Renewable energy projects in developing regions benefit from of strong local sources such as solar, wind, hydro and geothermal). At the same time, global investment in renewables exceeds all other new energy investments world-wide, leading to an increase in installed base and lowering the price for renewables year after year.
However strong this economic opportunity to developing regions, in many instances economy of scale is the only strategic response to overcome the increased cost of finance in these regions. This imposes a strong emphasis on a guaranteed off-taker of the electricity, which rules out most population and small businesses to be the beneficiaries of electrification. More often it is large corporate industries that drive the development of large renewable energy plants, funded by foreign equity based financing.
Our main development guideline is zero risk for zero emission.
- Technical risks are mitigated using performance guarantees from a global EPC contractor
- Credit risks are mitigated using guarantee schemes involving the region’s national government as a counter party
A reduced and stable cost of electricity over 30 year is a Unique Buying Reason for regions to develop their stable and sustainable future. Renewable technologies add reliable, trusted and efficient electricity production to the energy mix of the country, while cash flow remain in the country to benefit local people in local micro-grid projects and electrification.
- The country owns and controls the renewable energy sites, which benefits from best-of-class performance guarantees.
- Financing is based on low cost debt.
- Little to no equity is used: no free cash flow drains into non-domestic dividends.
- Rural electrification is promoted using the free cash flow from renewable production sites.
- The cost of energy is close to a European level, while the renewable potential makes the region more competitive to reduce import and develop export.
- Education, care, local economy and employment grow from the projects and from the attraction of new business and developments.
- The trade balance improves: the economy grows while energy import reduces.
- The country owns and controls its renewable energy future in a sustainable way.