Canada-based clean tech energy firm P2 Solar, Inc. (formerly Natco International, Inc.) has acquired its second renewable energy project Tibba in India, through its subsidiary Jagat Energy Pvt Ltd, for an undisclosed amount. Last month, the firm acquired a solar project near Rajgarh in Ludhiana.
The latest project is a 500 KW mini-hydro facility, located immediately downstream from P2’s first project in Rajgarh.
The firm expects both projects to generate combined revenues of around $800,000 or Rs 4.65 crore annually. Tibba’s capital budget is $1.6 million, but with low operating cost, its EBITDA is estimated to be 95 per cent.
The company is also looking to buy other hybrid mini-hydro/solar PV projects and rooftop projects in India.
The firm is trying to capitalise on Punjab government’s plans to harness mini-hydro potential of its canals, as well as to utilise the free space above its canals for expanding solar PV capacity. Commenting on the development, Raj-Mohinder Gurm, CEO of P2 Solar, 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 of P2 Solar, added, “The latest figures show India’s electricity shortage increased by 20-30 per cent. So the pressure is building from governments and the private sector to build generating capacity because the lack of power is affecting growth.”
P2 Solar is a developer of solar PV power projects. It recently formed a wholly owned subsidiary in India called Jagat Energy to expand operations in the country.
With Indian power prices significantly higher than in North America (often 3-4 times higher), it is banking on opportunities for private power generators.
(Edited by Sanghamitra Mandal)