P2 Solar Inc. is pleased to share that it has earned a financing term sheet to the tune of 7.2 million euros to develop a 4.95-MW solar power farm in Bulgaria.

Seventy percent of the total project cost will come in the form of debt financing, and the funds will be awarded after the unnamed bank completes its two-week investigation (or due diligence) of the project.

This exciting development comes just seven days after the company signed a binding agreement to create and maintain the Bulgarian solar farm.

P2 Solar expects the farm to generate 31 million euros in revenue, with a net flow of 13.6 million euros.

"This is a very important first step in the process of successfully financing and building this exciting project," said CEO of P2 Solar Raj-Mohinder Gurm.

The next step for P2 Solar is to successfully complete the two week due diligence by the bank, and then the financing term sheet will be up for final review.

According to their website, P2 Solar focuses on several regions of the world for their projects, including Canada, India, and Europe.

The company strives to do business in places “where land has good exposure to sunlight and the governments have introduced attractive subsidies to motivate development,” according to Gurm.

Bulgaria brings many of these promising features to the European solar market. Bulgaria gets a great deal of sunlight (solar irradiation), and the government of Bulgaria has signed a Power Purchase Agreement (PPA) for the next 20 years with P2 Solar for their new farm.

The country’s feed-in-tariff nurtures a market where renewable energy development is supported by giving renewable energy companies long contracts at the right price.

The new farm will be built on land that has already been secured in the Vratsa Province, which is located in the northwestern part of Bulgaria, near Greece and the Danube River.