MASTERCLASS: RAND MERCHANT BANK

MASTERCLASS: RAND MERCHANT BANK  image
The next wave of power projects: Funding private power deals – what do lenders look for?
3rd November - 14:00 – 15:00
 
 
 
The current global trend towards decarbonisation has accelerated innovation and downward cost pressure on renewable energy technologies, making them the most cost-effective electricity generation option available today. The next wave of this change is not through utilities procuring power from IPPs, but rather through the private sector developing renewable energy generation for self-use and for sale to private customers at competitive prices. This sector is truly ripe for investment as can be seen in the trend of corporate, mining, industrial, and commercial electricity users initiating their own bid processes to procure renewable energy from Independent Power Producers.

While many principles that apply to the funding of IPPs selling to utilities are still relevant, there are specific characteristics of financing IPPs selling to corporate and industrial off-takers. In this masterclass, we will highlight some of the credit considerations and bankability issues that lenders will look to mitigate, and nuances specific to particular off-taker industries. We will also discuss the spectrum of potential financing structures and partnerships that are relevant to private PPA projects.