Indian clean energy producer Greenko posted a 66 percent fall in first-half pretax profit due to a weak market for certified emission reductions (CER), and said that Standard Chartered would invest $70 million in its wind and hydro projects.
With the commitment from StanChart, Greenko said it was now fully funded to its medium-term target of developing 1 gigawatt (GW) of renewable power projects, dominated by hydro and wind assets.
“We remain confident that we are on track to reach our target of 1 GW of operational capacity by 2015,” the London-listed renewable energy firm said in a statement.
CERs are credits that are generated for every tonne of carbon dioxide (CO2) saved by companies. Market prices for CERs hit an all-time low in anticipation of an unfavourable outcome of the on-going international climate change talks.
In October, Greenko had said a $50 million investment by a unit of GE would put it on track to achieve 1 gigawatt (GW) of operational wind capacity by 2017.
April-September pretax profit was 3.1 million euros ($14.5 million), compared with 9.1 million euros a year ago. Revenue fell 23 percent to 19.8 million euros.
Greenko shares, which have shed about 16 percent in value over the past three months, closed at 137 pence on Wednesday on the London Stock Exchange, valuing the business at 194.2 million pounds ($299.31 million). ($1 = 0.6488 British pounds) ($1 = 0.7721 euros)
