September 1, 2016 / 11:17 AM / 3 years ago

E.ON's Uniper forms joint venture to tap Indian power market

A logo of the German energy utility company Uniper SE is pictured at their headquarters in Duesseldorf, Germany April 19, 2016. REUTERS/Ralph Orlowski/Files

FRANKFURT (Reuters) - Uniper, the power plant and energy trading business German utility E.ON is planning to spin off and list this month, is setting up a joint venture in India to offer services including the operation and maintenance of power stations.

The 50-50 joint venture with India Power Corporation will also provide software to increase plant efficiency, banking on India’s reliance on coal and gas power generation, which accounts for nearly 70 percent of its installed capacity.

No financial details were disclosed.

“Europe has faced many of the challenges that India can expect to see in the years to come,” Uniper Chief Executive Klaus Schaefer said.

“Renewables ... will impact the operating regime of conventional power plants with a need for an increased plant flexibility.”

Uniper, which has been hit by a drop in wholseale power prices, hopes to export its expertise in plant management through the partnership, aiming to tap new markets and revenue streams before a mid-September listing in which parent company E.ON will spin off more than 53 percent of the business.

Uniper booked a net loss of 3.9 billion euros ($4.35 billion) in the first half.

($1 = 0.8973 euros)

Reporting by Christoph Steitz; Editing by David Goodman

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