The Caisse de dépôt et placement du Québec (CDPQ) is buying Brookfield’s 25% stake in First Hydro Company, to own the UK electricity generation and storage facility alongside Engie.
The Canadian investor said it had entered into an agreement with Brookfield Asset Management and institutional partners, including its listed affiliate Brookfield Renewable, to acquire the stake in the company responsible for the management and operation of two power plants at Dinorwig and Ffestiniog in the Snowdonia region of Wales.
IPE Real Assets understands that First Hydro has an enterprise value of £2bn (€2.4bn), valuing CDPQ’s stake at £500m. French multinational utility Engie will remain a 75% shareholder in First Hydro.
First Hydro offers a capacity of over 2GW, representing 76% of the total pumped hydro storage capacity in the UK.
Emmanuel Jaclot, CDPQ EVP and head of infrastructure, said: “First Hydro is playing a critical role in helping the UK manage its national electricity system and meet its net-zero commitment by providing renewable electricity and storage capabilities.
“This investment marks CDPQ’s first foray into pumped hydro storage, and we are delighted to join forces with Engie, a longstanding partner for CDPQ and a world leader in the energy sector.”
Ignacio Gomez-Acebo, managing director at Brookfield, said: “We are pleased to have supported First Hydro throughout our ownership period including securing its long-term future through active management of the business. First Hydro will continue to provide considerable renewable power to the UK long into the future.”
Brookfield acquired its quarter stake in First Hydro from Mitsui back in 2017.
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