Category Archives: Financiación de Proyectos

Financiación de Proyectos

Financing and Sale of Green Projects

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Sopelia provides support for financing and sale of green projects around the world.

The documentation to provide to access this financing must include:

1) Country in which the project is located

2) Type of project

3) Power in MW

4) Permissions you already have

5) PPA (if you already have it or if you are in the process of obtaining it)

6) Environmental study

7) Legal study

8) Social impact assessment

9) Property or land rights

10) Study and interconnection zone.

This information is analyzed by Sopelia and sent to the investment funds with which the company operates for evaluation.

Those funds interested in financing the project will sign a letter of intent with the project owner before signing the final contract.

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Regarding projects sale, the documentation to be provided must include:

1) Corporate structure of the owner

2) IT code

3) Installed capacity in MW

4) Historical production of last 4 years

5) Value of tangible and intangible fixed assets and depreciation schedule

6) Existing balance in accounts (operational, CRSD and maintenance)

7) Detail of annual operating costs (indicating scope and term of the O&M contract)

8) Financing contract (calendar, pending debt, Swap, type, margin, annual agency cost)

9) Equity structure (participating loans, value and annual cost)

10) Tax credits (BINS, financial interest to be deducted, environmental credits, tax credits for amortization limitation, etc.).

This information is analyzed by Sopelia and sent to the investment funds with which the company operates for evaluation.

Those funds interested in acquiring the project will sign a letter of intent with the project owner before signing the final contract.

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Both in financing and in projects sale, it is a sine quanon condition to provide all the detailed information with its corresponding supporting documentation.

To understand financing process for these projects, you can access the following posts:

Green Projects Financing

Green Projects Financing(II)

All you need is Sun. All you need is Sopelia.

Financiación de Proyectos

Green Projects Financing(II)

2 Comments

It is usual to encounter renewable energy projects that are promoted in the network or come to our hands, often in careful presentations form.

But, what requirements must a project meet to have potential ?

The “sine qua non” requirement is to provide supporting documentation that proves:

1) Land rights

2) Solar / wind resource measurements

3) Grid connection point provision

4) Environmental permit obtaining

5) Electric market agent registration

Resultado de imagen de ready to build solar projects

Once completed, project is classified as RTA (Ready to Auction / Agreement) and it is worthwhile to move on to next stage: profitability analysis.

The most significant variable in this part of the analysis is the PPA (Purchase Price Agreement).

That is, the agreed purchase price for the renewable energy that project will generate.

This price can be set in:

– An auction, usually public

– A private parties agreement, usually with an electricity distribution company whose corporate clients demand energy from renewable sources voluntarily or legally required.

After this second phase, project is classified as RTB (Ready to Build).

Resultado de imagen de evaluación de proyectos

Funding is now necessary to make it happen.

The information needed to begin the application process is:

1* Documentation proving project ownership

2* Business plan detailing repayment coming from funds flow generated by project itself operation. That is, by the sale of the energy generated

3* Information demonstrating that project is “bankable” and for this the most important are Power Purchase Agreement (PPA) terms and the offtaker

4* Information about project risks allocation as there are many risks that funder is not willing to assume. For example, that project has all permits required by local legislation, with all environmental approvals, with a proven EPC builder, etc.

5* In relation to PPA, a relevant issue is force majeure definition. Hail, for example, should be considered as a force majeure cause since it is very relevant in some regions.

Sopelia collaborates in complete process. From “sine qua non” conditions fulfillment to financing.

On June 3rd, 2017, Sopelia has become Representative Fiduciary Agent for Latin America of a major Abu Dhabi Investment Fund.

This Investment Fund collects and manages a multimillion-dollar portfolio of local, regional and international investments, which wishes to reinvest in projects financing to third investors, project owners and business facilitators in general at an annual interest rate of 3%.

These must be long-term investment projects that can generate an acceptable ROI during funding period.

Funding amounts range from a minimum of U$D 1 million to a maximum of U$D 10.9 billion.

We invite all renewable energy projects owners to send us their initiatives for our previous evaluation.

All you need is Sun. All you need is Sopelia.

Financiación de Proyectos

Green Projects Financing

2 Comments

Many renewable energy projects have all the permits and have made the necessary (technical and economic) assessments that clearly demonstrate their great potential and cost-effectiveness.

Why aren´t they carried out ?

Simply because they don´t find the financing these kind of long term projects need.

Which projects can access affordable financing immediately ?

They are called RTB (Ready to Build), which basically count on:

* Technical and economic study
* Environmental impact assessment
* Grid connection point assigned
* PPA signed or electricity sales price fixed.

Resultado de imagen de financiación de proyectos verdes

To arrive at this categorization, initial kick is to make a terrain on which project is intended to develop evaluation respect to following variables:

– Unevenness
– Renewable resource availability
– Kms distance to paved transport routes
– Kms distance to electrical substation.

From this first analysis it is decided whether or not it is worthwhile to elaborate the project.

On June 3rd, 2017, Sopelia has become Representative Fiduciary Agent for Latin America of a major Abu Dhabi Investment Fund.

This Investment Fund collects and manages a multimillion-dollar portfolio of local, regional and international investments, which wishes to reinvest in projects financing to third investors, project owners and business facilitators in general at an annual interest rate of 3%.

These must be long-term investment projects that can generate an acceptable ROI during funding period.

Funding amounts range from a minimum of U$D 1 million to a maximum of U$D 10.9 billion.

The financing access process is very easy and transparent, with a direct relationship with investor once project qualifies established criteria.

We invite all renewable energy projects owners to send us their initiatives for our previous review.

After this preliminary stage, Investment Fund Board of Directors will analyze the project to determine if it is within the scope of our financing.

Resultado de imagen de evaluación de proyectos

Subsequently, a group of consultants will conduct a reevaluation and evaluation (due diligence).

This is the most important step in financing considering process.

The due diligence defines the terms and conditions to approve the financing and these conditions will be the basis of agreement that will be signed by Investment Fund and project owner.

As soon as due diligence process is completed, the Investment Fund will officially make a financing offer to project owner in very clear and precise terms.

Once terms have been established to grant the loan and if terms and conditions are declared acceptable by project owner, he is invited to sign the financing agreement to officially confirm Investment Fund’s project contribution.

All you need is Sun. All you need is Sopelia.