Introduction to Project Finance in Renewable Energy Infrastructure: Including Public-Private Investments and Non-Mature Markets
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| Main Author: | |
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| Format: | Electronic eBook |
| Language: | English |
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Cham
Springer International Publishing AG
2021
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| Subjects: | |
| Online Access: | HWR01 |
| Physical Description: | 1 Online-Ressource (283 Seiten) |
| ISBN: | 9783030687403 |
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MARC
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| 245 | 1 | 0 | |a Introduction to Project Finance in Renewable Energy Infrastructure |b Including Public-Private Investments and Non-Mature Markets |
| 264 | 1 | |a Cham |b Springer International Publishing AG |c 2021 | |
| 264 | 4 | |c ©2021 | |
| 300 | |a 1 Online-Ressource (283 Seiten) | ||
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| 505 | 8 | |a Intro -- Preface -- Acknowledgements -- Introduction -- Contents -- Abbreviations -- List of Figures -- List of Tables -- 1 Introductory Concepts -- 1.1 Renewable Energy Infrastructure -- 1.2 Non-mature Markets -- 1.3 Public-Private Context -- References -- 2 Developing Renewable Energy Projects -- 2.1 Simplified Project Development Timeline -- 2.1.1 Business Development in Non-mature Markets -- 2.1.2 Poor Development, Poor Financing -- 2.2 Development and Investment Phase Versus Operational Phase -- 2.2.1 Match Between Sources and Uses -- 2.3 Debt and Equity According to the Project Phase -- 2.3.1 During the Investment and Development Phase -- 2.3.2 During the Operation Phase -- 2.4 Project Funding Timeline -- 2.5 Evolution of the Project Value Over the Time -- 2.6 Debt Refinancing -- 2.7 Equity Sale Versus Asset Deal -- References -- 3 Difference of Interest Between the Stakeholders -- 3.1 Government's Interest Versus the Rest's -- 3.2 Government's Proactive Planning -- 3.2.1 Transparency -- 3.3 Renewable Energy Policy -- 3.4 Public Tendering -- 3.4.1 Forms of Auction Design -- 3.5 Agency Conflict and Asymmetry -- References -- 4 Project Company and Perspective of Each Player -- 4.1 The Stakeholders' Interests -- 4.2 The Project Company's Relationships -- 4.2.1 Legal Restrictions of the Project Company -- Reference -- 5 Project Finance and Other Financing Forms -- 5.1 Financing Forms -- 5.1.1 Characteristics of Project Finance -- 5.1.2 Characteristics of Corporate Finance -- 5.1.3 Characteristics of Market Finance -- 5.2 Relevance of the Future Cash Flow -- 5.3 Investment Volume Versus Risk and Return -- 5.4 Investment Time Versus P-Case -- 5.5 Unsecured Loans -- References -- 6 Public-Private Partnerships and Concessions -- 6.1 Advantages of the PPP Schemes -- 6.2 Value for Money -- 6.3 Contingent Risks -- 6.3.1 Risk Optimum | |
| 505 | 8 | |a 6.3.2 Typical Risk Allocation in PPP -- 6.4 Social IRR and Social NPV -- 6.5 Realistic Expectations of the Public Sector -- 6.6 Unsolicited Proposals -- 6.7 Direct Procurement -- 6.7.1 Financial Closing -- 6.7.2 Complexity in the Offers Comparison -- 6.8 Hidden Costs -- 6.9 Corruption and Collusions -- 6.10 Consortia -- References -- 7 Contracts in Project Finance -- 7.1 Main Contracts -- 7.2 The EPC Contract -- 7.2.1 Contractual Key Aspects -- 7.2.2 Compliance: A Wicked Issue -- 7.2.3 Back-to-Back Clauses -- 7.2.4 Counterparty Issues -- 7.2.5 Inconsistency in the Dates -- 7.2.6 Interfaces Issues -- 7.2.7 Insurance -- 7.3 The O& -- M Agreement -- 7.3.1 Types of Service Programs -- 7.3.2 Difference Between OEM Warranty and O& -- M Guarantee -- 7.4 The Offtake Agreement (e.g., PPA) -- 7.4.1 Market Factors for the Attractiveness and Competitiveness of PPAs -- 7.4.2 Type of Contracts in PPPs or Following Public Auctions -- 7.4.3 Contract for Differences (CfD) -- 7.4.4 Spot Demand and Price Forecast -- 7.4.5 Financial Power Purchase Contracting -- 7.5 The Concession Agreement (Case of Public Procurement) -- 7.6 Cooperation Agreements and Mergers and Acquisitions -- 7.7 The Shareholders Agreement -- 7.7.1 Share Purchase Agreement: Selling Shares to a Third-Party -- 7.7.2 Typical Project Data Room -- 7.8 The Loan (Facility) Agreement -- 7.8.1 Undertakings and Events of Default -- 7.8.2 Sponsor Support Agreement -- 7.8.3 Debt Restructuring After Insolvency -- 7.8.4 The Support from Export Credit Agencies -- 7.8.5 De-risking Through Political Risk Insurance (PRI) -- 7.8.6 The Support of Development Banking -- 7.8.7 Model Auditor -- 7.8.8 Financial Adviser -- 7.8.9 Individual Roles Within the "Club" of Lenders -- 7.8.10 Lead Manager or Arranger -- 7.8.11 Inter-creditor Issues -- 7.8.12 Hedge and Investments Funds | |
| 505 | 8 | |a 7.8.13 Brokers and Other Advisory Boutiques -- 7.8.14 Bank's Terms Sheet -- References -- 8 Risks Definition and Analysis -- 8.1 Terminology -- 8.2 Commercial Risks -- 8.2.1 Risk Allocation: The "Golden Rule" -- 8.2.2 Commercial Risks Matrix -- 8.2.3 Refinancing Risk -- 8.2.4 Quantity (AEP) Risk -- 8.2.5 Social and Environmental Integration -- 8.2.6 Life Cycle Assessment -- 8.2.7 The Equator Principles -- 8.3 Macroeconomic/Financial Risks -- 8.3.1 Inflation -- 8.3.2 Interest Rate -- 8.3.3 Exchange Rate -- 8.3.4 Catastrophic Devaluation -- 8.4 Political/Country Risks -- 8.5 Risks Versus Project Phase -- 8.6 The Importance of Post-COD Monitoring -- 8.7 Contracts Negotiation -- 8.7.1 Reputation is Key -- References -- 9 Termination: Change in Law, Default, and Dispute Resolution -- 9.1 Change in Law -- 9.2 Default by One of the Parties -- 9.3 Force Majeure -- 9.4 Insurable Events -- 9.5 Dispute Resolution Mechanisms -- 9.5.1 International Arbitration -- 9.5.2 UN Convention on Contracts for International Sales of Goods (CISG) -- References -- 10 Due Diligence -- 10.1 Financial Due Diligence -- 10.2 Legal Due Diligence -- 10.3 Technical Due Diligence -- 10.4 Further Due Diligence -- 10.5 Managing the External Advisors -- 10.5.1 Think Global, Act Local -- Reference -- 11 Basics of Financial Modeling -- 11.1 Inputs and Outputs -- 11.2 Detail of the Relevant Inputs -- 11.2.1 Macroeconomic Assumptions (A) -- 11.2.2 Project Costs or CapEx (B) -- 11.2.3 Operation Revenues and Costs (C) -- 11.2.4 Loan Drawings and Debt Service (D) -- 11.2.5 Taxation and Accounting (E) -- 11.3 The Cash Flow Model -- 11.4 Inputs for a Renewable Energy Project -- 11.4.1 Capital Expenditures (CapEx) -- 11.4.2 Operative Expenditures (OpEx) -- 11.4.3 Cost of Capital (CoC) -- 11.4.4 Annual Energy Production (AEP) or Quantity -- 11.4.5 Losses from the Future Quantities | |
| 505 | 8 | |a 11.5 Further Relevant Notions for Inputs and Outputs -- 11.5.1 Levelized Cost of Energy (LCoE) or Present Value of Energy Cost -- 11.5.2 Notion of Residual (or Salvage) Value -- 11.5.3 The Cash Flow Cascade -- 11.5.4 Collateral Agreements -- 11.5.5 Cash Sweep -- 11.5.6 Cash Clawback -- 11.5.7 Mini Perm -- 11.5.8 Covenants -- 11.5.9 Derivatives to Fix Interest and Exchange Rates -- 11.5.10 Interest Rate Swaps -- 11.5.11 Hedging and Currency Swaps -- References -- 12 Quantitative Evaluation of Renewable Energy Projects -- 12.1 Minimum Profitability Indicators -- 12.2 Notion of Present Value (PV) -- 12.3 Notion of Net Present Value (NPV) -- 12.4 Notion of Internal Rate of Return (IRR) -- 12.5 Notion of Blend IRR -- 12.5.1 Project Versus Equity IRR -- 12.6 Notion of Modified IRR (MIRR) -- 12.7 NPV Versus IRR Versus Project Size -- 12.8 Payback Time -- 12.9 Notion of Cost of Capital (CoC) -- 12.10 Notion of Levelized Cost of Energy (LCoE) -- 12.11 Notion of Cash Flow Available for Debt Service (CFADS) -- 12.12 Debt Cover Ratios -- 12.12.1 When Interest Rates Differ Over Time -- 12.13 Debt Sizing -- 12.13.1 Tax Issues While Calculating DSCR -- 12.13.2 Average Life -- 12.14 Importance of Leverage -- 12.15 Linear Versus Annuity Repayment Schedule -- 12.16 Sculptured (or Cash Flow-Based) Repayment Schedule -- 12.17 Types of Repayments and Interest Payments -- References -- 13 Qualitative Evaluation of Renewable Energy Projects -- 13.1 Qualitative Questions -- 13.2 Sensitivity Analysis -- 13.2.1 Building Scenarios -- 13.2.2 Longer Tenor -- 13.2.3 Longer Grace Period -- 13.3 Project Structuring -- 13.4 Absolute Versus Relative Attractiveness -- 13.5 External Factors -- 13.5.1 Project Competitiveness Ranking -- References -- 14 Asset and Portfolio Management -- 14.1 Asset Management -- 14.1.1 Commercial Management -- 14.1.2 Technical Management | |
| 505 | 8 | |a 14.1.3 Asset Management -- 14.2 Portfolio Management -- 14.2.1 Mean-Variance Portfolio Theory -- 14.2.2 List of Diversification Factors for Renewable Energy Assets -- 14.2.3 Portfolio Efficiency Frontier -- 14.2.4 Beta and Non-diversifiable Risk -- 14.2.5 Further Ratios -- 14.2.6 Limitations -- 14.2.7 Types of Investors in Renewable Energy -- 14.2.8 Forms of Investments -- References -- 15 Trends and Technology Development -- 15.1 Technology as a Risk Factor -- 15.2 Technology as an Enhanced Efficiency Factor -- 15.3 Role of OEMs and ISPs in the Improvement of the LCoE -- 15.4 Oligopoly and Equipment Price Evolution -- 15.5 Diversification to Reduce Dependency -- 15.6 Enhanced Integration of "Variable" Renewable Energy -- References -- 16 Climate Finance at a Glance -- 16.1 Global Warming and Environmental Issues -- 16.1.1 Inherent Climate Change Risks for the Lenders -- 16.2 The UNFCCC -- 16.3 Focus on the Green Climate Fund (GCF) -- 16.3.1 The Role of the Private Sector -- 16.4 The Clean Development Mechanism (CDM) -- 16.5 The Role of Blended Finance -- 16.6 From Macro to Micro -- References -- 17 Case Studies: Auction Bid (I) and Shares Purchase Offer (II) -- 17.1 Case of a Preparation of an Auction Bid -- 17.2 Case of Preparation of an Offer to Acquire Asset Shares -- 17.3 Caveat Both in Method and Results -- 18 Financial and Technical Glossary -- 18.1 Financial Glossary -- 18.2 Technical Glossary | |
| 650 | 4 | |a Renewable energy sources-Finance | |
| 650 | 4 | |a Clean energy industries-Finance | |
| 653 | 6 | |a Electronic books | |
| 776 | 0 | 8 | |i Erscheint auch als |n Druck-Ausgabe |a Mohamadi, Farid |t Introduction to Project Finance in Renewable Energy Infrastructure |d Cham : Springer International Publishing AG,c2021 |z 9783030687397 |
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| contents | Intro -- Preface -- Acknowledgements -- Introduction -- Contents -- Abbreviations -- List of Figures -- List of Tables -- 1 Introductory Concepts -- 1.1 Renewable Energy Infrastructure -- 1.2 Non-mature Markets -- 1.3 Public-Private Context -- References -- 2 Developing Renewable Energy Projects -- 2.1 Simplified Project Development Timeline -- 2.1.1 Business Development in Non-mature Markets -- 2.1.2 Poor Development, Poor Financing -- 2.2 Development and Investment Phase Versus Operational Phase -- 2.2.1 Match Between Sources and Uses -- 2.3 Debt and Equity According to the Project Phase -- 2.3.1 During the Investment and Development Phase -- 2.3.2 During the Operation Phase -- 2.4 Project Funding Timeline -- 2.5 Evolution of the Project Value Over the Time -- 2.6 Debt Refinancing -- 2.7 Equity Sale Versus Asset Deal -- References -- 3 Difference of Interest Between the Stakeholders -- 3.1 Government's Interest Versus the Rest's -- 3.2 Government's Proactive Planning -- 3.2.1 Transparency -- 3.3 Renewable Energy Policy -- 3.4 Public Tendering -- 3.4.1 Forms of Auction Design -- 3.5 Agency Conflict and Asymmetry -- References -- 4 Project Company and Perspective of Each Player -- 4.1 The Stakeholders' Interests -- 4.2 The Project Company's Relationships -- 4.2.1 Legal Restrictions of the Project Company -- Reference -- 5 Project Finance and Other Financing Forms -- 5.1 Financing Forms -- 5.1.1 Characteristics of Project Finance -- 5.1.2 Characteristics of Corporate Finance -- 5.1.3 Characteristics of Market Finance -- 5.2 Relevance of the Future Cash Flow -- 5.3 Investment Volume Versus Risk and Return -- 5.4 Investment Time Versus P-Case -- 5.5 Unsecured Loans -- References -- 6 Public-Private Partnerships and Concessions -- 6.1 Advantages of the PPP Schemes -- 6.2 Value for Money -- 6.3 Contingent Risks -- 6.3.1 Risk Optimum 6.3.2 Typical Risk Allocation in PPP -- 6.4 Social IRR and Social NPV -- 6.5 Realistic Expectations of the Public Sector -- 6.6 Unsolicited Proposals -- 6.7 Direct Procurement -- 6.7.1 Financial Closing -- 6.7.2 Complexity in the Offers Comparison -- 6.8 Hidden Costs -- 6.9 Corruption and Collusions -- 6.10 Consortia -- References -- 7 Contracts in Project Finance -- 7.1 Main Contracts -- 7.2 The EPC Contract -- 7.2.1 Contractual Key Aspects -- 7.2.2 Compliance: A Wicked Issue -- 7.2.3 Back-to-Back Clauses -- 7.2.4 Counterparty Issues -- 7.2.5 Inconsistency in the Dates -- 7.2.6 Interfaces Issues -- 7.2.7 Insurance -- 7.3 The O& -- M Agreement -- 7.3.1 Types of Service Programs -- 7.3.2 Difference Between OEM Warranty and O& -- M Guarantee -- 7.4 The Offtake Agreement (e.g., PPA) -- 7.4.1 Market Factors for the Attractiveness and Competitiveness of PPAs -- 7.4.2 Type of Contracts in PPPs or Following Public Auctions -- 7.4.3 Contract for Differences (CfD) -- 7.4.4 Spot Demand and Price Forecast -- 7.4.5 Financial Power Purchase Contracting -- 7.5 The Concession Agreement (Case of Public Procurement) -- 7.6 Cooperation Agreements and Mergers and Acquisitions -- 7.7 The Shareholders Agreement -- 7.7.1 Share Purchase Agreement: Selling Shares to a Third-Party -- 7.7.2 Typical Project Data Room -- 7.8 The Loan (Facility) Agreement -- 7.8.1 Undertakings and Events of Default -- 7.8.2 Sponsor Support Agreement -- 7.8.3 Debt Restructuring After Insolvency -- 7.8.4 The Support from Export Credit Agencies -- 7.8.5 De-risking Through Political Risk Insurance (PRI) -- 7.8.6 The Support of Development Banking -- 7.8.7 Model Auditor -- 7.8.8 Financial Adviser -- 7.8.9 Individual Roles Within the "Club" of Lenders -- 7.8.10 Lead Manager or Arranger -- 7.8.11 Inter-creditor Issues -- 7.8.12 Hedge and Investments Funds 7.8.13 Brokers and Other Advisory Boutiques -- 7.8.14 Bank's Terms Sheet -- References -- 8 Risks Definition and Analysis -- 8.1 Terminology -- 8.2 Commercial Risks -- 8.2.1 Risk Allocation: The "Golden Rule" -- 8.2.2 Commercial Risks Matrix -- 8.2.3 Refinancing Risk -- 8.2.4 Quantity (AEP) Risk -- 8.2.5 Social and Environmental Integration -- 8.2.6 Life Cycle Assessment -- 8.2.7 The Equator Principles -- 8.3 Macroeconomic/Financial Risks -- 8.3.1 Inflation -- 8.3.2 Interest Rate -- 8.3.3 Exchange Rate -- 8.3.4 Catastrophic Devaluation -- 8.4 Political/Country Risks -- 8.5 Risks Versus Project Phase -- 8.6 The Importance of Post-COD Monitoring -- 8.7 Contracts Negotiation -- 8.7.1 Reputation is Key -- References -- 9 Termination: Change in Law, Default, and Dispute Resolution -- 9.1 Change in Law -- 9.2 Default by One of the Parties -- 9.3 Force Majeure -- 9.4 Insurable Events -- 9.5 Dispute Resolution Mechanisms -- 9.5.1 International Arbitration -- 9.5.2 UN Convention on Contracts for International Sales of Goods (CISG) -- References -- 10 Due Diligence -- 10.1 Financial Due Diligence -- 10.2 Legal Due Diligence -- 10.3 Technical Due Diligence -- 10.4 Further Due Diligence -- 10.5 Managing the External Advisors -- 10.5.1 Think Global, Act Local -- Reference -- 11 Basics of Financial Modeling -- 11.1 Inputs and Outputs -- 11.2 Detail of the Relevant Inputs -- 11.2.1 Macroeconomic Assumptions (A) -- 11.2.2 Project Costs or CapEx (B) -- 11.2.3 Operation Revenues and Costs (C) -- 11.2.4 Loan Drawings and Debt Service (D) -- 11.2.5 Taxation and Accounting (E) -- 11.3 The Cash Flow Model -- 11.4 Inputs for a Renewable Energy Project -- 11.4.1 Capital Expenditures (CapEx) -- 11.4.2 Operative Expenditures (OpEx) -- 11.4.3 Cost of Capital (CoC) -- 11.4.4 Annual Energy Production (AEP) or Quantity -- 11.4.5 Losses from the Future Quantities 11.5 Further Relevant Notions for Inputs and Outputs -- 11.5.1 Levelized Cost of Energy (LCoE) or Present Value of Energy Cost -- 11.5.2 Notion of Residual (or Salvage) Value -- 11.5.3 The Cash Flow Cascade -- 11.5.4 Collateral Agreements -- 11.5.5 Cash Sweep -- 11.5.6 Cash Clawback -- 11.5.7 Mini Perm -- 11.5.8 Covenants -- 11.5.9 Derivatives to Fix Interest and Exchange Rates -- 11.5.10 Interest Rate Swaps -- 11.5.11 Hedging and Currency Swaps -- References -- 12 Quantitative Evaluation of Renewable Energy Projects -- 12.1 Minimum Profitability Indicators -- 12.2 Notion of Present Value (PV) -- 12.3 Notion of Net Present Value (NPV) -- 12.4 Notion of Internal Rate of Return (IRR) -- 12.5 Notion of Blend IRR -- 12.5.1 Project Versus Equity IRR -- 12.6 Notion of Modified IRR (MIRR) -- 12.7 NPV Versus IRR Versus Project Size -- 12.8 Payback Time -- 12.9 Notion of Cost of Capital (CoC) -- 12.10 Notion of Levelized Cost of Energy (LCoE) -- 12.11 Notion of Cash Flow Available for Debt Service (CFADS) -- 12.12 Debt Cover Ratios -- 12.12.1 When Interest Rates Differ Over Time -- 12.13 Debt Sizing -- 12.13.1 Tax Issues While Calculating DSCR -- 12.13.2 Average Life -- 12.14 Importance of Leverage -- 12.15 Linear Versus Annuity Repayment Schedule -- 12.16 Sculptured (or Cash Flow-Based) Repayment Schedule -- 12.17 Types of Repayments and Interest Payments -- References -- 13 Qualitative Evaluation of Renewable Energy Projects -- 13.1 Qualitative Questions -- 13.2 Sensitivity Analysis -- 13.2.1 Building Scenarios -- 13.2.2 Longer Tenor -- 13.2.3 Longer Grace Period -- 13.3 Project Structuring -- 13.4 Absolute Versus Relative Attractiveness -- 13.5 External Factors -- 13.5.1 Project Competitiveness Ranking -- References -- 14 Asset and Portfolio Management -- 14.1 Asset Management -- 14.1.1 Commercial Management -- 14.1.2 Technical Management 14.1.3 Asset Management -- 14.2 Portfolio Management -- 14.2.1 Mean-Variance Portfolio Theory -- 14.2.2 List of Diversification Factors for Renewable Energy Assets -- 14.2.3 Portfolio Efficiency Frontier -- 14.2.4 Beta and Non-diversifiable Risk -- 14.2.5 Further Ratios -- 14.2.6 Limitations -- 14.2.7 Types of Investors in Renewable Energy -- 14.2.8 Forms of Investments -- References -- 15 Trends and Technology Development -- 15.1 Technology as a Risk Factor -- 15.2 Technology as an Enhanced Efficiency Factor -- 15.3 Role of OEMs and ISPs in the Improvement of the LCoE -- 15.4 Oligopoly and Equipment Price Evolution -- 15.5 Diversification to Reduce Dependency -- 15.6 Enhanced Integration of "Variable" Renewable Energy -- References -- 16 Climate Finance at a Glance -- 16.1 Global Warming and Environmental Issues -- 16.1.1 Inherent Climate Change Risks for the Lenders -- 16.2 The UNFCCC -- 16.3 Focus on the Green Climate Fund (GCF) -- 16.3.1 The Role of the Private Sector -- 16.4 The Clean Development Mechanism (CDM) -- 16.5 The Role of Blended Finance -- 16.6 From Macro to Micro -- References -- 17 Case Studies: Auction Bid (I) and Shares Purchase Offer (II) -- 17.1 Case of a Preparation of an Auction Bid -- 17.2 Case of Preparation of an Offer to Acquire Asset Shares -- 17.3 Caveat Both in Method and Results -- 18 Financial and Technical Glossary -- 18.1 Financial Glossary -- 18.2 Technical Glossary |
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| format | Electronic eBook |
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Simplified Project Development Timeline -- 2.1.1 Business Development in Non-mature Markets -- 2.1.2 Poor Development, Poor Financing -- 2.2 Development and Investment Phase Versus Operational Phase -- 2.2.1 Match Between Sources and Uses -- 2.3 Debt and Equity According to the Project Phase -- 2.3.1 During the Investment and Development Phase -- 2.3.2 During the Operation Phase -- 2.4 Project Funding Timeline -- 2.5 Evolution of the Project Value Over the Time -- 2.6 Debt Refinancing -- 2.7 Equity Sale Versus Asset Deal -- References -- 3 Difference of Interest Between the Stakeholders -- 3.1 Government's Interest Versus the Rest's -- 3.2 Government's Proactive Planning -- 3.2.1 Transparency -- 3.3 Renewable Energy Policy -- 3.4 Public Tendering -- 3.4.1 Forms of Auction Design -- 3.5 Agency Conflict and Asymmetry -- References -- 4 Project Company and Perspective of Each Player -- 4.1 The Stakeholders' Interests -- 4.2 The Project Company's Relationships -- 4.2.1 Legal Restrictions of the Project Company -- Reference -- 5 Project Finance and Other Financing Forms -- 5.1 Financing Forms -- 5.1.1 Characteristics of Project Finance -- 5.1.2 Characteristics of Corporate Finance -- 5.1.3 Characteristics of Market Finance -- 5.2 Relevance of the Future Cash Flow -- 5.3 Investment Volume Versus Risk and Return -- 5.4 Investment Time Versus P-Case -- 5.5 Unsecured Loans -- References -- 6 Public-Private Partnerships and Concessions -- 6.1 Advantages of the PPP Schemes -- 6.2 Value for Money -- 6.3 Contingent Risks -- 6.3.1 Risk Optimum</subfield></datafield><datafield tag="505" ind1="8" ind2=" "><subfield code="a">6.3.2 Typical Risk Allocation in PPP -- 6.4 Social IRR and Social NPV -- 6.5 Realistic Expectations of the Public Sector -- 6.6 Unsolicited Proposals -- 6.7 Direct Procurement -- 6.7.1 Financial Closing -- 6.7.2 Complexity in the Offers Comparison -- 6.8 Hidden Costs -- 6.9 Corruption and Collusions -- 6.10 Consortia -- References -- 7 Contracts in Project Finance -- 7.1 Main Contracts -- 7.2 The EPC Contract -- 7.2.1 Contractual Key Aspects -- 7.2.2 Compliance: A Wicked Issue -- 7.2.3 Back-to-Back Clauses -- 7.2.4 Counterparty Issues -- 7.2.5 Inconsistency in the Dates -- 7.2.6 Interfaces Issues -- 7.2.7 Insurance -- 7.3 The O&amp -- M Agreement -- 7.3.1 Types of Service Programs -- 7.3.2 Difference Between OEM Warranty and O&amp -- M Guarantee -- 7.4 The Offtake Agreement (e.g., PPA) -- 7.4.1 Market Factors for the Attractiveness and Competitiveness of PPAs -- 7.4.2 Type of Contracts in PPPs or Following Public Auctions -- 7.4.3 Contract for Differences (CfD) -- 7.4.4 Spot Demand and Price Forecast -- 7.4.5 Financial Power Purchase Contracting -- 7.5 The Concession Agreement (Case of Public Procurement) -- 7.6 Cooperation Agreements and Mergers and Acquisitions -- 7.7 The Shareholders Agreement -- 7.7.1 Share Purchase Agreement: Selling Shares to a Third-Party -- 7.7.2 Typical Project Data Room -- 7.8 The Loan (Facility) Agreement -- 7.8.1 Undertakings and Events of Default -- 7.8.2 Sponsor Support Agreement -- 7.8.3 Debt Restructuring After Insolvency -- 7.8.4 The Support from Export Credit Agencies -- 7.8.5 De-risking Through Political Risk Insurance (PRI) -- 7.8.6 The Support of Development Banking -- 7.8.7 Model Auditor -- 7.8.8 Financial Adviser -- 7.8.9 Individual Roles Within the "Club" of Lenders -- 7.8.10 Lead Manager or Arranger -- 7.8.11 Inter-creditor Issues -- 7.8.12 Hedge and Investments Funds</subfield></datafield><datafield tag="505" ind1="8" ind2=" "><subfield code="a">7.8.13 Brokers and Other Advisory Boutiques -- 7.8.14 Bank's Terms Sheet -- References -- 8 Risks Definition and Analysis -- 8.1 Terminology -- 8.2 Commercial Risks -- 8.2.1 Risk Allocation: The "Golden Rule" -- 8.2.2 Commercial Risks Matrix -- 8.2.3 Refinancing Risk -- 8.2.4 Quantity (AEP) Risk -- 8.2.5 Social and Environmental Integration -- 8.2.6 Life Cycle Assessment -- 8.2.7 The Equator Principles -- 8.3 Macroeconomic/Financial Risks -- 8.3.1 Inflation -- 8.3.2 Interest Rate -- 8.3.3 Exchange Rate -- 8.3.4 Catastrophic Devaluation -- 8.4 Political/Country Risks -- 8.5 Risks Versus Project Phase -- 8.6 The Importance of Post-COD Monitoring -- 8.7 Contracts Negotiation -- 8.7.1 Reputation is Key -- References -- 9 Termination: Change in Law, Default, and Dispute Resolution -- 9.1 Change in Law -- 9.2 Default by One of the Parties -- 9.3 Force Majeure -- 9.4 Insurable Events -- 9.5 Dispute Resolution Mechanisms -- 9.5.1 International Arbitration -- 9.5.2 UN Convention on Contracts for International Sales of Goods (CISG) -- References -- 10 Due Diligence -- 10.1 Financial Due Diligence -- 10.2 Legal Due Diligence -- 10.3 Technical Due Diligence -- 10.4 Further Due Diligence -- 10.5 Managing the External Advisors -- 10.5.1 Think Global, Act Local -- Reference -- 11 Basics of Financial Modeling -- 11.1 Inputs and Outputs -- 11.2 Detail of the Relevant Inputs -- 11.2.1 Macroeconomic Assumptions (A) -- 11.2.2 Project Costs or CapEx (B) -- 11.2.3 Operation Revenues and Costs (C) -- 11.2.4 Loan Drawings and Debt Service (D) -- 11.2.5 Taxation and Accounting (E) -- 11.3 The Cash Flow Model -- 11.4 Inputs for a Renewable Energy Project -- 11.4.1 Capital Expenditures (CapEx) -- 11.4.2 Operative Expenditures (OpEx) -- 11.4.3 Cost of Capital (CoC) -- 11.4.4 Annual Energy Production (AEP) or Quantity -- 11.4.5 Losses from the Future Quantities</subfield></datafield><datafield tag="505" ind1="8" ind2=" "><subfield code="a">11.5 Further Relevant Notions for Inputs and Outputs -- 11.5.1 Levelized Cost of Energy (LCoE) or Present Value of Energy Cost -- 11.5.2 Notion of Residual (or Salvage) Value -- 11.5.3 The Cash Flow Cascade -- 11.5.4 Collateral Agreements -- 11.5.5 Cash Sweep -- 11.5.6 Cash Clawback -- 11.5.7 Mini Perm -- 11.5.8 Covenants -- 11.5.9 Derivatives to Fix Interest and Exchange Rates -- 11.5.10 Interest Rate Swaps -- 11.5.11 Hedging and Currency Swaps -- References -- 12 Quantitative Evaluation of Renewable Energy Projects -- 12.1 Minimum Profitability Indicators -- 12.2 Notion of Present Value (PV) -- 12.3 Notion of Net Present Value (NPV) -- 12.4 Notion of Internal Rate of Return (IRR) -- 12.5 Notion of Blend IRR -- 12.5.1 Project Versus Equity IRR -- 12.6 Notion of Modified IRR (MIRR) -- 12.7 NPV Versus IRR Versus Project Size -- 12.8 Payback Time -- 12.9 Notion of Cost of Capital (CoC) -- 12.10 Notion of Levelized Cost of Energy (LCoE) -- 12.11 Notion of Cash Flow Available for Debt Service (CFADS) -- 12.12 Debt Cover Ratios -- 12.12.1 When Interest Rates Differ Over Time -- 12.13 Debt Sizing -- 12.13.1 Tax Issues While Calculating DSCR -- 12.13.2 Average Life -- 12.14 Importance of Leverage -- 12.15 Linear Versus Annuity Repayment Schedule -- 12.16 Sculptured (or Cash Flow-Based) Repayment Schedule -- 12.17 Types of Repayments and Interest Payments -- References -- 13 Qualitative Evaluation of Renewable Energy Projects -- 13.1 Qualitative Questions -- 13.2 Sensitivity Analysis -- 13.2.1 Building Scenarios -- 13.2.2 Longer Tenor -- 13.2.3 Longer Grace Period -- 13.3 Project Structuring -- 13.4 Absolute Versus Relative Attractiveness -- 13.5 External Factors -- 13.5.1 Project Competitiveness Ranking -- References -- 14 Asset and Portfolio Management -- 14.1 Asset Management -- 14.1.1 Commercial Management -- 14.1.2 Technical Management</subfield></datafield><datafield tag="505" ind1="8" ind2=" "><subfield code="a">14.1.3 Asset Management -- 14.2 Portfolio Management -- 14.2.1 Mean-Variance Portfolio Theory -- 14.2.2 List of Diversification Factors for Renewable Energy Assets -- 14.2.3 Portfolio Efficiency Frontier -- 14.2.4 Beta and Non-diversifiable Risk -- 14.2.5 Further Ratios -- 14.2.6 Limitations -- 14.2.7 Types of Investors in Renewable Energy -- 14.2.8 Forms of Investments -- References -- 15 Trends and Technology Development -- 15.1 Technology as a Risk Factor -- 15.2 Technology as an Enhanced Efficiency Factor -- 15.3 Role of OEMs and ISPs in the Improvement of the LCoE -- 15.4 Oligopoly and Equipment Price Evolution -- 15.5 Diversification to Reduce Dependency -- 15.6 Enhanced Integration of "Variable" Renewable Energy -- References -- 16 Climate Finance at a Glance -- 16.1 Global Warming and Environmental Issues -- 16.1.1 Inherent Climate Change Risks for the Lenders -- 16.2 The UNFCCC -- 16.3 Focus on the Green Climate Fund (GCF) -- 16.3.1 The Role of the Private Sector -- 16.4 The Clean Development Mechanism (CDM) -- 16.5 The Role of Blended Finance -- 16.6 From Macro to Micro -- References -- 17 Case Studies: Auction Bid (I) and Shares Purchase Offer (II) -- 17.1 Case of a Preparation of an Auction Bid -- 17.2 Case of Preparation of an Offer to Acquire Asset Shares -- 17.3 Caveat Both in Method and Results -- 18 Financial and Technical Glossary -- 18.1 Financial Glossary -- 18.2 Technical Glossary</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Renewable energy sources-Finance</subfield></datafield><datafield tag="650" ind1=" " ind2="4"><subfield code="a">Clean energy industries-Finance</subfield></datafield><datafield tag="653" ind1=" " ind2="6"><subfield code="a">Electronic books</subfield></datafield><datafield tag="776" ind1="0" ind2="8"><subfield code="i">Erscheint auch als</subfield><subfield code="n">Druck-Ausgabe</subfield><subfield code="a">Mohamadi, Farid</subfield><subfield code="t">Introduction to Project Finance in Renewable Energy Infrastructure</subfield><subfield code="d">Cham : Springer International Publishing AG,c2021</subfield><subfield code="z">9783030687397</subfield></datafield><datafield tag="912" ind1=" " ind2=" "><subfield code="a">ZDB-30-PQE</subfield></datafield><datafield tag="999" ind1=" " ind2=" "><subfield code="a">oai:aleph.bib-bvb.de:BVB01-033702891</subfield></datafield><datafield tag="966" ind1="e" ind2=" "><subfield code="u">https://ebookcentral.proquest.com/lib/hwr/detail.action?docID=6566924</subfield><subfield code="l">HWR01</subfield><subfield code="p">ZDB-30-PQE</subfield><subfield code="q">HWR_PDA_PQE_Kauf</subfield><subfield code="x">Aggregator</subfield><subfield code="3">Volltext</subfield></datafield></record></collection> |
| id | DE-604.BV048323595 |
| illustrated | Not Illustrated |
| index_date | 2024-07-03T20:12:42Z |
| indexdate | 2024-07-10T09:35:16Z |
| institution | BVB |
| isbn | 9783030687403 |
| language | English |
| oai_aleph_id | oai:aleph.bib-bvb.de:BVB01-033702891 |
| oclc_num | 1249015794 |
| open_access_boolean | |
| owner | DE-2070s |
| owner_facet | DE-2070s |
| physical | 1 Online-Ressource (283 Seiten) |
| psigel | ZDB-30-PQE ZDB-30-PQE HWR_PDA_PQE_Kauf |
| publishDate | 2021 |
| publishDateSearch | 2021 |
| publishDateSort | 2021 |
| publisher | Springer International Publishing AG |
| record_format | marc |
| spelling | Mohamadi, Farid Verfasser aut Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets Cham Springer International Publishing AG 2021 ©2021 1 Online-Ressource (283 Seiten) txt rdacontent c rdamedia cr rdacarrier Intro -- Preface -- Acknowledgements -- Introduction -- Contents -- Abbreviations -- List of Figures -- List of Tables -- 1 Introductory Concepts -- 1.1 Renewable Energy Infrastructure -- 1.2 Non-mature Markets -- 1.3 Public-Private Context -- References -- 2 Developing Renewable Energy Projects -- 2.1 Simplified Project Development Timeline -- 2.1.1 Business Development in Non-mature Markets -- 2.1.2 Poor Development, Poor Financing -- 2.2 Development and Investment Phase Versus Operational Phase -- 2.2.1 Match Between Sources and Uses -- 2.3 Debt and Equity According to the Project Phase -- 2.3.1 During the Investment and Development Phase -- 2.3.2 During the Operation Phase -- 2.4 Project Funding Timeline -- 2.5 Evolution of the Project Value Over the Time -- 2.6 Debt Refinancing -- 2.7 Equity Sale Versus Asset Deal -- References -- 3 Difference of Interest Between the Stakeholders -- 3.1 Government's Interest Versus the Rest's -- 3.2 Government's Proactive Planning -- 3.2.1 Transparency -- 3.3 Renewable Energy Policy -- 3.4 Public Tendering -- 3.4.1 Forms of Auction Design -- 3.5 Agency Conflict and Asymmetry -- References -- 4 Project Company and Perspective of Each Player -- 4.1 The Stakeholders' Interests -- 4.2 The Project Company's Relationships -- 4.2.1 Legal Restrictions of the Project Company -- Reference -- 5 Project Finance and Other Financing Forms -- 5.1 Financing Forms -- 5.1.1 Characteristics of Project Finance -- 5.1.2 Characteristics of Corporate Finance -- 5.1.3 Characteristics of Market Finance -- 5.2 Relevance of the Future Cash Flow -- 5.3 Investment Volume Versus Risk and Return -- 5.4 Investment Time Versus P-Case -- 5.5 Unsecured Loans -- References -- 6 Public-Private Partnerships and Concessions -- 6.1 Advantages of the PPP Schemes -- 6.2 Value for Money -- 6.3 Contingent Risks -- 6.3.1 Risk Optimum 6.3.2 Typical Risk Allocation in PPP -- 6.4 Social IRR and Social NPV -- 6.5 Realistic Expectations of the Public Sector -- 6.6 Unsolicited Proposals -- 6.7 Direct Procurement -- 6.7.1 Financial Closing -- 6.7.2 Complexity in the Offers Comparison -- 6.8 Hidden Costs -- 6.9 Corruption and Collusions -- 6.10 Consortia -- References -- 7 Contracts in Project Finance -- 7.1 Main Contracts -- 7.2 The EPC Contract -- 7.2.1 Contractual Key Aspects -- 7.2.2 Compliance: A Wicked Issue -- 7.2.3 Back-to-Back Clauses -- 7.2.4 Counterparty Issues -- 7.2.5 Inconsistency in the Dates -- 7.2.6 Interfaces Issues -- 7.2.7 Insurance -- 7.3 The O& -- M Agreement -- 7.3.1 Types of Service Programs -- 7.3.2 Difference Between OEM Warranty and O& -- M Guarantee -- 7.4 The Offtake Agreement (e.g., PPA) -- 7.4.1 Market Factors for the Attractiveness and Competitiveness of PPAs -- 7.4.2 Type of Contracts in PPPs or Following Public Auctions -- 7.4.3 Contract for Differences (CfD) -- 7.4.4 Spot Demand and Price Forecast -- 7.4.5 Financial Power Purchase Contracting -- 7.5 The Concession Agreement (Case of Public Procurement) -- 7.6 Cooperation Agreements and Mergers and Acquisitions -- 7.7 The Shareholders Agreement -- 7.7.1 Share Purchase Agreement: Selling Shares to a Third-Party -- 7.7.2 Typical Project Data Room -- 7.8 The Loan (Facility) Agreement -- 7.8.1 Undertakings and Events of Default -- 7.8.2 Sponsor Support Agreement -- 7.8.3 Debt Restructuring After Insolvency -- 7.8.4 The Support from Export Credit Agencies -- 7.8.5 De-risking Through Political Risk Insurance (PRI) -- 7.8.6 The Support of Development Banking -- 7.8.7 Model Auditor -- 7.8.8 Financial Adviser -- 7.8.9 Individual Roles Within the "Club" of Lenders -- 7.8.10 Lead Manager or Arranger -- 7.8.11 Inter-creditor Issues -- 7.8.12 Hedge and Investments Funds 7.8.13 Brokers and Other Advisory Boutiques -- 7.8.14 Bank's Terms Sheet -- References -- 8 Risks Definition and Analysis -- 8.1 Terminology -- 8.2 Commercial Risks -- 8.2.1 Risk Allocation: The "Golden Rule" -- 8.2.2 Commercial Risks Matrix -- 8.2.3 Refinancing Risk -- 8.2.4 Quantity (AEP) Risk -- 8.2.5 Social and Environmental Integration -- 8.2.6 Life Cycle Assessment -- 8.2.7 The Equator Principles -- 8.3 Macroeconomic/Financial Risks -- 8.3.1 Inflation -- 8.3.2 Interest Rate -- 8.3.3 Exchange Rate -- 8.3.4 Catastrophic Devaluation -- 8.4 Political/Country Risks -- 8.5 Risks Versus Project Phase -- 8.6 The Importance of Post-COD Monitoring -- 8.7 Contracts Negotiation -- 8.7.1 Reputation is Key -- References -- 9 Termination: Change in Law, Default, and Dispute Resolution -- 9.1 Change in Law -- 9.2 Default by One of the Parties -- 9.3 Force Majeure -- 9.4 Insurable Events -- 9.5 Dispute Resolution Mechanisms -- 9.5.1 International Arbitration -- 9.5.2 UN Convention on Contracts for International Sales of Goods (CISG) -- References -- 10 Due Diligence -- 10.1 Financial Due Diligence -- 10.2 Legal Due Diligence -- 10.3 Technical Due Diligence -- 10.4 Further Due Diligence -- 10.5 Managing the External Advisors -- 10.5.1 Think Global, Act Local -- Reference -- 11 Basics of Financial Modeling -- 11.1 Inputs and Outputs -- 11.2 Detail of the Relevant Inputs -- 11.2.1 Macroeconomic Assumptions (A) -- 11.2.2 Project Costs or CapEx (B) -- 11.2.3 Operation Revenues and Costs (C) -- 11.2.4 Loan Drawings and Debt Service (D) -- 11.2.5 Taxation and Accounting (E) -- 11.3 The Cash Flow Model -- 11.4 Inputs for a Renewable Energy Project -- 11.4.1 Capital Expenditures (CapEx) -- 11.4.2 Operative Expenditures (OpEx) -- 11.4.3 Cost of Capital (CoC) -- 11.4.4 Annual Energy Production (AEP) or Quantity -- 11.4.5 Losses from the Future Quantities 11.5 Further Relevant Notions for Inputs and Outputs -- 11.5.1 Levelized Cost of Energy (LCoE) or Present Value of Energy Cost -- 11.5.2 Notion of Residual (or Salvage) Value -- 11.5.3 The Cash Flow Cascade -- 11.5.4 Collateral Agreements -- 11.5.5 Cash Sweep -- 11.5.6 Cash Clawback -- 11.5.7 Mini Perm -- 11.5.8 Covenants -- 11.5.9 Derivatives to Fix Interest and Exchange Rates -- 11.5.10 Interest Rate Swaps -- 11.5.11 Hedging and Currency Swaps -- References -- 12 Quantitative Evaluation of Renewable Energy Projects -- 12.1 Minimum Profitability Indicators -- 12.2 Notion of Present Value (PV) -- 12.3 Notion of Net Present Value (NPV) -- 12.4 Notion of Internal Rate of Return (IRR) -- 12.5 Notion of Blend IRR -- 12.5.1 Project Versus Equity IRR -- 12.6 Notion of Modified IRR (MIRR) -- 12.7 NPV Versus IRR Versus Project Size -- 12.8 Payback Time -- 12.9 Notion of Cost of Capital (CoC) -- 12.10 Notion of Levelized Cost of Energy (LCoE) -- 12.11 Notion of Cash Flow Available for Debt Service (CFADS) -- 12.12 Debt Cover Ratios -- 12.12.1 When Interest Rates Differ Over Time -- 12.13 Debt Sizing -- 12.13.1 Tax Issues While Calculating DSCR -- 12.13.2 Average Life -- 12.14 Importance of Leverage -- 12.15 Linear Versus Annuity Repayment Schedule -- 12.16 Sculptured (or Cash Flow-Based) Repayment Schedule -- 12.17 Types of Repayments and Interest Payments -- References -- 13 Qualitative Evaluation of Renewable Energy Projects -- 13.1 Qualitative Questions -- 13.2 Sensitivity Analysis -- 13.2.1 Building Scenarios -- 13.2.2 Longer Tenor -- 13.2.3 Longer Grace Period -- 13.3 Project Structuring -- 13.4 Absolute Versus Relative Attractiveness -- 13.5 External Factors -- 13.5.1 Project Competitiveness Ranking -- References -- 14 Asset and Portfolio Management -- 14.1 Asset Management -- 14.1.1 Commercial Management -- 14.1.2 Technical Management 14.1.3 Asset Management -- 14.2 Portfolio Management -- 14.2.1 Mean-Variance Portfolio Theory -- 14.2.2 List of Diversification Factors for Renewable Energy Assets -- 14.2.3 Portfolio Efficiency Frontier -- 14.2.4 Beta and Non-diversifiable Risk -- 14.2.5 Further Ratios -- 14.2.6 Limitations -- 14.2.7 Types of Investors in Renewable Energy -- 14.2.8 Forms of Investments -- References -- 15 Trends and Technology Development -- 15.1 Technology as a Risk Factor -- 15.2 Technology as an Enhanced Efficiency Factor -- 15.3 Role of OEMs and ISPs in the Improvement of the LCoE -- 15.4 Oligopoly and Equipment Price Evolution -- 15.5 Diversification to Reduce Dependency -- 15.6 Enhanced Integration of "Variable" Renewable Energy -- References -- 16 Climate Finance at a Glance -- 16.1 Global Warming and Environmental Issues -- 16.1.1 Inherent Climate Change Risks for the Lenders -- 16.2 The UNFCCC -- 16.3 Focus on the Green Climate Fund (GCF) -- 16.3.1 The Role of the Private Sector -- 16.4 The Clean Development Mechanism (CDM) -- 16.5 The Role of Blended Finance -- 16.6 From Macro to Micro -- References -- 17 Case Studies: Auction Bid (I) and Shares Purchase Offer (II) -- 17.1 Case of a Preparation of an Auction Bid -- 17.2 Case of Preparation of an Offer to Acquire Asset Shares -- 17.3 Caveat Both in Method and Results -- 18 Financial and Technical Glossary -- 18.1 Financial Glossary -- 18.2 Technical Glossary Renewable energy sources-Finance Clean energy industries-Finance Electronic books Erscheint auch als Druck-Ausgabe Mohamadi, Farid Introduction to Project Finance in Renewable Energy Infrastructure Cham : Springer International Publishing AG,c2021 9783030687397 |
| spellingShingle | Mohamadi, Farid Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets Intro -- Preface -- Acknowledgements -- Introduction -- Contents -- Abbreviations -- List of Figures -- List of Tables -- 1 Introductory Concepts -- 1.1 Renewable Energy Infrastructure -- 1.2 Non-mature Markets -- 1.3 Public-Private Context -- References -- 2 Developing Renewable Energy Projects -- 2.1 Simplified Project Development Timeline -- 2.1.1 Business Development in Non-mature Markets -- 2.1.2 Poor Development, Poor Financing -- 2.2 Development and Investment Phase Versus Operational Phase -- 2.2.1 Match Between Sources and Uses -- 2.3 Debt and Equity According to the Project Phase -- 2.3.1 During the Investment and Development Phase -- 2.3.2 During the Operation Phase -- 2.4 Project Funding Timeline -- 2.5 Evolution of the Project Value Over the Time -- 2.6 Debt Refinancing -- 2.7 Equity Sale Versus Asset Deal -- References -- 3 Difference of Interest Between the Stakeholders -- 3.1 Government's Interest Versus the Rest's -- 3.2 Government's Proactive Planning -- 3.2.1 Transparency -- 3.3 Renewable Energy Policy -- 3.4 Public Tendering -- 3.4.1 Forms of Auction Design -- 3.5 Agency Conflict and Asymmetry -- References -- 4 Project Company and Perspective of Each Player -- 4.1 The Stakeholders' Interests -- 4.2 The Project Company's Relationships -- 4.2.1 Legal Restrictions of the Project Company -- Reference -- 5 Project Finance and Other Financing Forms -- 5.1 Financing Forms -- 5.1.1 Characteristics of Project Finance -- 5.1.2 Characteristics of Corporate Finance -- 5.1.3 Characteristics of Market Finance -- 5.2 Relevance of the Future Cash Flow -- 5.3 Investment Volume Versus Risk and Return -- 5.4 Investment Time Versus P-Case -- 5.5 Unsecured Loans -- References -- 6 Public-Private Partnerships and Concessions -- 6.1 Advantages of the PPP Schemes -- 6.2 Value for Money -- 6.3 Contingent Risks -- 6.3.1 Risk Optimum 6.3.2 Typical Risk Allocation in PPP -- 6.4 Social IRR and Social NPV -- 6.5 Realistic Expectations of the Public Sector -- 6.6 Unsolicited Proposals -- 6.7 Direct Procurement -- 6.7.1 Financial Closing -- 6.7.2 Complexity in the Offers Comparison -- 6.8 Hidden Costs -- 6.9 Corruption and Collusions -- 6.10 Consortia -- References -- 7 Contracts in Project Finance -- 7.1 Main Contracts -- 7.2 The EPC Contract -- 7.2.1 Contractual Key Aspects -- 7.2.2 Compliance: A Wicked Issue -- 7.2.3 Back-to-Back Clauses -- 7.2.4 Counterparty Issues -- 7.2.5 Inconsistency in the Dates -- 7.2.6 Interfaces Issues -- 7.2.7 Insurance -- 7.3 The O& -- M Agreement -- 7.3.1 Types of Service Programs -- 7.3.2 Difference Between OEM Warranty and O& -- M Guarantee -- 7.4 The Offtake Agreement (e.g., PPA) -- 7.4.1 Market Factors for the Attractiveness and Competitiveness of PPAs -- 7.4.2 Type of Contracts in PPPs or Following Public Auctions -- 7.4.3 Contract for Differences (CfD) -- 7.4.4 Spot Demand and Price Forecast -- 7.4.5 Financial Power Purchase Contracting -- 7.5 The Concession Agreement (Case of Public Procurement) -- 7.6 Cooperation Agreements and Mergers and Acquisitions -- 7.7 The Shareholders Agreement -- 7.7.1 Share Purchase Agreement: Selling Shares to a Third-Party -- 7.7.2 Typical Project Data Room -- 7.8 The Loan (Facility) Agreement -- 7.8.1 Undertakings and Events of Default -- 7.8.2 Sponsor Support Agreement -- 7.8.3 Debt Restructuring After Insolvency -- 7.8.4 The Support from Export Credit Agencies -- 7.8.5 De-risking Through Political Risk Insurance (PRI) -- 7.8.6 The Support of Development Banking -- 7.8.7 Model Auditor -- 7.8.8 Financial Adviser -- 7.8.9 Individual Roles Within the "Club" of Lenders -- 7.8.10 Lead Manager or Arranger -- 7.8.11 Inter-creditor Issues -- 7.8.12 Hedge and Investments Funds 7.8.13 Brokers and Other Advisory Boutiques -- 7.8.14 Bank's Terms Sheet -- References -- 8 Risks Definition and Analysis -- 8.1 Terminology -- 8.2 Commercial Risks -- 8.2.1 Risk Allocation: The "Golden Rule" -- 8.2.2 Commercial Risks Matrix -- 8.2.3 Refinancing Risk -- 8.2.4 Quantity (AEP) Risk -- 8.2.5 Social and Environmental Integration -- 8.2.6 Life Cycle Assessment -- 8.2.7 The Equator Principles -- 8.3 Macroeconomic/Financial Risks -- 8.3.1 Inflation -- 8.3.2 Interest Rate -- 8.3.3 Exchange Rate -- 8.3.4 Catastrophic Devaluation -- 8.4 Political/Country Risks -- 8.5 Risks Versus Project Phase -- 8.6 The Importance of Post-COD Monitoring -- 8.7 Contracts Negotiation -- 8.7.1 Reputation is Key -- References -- 9 Termination: Change in Law, Default, and Dispute Resolution -- 9.1 Change in Law -- 9.2 Default by One of the Parties -- 9.3 Force Majeure -- 9.4 Insurable Events -- 9.5 Dispute Resolution Mechanisms -- 9.5.1 International Arbitration -- 9.5.2 UN Convention on Contracts for International Sales of Goods (CISG) -- References -- 10 Due Diligence -- 10.1 Financial Due Diligence -- 10.2 Legal Due Diligence -- 10.3 Technical Due Diligence -- 10.4 Further Due Diligence -- 10.5 Managing the External Advisors -- 10.5.1 Think Global, Act Local -- Reference -- 11 Basics of Financial Modeling -- 11.1 Inputs and Outputs -- 11.2 Detail of the Relevant Inputs -- 11.2.1 Macroeconomic Assumptions (A) -- 11.2.2 Project Costs or CapEx (B) -- 11.2.3 Operation Revenues and Costs (C) -- 11.2.4 Loan Drawings and Debt Service (D) -- 11.2.5 Taxation and Accounting (E) -- 11.3 The Cash Flow Model -- 11.4 Inputs for a Renewable Energy Project -- 11.4.1 Capital Expenditures (CapEx) -- 11.4.2 Operative Expenditures (OpEx) -- 11.4.3 Cost of Capital (CoC) -- 11.4.4 Annual Energy Production (AEP) or Quantity -- 11.4.5 Losses from the Future Quantities 11.5 Further Relevant Notions for Inputs and Outputs -- 11.5.1 Levelized Cost of Energy (LCoE) or Present Value of Energy Cost -- 11.5.2 Notion of Residual (or Salvage) Value -- 11.5.3 The Cash Flow Cascade -- 11.5.4 Collateral Agreements -- 11.5.5 Cash Sweep -- 11.5.6 Cash Clawback -- 11.5.7 Mini Perm -- 11.5.8 Covenants -- 11.5.9 Derivatives to Fix Interest and Exchange Rates -- 11.5.10 Interest Rate Swaps -- 11.5.11 Hedging and Currency Swaps -- References -- 12 Quantitative Evaluation of Renewable Energy Projects -- 12.1 Minimum Profitability Indicators -- 12.2 Notion of Present Value (PV) -- 12.3 Notion of Net Present Value (NPV) -- 12.4 Notion of Internal Rate of Return (IRR) -- 12.5 Notion of Blend IRR -- 12.5.1 Project Versus Equity IRR -- 12.6 Notion of Modified IRR (MIRR) -- 12.7 NPV Versus IRR Versus Project Size -- 12.8 Payback Time -- 12.9 Notion of Cost of Capital (CoC) -- 12.10 Notion of Levelized Cost of Energy (LCoE) -- 12.11 Notion of Cash Flow Available for Debt Service (CFADS) -- 12.12 Debt Cover Ratios -- 12.12.1 When Interest Rates Differ Over Time -- 12.13 Debt Sizing -- 12.13.1 Tax Issues While Calculating DSCR -- 12.13.2 Average Life -- 12.14 Importance of Leverage -- 12.15 Linear Versus Annuity Repayment Schedule -- 12.16 Sculptured (or Cash Flow-Based) Repayment Schedule -- 12.17 Types of Repayments and Interest Payments -- References -- 13 Qualitative Evaluation of Renewable Energy Projects -- 13.1 Qualitative Questions -- 13.2 Sensitivity Analysis -- 13.2.1 Building Scenarios -- 13.2.2 Longer Tenor -- 13.2.3 Longer Grace Period -- 13.3 Project Structuring -- 13.4 Absolute Versus Relative Attractiveness -- 13.5 External Factors -- 13.5.1 Project Competitiveness Ranking -- References -- 14 Asset and Portfolio Management -- 14.1 Asset Management -- 14.1.1 Commercial Management -- 14.1.2 Technical Management 14.1.3 Asset Management -- 14.2 Portfolio Management -- 14.2.1 Mean-Variance Portfolio Theory -- 14.2.2 List of Diversification Factors for Renewable Energy Assets -- 14.2.3 Portfolio Efficiency Frontier -- 14.2.4 Beta and Non-diversifiable Risk -- 14.2.5 Further Ratios -- 14.2.6 Limitations -- 14.2.7 Types of Investors in Renewable Energy -- 14.2.8 Forms of Investments -- References -- 15 Trends and Technology Development -- 15.1 Technology as a Risk Factor -- 15.2 Technology as an Enhanced Efficiency Factor -- 15.3 Role of OEMs and ISPs in the Improvement of the LCoE -- 15.4 Oligopoly and Equipment Price Evolution -- 15.5 Diversification to Reduce Dependency -- 15.6 Enhanced Integration of "Variable" Renewable Energy -- References -- 16 Climate Finance at a Glance -- 16.1 Global Warming and Environmental Issues -- 16.1.1 Inherent Climate Change Risks for the Lenders -- 16.2 The UNFCCC -- 16.3 Focus on the Green Climate Fund (GCF) -- 16.3.1 The Role of the Private Sector -- 16.4 The Clean Development Mechanism (CDM) -- 16.5 The Role of Blended Finance -- 16.6 From Macro to Micro -- References -- 17 Case Studies: Auction Bid (I) and Shares Purchase Offer (II) -- 17.1 Case of a Preparation of an Auction Bid -- 17.2 Case of Preparation of an Offer to Acquire Asset Shares -- 17.3 Caveat Both in Method and Results -- 18 Financial and Technical Glossary -- 18.1 Financial Glossary -- 18.2 Technical Glossary Renewable energy sources-Finance Clean energy industries-Finance |
| title | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_auth | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_exact_search | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_exact_search_txtP | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_full | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_fullStr | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_full_unstemmed | Introduction to Project Finance in Renewable Energy Infrastructure Including Public-Private Investments and Non-Mature Markets |
| title_short | Introduction to Project Finance in Renewable Energy Infrastructure |
| title_sort | introduction to project finance in renewable energy infrastructure including public private investments and non mature markets |
| title_sub | Including Public-Private Investments and Non-Mature Markets |
| topic | Renewable energy sources-Finance Clean energy industries-Finance |
| topic_facet | Renewable energy sources-Finance Clean energy industries-Finance |
| work_keys_str_mv | AT mohamadifarid introductiontoprojectfinanceinrenewableenergyinfrastructureincludingpublicprivateinvestmentsandnonmaturemarkets |