Panasonic Enterprise Solutions Company (Panasonic) and Coronal Group LLC (Coronal) announce the completion of nine solar projects in Tulare and Kings Counties in Central California. The projects provide 16.2 MW of energy to Southern California Edison’s grid to power approximately 14,500 homes annually.
Panasonic and Coronal acquired the California Renewable Energy Small Tariff projects from Macquarie Capital in 2013. A $50 million funding commitment by Ullico Inc., a labor-union owned insurance and investment company, also contributed to the acquisition and completion of the projects. The projects were built by Panasonic and ImMODO Energy Services Corporation.
Energy – It is the world’s largest industry and the global demand for energy continues to rise, while a strong momentum for change is happening.
The road ahead is clear: alternative energy solutions and energy efficiency measures are needed to secure that the world’s energy needs will continue to be covered – now and in the future. Meeting the demands of all stakeholders will require significant investments on the energy supply side, the distribution and storage of energy, as well as in the tools and technologies that enable the efficient use of that (renewable) energy. They will have a lasting impact on our energy mix and the way we use this crucial resource.
Aspects to consider in green Energy Project Finance for alternative power like wind, solar and biodiesel / ethanol plants and MSW is dependent on many factors. The closer to “shovel ready” the better as far as the lender / investor sources are concerned. Land secured with permits is optimal. Power purchase agreements or Off Take Agreements should be at least in the formulation stage if not already negotiated. Long term agreements will be required with language that provides assurance for adequate debt service coverage ratios.
Minimum capacity assurances are commonly required to assure the debt lenders of ongoing ability to meet the monthly or annual debt payments. Off Takers and Power Purchasers are usually required to have a credit rating of BBB (triple b) or better by Moody’s or Standard and Poor’s. With many lenders, these contracts are the main underwriting criteria. Some lenders don’t even lien the assets of the company while others do. The lender must be assured that the development will be delivered on time and on budget.
The Engineering, Procurement and Construction company should be investment grade also. That means a credit rating of BBB or better as rated by Moody’s or Standard and Poor’s. Some other rating options are possible. The Engineering, Procurement and Construction company (EPC) must guarantee or bond against failure to deliver on time or budget. Time is money and a non producing investment cost lots of it. The Operations and Management (O&M) is critical because the lender / investor must be assured that the investment will produce the fuels or power necessary to meet the financial projections and obligations on an ongoing day to day basis for the life of the debt. Again, the Operations and Management must be investment grade with the ability to guarantee against production shortfalls. If you don’t have investment grade Operations and Management or Operations and Management, we have access to them for you. Insurance such as Business Interruption Protection can also play an important role in this.
Selective Financial Services seeks to finance your green renewable energy projects including improvements of breeze, solar power, biodiesel, ethanol vegetation, and public solid waste to power, geothermal power, wave power and more. Selective Financial Services has know-how and experience in investment positioning for natural energy sources and power improvements. We are environmentally responsible and provide financing and funding renewable green energy developments projects for a cleaner, sustainable future. Wind, solar, biodiesel / ethanol plants, geothermal and hydroelectric are economically viable today and well qualified developers are able to obtain capital if properly packaged and presented to the lending and capital sources.