GDF Suez to acquire U.S hydropower provider

Paris-based GDF Suez SA (EPA: GSZ) said today it plans to add 1,538 megawatts of power generation to its portfolio.

GDF Suez subsidiary SUEZ Energy North America said it's acquiring FirstLight Power Enterprises, which owns 16 plants that generate electricity primarily through hydropower in Massachusetts and Connecticut.

New England is a core North American market for GDF Suez, the company said. The region has a capacity of 31,000 MW of electric generation.

Already, GDF Suez owns six renewable and natural-gas-fired power generation plants there. GDF Suez sells liquefied natural gas to many of the utilities in New England and sells electricity to large commercial and industrial customers.

FirstLight's power generation portfolio will add:

• 1,109 MW of pumped-storage hydro, in which the company pumps water into storage reservoirs during off-peak hours, and then runs the water through turbines connected to generators.
• 165.5 MW of hydro using dams and rivers to drive turbines.
• 263.3 MW of gas and coal generation.
• a natural gas peaking facility that's under construction.

The deal makes GDF Suez the third-largest power supplier to businesses in the U.S. GDF Suez has 6,193 MW of capacity in North America, mostly in natural gas-fired power plants and wind turbines.

French newspaper Le Figaro valued the FirstLight deal at €1.28 billion ($1.87 billion USD). Hartford, Conn.-based FirstLight is owned by Energy Capital Partners.

GDF Suez was formed by the merger of Gaz de France and Suez in July (see Suez to spin off water and waste division).

Last week, GDF Suez announced it won a contract to build a $2 billion power generation and seawater desalination plant in Bahrain (see GDF Suez gets Bahrain desal contract).

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