P2 Solar, Inc. (OTCBB: PTOS) announced it has acquired its second significant renewable energy project for development in India. The project is a 500 KW mini-hydro facility located immediately downstream from P2's previously announced Project Rajgarh, near Ludhiana, Punjab, India, on the Sidhwan irrigation canal, and is named Project Tibba.
Project Tibba was acquired through P2's wholly owned Indian subsidiary, Jagat Energy Private Limited. Both Project Tibba and Project Rajgarh are owned outright by P2, fully permitted and ready for construction. The company considers these projects as a series and both sites are being assessed for the possibility of incorporating solar PV arrays of several megawatts atop the canal space. Construction of Project Tibba will be coordinated with that for Project Rajgarh, the latter of which is scheduled for groundbreaking this summer.
Combined, these two mini-hydro facilities are expected to generate approximately $800,000 in annual revenues. Project Tibba's capital budget is $1.6 million, but with low operating costs EBITDA is estimated to be 95%.
As P2 indicated prior, the Punjab government is keen to harness the significant mini-hydro potential of its canals, which amounts to several hundred MWs, as well as to utilize the free space above its canals for expanding solar PV capacity.
Raj-Mohinder Gurm, CEO, said, "By closing these acquisitions and moving forward with construction we are well-positioned to grow a pipeline of these unique hydro/solar projects and the local authorities have taken notice."
Bali Randhawa, COO, added, "The latest figures show India's electricity shortage increased by 20%-30%, so the pressure is building from governments and the private sector to build generating capacity because the lack of power is affecting growth."
The company is also undertaking due diligence on a number of additional opportunities, including other hybrid mini-hydro/solar PV projects and rooftop projects in India.