Augusta has closed several transactions in the hydro power space both for “run of the river” and “reservoir” hydro projects. These include the RP Global portfolio of 230MW across Spain and Portugal with an innovative bond financing structure which was sold by way of a management buy-out to Cube Infrastructure Partners in 2009 and several confidential French and Norwegian hydro transactions that are undisclosed. Augusta has also acted on capital raises for two large pumped storage projects in the UK.
In terms of volatility, due to the “battery like” nature of reservoir hydro, capex replacement and general investment duration, hydro is a very specific asset class that requires a dedicated approach. The transactions are much rarer and hard to find due to their geological constraints and they are very popular with investors due to the enhanced risk/return metrics. Augusta has developed dedicated hydro knowledge and technology expertise from these transactions.