Norway's Statkraft purchased the 100-megawatt Tidong hydropower project in Himachal Pradesh, India, the company announced late Wednesday.
The company said that the project, which is located on the Tidong river - a tributary of the Sutlej River in the state of Himachal Pradesh in north-western India, plans to have an installed capacity of 100 megawatts, but the possibility of further expanding this capacity would be evaluated.
The transaction is for the acquisition of 100 percent of the shares in NSL Tidong Power Generation Private Limited, Statkraft explained.
According to Statkraft, India’s electricity demand is one of the fastest growing in the world. Total electricity consumption was 1,210 terawatt-hours (TWh) in 2017, with a demand growth of 6.5 percent per year.
"Statkraft has extensive industrial experience from hydropower in India, with a 49 percent shareholding in two hydropower assets in operation," the company said.
Therefore, "the acquisition is in line with Statkraft’s strategy to develop renewable energy generation, building on Statkraft’s more than 120 years of hydropower experience," the company said.
"We are very pleased to announce this deal, which positions Statkraft well for further growth in India, a core market for Statkraft," said Statkraft’s Executive Vice President Jurgen Tzschoppe.
The Norwegian company confirmed that the Tidong project is approximately 60 percent complete.
Construction works will resume immediately after the closing of the transaction and the remaining construction works are expected for completion in approximately two years, the company said.
By Murat Temizer