On August 16, 2023, the Caisse de Depot et Placement du Quebec (CDPQ) headquarters in downtown Montreal was captured in a photo by Christinne Muschi of The Canadian Press.
Montréal-based investment group CDPQ has announced the acquisition of a 25% stake in the UK's First Hydro Company from Brookfield Asset Management. First Hydro is a key player in the UK’s energy sector, managing the country's two largest hydroelectric power stations, located at Dinorwig and Ffestiniog in Snowdonia, Wales. These facilities together contribute over 2,000 MW of energy, representing 76% of the total pumped hydro storage capacity in the United Kingdom.
First Hydro's contribution is vital for maintaining the UK's electricity supply and ensuring grid stability. As renewable energy becomes more critical, First Hydro plays a major role in supporting the country’s transition towards a greener energy grid. This acquisition marks CDPQ’s first venture into pumped hydro storage, enhancing its commitment to sustainable energy solutions.
Engie, a global energy leader, retains the remaining 75% share of First Hydro and will continue collaborating with CDPQ. Engie’s expertise, coupled with CDPQ’s investment, will further strengthen the role of First Hydro in helping the UK meet its net-zero targets by providing reliable renewable energy storage.
CDPQ’s Executive Vice-President of Infrastructure, Emmanuel Jaclot, expressed excitement about the deal, noting the importance of First Hydro's capabilities in meeting the UK's renewable energy goals. He emphasized that the investment aligns with CDPQ's broader strategy to generate sustainable, long-term returns while contributing to global environmental objectives.
Brookfield, which previously held the 25% share, expressed satisfaction with its stewardship of First Hydro, noting its contributions to the company's success. Brookfield’s Managing Director, Ignacio Gomez-Acebo, highlighted the long-term potential of First Hydro and its vital role in supplying renewable energy to the UK.
The transaction is expected to close by the end of 2024, subject to the usual regulatory approvals. The deal further cements CDPQ's role as a major player in the global energy transition, building on its existing portfolio of sustainable energy investments. For CDPQ, this acquisition reflects its ongoing commitment to expanding its investment in infrastructure that drives both financial returns and environmental progress.
CDPQ manages a diversified portfolio of global investments, with net assets totalling CAD 452 billion as of June 2024. Its focus remains on sustainable, long-term investments, and this move into pumped hydro storage signals an increasing interest in renewable energy sectors. Meanwhile, Brookfield, a leader in global asset management, continues to operate one of the world’s largest platforms for renewable energy, with a focus on essential services and real assets that form the core of the global economy.
