P2 Solar operates intentionally and strategically. The Surrey, Canada-based developer of solar photovoltaic (PV) and hydropower projects has been operating for close to 25 years and has been consistent about setting up shop where renewable energy policies are exceedingly favorable.
While the company’s main priority is solar PV projects, it does not hesitate to aggressively pursue mini-hydro power projects as well; simply put, they present a major, albeit secondary, market opportunity.
This year, P2 Solar has made significant strides in moving its renewable energy projects forward in India, especially its mini-hydro power projects.
In mid-April, the company completed the financing need to cover the expenses of Project Rajgarh, one of two small hydro projects it’s developing in Punjab, India. The bulk of the financing was about $200,000 in convertible notes with a conversion price to be negotiated at a later date and the balance was approximately $40,000 in an equity private placement. The company’s capital raising efforts took place over the course of four months.
A few weeks later, P2 Solar received governmental approval for the project. Both the Punjab Energy Development Agency (PEDA), which governs all renewable energy projects in the state, and the Punjab Irrigation Department accepted and approved the detailed project report, a critical step in the developmental path as this report lays out the proposed engineering design, hydrological data and other major factors concerning the project.
Finally, in early May, P2 Solar signed an implementation agreement with PEDA that will allow the company to build, own and operate Project Rajgarh in Punjab as well as use a nearby canal’s water for power generation. Acting in its capacity as the Punjab State’s governing authority for all renewable projects, PEDA set the initial agreement period for thirty-five years with the stipulation that, after those years, both P2 Solar and the agency will mutually decide whether or not to extend the agreement. The other option is for PEDA to purchase the Rajgarh Project outright at market price.
P2 Solar’s management has expressed confidence that Project Rajgarh will become operational on schedule.
For more information, visit www.p2solar.com
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