ArcLight Capital Partners, LLC, LLC, a leading middle market infrastructure investor, and its affiliates, completed the sale of Great River Hydro, LLC to affiliates of Hydro-Québec on 10 February 2023 for a value of approximately US$2 billion.
Great River Hydro, a leading US renewable energy infrastructure platform, represents the largest conventional hydroelectric portfolio in New England. The company owns 13 hydroelectric generating stations with a total capacity of 589 MW along New England's Connecticut and Deerfield rivers, as well as a portfolio of co-located battery storage and solar development projects.
During ArcLight's more than five-year ownership, Great River Hydro operated as a standalone renewable energy platform focused exclusively on supplying carbon-free electricity to New England's electricity market. A portion of its generation output is sold to utilities and regional municipalities pursuant to long-term supply agreements executed in 2021 and 2022.
“As a long-time owner and operator of hydroelectric assets across the US, ArcLight was pleased to support Great River Hydro's establishment as a premier renew-able energy infrastructure platform,” said Dan Revers, Founder and Managing Partner of ArcLight. “We expect the company to continue playing a leading role in the energy transition in New England, and we look forward to its ongoing success.”
“Our 2017 investment was based in part on the growing importance of the role the company plays in transitioning electricity markets,” added Andrew Brannan, Managing Director at ArcLight. “We were excited to support the development of a standalone renewable energy infrastructure platform in New England through investment into co-located solar and battery projects, and the execution of long-term contracts with leading regional suppliers in New England, while continuing to maintain and operate its large scale portfolio of hydroelectric supply.”
Under ArcLight's ownership, Great River Hydro conducted enhancement projects resulting in 29 GWh per year of additional generational capability, and an in-crease of 8 MW in qualified capacity. It also developed a pipeline of other organic solar, battery storage, and hydro efficiency projects representing more than 230 MW in qualified capacity and close to 240 GWh per year of additional generation of renewable energy. TD Securities served as exclusive financial advisor to ArcLight, and Latham & Watkins served as legal advisor.
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