Vermont Business Magazine HQI US Holding LLC, a wholly-owned subsidiary of Hydro-Québec, concluded the agreement to purchase Great River Hydro, LLC, which possesses 13 hydropower generating stations with a total capacity of 589 megawatts along New England's Connecticut and Deerfield rivers in Vermont, New Hampshire and Massachusetts.
The affiliates of ArcLight Capital Partners, LLC is selling Great River Hydro for a price of roughly US $2 billion. The facilities are situated along the Connecticut and Deerfield rivers. Hydro-Québec is the largest single supplier of electricity to Vermont, comparing to the closed Vermont Yankee nuclear power station in Vernon which produces 620 megawatts.
Additionally, Hydro-Québec is buying the greates hydropower fleet in New England, where ambitious decarbonization and electrification aims have been set out and where the amount of electricity provided from variable renewable energy sources are poised to soar.
H-Q informed that hydropower is the solely renewable energy capable of balancing the intermittency of the wind and solar resources that are organized for the coming years.
Hydro-Québec has a long-term energy partnership with New England, as it has been exporting the hydropower to the region since the 1980s. This purchase represents a unique opportunity to connect the know-how in managing and leveraging hydro facilities with Great River Hydro's thorough understanding of the New England market. By combining these strengths, the company holds up the development of new renewable energy projects, in a market where such resources are wanted.
Together with management, ArcLight successfully conveyed Great River Hydro from a high-quality portfolio of assets to a standalone platform positioned for further expansion. ArcLight is 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 about 100 skilled employees. Given that Hydro-Québec wants it to remain a distinct entity, all jobs and working conditions will be kept.
The deal of Great River Hydro will also enable Hydro-Québec to expand its revenue streams in its main export market. The deal will make additional income for Hydro-Québec as of the first year.
Consummation of the transaction remains subject to customary closing conditions, including applicable regulatory approvals.
Great River Hydro has A 589-MW hydropower fleet, 13 cascading generating stations and 3 storage-only reservoirs along some 310 miles (500 km) of the Connecticut and Deerfield rivers. Moreover, its annually supply has enough energy to power over 213,000 homes in New England. One fifth of the energy generated is subject to long-term supply contracts, guaranteeing revenue stability. Land holdings of almost 30,000 acres (12,140 hectares), allowing for the possibility of various renewable energy projects.
Hydro-Québec generates, transmits and distributes electricity. It is Canada's largest electricity producer and ranks among the world's largest hydropower producers. Its sole shareholder is the Québec government.
