SN Power


PSIRU 04 October 2010



Lilleakerveien 8
0283 Oslo, Norway
Ph: + 47 24 06 86 20
Fax: +47 24 06 86 21


1.   General

SN Power was established in June 2002. It is  owned by the Norwegian state electricity company Statkraft (60%) and  the Norwegian state development investment fund, Norfund (40%). In 2010 it had:

  • 466 employees in SN Power and subsidiaries
  • 17 plants in five countries across three continents
  • Net installed capacity 2009 950MW
  • Mean annual generation: 4 000 GWh/yr
  • Operating revenue 2009: 119 MUSD
  • Net Profit 2009: 33 MUSD
  • Equity 2009: 1 215 MUSD
  • Four projects under development


SN Power previously described its strategy as aiming at becoming privatised through an IPO sale on the stock exchange, and all its investments included planned early exit strategic options. It has now dropped this and says it is a long-term investor in hydropower in developing countries:


“This positions the company at the intersection of two global megatrends: the growth in emerging markets and in renewable energy. SN Power aims to quadruple its equity generation capacity from 950 MW to 4000 MW by 2015. Key to SN Power`s strategy is the aim to be a long-term industrial investor, capitalising on its Norwegian and international hydropower competence and expertise and to seek a controlling influence in all business activities.”


2.   Operating subsidiaries

It operates in Peru, Chile, India, Nepal and Philippines, and is trying to gain business in Brazil, Costa Rica, Vietnam, and now plans to expand into Africa.

2.1.        Peru:

SN Power has been established in Peru since 2003 when the company acquired 100 per cent of the shares in Cahua S.A., a Peruvian hydropower company. In 2007, SN Power further strengthened its presence in the country and became the fifth largest electricity producer through the acquisition of Electroandes S.A. In 2010 a process to consolidate the management structure and operations of the two entities was completed and the two entities were merged to form SN Power Peru S.A.


  • Arcata (5 MW) - Facility consists of four plants in Arequipa region of southern Peru
  • Cahua (43 MW) - Plant located ca 200km north of Lima
  • Gallito Ciego (38 MW) - Plant is situated downstream of the Gallito Ciego dam, used primarily for irrigation purpose
  • La Oroya (9 MW) - Plant at over 3600 m over sea level in operation since 1914
  • Malpaso (54.4 MW) - Plant located in the Yauli province
  • Pachachaca (9 MW) - Plant at over 4000 m over sea level in operation since 1917
  • Pariac (4,9 MW) - Facility with five plants takes water from the Pariac River
  • Yaupi (108 MW) - The largest hydropower facility in SN Power`s Peru portfolio


SN Power Peru
Av. Victor Andrés Belaúnde 280, Piso 2
San Isidro
Lima, Peru
Ph: +511 700 8100
Fax: +511 422 0348


2.2.        Chile

SN Power has been present in Chile since 2004 and is currently engaged in the construction and development of renewable energy projects. It has one operational plant and is developing three other projects, including La Higuera – the largest hydropower project and the first in Chile to be registered under the Kyoto Protocol`s Clean Development Mechanism (CDM).

  • Totoral:  SN Power`s first wind farm started operation in December 2009. Mean annual generation of 106 GWh.

SN Power Chile Inversiones Eléctricas Ltda.
Av. Vitacura 2939, Of. 2801
Edificio Millenium
Las Condes
Santiago, Chile
Ph: +56 2 592 9200
Fax: +56 2 592 9201

2.3.        India

SN Power entered the Indian power market in 2004 when it acquired 49 per cent of the shares in Malana Power Company Limited (MPCL), where Indian LNJ Bhilwara Group is the majority owner. SN Power is currently involved at two significant hydropower plants in India - Malana and Allain Duhangan, and is the only foreign investor to enter the hydropower sector. To further business expansion in India and elsewhere in the South Asia region, in 2009, SN power signed a partnership agreement with Tata Power Corporation to jointly develop hydropower projects in India and Nepal.

  • Malana - One of the first private independent power producers operational in India.


2.4.        Nepal

SN Power entered Nepal in 2006 through the transfer of Statkraft`s majority share (57.1 per cent) in Himal Power Limited (HPL), which now supplies nearly 10% of Nepal’s electricity.


  • Khimti 1
    Supplies almost 10 per cent of Nepal`s total electricity output

2.5.        Philippines

SN Power entered the market in The Philippines in 2006, through the formation of a 50-50 joint venture company SN Aboitiz Power to bid for and develop hydropower projects in the region. In four years the company has acquired three major hydropower plants on Luzon island, turning SN Aboitiz into the largest private renewable energy company in the country.


  • Magat  - The largest hydropower plant in The Philippines


3.   Partners

It partners with powerful local businesses and international institutions:


Aboitiz Equity Ventures, The Philippines
The publicly-listed holding and investment management company of the Aboitiz Group.

Tata Power, India
India’s largest private sector power utility, Tata Power.

LNJ Bhilwara Group, India
Owner-managed conglomerate with business activities in textile production, steel, graphite and power generation.

Pacific Hydro, Chile
Australia’s leading renewable energy company.

Centinela, Chile
Centinela has a strong presence in the Chilean and international capital markets.
No website

Butwal Power Company (BPC) Limited, Nepal
One of Nepal’s leading hydropower developers.

Lanka Transformers Limited, Sri Lanka
The largest engineering organization within the Power Sector in Sri Lanka.

IFC (International Finance Corporation)
IFC provides investments and advisory services to build the private sector in developing countries.


4.   Issues

According to SOMO’s 2009 ‘Down to the Wire’ :

4.1.        India, Allain Dughangan – construction deaths

“an October 2008 report by Norfund revealed that 15 workers lost their lives on SN Power electricity projects in developing countries between 2005 and 2008. Most of the workers were employees of contractors or sub-contractors, and the majority of the fatalities (11) occurred at the Allain Duhangan hydropower project in northern India, of which SN Power owns a 43% minority stake. Three additional deaths occurred on the La Higuera project in Chile and one on the Conferencia project, also in Chile. In addition to the 11 fatalities at the Indian Allain Duhangan project, there were an additional 81 personal injuries requiring treatment at hospital or an out-patient clinic. SN Power blames the accidents on dangerous conditions at the site (rough and very steep terrain, high risk of rock falls and avalanches, and harsh climatic conditions) as well on “a lack of knowledge and experience with implementing high health and safety standards in the project company”, AD Hydro.[1] SN Power’s President and CEO expressed his “disappointment” with AD Hydro’s management (the Indian-based NLJ Bhilwara Group is the project’s manager and principal shareholder with 45% of shares) and asserted that SN Power is taking action to improve the OHS standards at the plant.”


4.2.        Peru, Cahua – no union

The Cahua power station employs 30 permanent workers, but they are not organised in a trade union. In fact, none of Cahua S.A.’s employees are member of a trade union. The former trade union was closed when the company was privatised, and no new trade union has since been established.[2] Employees of ElectroAndes are organised in a union affiliated with the national power sector trade union. Union leaders have indicated that their trade union rights have been respected since the merger in 2007.[3] The union primarily represents workers employed directly by ElectroAndes, but some contract workers are also members.


The union played a strong role during SN Power’s acquisition of ElectroAndes and the consequent restructuring, a time when there were worries about lay-offs and redundancies. At one point, ElectroAndes employees were forced to take 15-20-day holidays. Upon return, no employees were made redundant, but many were transferred to other positions. However, workers did indicate that they were forced to work overtime hours without compensation during the restructuring process.[4] The threat of future redundancies also still looms, and workers continue to worry about their job safety. One worker stated:


“…nowadays in a technological world a machine does what 10 people used to, and I have heard that only a few would remain in the power station while the rest would later be fired…It is not a large staff, and we’ve been informed that it will be reduced even more, because of the new owners and the new technology; there will be too many workers, that is the last information we have, and many people are extremely worried…”- ElectroAndes employee[5]


In 2007, Cahua S.A. developed capacity building programmes for its staff in the fields of leadership and safety.[6] It also developed two employment programmes: a permanent employment programme giving preference to workers who reside in the areas where the company operates, and a temporary employment programme through which it hires qualified and non-qualified personnel for the power station’s operation and maintenance. This policy is also applied to the contractors who provide services to the power stations.


With regard to occupational health and safety, Cahua S.A. achieved OHSAS 18001:2000 certification for all its production facilities and administrative offices in 2007, and the company has implemented new OHS indicators in coordination with SN Power’s HSE Management in Norway. The company has established a Safety Committee comprised of both worker and company representatives. In 2007, the accident frequency rate in 2007 was 0.01 accidents per 226,800 yearly hours worked in its production facilities.[7] At the time of this research, the Cahua power station had reached a half-million man-hours without accidents. Workers confirmed that Cahua S.A. follows rigorous OHS methods and regulations. [8]

[1] SN Power website, "Fatal accidents at hydropower project in India," (2008), <> (27 Nov 2008).

[2] Cahua employee, Manás, 27 August 2008, interview by Plades.

[3] E. Mayo, Secretary-General, ElectroAndes Workers’ Union, La Oroya, Junín, 15 August 2008, interview by Plades.

[4] ElectroAndes employee 1, La Oroya, Junín, 15 August 2008, interview by Plades.

[5] ElectroAndes employee 1, La Oroya, Junín, 15 August 2008, interview by Plades.

[6] SN Power Perú website, “Responsibilidad Socail Corporativa”, no date, <> (12 May 2009).

[7] SN Power Perú website, “Responsibilidad Socail Corporativa”, no date, <> (12 May 2009).

[8] Cahua employee, Manás, 27 August 2008, interview by Plades.


Home country:


Parent companies