Norwegian state-owned energy giant Statkraft has finalised the sale of its 49%-percent minority stake in Malana Power Company to local partner, Malana Power Company. Its new owner is the LNJ Bhilwara Group. Statkraft’s decision is a reflection of the growing importance of concentrating on core markets. They are shifting investment to focus on greener opportunities in Europe and South America. The merger is expected to close some time this quarter. It contains Statkraft’s stakes in the 86MW Malana and 192MW Allain Duhangan run of river hydros, both located in Himachal Pradesh, India.
Statkraft’s partnership with the LNJ Bhilwara Group has been instrumental in the company’s operations within the Indian hydropower sector. Supplementary Activity Statkraft’s partnership in India dates back to 2004. That’s when they jointly decided with SN Power through a joint venture to enter the Indian market. Read more about how this deal represented the first investment in India’s hydropower sector by a foreigner, opening the door for many others to follow.
Strategic Shift Towards Core Markets
Earlier this year, Statkraft announced a $350 million deal to sell its Colombian renewables portfolio to Ecopetrol. These decisions further highlight Statkraft’s strong will to work on only a few prioritized areas where it can create the highest impact.
Fernando de Lapuerta, Statkraft’s International Executive Vice-President, underlined the strategic significance of these moves. “Statkraft remains committed to play a significant role in the global energy transition. By reallocating capital to core markets in Europe and South America, we are positioning ourselves to deliver even greater value creation and impact,” he stated.
This strategic pivot mirrors Statkraft’s continued, long-term focus towards making sustainable energy solutions come to life, while maximizing its operational footprint.
Future of Indian Hydropower Operations
The sale include eight other projects, all of which are under development, in addition to the 130MW Portón del Sol solar plant. The transfer of personnel is included in the agreement, having each stakeholder transition smoothly into the new role.
De Lapuerta said he was optimistic about the new direction the Malana Power Company took with LNJ Bhilwara Group, Joint Venture Partners, managing its affairs. “We are confident they will continue to operate these assets with commitment and dedication, contributing to clean energy generation and sustainable regional development,” he remarked.
This sea change is about far more than a financial windfall. It’s a big sign of a joint move towards helping India lead the pack on renewable energy sources.
Historical Context and Significance
With its entry in 2004, Statkraft’s presence in India has been very impactful. Through this work, the company is directly influencing the hydropower industry. It levels the playing field for renewable energy sources and fuels a just sustainable development. For Statkraft and its partners, divesting from Malana Power Company provides a valuable opportunity to turn the page. Today, they are better positioned than ever to lead and adapt to new global energy market shifts.