Vancouver's Reservoir Capital Corp. (TSX-V:REO) plans to form a joint venture with a wind utility based in Aix-en-Provence, France, to build two run-of-river hydroelectric projects in Serbia.
Under the terms of the memorandum of understanding, Global EcoPower (GEP) will earn a 50% interest in Reservoir's Renewable Energy Ventures Ltd. by financing all further costs associated with the 48-megawatt Brodarevo project.
According to a second part of the agreement, GEP will fund the creation of another joint venture company focused on acquiring or developing additional projects in Serbia and in other countries in the region to expand electricity-generating capacity to 700 megawatts by 2015.
The joint venture is meant to tap a growing demand for electricity in Serbia. Currently, 30% of the country's power comes from run-of-river hydroelectric generators, which produce more than 2,000 megawatts of electricity. The Serbian government estimates the amount of hydroelectricity generated could double based on the availability of sites it says are technically and economically viable for development.
Reservoir's share price range during the past week: between $0.25 and $0.26; 52-week high: $0.90; 52-week low: $0.18.