Rajgarh Mini-hydro Project
P2 Solar acquired the Rajgarh small-hydro site during the second quarter of 2013 as a construction ready project. The project is located on the Sidhwan irrigation canal near the city of Ludhiana in Punjab, India, upstream from P2 Solar’s other mini-hydro site, Project Tibba. Together, these two projects mark a major milestone for the company as its first significant projects under development in India. Project Rajgarh is fully permitted and ready for construction.
The project involves no dam, but instead a simple diversion of water through a small turbine, after which the water is returned to the channel. Therefore there is little impact on the irrigation canal and surrounding terrain. This type of hydro power installation has long been used around the world and is highly environmentally sustainable.
When fully operational, the project is expected to generate $400,000 in annual revenue and achieve 95% EBITDA margin. The project exceeds P2 Solar’s minimum return requirement, with a projected unleveraged IRR of 17%.