ArcLight divests hydro assets

Buyer Brookfield Renewable will land 85MW by way of two separate transactions.

Energy fund manager ArcLight Capital Partners has divested a 70-megawatt (MW) hydroelectric portfolio in Maine as well as its stake in a hydro power station located in California.

ArcLight carried out the sale in separate transactions with buyer Brookfield Asset Management (BAM), which purchased the assets via Brookfield Renewable Energy Partners (BREP), according to a press release.

Brookfield Renewable president and chief executive Richard Legault in a statement called the deal “highly complementary to our existing [hydroelectric] portfolio in North America”.

The portfolio in Maine, a state in the US' New England region – is a group of nine hydro facilities located along the Androscoggin, Penobscot and Union Rivers, with Brookfield noting BREP has 270MW in existing operating volume “on the same river systems”.

Sixty percent of the output from the hydro assets is sold to the wholesale New England power market, while the remaining power is sold to area utilities, Brookfield said.

The second transaction saw ArcLight unload its remaining 50 percent ownership in the Malacha Hydropower Station in California. The 30MW site is based on the Pitt River in Lassen County, California. BREP bought its “initial” interest in Malacha in late 2010, Brookfield said.

The output from Malacha is sold to Pacific Gas and Electric Company (PG&E) via a fixed-price contract through 2028, Brookfield said.

Zev Korman, director of investor relations for Brookfield in Toronto, declined to reveal the cost of the assets. Korman went on to note BREP has a total 6,000 MW renewables portfolio – 85 percent of which is hydroelectric.

Brookfield in 2011 consolidated its renewables assets under BREP, a publicly traded partnership. BREP has $17 billion in assets under management.

Headquartered in Boston, ArcLight is manager to $10 billion.