Canada’s Public Sector Pension Investment Board (PSP Investments) is to buy hydropower assets totalling 1.4GW in New England, US, in a US$1.2 billion deal from ENGIE Group.
PSP Investments said the deal would allow it to combine its ownership in these premier assets with the operational expertise of its existing hydroelectric power platform, H2O Power LP.
"PSP Investments is extremely pleased with the acquisition of these significant hydroelectric facilities which form an important component of the Eastern US energy market," said Guthrie Stewart, Senior Vice President, Global Head of Private Investments at PSP Investments. "The purchased assets are an excellent fit with PSP Investments’ long-term investment horizon and its strategy to leverage industry-specialized platforms, such as H2O Power."
The assets to be acquired are core operational merchant hydroelectric facilities located primarily on the Connecticut River in Massachusetts and the Housatonic River in Connecticut. They constitute the 2nd largest privately-owned hydroelectric portfolio within the well-developed and functional ISO New-England (ISO-NE) power market.
The deal includes the 1168MW Northfield Mountain pumped storage facility as well as 12 conventional hydroelectric facilities, the three largest of which represent an aggregate generation capacity of 134MW. The portfolio generates Renewable Energy Credits.
