P2 Solar, Inc. (PTOS) participates in the lucrative renewable energy market as a developer of solar photovoltaic (PV) power and mini-hydro projects. Acknowledging the rising demand for clean energy worldwide, renewable energy’s increasingly competitive edge over grid electricity, and commercial efforts to reduce reliance on greenhouse gas emitting fossil fuels, P2 Solar invests and channels its resources to benefit from these global trends.
In regards to its solar PV initiatives, P2 Solar is focusing development of its projects in “sunbelt” areas where sunlight exposure is abundant; renewable energy policies are favorable; public and private sectors are actively seeking to incorporate solar PV into their electricity consumption profiles; and where governments offer attractive subsidies to motivate development.
With the right equipment, research and skills, mini-hydro technology is another viable and method of harnessing renewable energy – in this case, from small streams. While P2 Solar’s primary focus on solar PV, the company sees tremendous opportunity in this segment of the renewable energy space. Mini-hydro plants are often used as a cost-effective source of energy supply that is more affordable and environmentally friendly than electricity, yet capable of meeting the challenges of energy sustainability. P2 Solar currently has two mini-hydro projects under development in India, a country well-known for its high population and overburdened electricity grid.
The company’s growth strategy centers on management’s aggressive mandate to develop 150 MWp of electricity generating capacity in several phases over the next few years. To this accord, the company is focused on further development of its project portfolio, which currently consists of the Langley Rooftop Project in British Columbia; the Rajgarh Mini-hydro Project in Punjab, India; and the Tibba Mini-hydro Project, also located in Punjab India.
Backed by executive leadership with more than 60 years of combined experience, P2 Solar continues to develop and expand its current projects while opportunistically pursuing development opportunities in other regions with favorable solar energy regimes, including Eastern Europe and Canada.
Investment Highlights
- Rapidly Expanding Diverse Project Portfolio
Delivering Renewable Energy to Developing Countries
Focused on Lucrative Segments of Alternative Energy
Management Team Has 60+ Years of Experience
Firm Short, Mid-Term Expansion Strategy
Current Projects
Solar
Langley Rooftop Project
In July 2013, P2 Solar completed a 53 KWp solar PV rooftop project on Canada Ticket Inc.,’s warehouse rooftop in Langley, BC. For P2 Solar, the project was a turning point that marked the company’s transition from a “development stage" enterprise to a "revenue-producing” one.
Upon commissioning, this project represents the single largest solar PV project connected to BC Hydro’s electricity grid. The solar PV array is expected to generate approximately 10% of Canada Ticket’s electricity power requirements, and demonstrated the potential viability of megawatt scale solar PV facilities in BC. P2 Solar hopes to expand the project’s capacity in the near future.
Even without special tariff incentive support from BC Hydro, P2 Solar believes that large-scale solar PV facilities have the potential to operate profitably in BC under the current energy regulatory regime if sited in those parts of BC that receive the greatest solar irradiation. The project has prompted P2 Solar′s management team to begin further assessments toward building a megawatt scale ground mounted solar PV facility in BC. Furthermore, the project has also raised awareness and interest among potential new clients in BC who are seeking to incorporate distributed green power to their facilities.
Mini-Hydro
While P2 Solar has a primary focus on solar PV, the company chose to delve into mini-hydro energy generation via two projects that provide rights to several kilometres of canal space. Notably, P2 Solar is assessing for the possibility of placing solar PV facilities above the water channel. The company’s current mini-hydro portfolio currently consists of the Rajgarh and Tibba projects, which combined are estimated to generate revenues of approximately $800,000 per year when fully operational.
Rajgarh Mini-hydro Project
P2 Solar acquired the Rajgarh mini-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 $443,000 in annual revenue and achieve 95% EBITDA margin. The project exceeds P2 Solar’s minimum return requirement, with a projected unleveraged IRR of 17%.
Tibba Mini-hydro Project
P2 Solar acquired the Project Tibba mini-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. Project Tibba, like 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, allowing for minimal impact on the irrigation canal and surrounding terrain.
When fully operational the project is expected to generate more than $300,000 in annual revenue and achieve 95% EBITDA margin. The project exceeds P2 Solar′s minimum return requirement, with a projected unleveraged IRR of 17%.
Corporate Objectives
Short-Term Goals
- To build the 0.7 MW Rajgarh mini-hydro facility in the State of Punjab, India. • To build the 0.5 MW Tibba mini-hydro facility, Punjab, India • To build the 4 MW solar project in Cranbrook, BC • To acquire the 9.5 MW Gangani small-hydro power plant in Uttarakhand State, India. • To acquire the 9 MW hydro project in Punjab
Mid-Term Goals
- To secure a minimum 150 MW pipeline of small/mini-hydro and solar PV projects • To secure long-term funding for P2 Solar's growth plans, in India and elsewhere globally. • To list the company’s shares on a small-cap senior stock exchange (NASDAQ, TSX)
Solar Market
Solar energy is the fastest growing of all renewable energy technologies. The number of emerging market “sunbelt” countries with strong solar radiation that are making greater use of solar energy is growing due to falling prices of solar technology and other market drivers. Emerging market countries will require a massive volume of new investment in the coming decades to meet basic energy needs. Development of solar energy resources is expected to play a more prominent role in key emerging market countries such as: China, India, Chile, Brazil and Mexico. Demand for investment in solar energy technology, both as a necessity for addressing energy shortages and as a more environmentally-friendly solution, is rapidly growing.
Renewable energy continues to grow at an unprecedented rate, despite adverse macro-economic environments. This is driven by various factors including: energy security concerns, fossil fuel prices, regulatory and policy frameworks, strategic corporate initiatives and environmental concerns, particularly over climate change.
According to the latest REN21 Renewables 2012: Global Status Report, roughly $257 billion was invested in renewable energy technologies in 2011 (including large hydro projects), a 17% increase over 2010. This is six times more than investments in 2004 and 94% higher than in 2007. The recent companion UNEP publication Global Trends in Renewable Energy Investment 2012 says total investment in solar power in 2011 jumped 52% to $147 billion.
Recently, solar PV technology has seen a rapid deployment globally, scaling up from 23 GW in 2009 to 70 GW by the end of 2011. In 2011, annual growth in solar PV markets was nearly 70%. By way of comparison, total renewable energy capacity, 75% of which is hydro, still only comprises about 20% of total global installed electricity generating capacity (and even less in terms of actual annual electricity production).
Demand for solar deployment is also likely to intensify, particularly with falling solar module costs and more countries reaching grid parity pricing for solar. In isolated mini-grids powered by diesel and other off-grid settings including telecom towers, solar is now significantly cheaper and the diesel displacement market is growing.
Hydro-Mini Market
Even though fossil fuels dominate electricity generation across the world, more than 60 countries use hydropower for meeting more than half of their electricity needs, according to research from Global Data. The technology’s popularity is partially driven by its ability to rapidly respond to changing electricity demand, water management and flood control.
Small Hydropower
Advantage Small and mini-hydropower generation plants boast a shorter gestation period, roughly two to five years, compared to large hydropower plants, which usually have a gestation period of about seven years. Additionally, small and mini-hydro yield a higher return on investment due to the low capital investment, construction and operational and maintenance costs. In addition to several other advantages, construction of a small hydropower plant does not disturb the local habitat as is the case with large hydropower plants. Small hydropower installation does not involve the building of large dams and reservoirs and thus does not lead to the problems of deforestation, submergence and rehabilitation. Furthermore, it does not require a large land area and thus can be constructed in areas with small streams of water and small to medium rivers.
Global Small Hydropower Cumulative Installations on the Rise
Annual installed capacity surged during 2004 mainly due to rise in new installations in China, according to Global Data. Given the advantages of generating electricity from small hydropower coupled with rising interest in the sector has led to increased government support policies which will derive installations in many countries in the years to come. Cumulative installed capacity of small hydropower is expected to reach 140GW in 2015 and 201GW in 2020.
Need for Small Hydropower in Developing Countries
Global energy demand is especially rising in developing countries due to an increase in populations and industrialization. To meet this demand, industry players are exploring new renewable energy sources to counter the conventional sources, which have become expensive due to depleting supply. Small hydro provides an excellent and abundant source for power generation and does not have any fuel costs as it uses water; it emerges as one of the most promising solutions for ensuring a reliable and affordable energy supply in the long term.
Leadership
Collectively P2 Solar’s current team of officers, directors and advisors has a lengthy history in all facets of business management, combined with extensive background in the renewable power industry, risk management and the public markets, in addition to extensive experience operating in India. We plan to make additions to our management structure as warranted.
Raj-Mohinder Gurm, CEO, Director
Raj-Mohinder Gurm has more than 20 years of experience founding, leading and operating businesses in a variety of sectors. He has significant experience as CEO of private and public companies, and has taken several companies public.
Gurm began his career as the founder of BR International Marketing (1983), an importer and distributor of consumer goods in Canada. In 1989, he also became in independent buyer for J. Jetterson & Associates, a distributor of consumer goods to large chains stores in the United States. In 1995, Gurm founded Xanatel Communications, a development stage mobile telecom company in Canada, which was later sold to public company Triquanta. From 1997 and during the following 10 years he founded and operated a manufacturer of chemical products, including some based on own formulations.
In 2008, Gurm founded a business within P2 Solar to pursue solar PV project development opportunities in India. In 2009 P2 Solar signed an MOU with the government of Punjab to develop 25 MW of solar PV projects, with the understanding the project could be expanded to 200MW. This MOU was later eclipsed by the announcement of India’s National Solar Mission in late 2010, following which P2 Solar changed its focus to develop solar PV projects under various state government schemes, as well as the National Mission. P2 Solar also opportunistically pursues development opportunities in other regions with favorable solar energy regimes, including eastern Europe and Canada.
Gurm graduated from the University of British Columbia in 1983 with a B.Sc. in Biology, where he also subsequently pursued post-graduate studies and research.
Bali Randhawa, COO
Bali Randhawa joined P2 Solar in July 2010 as chief operating Officer. During his time with P2 Solar he has been responsible for developing solar PV project opportunities in India, Europe and Ontario.
Randhawa is founder, principal and CEO of TrivCap, a venture incubation firm with a focus on alternative energy and India. From 2000-2004, Randhawa was an Associate and then Senior Associate for Ziff Brothers Investments, one of the world’s largest family investment companies, based in New York. At Ziff he was responsible for assessing investments across the energy and technology sectors. From 1997-2000, he was an auditor and then Senior Risk Consultant at Deloitte & Touche in Vancouver and New York, where he advised energy clients on risk management strategies for their portfolios. Prior to this, he began his career at Scotia Capital, a major Canadian bank.
Randhawa graduated with a B.A. in economics, with distinction, from the University of Victoria. He undertook post-graduate studies in finance and accounting at Simon Fraser University and has completed both the Chartered Financial Analyst (CFA) and Certified Public Accountant (CPA) programs.
Sham Dhari – P.Eng., V.P. Engineering
Sham Dhari has more than 25 years electrical engineering experience. He obtained his degree in electrical engineering from the University of British Columbia in 1984.
Dhari began his career as a project engineer for high-tech company Response Television Technologies in Toronto developing an Interactive Television System. He progressed into large complex engineering projects while working as project engineer for NLK Consulting Engineers, who specialized in the pulp and paper industry. Following NLK, Dhari moved on to the role of a field applications engineer for Electro Sonic in Canada, where he was responsible for providing technical engineering design expertise to clients in western Canada and leading continuing education technical training across the firm. In 1999, Dhari moved to California and joined Santa Clara based high-tech startup Ishoni Networks as a senior applications engineer. At Ishoni, Dhari lead the applications engineering department and provided technical engineering design support to clients in the U.S., as well as internationally in Korea, Taiwan and Japan.
In 2002, Dhari returned to Vancouver to found his own electrical engineering consulting services firm working with clients in the U.S. and India. During the past several years Dhari has developed significant expertise in the solar PV sector working as a consultant for various companies and supporting P2 Solar with solar PV design and engineering analysis. Dhari joined P2 Solar directly in 2010 as VP, engineering. He is responsible for overseeing all technical aspects of project design and EPC relationships.
Hans Edblad, V.P. Business Development, Director
Hans Edblad has more than 15 years of experience as an entrepreneur in public and private companies. His first major endeavor began in 1997 when he founded, designed and built an entertainment and adventure complex at Silver Star Ski Resort. The concept was unique and one of the first of its kind, receiving many awards and praise from industry publications. He expanded the operations during subsequent years and sold the company in 2002.
Since 2002, Edblad has assisted various startup companies to raise funding, develop their operations and go public. He has gained significant expertise in all aspects of business, including marketing, operations, and finance. He joined P2 Solar initially as a consultant in 2008 and supports the CEO and COO with funding initiatives and high level business development.
Edblad spent his early years as a national champion alpine racing athlete. His skiing pursuits took him to many different countries at a young age. Edblad’s accomplishments include: at age 17, 1985 Canadian Junior Alpine Champion, at age 18, 1986 Senior Canadian SG Champion, and a No. 1 world ranking by FIS as a Junior at age 17.
Dr. Stephen Sleigh, PH.D, CGA, Director
Dr. Stephen Sleigh has worked with Raj-Mohinder Gurm for a decade on various business ventures. As a Certified General Accountant he has filled the role of controller with responsibility for financial reporting, budgeting, and accounting for private and public companies. He continues to manage these functions for P2 Solar on a consulting basis. Dr. Sleigh is also a director of the company.
Prior to his endeavors with, Gurm, from 1990-2000 Dr. Sleigh was owner and operator of an independent restaurant. He began his career in 1980 as a senior sales associate at BDH Inc., a supplier of laboratory chemicals to universities, hospitals, and testing/research centers.
Dr. Sleigh attended the University of Manchester, U.K., where he completed a BSc., MSc., and PhD. in Chemistry. In support of his business ventures he obtained the designation of Certified General Accountant (CGA) in 2001.