Indian private power utility Tata Power has signed an exclusive partnership agreement with Norway’s SN Power to jointly develop hydro power projects in India and Nepal.
The partners aim to have 2000MW under construction or in operation by 2015, and a total of 4000MW by 2020. The companies have already begun pursuing potential project opportunities based on the vast reserves of renewable energy in the Himalayas.
In addition to partnering on new project developments, they are also considering co-developing the Tamakoshi 3 project in Nepal, to which SN Power holds licence rights.
Each joint project will be developed through a Special Purpose Vehicle (SPV) structure. For SPVs in Nepal, SN Power will hold 50% of the total issued and paid up capital of the SPV + one equity share. For SPVs in India, Tata Power will hold 50% of the total issued and paid up capital of the SPV + one equity share. Both companies will have equal say in all matters across all SPVs.
