P2 Solar was pleased to report today that they have successfully completed the full acquisition of their first renewable energy project in India via newly formed and wholly-owned subsidiary, Jagat Energy Private Limited, a choice little 700 KW mini-hydro job on a Sidhwan irrigation canal diversion in Ludhiana (Punjab). Known as the Rajgar mini-hydro site, this newly acquired project is fully permitted, as well as construction-ready, and will initially consist of a small turbine installation and the associated hardware.
Given the nature of the target waterway and planned implementation, this is an ideal project for PTOS, with virtually no impact on the main water channel or surrounding terrain. Moreover the company will be using a time-tested, proven hydro power model that has achieved environmentally sustainable energy production the world over. The company has even slated a potential PV Solar array for the open area above the several kilometers of canal space they have acquired rights to and there looks to be plenty of room here for significant, phased expansion.
Punjab is a thriving region with massive demand from a growing consumer base, and it is riddled with thousands of kilometers of canals that can be viewed by investors as a rich target market for PTOS. The company is set to go into construction on the Rajgar mini-hydro site as early as this summer and revenue projections are already looking cherry, with $443k/yr from the hydro and some $2.95M/yr from the proposed 10 MW solar array. While capital intensity on such projects can be daunting, the superb management team at PTOS has shaved the edges off their implementation model and they are supremely confident that the fusion of rigorous oversight and low facility operating cost is a good recipe for healthy cash flows (EBITDA margin estimates of 95% for the mini-hydro and 93% for the solar).
CEO of PTOS, Raj-Mohinder Gurm, emphasized the receptivity of local and national officials to this sort of project, which will help free India’s crippling dependence on increasingly cost-prohibitive hydrocarbons like imported coal. The local Punjab government is keen to utilize their canal networks like this and PTOS shareholders are poised to reap the rich rewards while helping to bring a good model to India that incorporates PV Solar arrays on the areas above the canals. This is much-needed electricity in a nation where demand is growing at annual rate of 10%. With the electric bills for some consumers across India seeing jumps of 10% to 20% per year and improving renewable price metrics, Gurm sees this acquisition as a major milestone for PTOS and a serious foothold in India’s rapidly expanding, $20B plus annually, clean energy sector.
This little beauty should make envious neighbors of surrounding states, pumping out hundreds of megawatts to consumers in Punjab and the potential for such mini-hydro implementations should become abundantly clear in short order, especially when you throw in that solar component that would use what is generally completely unused space above the canals. This is an exceptionally attractive component architecture model that PTOS has put together and the company is already chomping at the bit to secure additional market share in target-rich India on the back of this concept.
For the latest news and info on P2 Solar, visit www.P2Solar.com
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