MONTREAL – – November 02, 2026 --
PSP Investments has completed the sale of FirstLight's U.S. operations, a portfolio of about 1.4 GW of installed capacity, to Hull Street Energy. It keeps the Canadian business, which now operates as Caelo Energy.
The buyer, Hull Street Energy, is a private equity firm focused on power infrastructure and energy transition investments. The sale includes the FirstLight brand. The U.S. assets span hydroelectric generation, energy storage and other clean energy in Massachusetts, Connecticut and Pennsylvania.
Caelo Energy operates 18 hydro plants totalling 202 MW in Quebec and Ontario
Caelo combines the legacy Hydromega and H2O Power portfolios. It has a development pipeline of nearly 1 GW of renewable energy and energy storage projects. FirstLight's Canada-based employees stay with the business.
The most advanced named project is the 57.2 MW Fort Frances solar project in Ontario, developed with the Lac Des Mille Lacs First Nation. It holds a 20-year power purchase agreement awarded through Ontario's Long-Term 2 (LT2) procurement process.
PSP names Patrick Gut CEO after nearly a decade in its power investments team
Gut focused on investment and asset management in the power sector in the Americas and Europe at PSP. He previously served as Interim President of H2O Power and sat on the boards of both H2O Power and FirstLight. He is also a board member of Cubico Sustainable Investments, a renewables developer and operator with assets in Western Europe, Latin America and the United States.
PSP cites inflation-linked cash flows as the rationale for retaining Canada
Andrew Alley, Managing Director and Global Head of Infrastructure Investments at PSP Investments, said the Canadian platform offers "long-term, inflation-linked operating cash flows" alongside its development pipeline and an experienced team. He described the transaction as concluding a decade of building FirstLight into a North American clean energy business.
Caelo plans to keep operating its hydro assets while advancing its pipeline and pursuing new opportunities in the Canadian power sector.