CDPQ, a global investment group, has announced an agreement to acquire a 25% stake in UK company First Hydro from Brookfield Asset Management and its partners, including Brookfield Renewable. Engie, the majority shareholder, holds the remaining 75% of First Hydro.
First Hydro operates two power plants located in Dinorwig and Ffestiniog, Wales, with a total capacity of over 2000MW. These facilities account for 76% of the UK’s pumped storage capacity. They play a key role in supporting the country’s energy grid. The storage capacity provided by First Hydro is essential for maintaining grid flexibility and stability. Moreover, this is particularly important as the UK transitions to renewable energy sources.
“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. We are delighted to join forces with Engie, a longstanding partner for CDPQ and a world leader in the energy sector.”
Previous acquisition
Brookfield acquired the 25% stake in 2017 and has since actively managed the asset since. Ignacio Gomez-Acebo, Managing Director at Brookfield, commented, “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.”
The parties expect to close the deal by the end of 2024, pending regulatory approvals and standard closing conditions.
CDPQ manages funds for public pension and insurance plans. As of June 30, 2024, CDPQ’s net assets totaled CAD 452 billion. The group invests across various sectors including infrastructure, private equity, real estate, and financial markets.
Brookfield Asset Management is a global alternative asset manager with $1 trillion in assets under management. It focuses on long-term investments in essential services and real assets. It has major operations in renewable power through Brookfield Renewable Partners, which manages a renewable power portfolio of over 34,000 megawatts.
