1.5 Mw Hydro Project
1.5 Mw Hydro Project – Shimla, Himachal Pradesh
1.5 Mw Hydro Project – Shimla, Himachal Pradesh
Our first project—a 1.5 Mw hydroelectric plant in Shimla—is a testament to our commitment to sustainability and efficiency. Designed to generate 1,080,000 units of electricity per month, this project combines Shimla’s favorable water flow and terrain with cutting-edge technology. Construction is underway and scheduled to be completed in one year. Once operational, this project will generate INR 50 lakh in monthly revenue, supported by a 40-year Power Purchase Agreement with the Himachal Pradesh government
Business Model
The project operates on a risk-mitigated and sustainable business model designed to ensure profitability, scalability, and environmental harmony.
Power Purchase Agreement (PPA)
A 40-year agreement is in place with the Himachal Pradesh government to purchase the generated electricity at a fixed rate of INR 4.90/unit (USD 0.05/unit).
This agreement guarantees revenue stability and eliminates market volatility risks.
Sustainable Energy Production
The project is designed to generate 1,080,000 units of electricity per month by harnessing the abundant water resources of Shimla.
It supports India’s transition to renewable energy, reducing dependency on fossil fuels and contributing to climate goals.
Revenue Model
Monthly Revenue: INR 50 lakh (USD 60,000).
Annual Revenue: INR 6 crore (USD 720,000).
Long-term revenue stability is ensured, with the potential to extend the PPA for an additional 15 years.
Financing and Financial Viability
Total Project Cost
INR 16 crore (USD 1.8 million), covering construction, equipment, and operational setup.
Funding Approach
Bank Loan: The project serves as collateral to secure financing from banks.
Government Subsidies: Subsidies reduce costs for equipment and installation.
Support from renewable energy policies ensures financial efficiency.
Profitability and Returns:
Post loan repayment and operational expenses, the project delivers a monthly profit of INR 38 lakh (USD 45,000).
Annual Profit: INR 4.32 crore (USD 518,400).
ROI: 24%, making it an attractive and financially secure investment.
Construction Process
The construction process is divided into well-defined phases, ensuring efficiency and adherence to timelines
Site Preparation and Surveys
Weir Construction: Strategically positioned to divert and control water flow effectively.
Catchment Area Development: Ensures consistent water availability throughout the year.
Civil Engineering and Infrastructure:
Surge Shaft and Forebay: Built to regulate water flow and protect against surges.
Penstock Installation:
- High-grade steel pipes are laid to transport water to the powerhouse under pressure.
Powerhouse Construction:
- Equipped with state-of-the-art turbines to convert hydraulic energy into electricity efficiently.
- Designed for minimal environmental impact while maintaining operational efficiency.
Grid Connectivity:
- Connection to the nearest 22kV substation ensures seamless integration into the state’s power grid.
- Operational Efficiency
Energy Generation:
- Produces 1,500 units per hour continuously, leveraging the consistent water flow in Shimla’s rivers.
- Designed for year-round operation with minimal downtime.
Maintenance Protocols:
- Regular inspection and upkeep of turbines, penstocks, and the weir to ensure optimal performance.
- Proactive maintenance schedules to avoid interruptions in energy production.
- Revenue and Scalability
Guaranteed Income
- With the PPA in place, the project generates steady income, ensuring quick recovery of initial investments.
- Monthly revenue post-construction: INR 50 lakh.
Growth Potential:
- The Shimla project serves as a model for scaling to larger capacities, including the upcoming 25 Mw project and future plans for 1500 MW capacity.
Long-Term Viability:
- Once operational, the project will generate profits for decades with minimal additional investment, making it a highly scalable and lucrative business model.
- Environmental and Community Impact
Sustainability
- Supports India’s renewable energy goals by reducing carbon emissions and dependence on fossil fuels.
- Minimal environmental impact due to responsible site selection and design.
Community Benefits
- Creation of local jobs during the construction and operational phases.
- Enhances the region’s infrastructure and overall development.
Conclusion
This 1.5 Mw hydro project exemplifies a well-rounded approach to sustainable energy generation. It combines:
A low-risk business model with secured PPAs.
Steady revenue generation and attractive ROI.
Scalability and sustainability for long-term growth.
1.5 Mw project
Location Details
| Attribute | Details |
|---|---|
| State | Himachal Pradesh |
| District | Shimla |
| Vicinity | Kaloti Village |
| Access | Shimla-Theog-Rohru Road |
| Road Distance | 140 Km from Shimla |
| 120 Km from Theog | |
| 230 Km from Chandigarh | |
| 460 Km from Delhi | |
| Airport | Shimla |
| Railway | Meter Gauge at Shimla |
| Topographical Sheet | 53 E/16 |
| Geographical Coordinates | Longitude: 77°-48'-53.79" East to 77°-48'-23.81" East |
| Latitude: 31°-11'-32.80" North to 31°-12'-43.38" North |