Tata Power, India’s integrated private power utility, and SN Power, Norway’s international renewable energy company, recently signed an exclusive partnership agreement to develop joint hydropower projects in India and Nepal.

This is the first time that Tata Power has entered into an exclusive partnership with another hydropower company, stated a press statement issued by Tata Power.

The partners aim to have 2,000 MW under construction or in operation by 2015, and a total of 4,000 MW by 2020.

Tata Power and SN Power have already begun pursuing potential project opportunities based on the vast reserves of renewable energy in the Himalayas, its is learnt.

The business model for the exclusive partnership is said to be focused on developing hydropower projects that will meet the increasing energy demand in India and Nepal through the provision of clean energy. The partners will also establish a jointly-owned Services Company in India, which will provide each project with world class technical and managerial expertise.

In addition to partnering on new project developments, Tata Power and SN Power are also considering to co-develop the Tamakoshi 3 project in Nepal to which SN Power holds license rights, added the statement.

Each joint project will be developed through a Special Purpose Vehicle (SPV) structure. For SPVs in Nepal, SN Power will hold 50 percent of the total issued and paid up capital of the SPV + one equity share. For SPVs in India, Tata Power will hold 50 percent 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. nepalnews.com

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