There are risks associated with the operation of NEP's renewable energy projects, including: • breakdown or failure of, or damage to, turbines, blades, blade attachments, solar panels, mirrors and other equipment, which could reduce a project’s energy output or result in personal injury or loss of life; • catastrophic events, such as fires, earthquakes, severe weather, tornadoes, ice or hail storms, other meteorological conditions, landslides and other similar events beyond NEP's control, which could severely damage or destroy all or a part of a project, reduce its energy output or result in personal injury or loss of life; • technical performance below expected levels, including, but not limited to, the failure of wind turbines, solar panels, mirrors and other equipment to produce energy as expected due to incorrect measures of expected performance provided by equipment suppliers; • increases in the cost of operating the projects, including, but not limited to, costs relating to labor, equipment, insurance and real estate taxes; • operator or contractor error or failure to perform; • serial design or manufacturing defects, which may not be covered by warranty; • extended events, including, but not limited to, force majeure, under certain PPAs that may give rise to a termination right of the customer under such a PPA (renewable energy counterparty); • failure to comply with permits and the inability to renew or replace permits that have expired or terminated; • the inability to operate within limitations that may be imposed by current or future governmental permits; • replacements for failed equipment, which may need to meet new interconnection standards or require system impact studies and compliance that may be difficult or expensive to achieve; • land use, environmental or other regulatory requirements; • disputes with the BLM, other owners of land on which NEP's projects are located or adjacent landowners; • changes in law, including, but not limited to, changes in governmental permit requirements, corporate income tax laws, regulations and policies and international trade laws, regulations, agreements, treaties and policies; • government or utility exercise of eminent domain power or similar events; and • existence of liens, encumbrances and other imperfections in title affecting real estate interests.