Greenko to Invest 350 Million Euros in Indian Hydro and Wind

Greenko Group Plc (GKO), an Indian clean-energy developer, plans to invest 350 million euros ($463 million) this fiscal year in onshore wind and hydropower plants in India as it targets 1,000 megawatts of capacity by 2015.

The company, which has 806 megawatts of projects operating or under construction, wants to bring online 250 megawatts of new wind power capacity this year, Mark Thompson, director of corporate finance for Hyderabad-based Greenko, said by phone. It expects to invest about 350 million euros this year and “roughly” the same next year.

“We are at this wonderful stage where wind and hydropower are some of the cheapest sources of energy generation in India and we can still make attractive returns,” Thompson said. “It’s a fantastic market and a huge opportunity.” The company plans to both build and acquire hydropower assets.

Greenko operates about 309 megawatts of renewable energy projects, including 41 megawatts of biomass. It has 446 megawatts under construction and expects to complete more than 200 megawatts before March 31. It said in December it sees annual sales of 330 million euros by building and buying 1,000 megawatts of clean energy by 2015.

The company today reported revenue of 38.3 million euros for the year ended March 31 compared with 36.9 million euros a year earlier. It invested 219.9 million euros.

India, the world’s third-largest market for wind turbines, had 18,552 megawatts of installed wind capacity as of January 2013, according to the Global Wind Energy Association. At the end of last year renewable energy accounted for about 6 percent of its electricity generation.

To contact the reporter on this story: Louise Downing in London at ldowning4@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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