The Abu Dhabi National Energy Company (TAQA) has acquired a minority interest in Himachal Sorang Power Limited (HSPL) with plans to acquire the hydroelectric project developer in full later, HydroWorld.com has learned.
The Abu Dhabi National Energy Company (ADX: TAQA) made the acquisition through a joint venture that also includes Jyoti Structures Ltd. The partnership -- called TAQA Jyoti Energy Ventures Pvt. Ltd. -- stems from a July 2011 memorandum of understanding that said the two would "explore investment opportunities" in the energy sector.
For its money, TAQA receives a stake in the 100-MW Sorang hydro project, which is, according to HSPL, approximately 90% complete.
The run-of-river facility will be powered by the Soran Khad River and will provide power to India's northern states.
The Sorang hydroelectric plant is expected to begin operating later this year.
Financial details of the deal were not disclosed, though TAQA said it will "progressively acquire 100% of the share capital of HSPL" before jointly operating the plant with Jyoti. The companies did not specify when the acquisition would be completed.
India's north has been a hotbed of hydroelectric development in recent months, with the Asian Development Bank (ADB) being only the most recent investor to further projects in the Himachal Pradesh region.
HydroWorld.com reported that the World Bank also gave the state a US$100 million loan to study hydroelectric development as an "environmental model of economic recovery" in September 2012.