Project Finance for Renewable Energy is now a rapidly growing market

The number of project finance deals in the Remewable Energy sector is growing more rapidly than ever, Richard Stuebi explains why:

Structured energy project finance has been relatively commonplace in supporting the development of new energy facilities over the past 20 years. Central to the concept of project finance is disaggregating risk and parceling it out to specific parties who can accept that risk. As a result, project finance works great for the 30th or 40th deal of the exact same type, but it is typically very hard to use project finance approaches for funding the development of facilities using innovative technologies or commercial arrangements.

Accordingly, project finance has historically been somewhat problematic for renewable energy interests to procure. Financiers central to structuring the deal were either unfamiliar or uncomfortable with the risks posed by renewable energy technologies, most of which have not been in commercial operation for decades. This lack of project finance capacity has thus been a major barrier to the widespread deployment of otherwise viable renewable energy technologies in commercial-scale projects.

The good news is that project finance capacity is increasingly opening its doors to renewable energy opportunities. Financial professionals with deep knowledge of the true abilities of renewable energy are finally beginning to amass capital to deploy in sponsoring the development of renewable energy projects.

posted by Richard T. Stuebi click here to link to full article

Project Finance International have just published a new report Financing Renewable Energy: Funding the Clean Alternative, which (for a price) gives details on every renewable financing deal this millennium, plus analysis on future prospects.

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One Response to Project Finance for Renewable Energy is now a rapidly growing market

  1. Dr.William Kuta says:

    Dear Sir,

    I am the consultant to the Borrower/Principal. My Principal already has a Collateral Provider.

    Here are the Collateral Provider’s procedures:

    HOW THIS PROGRAM WORKS.

    Collateral Providers Procedure.

    1. Three (3) parties to transaction. That is Principal, Lender and Collateral Provider (CP).

    2. Once a written or verbal commitment is received, Collateral Provider will contact Principal and Lender. Collateral Provider (CP) will verify with Lender that he has reviewed the project and is ready, willing and able, to fund the said project.

    3. CP gives 106% Bank Guarantee (collateral) to lending bank, trust or hedge fund. Bank Guarantee is from a Prime Rated Western Bank.

    4. Bank gives CP 100% of the funds for project, after confirmation and verification of Bank Guarantee.

    5. CP takes the 100% and enters into an Investment Program. Principal will receive a total of 5 draws.

    6. 30-40 days forward the Principal will receive a draw of 20%. Then every 30 days afterwards they will receive another draw of 20% until they have received all 5 draws.

    7. Principal has no interest payments or project debt with this program. Project is fully funded in approximately six months in full.

    Can you work with the above friendly procedures? If you can, send me a mail on josephyo@jmail.co.za, so I can get back to the Collateral Provider and Principal.

    Best regards,

    Dr.William Kuta

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