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Greenko buys two Indian hydropower assets

Indian hydropower deal could help local company crawl back from affects of low carbon price

India's hydro potential is estimated to be about 84,000 MW at 60% load factor

Indian clean energy developer, Greenko, has acquired two hydropower assets which have a combined potential of 56 MW.

The company believes the EUR 42.7m purchase could help it recover from loses incurred by the recently weak carbon credit market. Greenko expects revenues of about EUR 39m and core earnings of about EU 20m for the year ending 31 March, reported Reuters.

One purchased cluster of 32MW is already operational and is located in the north Indian state of Himachal Pradesh close to the Himalayas. It consists of four 5MW plants and one 12MW plant.

The other, 24MW, project is in the south Indian state of Karnataka and is currently under development with a 2014 completion target. All project approvals have been obtained and construction is due to start after the 2012 monsoon which typically runs from June to September, said Greenko in a statement.

The projects will be funded from a mix of existing cash reserves and project debt already in place.

The acquisition brings the company’s total operational portfolio up to 214.6MW out of a total 1.67GW portfolio of diversified clean energy assets, of which over 450MW is under construction.

Himachal Pradesh has a strong hydrology profile with diverse water catchment sources including snow, rain and glaciers as a result of its position at the base of the Himalayan Mountains.

Commenting on the acquisitions, Anil Chalamalasetty, Greenko CEO and MD said: “We have a strong record of generating profits from our existing hydro assets. Greenko is now the largest operator and developer of small hydro assets in India.

“These are the most attractive and sustainable assets for an Indian energy market that is characterised by high demand and constraints in base load fuel supply and potentially volatile off-take markets. These additions to our portfolio are in line with the Group’s targeted operational capacity of 1GW by 2015”.