Indian renewable energy company Greenko has acquired the 14-MW Sumez hydropower plant, moving the company closer to its target of 1,000 MW of hydroelectric production by 2015.
Greenko says the Sumez hydropower project has a total value of about US$24 million, including normal project finance debt, though the company did not disclose details of the transaction.
"Our hydro capacity has grown by 58% this financial year and Sumez now gives us access to the merchant power market, where we expect to generate attractive returns for our shareholders," said Anil Chalamalasetty, Greenko's Chief Executive Officer.
Sumez was completed in early 2012 and was registered by the Rango Raju Warehousing Private Limited under the United Nations Framework Convention on Climate Change (UNFCCC). Greenko says its output is currently contracted to the state's electricity board.
"We will continue to selectively acquire high quality hydro projects, as current market conditions have created opportunities for a well-capitalized business such as Greenko to secure assets at very attractive prices," Chalamalasetty said.
In all, the company's hydro portfolio now consists of 289 MW-worth of total capacity.