Canadian Manufacturing

Canadian public sector pension fund PSP buys portfolio of U.S. hydro assets for $1.2B

by Cleantech Canada Staff   

Cleantech Canada
Financing Procurement Sustainability Cleantech Energy Infrastructure

Crown corporation will acquire 1.4 gigawatts of hydro plants in New England

MONTREAL—The Public Sector Pension Investment Board is building up its hydroelectric power portfolio.

The fund, which operates as a crown corporation, has agreed to buy a 1.4 gigawatt portfolio of New England hydroelectric assets from the ENGIE Group for $1.2 billion.

“PSP Investments is extremely pleased with the acquisition of these significant hydroelectric facilities which form an important component of the Eastern U.S. energy market,” Guthrie Stewart, senior vice-president and Global Head of Private Investments at PSP, said. “The purchased assets are an excellent fit with PSP Investments’ long-term investment horizon and its strategy to leverage industry-specialized platforms, such as H2O Power.”

Located mainly along the Connecticut and Housatonic Rivers in Massachusetts, the hydro facilities make up the second-largest privately-owned hydroelectric portfolio in New England. Along with 12 conventional hydro plants, the portfolio also includes the 1,168MW Northfield Mountain pumped-storage facility.


PSP said it plans to use its expertise in hydroelectric plants to maximize the assets’ potential benefits. The fund currently owns a majority stake in H2O Power LP, which operates 10 hydro stations in Canada the U.S. The 1.4 GW deal will build up the crown corporation’s hydro power footprint significantly, however; H2O Power’s generating capacity was only 170 megawatts previously.

The tentative deal is subject to customary closing conditions.


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