The assets comprise 13 hydropower stations across the Connecticut and Deerfield rivers in the states of Vermont, New Hampshire and Massachusetts in the US. Touted to be the largest operational hydro fleet in New England, the portfolio includes cascading generating stations and three storage-only reservoirs, supplying enough energy to power 213,000 homes, annually. One-fifth of the portfolio's total output is contracted under long-term supply contracts, such as the 30-year agreement with Green Mountain Power, which commences in 2023.
The deal represents a 2X RoI for investment firm ArcLight Capital Partners, in 6 years. ArcLight-backed Great River Hydro acquired the assets from TransCanada in Nov'16 for ~$1.1 billion. The rise in value came despite an ongoing re-licensing review on three of Great River’s facilities on the Connecticut river, comprising ~130 MW in capacity.
Hydropower accounts for ~33% of New England's clean energy sources and is the most effective pathway to reduce the region's heavy dependence on gas-fired and nuclear power, primarily due to abundance in hydro resources.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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