Canadian renewable energy developer P2 Solar Inc. has announced the signing of a memorandum of understanding to acquire the 5-MW Barkote 2 hydropower project in India.
The purchase price of about US$8.9 million includes term debt of $3.74 million and equity of $5.17 million, the company said, with funding coming from an India-based lender.
The deal comes weeks after P2 announced the acquisition of Barkote 2’s sister plant, the 9.5-MW Barkote 1, for a total of about $16.7 million — $9.46 million of which is already in place via terms loans provided by the same Indian lender.
The remaining balance will be paid for with an investment fund, CEO Raj-Mohinder Gurm said, with the deal expected to be completed soon.
“We have worked closely with our engineering, legal and financial advisors to assess Barkote 1, and with the MOU we have negotiated, we believe this is a tremendous step forward for P2 in terms of building our project pipeline,” Gurm said.
Both plants are located in northern India and are already operating under power purchase agreements with a state-run distributor. Barkote 1 began operation last April, and Barkote 2 began operating in September.
The facilities are the most recent addition to P2’s growing small hydropower portfolio, which also includes the Tibba and Rajgarh projects. Construction on Tibba and Rajgarh is expected to begin soon.
“We are very excited to build this momentum on a foundation of solid projects,” Gurm said.
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