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Online Proposal - Wind Energy Project Funding
Funding available for financing
wind energy projects and developments is fairly straight forward
and takes a common sense approach to closing. 100% loan to cost / value is
available for qualified developments. For many years, sponsors of fossil fuel-based
systems in North America have
employed traditional methods to fund, but this approach has been less
accessible to developers of renewable energy developments. Fortunately, as banks,
insurance companies and other financial institutions are becoming more familiar
with the technologies, regulatory, legislative, tax incentives and transaction structures.
This
type of development now receives advantageous capitalization. With positive
trends in the cost and reliability of technology and the recent transition of
the industry to one dominated by larger participants with proven track records
and institutional relationships, the available financial options are expanding
at an ever increasing rate.
Capitalization of large projects to leverage resources with little
or no use of existing corporate credit or cash is possible in today's
lending and investing climate. In many cases, these
projects qualify for our 100% program. Usually the assets and cash flows are
separated out from the development's principals and independently
underwritten by the lending sources. Credit appraisals and lending decisions
are based on the inherent economics of the plan as opposed to the credit
standing or balance sheet of any group or individual developer. Power
purchasers must have a BBB+ rating and be willing to provide long term
agreements.
The most attractive projects for funding
financing of wind renewable energy projects are "shovel ready" or close to it.
That means permits in place or close, land secured, PPAs (Power Purchase
Agreements) in negotiation, EPC and O&M companies with BBB+ credit ratings
available. We have EPC and O&M that meet the criteria available if necessary. We
don't provide "seed money" to get a project started. That would be more for a
venture capitalist or joint venture partner. An executive summary outlining
these items plus financials and resumes should be available upon request. You
may submit
your farm development for lender funding analysis and pre approval quote
online. The process typically involves the
developer, off taking utility, construction contractor (EPC);
warranty, operations and maintenance provider (O&M), typically the supplier of
the equipment; and the lenders. Additional participants will include attorneys
(of course), independent
engineers and consultants engaged by the lenders to assist in evaluating
many different aspects of the transaction.
*One of the first steps for the lenders is to
review and analyze an in-depth executive summary of the
developer's business plan, proforma and / or feasibility study. They may even hire a consultant to conduct an
independent feasibility study if necessary. These studies will reveal the areas wind
energy resource data
and will demonstrate the total financing viability of the project. These studies
will detail technical, funding and other aspects of the development and are
critical to the lending source in its risk evaluation of the proposed plan.
The
loan usually will be secured by assets, power purchase contracts, including a mortgage on the
facilities and real property in some but not all cases. Assignment of operating revenues; liens on all
personal property; and assignment of all agreements and permits, including any
letters of credit or performance bonds to which the borrower is the beneficiary
may be required in some cases but not all.
In
some circumstances, in preparation for
project financing for funding wind energy developments, developers approach
landowners in target areas to arrange long term leases or co venture
opportunities. Interest in these opportunities is
often due to outside incentives such as tax and other financial
inducements. Since each opportunity is influenced by local
municipal policies, regulations and permit requirements, we can provided assistance
in the process of obtaining financing for funding wind energy development projects.
Over the
last two decades, steady growth has been experienced within this and most other
alternative power sources. Explosive growth is expected to continue in the United States, Canada as well as internationally
perpetually into the future. With the ever increasing number of credible
developers coming from entrepreneurial as well as corporate backgrounds,
quality developments will prosper. EF123 has well-established relationships with the lending community.
With the improving
credit position of many of the utility off takers along with the ever increasingly
favorable regulatory and tax treatment more developments can be predicted.
Back in the day, the early 1980's, when the first
commercially scaled operations were installed, they generated electricity at costs as
much as 30 cents per kilowatt-hour. Due to current state-of-the-art technology at
excellently suited sites, they are now generating electricity at less
than 5 cents/kWh. Costs continue to decline as more, larger
and better
technologies are installed. Advancing technology is coming to market at an amazing rate.
Financing
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