Conclusion of Joint Venture Agreement Concerning Kyushu Electric Power's Participation in Renewable Power Generation Business in India

Kyushu Electric Power Co., Inc. (KEPCO) signed a joint venture agreement with NTPC Limited (Indian government-run power generation utility) and the Asian Development Bank (ADB) on November 24. The agreement concerns the establishment of a joint venture company to undertake renewable power generation business in India. The signing was carried out in New Delhi, India.

Under the agreement, KEPCO plans to incorporate a joint venture company together with NTPC and ADB in India, to search for and select potential renewable power generation projects, aimed at development of a total 500MW capacity to generate renewable energy in India within the next three years.

In India, power supply has not been able to meet increasing power demand resulting from rapid economic expansion and a growing population. In addition, with coal being the main power source, a sharp rise in greenhouse gas emissions is expected. NTPC, which generates power using fossil fuels such as coal and gas, is positioning renewable energy sources as an alternative to fossil fuels, and plans to develop new renewable energy sources of 1,000MW by 2017.

At ADB, initiatives are already actively being taken to promote low-carbon society and reduce greenhouse gas emissions in Asia-Pacific region. KEPCO has also undertaken various renewable energy projects in Asia, including wind power generation in Inner Mongolia, China, and is now promoting chicken manure power generation in India through Nishinippon Environmental Energy Co., Inc., one of its group companies.

The joint venture agreement just signed has been drawn up on the basis of the approaches taken by each organization involved, and it is significant that the cooperative framework for development has been established to enhance synergy effects between NTPC, ADB and KEPCO.

Starting with this joint venture project, KEPCO wishes to continue to actively support the introduction of renewable energy, which is being promoted by the Indian government, and contribute to the development of eco-friendly energy business in India.