Statkraft acquires the Tidong hydropower project
04.09.2018 12.00 | pressrelease
Statkraft has acquired the 100 MW Tidong hydropower project in Himachal Pradesh, India. Approximately 60 per cent of the project works have been constructed so far.
The Tidong hydropower project is located on Tidong River, a tributary of Sutlej River, in Himachal Pradesh (HP). The planned installed capacity is 100 MW, although there is a possibility for further expansion that will be evaluated. 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.
India’s electricity demand is among the fastest growing in the world. Total electricity consumption was 1,210 TWh in 2017, with a demand growth of 6.5 per cent per year. Statkraft has extensive industrial experience in hydropower in India, with a 49 per cent shareholding in two hydropower assets in operation in Himachal Pradesh: Malana (108 MW/340 GWh) and Allain Duhangan (192 MW/800 GWh). Recently Statkraft has also gained experience in solar and direct sales to business customers.
“This investment is a sign of Statkraft’s commitment to the Indian power sector. We are excited by the prospects of this very dynamic and fast growing market and this acquisition places us in a very good position to tap the many opportunities present here,” said Bredo Erichsen, Managing Director and Country Head of Statkraft India.
The Tidong project is approximately 60 per cent complete. Construction works will resume immediately after the closing of the transaction. The remaining construction works are expected to be completed in approximately two years.
In preparation of the construction phase, special attention has been given to health and safety measures. This is one of the major execution risks for projects in remote mountainous regions. The Tidong project management team, where most of the key resources have experience from recent Statkraft construction projects, is handpicked to manage this risk, and have strengthened the project organization with additional HSE expertise.
The transaction is an acquisition of 100 per cent of the shares in NSL Tidong Power Generation Private Limited.