ACQUISITION OF ADDITIONAL HYDRO ASSETS (2175A)
March 28 2012 - 2:01AM
UK Regulatory
TIDMGKO
RNS Number : 2175A
Greenko Group plc
28 March 2012
EMBARGOED UNTIL 07.00 WEDNESDAY 28th March 2012
Greenko Group PLC
("Greenko", "the Company" or "the Group")
ACQUISITION OF 56MW OF ADDITIONAL HYDRO ASSETS
Greenko, the Indian developer, owner and operator of clean
energy projects, is pleased to announce today the acquisition,
subject to certain conditions, of two additional hydro power
assets, one cluster of 32MW which is operational and the other of
24MW currently under development. The total consideration is
EUR42.7 million and will be funded from a mix of existing cash
reserves and project debt already in place. The Group's operational
portfolio is now 214.6MW out of a total 1.67GW portfolio of
diversified clean energy assets, of which over 450MW is under
construction.
The 32MW asset cluster is located in the Northern Indian state
of Himachal Pradesh on the edge of the Himalayan Mountains. It
consists of four 5MW plants and one 12MW plant. All power produced
from the plants is sold under long term Power Purchase Agreements
("PPA's") to the local state electricity board. The average Plant
Load Factor ("PLF") for the combined asset is expected to be in
excess of 60%. As a whole, the Himachal Pradesh asset 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.
The 24MW project is in the Southern Indian state of Karnataka
and is currently under development with completion targeted in
2014. All project approvals have been obtained and construction is
due to start after the 2012 monsoon which typically runs from June
to September. The surrounding terrain is part of an existing
Greenko cluster where the Company is already developing and
operating hydro plants, allowing resources already present to be
employed for this newproject. Karnataka has a reliable hydrology
profile supported by long term data analysis, and the new project
will benefit from the monsoon season with an anticipated PLF of
approximately 30%.
Whilst bolt-on acquisitions of existing wind projects are
unlikely because of Greenko's differentiated strategy in that asset
class, the Board believe there are opportunities to add to the
hydro portfolio via acquisitions and will continue to evaluate
opportunities on a case-by-case basis. Where there is a strong
investment case to do so, Greenko may acquire additional hydro
assets which are either already operational or at an advanced
developmental stage.
Commenting on the acquisitions, Anil Chalamalasetty, CEO and MD
of Greenko, 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 characterized by high demand and constraints in base load fuel
supply and potentially volatile offtake markets. These additions to
our portfolio are in line with the Group's targeted operational
capacity of 1GW by 2015.
-Ends-
For further information please visit www.greenkogroup.com or
call:
Greenko Group plc
Anil Chalamalasetty +91 (0)98 4964 3333
Mahesh Kolli +91 (0)99 4958 6332
Vasudeva Rao +91 (0)99 5961 7442
Tim Bowen +44 (0)7973 668818
Arden Partners plc
Richard Day / Adrian Trimmings +44 (0)20 7614 5917
Tavistock Communications +44 (0)20 7920 3150
Matt Ridsdale / Mike Bartlett
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, hydro electric, 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 by 2015. Current operational capacity is 214.6
MW, split between 136.3 MW of hydro, 41.5 MW of biomass and 36.8 MW
of gas/liquid fuel. Greenko's portfolio, which includes projects in
the development pipeline, currently stands at 1.67 GW.
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
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