— Einar Stenstadvold, Executive Vice President - Asia,
Norway-based SN Power is very upbeat on prospects of India's
hydropower sector having recently signed an MoU with Tata Power Trading Company
for developing hydro-power projects in India, Bhutan and Nepal. Einar
Stenstadvold spoke to Venugopal Pillai about SN Power's outlook for
How do you rate investment opportunities in India given
that the country has a large hydropower potential of nearly 150,000 mw, out of
which 70 per cent is yet untapped?
We regard India as a very interesting market with great potential. That is why
we are increasing our presence in the country, to make a good basis for further
business expansion. For SN Power, openness and transparency in processes, and
stable general conditions and regulatory frameworks are important in order to
What is the total hydropower capacity that SN Power has targeted in its
SN Power's global ambition is to have a net generation capacity of 4,000 mw by
2015. This is an ambitious strategy, and we will seek to reach this aim by
growing in selected markets in Asia, Latin America and Africa through greenfield
projects and acquisitions. India is one of these markets where we will be
actively looking for business opportunities within the hydropower sector.
How do you rate hydropower opportunities in Nepal, Bhutan and India?
SN Power has identified all three countries as prioritized markets. They have
different attractions and challenges attached to them, and we see them as
integral parts of our regional strategy for the Himalayas.
What is SN Power's total hydropower capacity including joint ventures and
capacity under construction?
The gross portfolio of projects in operations and under construction that SN
Power is involved in amounts to 1,365 mw. This is spread out in India, Nepal,
Sri Lanka, the Philippines, Peru and Chile. We will continue to grow in these
markets, but also look at adjacent markets such as Bhutan and Brazil.
SN power in India & Nepal
SN Power and Tata Power Trading Company signed a memorandum
earlier this year to develop hydropower projects in Bhutan, Nepal and India. The
Norwegian company also opened its office in India recently. Bhutan and Nepal are
the key markets for hydropower development as projects will be able to export
electricity to India as well as domestically.
TPT is a subsidiary of Tata Power Co, which partly owns a transmission line from
the Tala scheme in Bhutan and Delhi and which has capacity to take further
hydropower output from the country and Nepal. SN Power is owned by Norwegian
power utility Statkraft and risk capital investor Norfund.
In India, SN Power has a 49 per cent stake in Malana Power Company with LNJ
Bhilwara Group owning 51 per cent. The joint venture currently manages the 86-mw
run-of-river Malana hydropower project in Himachal Pradesh that is in operation
since July 2001. Malana Power Company has also formed a 90 per cent subsidiary
AD Hydro Power Ltd to implement the 192-mw Allain Duhangan hydropower project,
currently under construction, in Himachal Pradesh. MPC has also won two projects
in Himachal Pradesh- Bara Bangahal (200 mw, Chamba district) and Chango
Youngthang (140 mw, Kinnaur district).
SN Power also owns 50.4 per cent in Himal Power Ltd, the largest independent
power producer in Nepal that is developing over 800 mw of hydropower capacity.