Consisting of a portfolio of four hydroelectric generating stations in Tennessee and North Carolina, US, the Tapaco project is undergoing an expansive asset modernization program. On completion of the expansion the four hydroelectric projects will have a combined capacity of 378MW.
Brookfield Renewable President and Chief Executive Officer Richard Legault said that the Tapoco facilities are proven generation assets and attractively situated in the company’s core markets.
"We believe this acquisition provides a unique opportunity to capture rising electricity prices, and our operating platform and expertise is well-suited to maximize the value of this portfolio over the long term," added Legault.
Under the acquisition, Brookfield will own a 25% stake in the project. It will manage the assets and look to integrate them into its North American operating platform.
Remaining stake in the projects will be held by an institutional fund under Brookfield Asset Management.
The Tapaco project has a 40 year operating license by the Federal Energy Regulatory Commission and its acquisition by Brookfield is expected to close by end of 2012, subject to regulatory approval.
