The hydro power projects being acquired are the 252MW Holtwood station on the Susquehanna River and the 40MW Wallenpaupack station on Lake Wallenpaupack in the Pocono Mountains.
The projects have the capacity to combinedly generate close to 1.1 million megawatt hours of clean energy annually.
These projects complement Brookfield Renewable’s 417MW Safe Harbor facility that is located eight miles upstream from Holtwood.
As per the agreed terms, the company will acquire and fund the transaction with institutional partners and maintain an economic interest of around 40% in the portfolio.
Brookfield Renewable CEO Sachin Shah said: "These high-quality assets provide a unique opportunity to leverage our operating platform and hydroelectric expertise in a market facing significant coal retirements and increasing reliance on renewable."
Subject to approvals and other customary closing conditions, the acquisition is expected to be completed in the first quarter of 2016.
The portfolio benefits from a diverse revenue stream including energy, capacity, renewable energy credits and ancillary services.
Both Holtwood and Wallenpaupack have long-term FERC operating licenses through 2030 and 2045, respectively.
Talen Energy will also divest its 704MW Ironwood combined-cycle, natural gas-fired plant to a subsidiary of TransCanada Corporation for $654m.
Last year, Brookfield Renewable announced plans to acquire a 488MW multi-technology renewable portfolio in Brazil from Energisa for $935m.
The portfolio includes163 MW of hydro, 150 MW of wind and 175 MW of biomass projects.
Brookfield Renewable has presence in 14 power markets across North America, Latin America and Europe. The company’s portfolio primarily comprises hydroelectric projects with a total installed capacity of over 7,000MW.
Image: The two hydroelectric projects will combinedly generate close to 1.1 million megawatt hours of clean energy annually. Photo: courtesy of markuso / FreeDigitalPhotos.net.
