Investment strategy

SN Power was established in 2002 with an initial total committed equity of NOK 1 billion, which provided sufficient financial leverage for the company to be accepted as a credible market investor.

Capital expansions are planned throughout the next years in proportion to expected new investments and the two owners have expressed a willingness to fund 235 million USD per year until 2015.

Core markets

In order to create a balanced portfolio through a mix of acquisitions, rehabilitation and greenfield projects, core markets, with a major hydropower potential and energy need have been identified. Asia, Latin America and Africa are three such markets, with many countries in these regions poised to privatise and deregulate their power facilities.

Diversified portfolio

SN Power`s aim is to focus on projects with acceptable risks where its core competence in hydropower technology, operations, markets and financing can provide added sustainable value to all stakeholders. By diversifying its portfolio across different regions, political risks, often a major factor in emerging countries, can be mitigated. Exit strategies are also negotiated in early phases. Long-term power purchase agreements with guarantees are also sought.

Strategic cooperation

Financing projects for sustainable solutions in developing countries is challenging and demands close cooperation between involved parties. Strategic cooperation with international, regional and local partners who can bring local knowledge, industrial expertise and financing to projects is therefore key.