Reservoir Capital Corp. (TSX-V:REO) announced that it signed a Memorandum of Understanding ("MOU") to form a Joint Venture (“JV”) with Global EcoPower, a French renewable energy developer, to advance its Brodarevo 1 and Brodarevo 2 run-of-river hydroelectric projects in Serbia. The two companies will also create a new company to acquire and develop additional projects.
Global EcoPower will be able to earn a 50% interest in Reservoir Capital Corp’s subsidiary, Renewable Energy Ventures, by funding all further costs to take the Brodarevo Projects to the stage of Bankable Feasibility and by arranging debt financing for their construction.
The Brodarevo Projects are licenses to develop run-of-river hydroelectric projects with capacity totaling 48 megawatts on the River Lim in Southwest Serbia.
“The targeted production of 189 GWh/year of electricity is to be sold at preferential renewable energy tariffs and under long-term power purchasing agreements onto the local grid,” the company stated.
Miljana Vidovic, President and CEO of Reservoir commented:
"We are delighted to have GEP as a partner to support our Brodarevo Projects and to work together to jointly build a substantial renewable energy business in Serbia and the region."