Greenko Group plc GKO Hydropower Acquisition

  Greenko Group plc (GKO) - Hydropower Acquisition

RNS Number : 3929R
Greenko Group plc
19 November 2012






19 November 2012



                              Greenko Group plc

                         ("Greenko" or "the Company")

                                      

                            Hydropower Acquisition





Greenko, the Indian developer, owner and operator of clean energy projects, is
pleased to announce the acquisition of three run-of-river hydro power projects
in the Kangra  District of  Himachal Pradesh,  totalling 15  MW. This  brings 
Greenko's total generating portfolio to over  275 MW and keeps the Company  on 
track for its target of 1,000 MW in 2015.



On 28 March  2012, Greenko announced  the acquisition  of a 32  MW cluster  of 
operating hydro projects in Himachal Pradesh and the transaction was completed
in April 2012. At the  same time, Greenko committed  to acquire a further  15 
MW, subject to  certain conditions that  have now been  fulfilled. The  total 
value of these three  new projects is  approximately €18.7 million,  including 
normal project finance debt.



All power produced  from the  plants is sold  under long  term Power  Purchase 
Agreements ("PPA") to  the local  state electricity board.  The average  Plant 
Load Factor for the  combined asset is  expected to be in  excess of 60%,  the 
average PPA price  is Rs2.95/kWh  and the  projects are  registered under  the 
Clean Development  Mechanism. As  a whole,  thenew Himachal  Pradeshprojects 
have a strong hydrology profile with diverse water catchment sources including
snow, rain and glaciers as a result of their position in the foothills of  the 
Himalayan Mountains.



While Greenko  anticipates  growing  its  hydro  portfolio  primarily  through 
organic development, it will continue to evaluate acquisition opportunities on
a case-by-case basis.  Where there  is astronginvestment  case, Greenko  may 
acquire additional hydro assets which are either operational, in construction,
or at an advanced developmental stage.



Commenting on  the acquisition,  Anil Chalamalasetty,  CEOand MDof  Greenko, 
said:"Greenko has generated strong returns from its hydro assets. These  are 
some of the most attractive and sustainable assets for an Indian energy market
that is characterized by  high demandand constrained  base load fuel  supply. 
We remain the largest operator and developer of small hydro assets in  India, 
with 151 MW operational, a further  189 MW currently in construction and,  182 
MW under active development, plus  a good pipeline of potential  acquisitions. 
Today's portfolio addition  is part  of our strategy  of adding  attractively 
priced, high  quality,  tuck-in  acquisitions in  the  hydropower  sector  and 
providing a  balanced portfolio  of clean  energy assets  for India's  rapidly 
growing market."



                                    -Ends-



For further information please visit www.greenkogroup.com or call:





Greenko Group plc

Anil Chalamalasetty            +44 (0)20 7920 3150
Mahesh Kolli
Vasudeva Rao Kaipa
Mark Thompson
Arden Partners plc
Richard Day / Adrian Trimmings +44 (0)20 7614 5917
Tavistock Communications
Matt Ridsdale / Mike Bartlett  +44 (0)20 7920 3150







About Greenko

Greenko is a mainstream participant in the growing Indian energy industry  and 
a market leading  owner and operator  of clean energy  projects in India.  The 
Group is building a de-risked portfolio  of wind, hydropower, natural gas  and 
biomass assets within India and intends to increase the installed capacity  it 
operates by winning concessions  to develop new greenfield  assets as well  as 
making selective acquisitions which enhance shareholder value.



Greenko's portfolio  is carefully  planned  and managed  to ensure  it  offers 
investors diversification geographically and spreads risks across a number  of 
projects which utilise varied  environmental technologies. The Company's  goal 
is to reach 1 GW of operational capacity in 2015.



With a core belief in  sustainability both operationally and  environmentally, 
Greenko endeavours to be a responsible  business playing an important role  in 
the community beyond its  role in the power  generation industry. The  Company 
maintains  a  continuous  involvement  in  localised  projects  and  community 
programmes which  centre on  education,  health and  wellbeing,  environmental 
stewardship and improving rural infrastructure.



Greenko Group plc  was admitted to  trading on  the AIM market  of the  London 
Stock Exchange (LSE: GKO) in November 2007.



                     This information is provided by RNS
           The company news service from the London Stock Exchange

END


ACQEAPFPFDEAFFF -0- Nov/19/2012 07:00 GMT
 
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