NTPC in green power consortium
05 August 2008
Public sector power genaration firm NTPC has joined a consortium as majority partner in which Asian Development Bank, GE Energy Financial Services, Kyushu Electric Power Co. Inc. and Brookfield Renewable Power Inc, will form a joint venture to undertake renewable power generation.
The proposed venture would initially concentrate on wind power, mini and micro-hydro electric power generation.
NTPC will hold 40 per cent equity in the proposed venture with remaining stake being shared equally by the other venture partners. According to the agreement, the appointment of the chairman of the joint venture business would be the prerogative of NTPC.
Over the next three years, the proposed venture will develop greenfield and underutilised potential sites to establish a portfolio of about 500 MW of renewable power generation resources in India. The venture would initially develop projects in India before looking at other countries in the region to act as an investor and facilitator for the development of renewable energy resources.
NTPC, India's largest power company with 28.5 per cent share of power generation with a 19 per cent installed capacity, is among the largest and most efficient power generation companies in the world. NTPC has installed capacity of 29,394 MW, consisting of 18 coal-based and eight gas-based power stations. With diversification into hydro power, coal mining, power equipment manufacturing and power trading, NTPC has been transforming into an integrated power major
GE Energy Financial Services, a unit of General Electric, which has invested over $4 billion in green investments (See: GE crosses $4-billion in green investments with new wind-farm projects), last week announced having invested $325 million to acquire a 32-per cent stake in Spain's largest and most successful solar power project developer, Fotowatio, which owns, operates and is developing around 960 MW of solar projects in Spain, Italy and the US. (See: GE Energy Financial Services acquies stake in Spain's largest solar power firm)
Owned by global asset manager focused on property, power and other infrastructure assets with approximately $95 billion Brookfield Asset Management, Brookfield Renewable Power is an owner, operator and developer of hydroelectric power facilities. Its portfolio includes more than 160 generating facilities with over 4,000 megawatts of capacity, of which 95 per cent is sourced from renewable energy. It also has a 6,500 megawatt hydroelectric and wind project pipeline. Brookfield Renewable Power's operations are primarily located in North America and Brazil.