Canadian pension fund CDPQ has announced it will acquire Brookfield Asset Management’s 25% stake in pumped storage plant operator First Hydro Company for a reported £500 million. Engie is the majority shareholder who owns the remaining 75% of the company.
First Hydro is responsible for the management and operation of two pumped storage plants at Dinorwig and Ffestiniog in the Snowdonia region of Wales. Their combined capacity of more than 2,000MW represnts 76% of the total pumped hydro storage in the UK. CDPQ said that the plants were “critical infrastructure to face the country’s increasing needs of grid flexibility and stability”.
“First Hydro is playing a critical role in helping the United Kingdom manage its national electricity system and meet its net zero commitment by providing renewable electricity and storage capabilities,” said Emmanuel Jaclot, CDPQ’s Executive Vice-President and Head of Infrastructure. “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.”
Financial close is expected by end of 2024.