First published in Cleantech magazine. November/December 2007. © Cleantech Investor Ltd. 2007
Indian clean energy producer Greenko Group plc was admitted to AIM on 7 November through a placing of 32.1 million shares at a price of EUR 1.4 (97.6p) per share. The placing raised EUR 45 million (£31.4 million) before expenses and valued the company at EUR 95.2 million (£66.4 million).
Greenko generates revenues from the Indian electricity market, but also through the creation of Certified Emission Reduction Units (CERs) under the Clean Development Mechanism (CDM). It currently has assets with capacity to generate 90.5 MW of renewable energy, including five biomass plants, a 50% holding in a sixth biomass plant and the licence to operate two hydro plants (both of which are currently under construction). The combined assets should generate some 300,000 CERs in 2008.
Greenko’s strategy is to expand its portfolio of biomass, hydro and wind assets. The funds raised should be invested in the expansion of capacity up to 400 MW, through a combination of the acquisition of existing assets and greenfield developments.
India’s strong economic growth is fuelling strong growth in energy demand. The Indian government target is to install an additional 68.5 GW of capacity between 2007 and 2012, more than 50% of the current installed capacity of 127 GW. The Government intends that 10% of all new energy should come from renewable sources.