Indian developer of clean energy projects, Greenko, has acquired its 11th hydro power project in Himachal Pradesh, a mountainous region of northern India.
The run-of-river hydro project, known as Sumez 14 MW, is located near Greenko’s existing cluster of Himachal projects and has a total value of approximately EUR18.3m.
In a normal hydrology year, Greenko’s Himachal portfolio of hydro projects is expected to collectively generate approximately EUR15m in EBITDA (earnings before interest, tax, depreciation and amortisation) from power sales at the present exchange rate.
The projects have a strong hydrology profile due to their position at the base of the Himalayan Mountains, with diverse water catchment sources including snow melt, rainfall and glacier melt.
Commenting on the acquisition, Anil Chalamalasetty, Chief Executive Officer of Greenko, said: ‘Greenko’s hydro assets are generating good returns and form the backbone of our diversified portfolio. Our hydro capacity has grown by 58% this financial year and Sumez now gives us access to the merchant power market, where we will expect to generate attractive returns for our shareholders.’
He added that further acquisitions were in the pipeline for the coming years: ‘While most of the next two years’ growth will come from our own wind and hydro developments, we will continue to selectively acquire high quality hydro projects.’
Greenko has a market capitalistion of £202.64m and is due to announce its interim results for the six months ending September 30th on Thursday December 13th. In October, the group said it was on target to deliver a 1,000MW operating portfolio in 2015.