HAMILTON, Bermuda—Brookfield Renewable Energy Partners L.P. is making a play for part of Pennsylvania’s hydroelectric market. The company announced it has agreed to acquire a portfolio of hydroelectric plants in the northeastern U.S. state from Talen Energy for US$860 million.
Brookfield Renewable said it will fund the transaction with institutional partners and maintain an economic interest in the portfolio of approximately 40 percent.
“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 renewables,” Sachin Shah, CEO of Brookfield Renewable, said.
The deal includes two hydro facilities: the 252 megawatt Holtwood station on the Susquehanna River and the 40 megawatt Wallenpaupack station on Lake Wallenpaupack in the Pocono Mountains. The company noted all output is currently sold into PJM, a regional transmission organization, while the portfolio “benefits from a diverse revenue stream including energy, capacity, renewable energy credits and ancillary services.”
The transaction is subject to customary conditions and is expected to close in the first quarter of 2016.