In a strategic move signaling its entry into pumped hydro storage, Caisse de dépôt et placement du Québec (CDPQ) has acquired a 25% stake in the British power company First Hydro Co. from Brookfield Asset Management and its partners. While the financial specifics of the deal remain undisclosed, the acquisition is significant as First Hydro manages and operates two power plants in Wales. The move is CDPQ’s first venture into this specific area of renewable energy infrastructure, expanding their already diverse portfolio. French utility company Engie maintains the majority stake, holding the remaining 75%. The deal is anticipated to be finalized by the end of 2024.
Expanding Infrastructure Portfolio
In a strategic move underscoring its expansion into pumped hydro storage, Caisse de dépôt et placement du Québec (CDPQ) has acquired a 25% stake in the British power company First Hydro Co. from Brookfield Asset Management and its partners. The specific financial terms of the deal have not been revealed, but the acquisition is particularly significant as it marks CDPQ’s initial foray into this niche of renewable energy infrastructure. First Hydro oversees the operation of two notable power plants in Wales, which adds a new dimension to CDPQ’s investment portfolio.
Engie, a prominent French utility company, retains the majority interest with a 75% share in First Hydro Co. This strategic acquisition aligns with CDPQ’s broader goals of diversifying its renewable energy investments and expanding its influence in the sector. The transaction is expected to conclude by the end of 2024, indicating a clear commitment to long-term growth and sustainability in green energy projects.
