Hydro-Québec, through its wholly-owned subsidiary HQI US, has agreed to acquire Great River Hydro, from affiliates of ArcLight Capital Partners, for a price of around $2bn.

Great River Hydro is a US-based hydropower producer and operator. It owns 13 hydropower generating stations with a total installed capacity of 589MW.

The company’s assets are located along the New England region’s Connecticut and Deerfield rivers in the states of Vermont, Massachusetts, and New Hampshire.

Great River Hydro also owns three storage-only reservoirs and land holdings of nearly 30,000 acres.

The company produces and supplies enough renewable energy to power more than 213,000 homes in New England annually.

One-fifth of the energy produced by Great River Hydro is underpinned by long-term supply contracts which are said to ensure a stable revenue.

Hydro-Québec president and CEO Sophie Brochu said: “Hydro-Québec has a long-term energy partnership with New England, as we have been exporting our hydropower to the region since the 1980s.

“This acquisition represents a unique opportunity to combine our know-how in managing and leveraging hydro facilities with Great River Hydro’s thorough understanding of the New England market.

“By combining our strengths, we can support the development of new renewable energy projects, in a market where such resources are in high demand.”

The acquisition of Great River Hydro is expected to help Hydro-Québec in diversifying its revenue streams in its primary export market. It will also create additional revenue for the Canadian electricity producer as of the first year.

Following the closing of the transaction, Great River Hydro will remain a separate entity and retain its nearly 100 employees.

Great River Hydro president and CEO Scott Hall said: “We are excited to be joining Hydro-Québec in the coming months. Their deep knowledge of the hydroelectric industry and long history in the New England market gives us tremendous confidence that Great River Hydro is an ideal fit, and we look forward to continuing to provide clean, renewable hydroelectricity to our New England neighbours for years to come.”

The closing of the transaction is subject to customary closing conditions and regulatory approvals.