Hydro-Québec to Acquire 13 Hydropower Generating Stations in New England
HQI US Holding LLC, a wholly-owned subsidiary of Hydro-Québec, has agreed to acquire Great River Hydro, LLC, which owns 13 hydropower generating stations with a total installed capacity of 589 megawatts along New England’s Connecticut and Deerfield rivers in the states of Vermont, New Hampshire, and Massachusetts. Affiliates of ArcLight Capital Partners, LLC, are selling Great River Hydro for about US$2 billion.
With this purchase, Hydro-Québec is acquiring the largest hydropower fleet in New England, where ambitious decarbonization and electrification objectives have been set and where the amount of electricity generated from variable renewable energy sources are poised to increase sharply. Hydropower is the only renewable energy source that can balance out the intermittent nature of planned wind and solar resources in the coming years.
“Hydro-Québec has a long-term energy partnership with New England, as we have been exporting our hydropower to the region since the 1980s,” commented Sophie Brochu, President and CEO of Hydro-Québec. “This acquisition represents a unique opportunity to combine our know-how in managing and leveraging hydro facilities with Great River Hydro’s thorough understanding of the New England market. By combining our strengths, we can support the development of new renewable energy projects, in a market where such resources are in high demand.”
“We are excited to be joining Hydro-Québec in the coming months,” remarked Scott Hall, Great River Hydro’s President and CEO. “Their deep knowledge of the hydroelectric industry and long history in the New England market gives us tremendous confidence that Great River Hydro is an ideal fit, and we look forward to continuing to provide clean, renewable hydroelectricity to our New England neighbours for years to come.”`
“We are pleased to announce this transaction with Hydro-Québec,” said Dan Revers, Founder and Managing Partner of ArcLight. "Working with management, ArcLight was able to turn Great River Hydro from a high-quality collection of assets into a stand-alone platform ready for more growth. We are confident that Hydro-Québec will be an excellent steward to Great River Hydro’s stakeholders in the next chapter of its corporate life.”
Great River Hydro has approximately 100 skilled employees. Given that Hydro-Québec wants it to remain a distinct entity, all jobs and working conditions will be maintained.
With the purchase of Great River Hydro, Hydro-Québec will also be able to bring in more money from its main export market. As of the first year, the deal will generate additional revenue for Hydro-Québec.