May 2025. 18 Increase driven by higher wind resource at certain facilities. 9 Decrease driven by lower wind production at the Alta facilities due to lower wind resource in 2026 and the long-term enhancement program at Alta II-V that is expected to be completed in the second half of 2026. (24) Decrease driven by the Mt. Storm wind sale to Clearway Renew in October 2025 in connection with the repowering. (9) Flexible Generation Segment Increase reflects normal operating variability. 2 Contract amortization Decrease primarily driven by additional amortization from the Tuolumne wind, Catalina solar and Cardinal solar acquisitions in April 2025, July 2025 and March 2026, respectively. (12) Mark-to-market economic hedging activities Increase primarily driven by a decrease in forward power prices in the ERCOT market. 40 Increase in heat rate call option contracts primarily driven by changes in forward power and natural gas market prices. 27 Decrease driven by the Mt. Storm hedge buy-out, which occurred during the second and third quarters of 2025. (11) $ 145 Operations and Maintenance Expense Operations and maintenance expense increased by $30 million during the six months ended June 30, 2026, compared to the same period in 2025, due to a combination of the drivers summarized in the table below: (In millions) Renewables & Storage Segment Increase primarily driven by the solar and BESS acquisitions referenced above. $ 25 Increase driven by the Tuolumne wind acquisition in April 2025. 5 $ 30 Depreciation, Amortization and Accretion Depreciation, amortization and accretion increased by $52 million during the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the solar and BESS acquisitions referenced above. 45 Interest Expense Interest expense increased by $7 million during the six months ended June 30, 2026, compared to the same period in 2025, primarily due to the following: (In millions) Increase in interest expense for the Renewables & Storage segment primarily due to an increase in principal balances from the solar and BESS acquisitions referenced above $ 30 Increase in interest expense for the Corporate segment primarily due to the issuance of the 2034 Senior Notes 16 Change in fair value of interest rate swaps due to changes in interest rates (39) $ 7 Income Tax (Benefit) Expense For the six months ended June 30, 2026, the Company recorded an income tax benefit of $5 million on a pretax loss of $43 million. For the same period in 2025, the Company recorded an income tax expense of $5 million on a pretax loss of $87 million. The $10 million decrease in income taxes during the six months ended June 30, 2026, compared to the same period in 2025, was primarily due to the allocation of taxable earnings and losses, which includes the effect of applying the HLBV method of accounting for book purposes for certain partnerships. Net Income (Loss) Attributable to Noncontrolling Interests and Redeemable Noncontrolling Interests For the six months ended June 30, 2026, the Company had net income of $3 million attributable to noncontrolling interests and redeemable noncontrolling interests comprised of the following: (In millions) CEG’s economic interest in Clearway Energy LLC $ 153 Income attributable to third-party partnerships (primarily from the equity pickup of Pine Forest TE HoldCo LLC HLBV losses) 127 Losses attributable to tax equity financing arrangements and the application of the HLBV method (primarily due to Daggett 1 TE Holdco LLC, Luna Valley TE Holdco LLC and Honeycomb TE Holdco LLC HLBV losses) (277) $ 3 For the six months ended June 30, 2025, the Company had a net loss of $119 million attributable to noncontrolling interests and redeemable noncontrolling interests comprised of the following: (In millions) Losses attributable to tax equity financing arrangements and the application of the HLBV method (primarily due to Cedro Hill TE Holdco, Rosie TE HoldCo LLC, TSN1 TE Holdco LLC and VP-Arica TE Holdco LLC HLBV losses) $ (138) Losses attributable to third-party partnerships (6) CEG’s economic interest in Clearway Energy LLC 25 $ (119) 46 Liquidity and Capital Resources The Company’s principal liquidity requirements are to meet its financial commitments, finance current operations, fund capital expenditures, including investments and acquisitions from time to time, service debt and pay dividends. As a normal part of the Company’s business, depending on market conditions, the Company will from time to time consider opportunities to repay, redeem, repurchase or refinance its indebtedness. Changes in the Company’s operating plans, lower than anticipated sales, increased expenses, investments, acquisitions or other events may cause the Company to seek additional debt or equity financing in future periods. There can be no guarantee that financing will be available on acceptable terms or at all. Debt financing, if available, could impose additional cash payment obligations and additional covenants and operating restrictions. Current Liquidity Position As of June 30, 2026 and December 31, 2025, the Company’s liquidity was approximately $985 million and $1,061 million, respectively, comprised of cash, restricted cash and availability under the Company’s revolving credit facility. (In millions) June 30, 2026 December 31, 2025 Cash and cash equivalents: Clearway Energy, Inc. and Clearway Energy LLC, excluding subsidiaries $ 4 $ 37 Subsidiaries 247 194 Restricted cash: Operating accounts 130 146 Reserves, including debt service, distributions, performance obligations and other reserves 162 441 Total cash, cash equivalents and restricted cash 543 818 Revolving credit facility availability 442 243 Total liquidity $ 985 $ 1,061 The Company’s liquidity includes $292 million and $587 million of restricted cash balances as of June 30, 2026 and December 31, 2025, respectively. Restricted cash consists primarily of funds to satisfy the requirements of certain debt arrangements and funds held within the Company’s facilities that are restricted in their use. As of June 30, 2026, these restricted funds were comprised of $130 million designated to fund operating expenses, approximately $40 million designated for current debt service payments and $90 million restricted for reserves including debt service, performance obligations and other reserves, as well as capital expenditures. The remaining $32 million is held in distribution reserve accounts. In January 2026, the Company distributed $174 million to the tax equity investor in Rosie South TE Holdco LLC related to transferable ITCs for the Rosamond South I solar and BESS facility that were included in restricted cash as of December 31, 2025. Clearway Energy LLC and Clearway Energy Operating LLC Revolving Credit Facility As of June 30, 2026, the Company had $60 million in outstanding borrowings under the revolving credit facility and $198 million in letters of credit outstanding. During January 2026, the Company repaid $361 million in outstanding borrowings under the revolving credit facility utilizing the proceeds from the sale of the 2034 Senior Notes. During July 2026, the Company borrowed an additional $45 million under the revolving credit facility and subsequently repaid $50 million. As of July 31, 2026, the Company had $55 million in outstanding borrowings under the revolving credit facility. The facility will continue to be used for general corporate purposes including financing of future investments or acquisitions and posting letters of credit. Management believes that the Company’s liquidity position, cash flows from operations and availability under its revolving credit facility will be adequate to meet the Company’s financial commitments; debt service obligations; growth, operating and maintenance capital expenditures; and to fund dividends to holders of the Company’s Class C common stock. Management continues to regularly monitor the Company’s ability to finance the needs of its operating, financing and investing activities within the dictates of prudent balance sheet management. Credit Ratings Credit rating agencies rate a firm’s public debt securities. These ratings are utilized by the debt markets in evaluating a firm’s credit risk. Ratings influence the price paid to issue new debt securities by indicating to the market the Company’s ability to pay principal, interest and preferred dividends. Rating agencies evaluate a firm’s industry, cash flow, leverage, liquidity and hedge profile, among other factors, in their credit analysis of a firm’s credit risk. 47 The following table summarizes the credit ratings for the Company and its Senior Notes as of June 30, 2026: S&P Moody’s Clearway Energy, Inc. BB Ba2 4.750% Senior Notes, due 2028 BB Ba2 3.750% Senior Notes, due 2031 BB Ba2 3.750% Senior Notes, due 2032 BB Ba2 5.750% Senior Notes, due 2034 BB Ba2 Sources of Liquidity The Company’s principal sources of liquidity include cash on hand, cash generated from operations, proceeds from sales of assets, borrowings under new and existing financing arrangements, and the issuance of additional equity and debt securities as appropriate given market conditions. As described in Note 7, Long-term Debt, and Note 9, Changes in Capital Structure, to this Form 10-Q, and Item 15 — Note 10, Long-term Debt, and Note 12, Stockholders’ Equity, to the consolidated financial statements included in the Company’s 2025 Form 10-K, and further below, the Company’s financing arrangements consist of corporate-level debt, which includes Senior Notes and the revolving credit facility; facility-level financings for its various assets; the ATM Program and the DSPP. Goat Mountain Repowering Financing — On February 27, 2026, the Company, through its indirect subsidiaries, Goat Mountain Class B Holdco LLC and Goat Wind LLC, as co-borrowers, entered into a financing arrangement for non-recourse debt for a total commitment of $703 million, which consists of a construction loan that converts to a five-year term loan upon substantial completion of the repowering, as well as bridge loans to be repaid with the proceeds from the tax equity investor. The construction loan and bridge loans bear interest at a rate of SOFR plus 1.50% and mature on the term conversion date. The initial borrowing of $140 million was primarily used to fund costs associated with the Goat Mountain repowering, including payments under the development services agreement, deferred debt issuance costs and capital expenditures. In June 2026, the Company paid the remaining $36 million due under the development services agreement. Under the financing arrangement, the Company borrowed $231 million through June 30, 2026. The Company estimates that its total capital investment in the Goat Mountain repowering will be $200 million, subject to closing adjustments. 2034 Senior Notes — On January 13, 2026, Clearway Energy Operating LLC completed the sale of $600 million aggregate principal amount of senior unsecured notes due 2034, or the 2034 Senior Notes. The 2034 Senior Notes bear interest at a rate of 5.750% per annum and mature on January 15, 2034. Interest on the 2034 Senior Notes is payable semi-annually on January 15 and July 15 of each year, beginning on July 15, 2026. The net proceeds from the 2034 Senior Notes were used to repay $361 million in outstanding borrowings under the revolving credit facility and for general corporate purposes. Direct Stock Purchase Plan, or DSPP — In January 2026, the Company issued 1,445,244 shares of Class C common stock under the DSPP for gross proceeds of $50 million and incurred fees of less than $1 million, which were exchanged for 1,445,244 Class C units of Clearway Energy LLC. As of June 30, 2026, 1,061,554 shares of Class C common stock remained available for issuance under the DSPP. Uses of Liquidity The Company’s requirements for liquidity and capital resources, other than for operating its facilities, are categorized as: (i) debt service obligations, as described more fully in Note 7, Long-term Debt; (ii) capital expenditures; (iii) off-balance sheet arrangements; (iv) acquisitions and investments, as described more fully in Note 3, Acquisitions, Note 7, Long-term Debt, and Note 9, Changes in Capital Structure; and (v) cash dividends to investors. Capital Expenditures The Company’s capital spending program is mainly focused on maintenance capital expenditures, consisting of costs to maintain the assets currently operating, such as costs to replace or refurbish assets during routine maintenance, and growth capital expenditures consisting of costs to construct new assets, costs to increase the operating capacity of existing assets and costs to complete the construction of assets where construction is in process. For the six months ended June 30, 2026, the Company used approximately $159 million to fund capital expenditures, including growth expenditures of $154 million, primarily in the Renewables & Storage segment, funded through construction-related financing. Growth capital expenditures included $72 million incurred in connection with the Honeycomb Portfolio BESS facilities, $51 million incurred in connection with the repowering of the Goat Mountain wind facility, $21 million incurred in connection with the Pine Forest solar and BESS facility and $10 million incurred by other facilities. In addition, the Company incurred $5 million of maintenance capital expenditures, which is net of credits received. 48 Off-Balance Sheet Arrangements Obligations under Certain Guarantee Contracts The Company may enter into guarantee arrangements in the normal course of business to facilitate commercial transactions with third parties. Retained or Contingent Interests The Company does not have any material retained or contingent interests in assets transferred to an unconsolidated entity. Obligations Arising Out of a Variable Interest in an Unconsolidated Entity Variable interest in equity investments — As of June 30, 2026, the Company has several investments with an ownership interest percentage of 50% or less. GenConn is a VIE for which the Company is not the primary beneficiary. The Company’s pro-rata share of non-recourse debt held by unconsolidated affiliates was approximately $351 million as of June 30, 2026. This indebtedness may restrict the ability of these subsidiaries to issue dividends or distributions to the Company. Contractual Obligations and Commercial Commitments The Company has a variety of contractual obligations and other commercial commitments that represent prospective cash requirements in addition to the Company’s capital expenditure programs, as disclosed in the Company’s 2025 Form 10-K. Acquisitions and Investments The Company intends to acquire generation assets developed and constructed by CEG, as well as generation assets from third parties where the Company believes its knowledge of the market and operating expertise provides a competitive advantage, and to utilize such acquisitions as a means to grow its business. Third-Party Acquisition Cardinal Portfolio — On March 30, 2026, the Company, through its indirect subsidiaries, Cardinal Purchaser LLC and Cardinal JV Purchaser LLC, completed the acquisition of the Cardinal Portfolio for net cash consideration of $322 million, which includes post-closing adjustments of $2 million. Of the net consideration, $242 million was paid by Cardinal Purchaser LLC related to facilities consolidated by the Company and $80 million was paid by Cardinal JV Purchaser LLC related to facilities held through a joint venture with a third-party investor. The Cardinal Portfolio has a weighted average remaining contract duration of approximately 10 years. The acquisition was funded with $100 million in borrowings under the new financing arrangement entered into in connection with the acquisition, as well as existing sources of liquidity. In connection with the acquisition, the Company also assumed non-recourse facility‑level debt associated with certain of the acquired facilities. On April 27, 2026, the Company made an early partial repayment of $17 million of the assumed facility-level debt. After factoring in cash acquired, transaction expenses and proceeds from the related financing activities, the Company estimates its net capital investment in the Cardinal Portfolio will be approximately $240 million. Drop Down Transactions Honeycomb Portfolio Drop Down — On May 1, 2026, when the Honeycomb Portfolio BESS facilities reached substantial completion, the Company paid $81 million to Clearway Renew as additional purchase price in connection with the Company’s acquisition of Honeycomb TargetCo LLC, or Honeycomb TargetCo, from Clearway Renew, which occurred on October 15, 2025. The Company’s additional purchase price was funded with existing sources of liquidity. The Company’s total capital investment in Honeycomb TargetCo was $97 million. Also, on May 1, 2026, the tax equity investor in Honeycomb TE Holdco LLC contributed an additional $254 million, which was utilized along with the $60 million previously held in escrow, to repay the tax equity bridge loan and to pay associated fees with the remaining proceeds distributed to CEG. Prior to substantial completion being reached, the Company borrowed an additional $71 million in construction loans during 2026, and on May 1, 2026, the total outstanding construction loans were converted to a term loan. Pine Forest — On January 15, 2026, the Company repaid the $231 million outstanding on the tax credit transfer bridge loan utilizing the proceeds received from the sale of transferable ITCs and distributed the remaining $51 million to CEG, as further described in Note 7, Long-term Debt, and Note 11, Income Taxes. 49 Since the Company holds the Class A membership interests in Pine Forest TE HoldCo LLC through its ownership of Pine Forest TE Class A, net loss attributable to Clearway Energy, Inc. reflects HLBV allocations associated with Pine Forest’s tax attributes, including ITCs and accelerated tax depreciation. As a result, larger losses were allocated to the Company in 2026 relative to other partnerships and will continue to be allocated to the Company during the early stages of the facility’s operations. These losses are non-cash in nature and do not impact the Company’s liquidity. Commodity Contract Restructuring Transactions The Company completed the following restructuring activities related to certain long-term commodity contracts associated with its wind facilities. In connection with each restructuring, the Company entered into a new 15-year PPA with a commercial or investment-grade counterparty. The new PPAs are fixed-price, unit-contingent arrangements that contract all available output from the applicable facilities, replacing legacy defined-quantity hedge structures that exposed the facilities to volumetric risk and merchant market pricing for a portion of generation. As a result, the new PPAs are expected to reduce volumetric exposure and increase the predictability of future cash flows from the facilities. Elbow Creek Restructuring — On June 25, 2026, the Company restructured its existing energy‑related commodity contract associated with the Elbow Creek wind facility, which resulted in an in‑substance financing to settle existing derivative liabilities over time. As a result of the restructuring, the Company derecognized derivative liabilities with a fair value of $46 million, as well as $8 million owed to the counterparty that was previously included in other non‑current liabilities. The Company also paid $20 million, which was used to settle the non-current liability and partially settle the outstanding derivative liability, resulting in a term financing obligation with an initial carrying amount of $34 million. The financing obligation is repaid through fixed monthly payments beginning in July 2026 and matures on October 31, 2032. Total payments over the term of the arrangement are $40 million, which implies an effective interest rate of approximately 5.493%. Langford Restructuring — On June 10, 2026, the Company restructured its existing energy‑related commodity contract associated with the Langford wind facility, which resulted in an in‑substance financing to settle existing derivative liabilities over time. As a result of the restructuring, the Company derecognized derivative liabilities with a fair value of $62 million and recognized a term financing obligation with an initial carrying amount of $62 million. The financing obligation is repaid through fixed monthly payments beginning in July 2026 and matures on June 30, 2033. Total payments over the term of the arrangement are $75 million, which implies an effective interest rate of approximately 5.749%. Mesquite Sky Restructuring — On March 27, 2026, the Company restructured its existing energy‑related commodity contract associated with the Mesquite Sky wind facility, which resulted in an in‑substance financing to settle existing derivative liabilities over time. As a result of the restructuring, the Company derecognized derivative liabilities with a fair value of $115 million, as well as $12 million owed to the counterparty that was previously included in other non‑current liabilities, and recognized a term financing obligation with an initial carrying amount of $127 million. The financing obligation is repaid through fixed monthly payments beginning in May 2026 and matures on September 30, 2035. Total payments over the term of the arrangement are $162 million, which implies an effective interest rate of approximately 5.436%. Cash Dividends to Investors The Company intends to use the amount of cash that it receives from its distributions from Clearway Energy LLC to pay quarterly dividends to the holders of its Class C common stock. Clearway Energy LLC intends to distribute to its unit holders in the form of a quarterly distribution all of the CAFD that is generated each quarter, less reserves for the prudent conduct of the business. Dividends on the Class C common stock are subject to available capital, market conditions and compliance with associated laws, regulations and other contractual obligations. The Company expects that, based on current circumstances, comparable cash dividends will continue to be paid in the foreseeable future. 50 The following table lists the dividends paid on the Company’s Class A common stock and Class C common stock during the six months ended June 30, 2026: Second Quarter 2026 First Quarter 2026 Dividends per Class A share $ — $ 0.4602 Dividends per Class C share 0.4676 0.4602 As a result of the Class A Conversion discussed in Note 9, Changes in Capital Structure, the Company no longer has any Class A common stock outstanding, and holders of the Company’s former Class A common stock converted into Class C common stock remain entitled to receive dividends, if declared by the Company, on the same basis as prior to the conversion. On August 4, 2026, the Company declared quarterly dividends on its Class C common stock of $0.4750 per share payable on September 15, 2026 to stockholders of record as of September 1, 2026. 51 Cash Flow Discussion The following tables reflect the changes in cash flows for the comparative periods: Six months ended June 30, 2026 2025 Change (In millions) Net cash provided by operating activities $ 615 $ 286 $ 329 Net cash used in investing activities (657) (398) (259) Net cash (used in) provided by financing activities (233) 165 (398) Net Cash Provided by Operating Activities Changes to net cash provided by operating activities were driven by: (In millions) Proceeds from transferable tax credits in 2026, primarily from the Pine Forest solar and BESS facility, utilized to repay long-term debt and pay distributions to noncontrolling interests (Financing Activities) $ 282 Partial buy-down of the Mt. Storm commodity contract in 2025, offset by partial buy-down of the Elbow Creek commodity contract in 2026 23 Increase in operating income after adjusting for non-cash items 20 Increase from changes in working capital primarily driven by the timing of accounts receivable collections and payments of current liabilities, including accounts payable and accrued liabilities 2 Increase in distributions from unconsolidated affiliates 2 $ 329 Net Cash Used in Investing Activities Changes to net cash used in investing activities were driven by: (In millions) Payments for equipment deposits and asset purchases from affiliate in 2026 related to the Goat Mountain repowering $ (112) Investments in unconsolidated affiliates in 2026 related to the Cardinal Portfolio JV (91) Increase in capital expenditures (27) Increase in cash paid for third party acquisitions, net of cash acquired (15) Increase in cash paid for Drop Down Assets, net of cash acquired (4) Decrease in return of investment from unconsolidated affiliates (2) Other (8) $ (259) Net Cash (Used in) Provided by Financing Activities Changes in net cash (used in) provided by financing activities were driven by: (In millions) Increase in (distributions to) contributions from noncontrolling interests, net $ (499) Increase in payments for the revolving credit facility and decrease in proceeds from the revolving credit facility (413) Increase in payments of debt issuance costs (20) Increase in dividends paid to common stockholders and distributions paid to CEG unit holders (14) Increase in proceeds from issuance of long-term debt and payments for long-term debt 495 Proceeds from the issuance of Class C common stock under the DSPP in 2026 50 Pro-rata distributions to CEG in 2025 7 Other (4) $ (398) 52 NOLs, Deferred Tax Assets and Uncertain Tax Position Implications, under ASC 740 As of December 31, 2025, the Company had a cumulative federal NOL carryforward balance of $212 million for financial statement purposes, none of which were subject to expiration. Additionally, as of December 31, 2025, the Company had a cumulative state NOL carryforward balance of $100 million for financial statement purposes, which will expire between 2026 and 2042 if unutilized. The Company does not anticipate material income tax payments through 2030. In addition, as of December 31, 2025, the Company had PTC and ITC carryforward balances totaling $18 million, which will expire between 2036 and 2045 if unutilized. As of December 31, 2025, the Company had an interest disallowance carryforward of $107 million as a result of Internal Revenue Code §163(j). The disallowed interest deduction has an indefinite carryforward period and any limitations on the utilization of this carryforward have been factored into the Company’s valuation allowance analysis. The Company, after the utilization of various federal and state NOL carryforwards, paid $3 million of federal and state income taxes during the six months ended June 30, 2026 and does not expect to pay material federal or state income taxes for the remainder of the current year. The Company does not anticipate being subject to the corporate minimum tax on financial statement income. Federal tax legislation enacted on July 4, 2025 contains a number of revisions to the Internal Revenue Code, including adjustments to the business interest expense disallowance calculation, accelerated tax depreciation and business tax credits and incentives for the development of clean energy facilities and production of clean energy, including wind, solar and BESS facilities. These changes did not have a material impact on the Company’s consolidated financial statements and the Company does not anticipate that these changes will have an adverse impact either (i) on the anticipated pipeline of facilities being developed by the Company’s sponsor, CEG, through at least 2030 or (ii) on the operation of facilities owned and operated by the Company. The Company will continue to monitor future guidance issued by the United States Department of the Treasury to assess for potential impacts on its consolidated financial statements. The Company is subject to examination by taxing authorities for income tax returns filed in the U.S. federal and various state jurisdictions. All tax returns filed by the Company for the year ended December 31, 2013 and forward remain subject to audit. As of December 31, 2025, the U.S. federal partnership returns of two of the Company’s subsidiaries are under audit by the IRS. The Company and its subsidiaries are also periodically subject to various state tax audits, including one current audit as a result of filing an amended return in order to pursue a potential California tax refund. The IRS has not yet issued any proposed adjustments with respect to the two subsidiaries under audit. The Company believes that the ultimate resolution of each of these audits will not be material to the Company’s financial condition, results of operations or liquidity, and thus no material provision has been made for any adjustments that may result from tax examinations. The outcome of tax audits cannot be predicted with certainty and if any issues addressed in tax audits of the Company are resolved in a manner inconsistent with its expectations, the Company could be required to adjust its provision for income taxes in the period such resolution occurs. The Company has an unrecognized tax benefit of $19 million as of June 30, 2026. Fair Value of Derivative Instruments The Company may enter into energy-related commodity contracts to mitigate variability in earnings due to fluctuations in spot market prices. In addition, in order to mitigate interest rate risk associated with the issuance of variable rate debt, the Company enters into interest rate swap agreements. The tables below disclose the activities of non-exchange traded contracts accounted for at fair value in accordance with ASC 820. Specifically, these tables disaggregate realized and unrealized changes in fair value; disaggregate estimated fair values at June 30, 2026, based on their level within the fair value hierarchy defined in ASC 820; and indicate the maturities of contracts at June 30, 2026. For a full discussion of the Company’s valuation methodology of its contracts, see Derivative Fair Value Measurements in Note 5, Fair Value of Financial Instruments. Derivative Activity (Losses) Gains (In millions) Fair value of contracts as of December 31, 2025 $ (204) Contracts realized, restructured or otherwise settled during the period 219 Contracts added during the period 6 Changes in fair value 79 Fair value of contracts as of June 30, 2026 $ 100 53 Fair value of contracts as of June 30, 2026 Maturity Fair Value Hierarchy (Losses) Gains 1 Year or Less Greater Than1 Year to 3 Years Greater Than3 Years to 5 Years Greater Than5 Years Total FairValue (In millions) Level 2 $ 31 $ 107 $ 21 $ 3 $ 162 Level 3 2 (19) (32) (13) (62) Total $ 33 $ 88 $ (11) $ (10) $ 100 The Company has elected to disclose derivative assets and liabilities on a trade-by-trade basis and does not offset amounts at the counterparty master agreement level. Critical Accounting Policies and Estimates The Company’s discussion and analysis of the financial condition and results of operations are based upon the consolidated financial statements, which have been prepared in accordance with GAAP. The preparation of these financial statements and related disclosures in compliance with GAAP requires the application of appropriate technical accounting rules and guidance, as well as the use of estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosures of contingent assets and liabilities. The application of these policies necessarily involves judgments regarding future events, including the likelihood of success of particular facilities, legal and regulatory challenges and the fair value of certain assets and liabilities. These judgments, in and of themselves, could materially affect the financial statements and disclosures based on varying assumptions, which may be appropriate to use. In addition, the financial and operating environment may also have a significant effect, not only on the operation of the business, but on the results reported through the application of accounting measures used in preparing the financial statements and related disclosures, even if the nature of the accounting policies has not changed. On an ongoing basis, the Company evaluates these estimates, utilizing historic experience, consultation with experts and other methods the Company considers reasonable. Actual results may differ substantially from the Company’s estimates. Any effects on the Company’s business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the information that gives rise to the revision becomes known. The Company identifies its most critical accounting policies as those that are the most pervasive and important to the portrayal of the Company’s financial position and results of operations, and that require the most difficult, subjective and/or complex judgments by management regarding estimates about matters that are inherently uncertain. The Company’s critical accounting policies include income taxes and valuation allowance for deferred tax assets, accounting utilizing HLBV and determining the fair value of financial instruments. Recent Accounting Developments See Note 2, Summary of Significant Accounting Policies, for a discussion of recent accounting developments. 54