Brookfield and Google ink first-of-its-kind hydropower deal

Hyperscaler Google has announced the largest hydropower deal in world history, a first-of-its-kind framework with Brookfield Asset Management and its pure-play clean power platform, Brookfield Renewable.

Under the Hydro Framework Agreement (HFA), Google can procure up to 3,000MW of hydroelectric capacity across the United States that will be relicensed, overhauled, or otherwise upgraded to extend useful life.

The first contracts executed under the HFA will be for the relicensing of Brookfield’s Holtwood and Safe Harbor hydroelectric facilities in Pennsylvania, representing more than $3 billion of power and 670MW of capacity.

Target regions

Brookfield and Google will initially focus on projects in the Mid-Atlantic (PJM) and Mid-Continent (MISO) electricity markets, with the flexibility to expand into other US regions.

The 20-year Power Purchase Agreements (PPAs) for Brookfield’s Holtwood and Safe Harbor hydroelectric facilities in Pennsylvania will support Google’s operations across PJM Interconnection, which operates the largest US grid and has been frequently criticized for limited renewable energy integration, long queues, and skyrocketing power prices.

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PJM is conducting a future power resource auction right now, with results announced next week. The last auction‘s results drew an unwanted national spotlight to some of PJM’s widespread problems, which the transmission operator has worked to remedy. The transaction structure of Google’s new HFA allows Brookfield to maintain existing commitments to power consumers such as Amtrak from the Safe Harbor facility.

“This collaboration with Brookfield is a significant step forward, ensuring clean energy supply in the PJM region where we operate. Hydropower is a proven, low-cost technology, offering dependable, homegrown, carbon-free electricity that creates jobs and builds a stronger grid for all,” said Amanda Peterson Corio, head of data center energy at Google.

“Our partnership with Google demonstrates the critical role that hydropower can play in helping hyperscale customers meet their energy goals,” added Connor Teskey, president of Brookfield Asset Management. “Delivering power at scale and from a range of sources will be required to meet the growing electricity demands from digitalization and artificial intelligence.”

The soon-to-be modernised hydro facilities

The 252MW, 14-turbine Holtwood Hydroelectric Dam is the oldest of three major dams built across the lower Susquehanna River. It was first built as the McCalls Ferry Dam from 1905 through 1910 by the Pennsylvania Water & Power Company, which later merged with Pennsylvania Power & Light (PPL). The project consists of a 2,392-foot-long, 55-foot-high concrete gravity dam, two powerhouses, an impoundment, a tailrace, and a fish lift. The impoundment, Lake Aldred, extends approximately eight miles upstream.

Initially boasting only about half of its current nameplate, Holtwood added a second powerhouse, courtesy of a three-year PPL endeavor, contributing an additional 125MW of capacity once construction was completed in late 2013. In 2015, Talen Energy took over generation on the site and sold the plant to Brookfield Renewable Energy to comply with federal antitrust requirements.

Holtwood operates under FERC License No. 1881. Licensee BIF III Holtwood LLC has announced plans to pursue a new license through the Federal Energy Regulatory Commission (FERC)’s Integrated Licensing Process. Its current license, which was issued on August 14, 1980, expires on August 31, 2030.

The 417.5 MW Safe Harbor Hydroelectric Project is located at river mile 32 on the Susquehanna River in Lancaster and York Counties in Pennsylvania. Originally constructed in 1930, it began operations in 1931 by the Safe Harbor Water Power Corporation. It consists of a 4,869-foot-long by 75-foot-high concrete gravity dam, one powerhouse located on the eastern side of the river, an impoundment, a tailrace, and a fish lift. The impoundment, Lake Clarke, extends approximately 10 miles upstream.

In 2014, Brookfield Renewable took over ownership of the project, which operates under FERC License No. 1025 by licensee, Safe Harbor Water Power Corporation, which is pursuing a new license through the FERC, intent on updating and modifying the site. The current license for the project, which was issued on August 14, 1980, expires on April 22, 2030.

Originally published by Paul Gerke on Power Engineering Factor This