Brookfield Renewable Energy to acquire 292MW US hydropower portfolio for $860m

8 October 2015 (Last Updated October 8th, 2015 18:30)

Brookfield Renewable Energy Partners has signed an $860m agreement to acquire Talen Energy's 292MW hydroelectric portfolio in Pennsylvania, US.

Brookfield Renewable Energy Partners has signed an $860m agreement to acquire Talen Energy’s 292MW hydroelectric portfolio in Pennsylvania, US.

The firm intends to fund the deal with institutional partners and maintain an economic interest in around 40% of the portfolio.

Purchase price for the hydropower package will be partially funded by third-party, investment-grade, non-recourse financing, which is expected to close simultaneously with the transaction.

Two renewable projects are part of the portfolio, one being the 252MW Holtwood station on the Susquehanna River and the other the 40MW Wallenpaupack station on Lake Wallenpaupack, in the Pocono Mountains.

"Expected average annual capacity from both the power projects is around 1.1 million MWh."

Expected average annual capacity from both the power projects is around 1.1 million MWh.

The acquisition is in-line with the Brookfield Renewable-owned 417MW Safe Harbor hydropower project.

Output from all of the projects is currently sold to PJM.

Both acquired facilities are supported with long-term Federal Energy Regulatory Commission (FERC) operating licences, while the license for Holtwood plant is valid up to 2030. The Wallenpaupack plant’s license expires at the end of 2045.

Brookfield Renewable CEO Sachin Shah said: "These high-quality assets provide a unique opportunity to leverage our operating platform and hydroelectric expertise in a market facing significant coal retirements and increasing reliance on renewable."

The deal, which is awaiting regulatory approvals and is subject to customary closing conditions, is expected to be concluded in the first quarter of 2016.