Eight major renewable energy projects, expected to support 8,500 jobs, have been given government approval.
The contracts, which include offshore wind farms and conversions of coal-powered plants to run on biomass, are the first awarded under the government’s energy market reforms.
Energy Secretary Ed Davey said the projects would help power up to three million homes. He also expects them to attract £12bn in private investment.
The eight projects will all receive one of the government’s Contracts for Difference (CfDs), which effectively guarantee prices for renewable energy suppliers.
These could cost up to £1bn each year in subsidies, but the government says they would encourage firms to invest much more than that in low-carbon electricity generation.
Selective Financial Services seeks to finance your green renewable energy projects including developments of wind, solar, biodiesel, ethanol plants, municipal solid waste to energy, geothermal, hydroelectric and more. More and more funders became reluctant in financing renewable energy projects, due to consolidations, tariff reductions and market uncertainty. Selective Financial Services has know-how and experience in capital placement for green fuels and power developments. 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. Our goal is to ensure a successful renewable energy project development capitalization around the world.
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.