|March 18, 2008|
Reservoir Capital Applies for Energy Licenses to Develop 48MW of Run-of-River Hydroelectric Generating Capacity
|Reservoir Capital Corp. ("Reservoir" or the "Company") is pleased to announce that it has, through its wholly-owned subsidiary Renewable Energy Ventures (BVI) Ltd. ("REV"), filed applications for two Energy Licenses to develop the Brodarevo 1 and Brodarevo 2 run-of-river hydroelectric projects, with a combined 48 Megawatts of power generating capacity on the River Lim in Southwest Serbia. Led by Miljana Vidovic, who worked previously in the region for Belgian utility Tractebel, Reservoir has built up a team of experts in the Serbian power sector and through 2007 has conducted a countrywide review of the hydroelectric power potential. The Brodarevo 1 and 2 sites were selected from various opportunities, as they had already been the subject of detailed technical studies as part of the government's long-range infrastructure planning in the 1980's.|
The Brodarevo 1 and 2 Energy Licenses, once granted, will give the Company two years to complete detailed feasibility studies, power purchasing agreements, permitting and arrange for project financing to build the power plants.
Miles Thompson, Executive Chairman of Reservoir says, "We are very pleased to be moving forward with the Brodarevo Projects and laying the foundations for another important avenue of growth for the Company.
Lack of investment over the last ten to fifteen years has led to a fall in both generating capacity and electricity output, such that Serbia has become a net importer of electricity. Given its rapid modernization in recent years, with GDP growth rates averaging 6% per annum, Serbia is working hard to both privatize existing infrastructure and encourage new investment. Serbia passed a new Energy Law in 2004 that allows private investment in the sector and the free trading of energy nationally and internationally. More recently it has ratified the Kyoto Protocol on Climate Change and become, as a non-Annex I country, a host country for Clean Development Mechanism ("CDM") projects. Over 30% of Serbia's power generating capacity is via hydroelectricity, most of which is run-of-river.
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