Reservoir Capital unit Renewable Energy Ventures (BVI) Ltd. filed applications for the licenses early last year.
The agreement allows Global EcoPower to earn a 50 percent interest in Reservoir Capital's wholly owned subsidiary Renewable Energy Ventures Ltd. by funding all further costs to take the Brodarevo projects to the stage of bankable feasibility and by arranging debt financing for their construction. The agreement is subject to due diligence review and completion of a definitive agreement.
The memorandum of understanding signed by the companies also calls for them to create a 50-50 owned Development Company that would develop the Brodarevo projects and would acquire and develop additional projects in Serbia and other countries in the region. The Development Company is targeting an installed capacity of 700 MW by 2015, including the Brodarevo projects.
�Currently over 30 percent of Serbia's power generating capacity is hydroelectric, with 2,013 MW installed, most of which is run of river,� a statement by Reservoir Capital said. �The Serbian government estimates that there is potential to more than double this figure based on available sites in the country that are considered technically and economically feasible for hydro project development.�
Reservoir Capital selected the Brodarevo run-of-river sites from among various opportunities because they had been the subject of detailed technical studies under the government's long-range infrastructure planning in the 1980s. There are four other hydro projects on the Lim.
Canadian energy company Reservoir Capital Corp. has formed a joint venture with Global EcoPower of France to develop the 48-MW Brodarevo 1 and 2 hydroelectric projects on the Lim River in southwestern Serbia.
Reservoir Capital subsidiary REV d.o.o. received energy licenses for the projects in February.