HQI US Holding LLC, a wholly-owned subsidiary of Hydro-Québec, agreed to acquire Great River Hydro LLC, owner of 13 hydroelectric power stations in the U.S. states of Vermont, New Hampshire and Massachusetts.

Great River Hydro was offered for sale by companies affiliated with ArcLight Capital Partners, LLC. The acquisition cost is around $2 billion.

Great River Hydro owns 13 cascading generating stations and three additional reservoirs over about 310 miles along the Connecticut and Deerfield rivers in New England. Total generating capacity is 589 MW. One-fifth of this production is subject to long-term supply contracts. And the company owns 30,000 acres of land, which Hydro-Quebec said allows for “various renewable energy growth projects.”

Hydro-Québec said the acquisition will give it “the largest hydroelectric park in New England, where the decarbonization and electrification objectives are ambitious and where the production of electricity from variable renewable sources should increase considerably.”

Hydro-Québec has exported hydroelectricity to New England since the 1980s, said Sophie Brochu, president and chief executive officer of Hydro-Québec. This acquisition is expected to allow it to combine hydroelectric resource management and development expertise with Great River Hydro’s knowledge of the New England market. “By joining forces, we will be able to support the deployment of new means of renewable production, in a market where these are in very high demand.”

Great River Hydro has about 100 employees and will remain a separate entity. Initial plans call for all jobs to be maintained, along with working conditions.

The acquisition will also allow Hydro-Québec to diversify its sources of revenue in its main export market and is expected to generate additional revenue for Hydro-Québec from the first year, the company said.

The acquisition is subject to customary authorizations from state and federal regulatory agencies.

Hydro-Québec generates, transmits and distributes electricity. It is Canada’s largest electricity producer and one of the largest hydroelectric producers in the world, sourcing most of its electricity supply from hydroelectric generating stations. Its sole shareholder is the Quebec government.

ArcLight is a leading private equity fund specializing in the energy, infrastructure and energy transition sectors, including investments in energy companies that provide decarbonization solutions and place a strong emphasis on ESG factors.