Over time we have developed a business model which allows us to capture the total value of a renewable project while retaining control over health and safety matters and managing the potential effects on people, communities, and the environment. Our business model involves the development, construction, ownership, and operation of renewable energy plants in emerging economies and the sale of power predominantly under long-term power purchase agreements (PPAs). Our approach is to offer the most cost-efficient solution for each project which could either be a single technology or a combination of several integrated renewables technologies.
- Site development & permitting
- System design
- Business case development
- PPA negotiation
In the initial phase of a project, we always start with environmental studies and social impact assessments to ensure that the projects meet our strict criteria. We secure attractive locations, grid connections, and licences and permits and initiate discussions with potential long-term partners. We negotiate commercially viable PPAs with potential off-takers and start plant design. All project details are summarised in a business case which is benchmarked against our investment criteria. It is our strong conviction that early-stage development is crucial for sustainable value creation.
Structuring & financing
- Debt/Equity structuring
- Due diligence
In the next phase, we use our experience to structure and integrate all project documents in collaboration with banks and equity partners in order to raise equity and predominately non-recourse financing for the project. Another key task is optimising project cash flows in order to maximise returns. Once these have been agreed with our financing partners, a final investment decision is made, and the project reaches financial close. Further development work, as well as engineering and construction planning, is performed in parallel with readying the project for construction.
- Engineering and procurement
- Construction management
During construction, we typically assume the role of turn-key engineering, procurement, and construction (EPC) provider for the power plant dependent on project structure and technology. This ensures that we have full control over risk mitigating actions, costs, quality, and progression as well as maintaining a strong emphasis on health, safety, security, and environmental issues.
- Maximise performance and availability
- Maintenance and repair
Once commissioned, the power plant commences commercial operation and we are often responsible for operations and for maintenance and asset management services, with the aim of maximising the performance and availability of the plant. These services are delivered under long-term service contracts with pre-agreed commercial terms.
- Asset management
- Financial optimisation
As owner of the power plants, we receive annual dividends based on cash flows that are generated under the long-term PPAs or through the sale of power in the power market.