Brookfield to acquire 19 hydro facilities from NextEra Energy
Quebec-based renewable energy company Brookfield Renewable Energy Partners L.P. has announced the recent acquisition of 19 hydroelectric generating stations in Maine from NextEra Energy Resources LLC for tentative price of $760 million, including around $700 million in debt.
The purchase consists of 19 hydroelectric facilities and eight storage reservoir dams with a total capacity of 351 megawatts and an expected average annual generation of around 1.6 million megawatt hours, according to a press release. The projects are mostly located on the Kennebec, Androscoggin and Saco rivers.
The portfolio is one of the region's largest independently-owned hydro portfolios of scale and includes the two largest hydroelectric facilities in Maine. All of the facilities have Federal Energy Regulatory Commission licenses, in most cases expiring after 2025 and generally until 2036 or 2048.
The acquisition increases Brookfield's footprint in the New England market to nearly 1,000 megawatts of capacity, while positioning the company to benefit from rising electricity prices.
According to the release, Brookfield Renewable expects to have institutional partners co-invest alongside it for up to 50% of the portfolio through a private fund sponsored by Brookfield Asset Management.
The transaction is subject to regulatory approvals and is expected to close in the first quarter of 2013.
Brookfield operates one of the largest publicly traded renewable power platforms globally. Its portfolio is primarily hydroelectric and totals approximately 5,300 megawatts of installed capacity across 69 river systems and 11 power markets in the United States, Canada and Brazil.
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