Agilitas Energy, a leading Independent Power Producer (IPP) that develops, builds, owns, and operates distributed energy and utility-scale energy storage and solar PV systems, has taken a significant step into a new market: hydropower. The Massachusetts-based company, which employs about 42 people and has established itself in solar and battery storage, announced earlier this year that it has acquired two late-stage hydropower development projects from Advanced Hydro Solutions.
These acquisitions mark Agilitas Energy’s first entry into hydropower – and also its first projects in West Virginia and Maryland. The two projects are the 30MW Tygart Hydropower Project in Grafton, West Virginia, and the 14MW Jennings Randolph Hydropower Project in Garrett County, Maryland. Both facilities will deliver clean, baseload power into the PJM Interconnection, the largest regional transmission organization (RTO) in the US, serving 13 states and the District of Columbia.
Agilitas Energy expects both plants to come online in late 2028. Together, the projects’ combined capacity of 44MW will generate enough reliable electricity to power over 15,000 homes annually. The company acquired both assets at a late development stage, with the FERC licensing process already completed, allowing Agilitas Energy to focus on optimising the project execution and delivery timeline.
For Barrett Bilotta, Agilitas Energy’s President and CEO, the move into hydropower is a natural next step that builds on the company’s experience with other renewables while positioning it for long-term value creation. “We’ve always been in solar and storage, and hydro was a really interesting step for us as we think about the broader renewable energy landscape,” Bilotta said during a recent interview.
A long-term play
Bilotta explains that the company sees hydropower as uniquely aligned with its vision of building a resilient and diversified clean energy portfolio. Unlike solar and storage assets, hydropower plants can provide baseload power that isn’t subject to daily or seasonal intermittency in the same way. Hydro assets – which often operate for decades or even a century – have unique staying power in a sector where many clean energy projects are typically designed with 20- to 30-year time horizons.
“What really attracted us to hydro was its perpetual nature – these projects can operate for 100 years,” Bilotta says. “That’s a very different asset class than what we’ve typically developed in solar and storage, which might have a 20- or 25-year useful life before needing major reinvestment or repowering.”
This longevity, Bilotta notes, makes hydropower particularly well suited to long-term ownership strategies. It aligns with Agilitas Energy’s shift toward holding more assets on balance sheet for long-term value rather than flipping projects or exiting post-construction. “We really think there’s tremendous long-term value in hydropower,” he says. “It’s a more capital-intensive investment upfront, but the long-run returns – and stability – make it worthwhile.”
This long-term orientation fits well with how Agilitas Energy views the evolving US energy market. The company sees growing demand for reliable, round-the-clock power, driven in part by new loads from data centers and other large energy users, particularly in the PJM region.
“We’re seeing substantial growth in demand, particularly from data centers, and hydropower can help serve that demand in a reliable, carbon-free way,” Bilotta says. “It’s a great fit with what we’re seeing in the market.”
Why PJM, why now?
The location of these initial hydropower acquisitions is no coincidence. Agilitas Energy had already been active in PJM (Pennsylvania-New Jersey-Maryland) through its other assets and sees the region as a place where its hydro investments can deliver strong value.
“PJM is really the largest RTO in the country, and it covers an area where there’s a lot of interest in renewables and a lot of demand for electricity,” Bilotta explains. “We’re already familiar with operating assets in PJM, so hydro is a great complement.”
The fact that both projects were already FERC-licensed and in late-stage development also played a role. “We’re not interested in taking on the full risk of greenfield hydro development,” Bilotta notes. “We were looking for projects where most of that heavy lifting had been done.”
The acquired projects allow Agilitas Energy to enter hydropower in a way that balances risk and opportunity. With regulatory approvals in hand, the focus is now on advancing toward construction and eventual operations. The two sites – one at the US Army Corps of Engineers’ Tygart Dam in West Virginia and the other at Jennings Randolph Lake on the North Branch Potomac River – represent a combined investment in reliable, long-lived renewable infrastructure.
The Tygart project, for instance, will involve installing generating facilities at a dam originally built for flood control. By adding generation capacity to existing non-powered dams (NPDs), Agilitas Energy is helping unlock untapped renewable energy potential without the need for new impoundments or major environmental disruption.
Another key factor in the decision was the availability of federal incentives, particularly through the Inflation Reduction Act (IRA). Agilitas Energy expects to benefit from the clean energy investment tax credit (ITC) as well as the energy community adders that apply to both of the project sites.
“These are energy communities where there’s a strong desire to bring new clean energy investment,” Bilotta says. “The ITC adders make these projects even more attractive, helping to improve returns and support financing.”
For Agilitas Energy, the IRA’s support for hydropower aligns with its strategy to build a balanced portfolio of clean energy assets that can thrive under evolving federal and state policy frameworks. The additional ITC boosts for energy communities also allow the company to deliver benefits to historically coal-dependent areas now transitioning to cleaner power sources.
A foothold for further growth
Bilotta says the Tygart and Jennings Randolph acquisitions represent only the beginning of Agilitas Energy’s hydropower ambitions. “We’re absolutely looking to expand,” he says. “We’re very interested in acquiring additional hydro assets, particularly small run-of-river facilities under 10MW.”
The company is exploring opportunities in the US, with an initial focus on projects in PJM and other familiar markets. But Bilotta doesn’t rule out international possibilities either. “If the right opportunity came along that made sense for us and aligned with our goals, we’d certainly take a look at it,” he says.
Hydropower’s potential to provide reliable, low-carbon electricity over very long timeframes makes it a compelling complement to Agilitas Energy’s existing solar and storage business. And Bilotta emphasises that hydro fits squarely within the company’s mission.
“We’re focused on bringing clean, reliable energy to the grid and doing it in a way that provides long-term value,” he says. “Hydro really fits that mold.”
Building on past success
Agilitas Energy’s entry into hydropower comes on the heels of its steady growth in the solar and storage space. With a portfolio of assets across several states, the company has established itself as a reliable partner for utilities and communities seeking to decarbonise their energy supply.
Bilotta notes that the company’s expertise in developing, financing, and operating complex energy projects gives it a strong foundation for success in hydro. “At the end of the day, developing a hydro project shares a lot in common with what we’ve done in solar and storage,” he says. “It’s about managing risk, aligning with stakeholders, and delivering projects that make sense for the market.”
Agilitas Energy’s vertically integrated model – handling development, construction, operations, and asset management – allows it to control costs and maintain quality throughout the lifecycle of a project. That’s an advantage the company hopes to bring to hydropower as well.
Operational plans
While both the Tygart and Jennings Randolph projects are several years from completion, Agilitas Energy is already thinking through its operational approach. Bilotta says the company plans to bring its in-house operations and asset management capabilities to bear, while also drawing on external expertise as needed.
“We have a strong internal team for asset management, and we’ll look to build on that as we expand into hydro,” he says. “We want to make sure we’re operating these assets efficiently and responsibly from day one.”
As the projects advance toward construction, Agilitas Energy will also work closely with local communities, regulators, and stakeholders to ensure transparency and engagement throughout the process. “We’re very focused on doing things the right way – building relationships, being good stewards of the environment, and creating lasting value,” Bilotta adds.
A complementary portfolio
For Agilitas Energy, hydro’s value goes beyond the attributes of any individual project. The company sees its growing hydro portfolio as part of a broader strategy to create a balanced mix of assets that can meet the evolving needs of US power markets.
“Hydro gives us baseload power that complements the intermittent nature of solar and the flexibility of storage,” Bilotta explains. “It’s about creating a portfolio that can deliver value across different market conditions and timeframes.”
Bilotta adds that being able to offer a range of technologies makes the company more resilient to policy shifts, market changes, and other external pressures. “We think having that diversification – solar, storage, and now hydro – gives us a much stronger position long-term,” he says.
As Agilitas Energy works to bring its first hydropower projects to fruition, the company remains focused on the fundamentals that have driven its success to date: careful project selection, disciplined execution, and a commitment to long-term value.
Bilotta is optimistic about what hydropower will mean for Agilitas Energy’s future. “This is just the beginning for us in hydro,” he says. “We see a lot of opportunity, and we’re excited to continue building out this part of our business.”
With Tygart and Jennings Randolph setting the stage, Agilitas Energy’s move into hydropower reflects both a strategic evolution and a deepening commitment to the clean energy transition. As Bilotta puts it: “We’re here for the long term – and hydro is going to be a big part of that.”
