Greenko acquires 4 hydro electric projects in Karnataka

05 July 2008

Mumbai: Greenko Group of the UK, a specialised operator of clean power and green house gas (GHG) emissions reduction generating assets, has acquired rights for four hydro projects of a total 44.5 MW in Karnataka.
 
Greenko has signed an agreement to acquire four new concessions - the Sonna 10.5 MW, Kallur 16 MW, Joladadagi 16 MW and the Dinnekere 2 MW hydropower projects in Karnataka - the company said in a filing with the London Stock Exchange.

The company will invest 36 million euro to develop the four projects and has targeted a debt equity ratio of 75:25.

''By these acquisitions we can substantially reduce development time and capture the current premium price levels through sales to power trading companies and direct sales to industrial end users," Greenko CEO and co-founder Anil Chalamalasetty said.

The new assets would increase Greenko's total projects under development from 102 MW in April 2008 to 146.5 MW. Along with the company's existing 90.5 MW of secured installed capacity, Greenko will have a total of 237 MW of assets, Greenco said in the filing.

When completed, these projects would generate over 800,000 tonnes per annum of Certified Emission Reduction units (CERs) for Greenco.

Greenco expects to complete the Sonna mini hydro electric project in the first quarter of 2009. The plant would sell electricity to the Karnataka state grid under a long term power purchase agreement with Hubli ESCOM.