A committee has been formed to oversee the process, which is comprised of the company's independent directors. Sprott Power has also hired Canaccord Genuity as its advisor.
The company said it doesn't plan to make any further announcements until the board deems appropriate.
Sprott Power is a publicly-traded Canadian company focused on the development, ownership and operation of renewable energy projects.
Shares in the company rose more than 8% Thursday to $1.29.