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| Dragonflies, moths, beetles, and other insects are living at higher altitudes where previously it was too cold to survive. |
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Carbon Finance & Technology |
An Integrated Approach
There is a market need for a solution that provides:
- An assured technical package that can be delivered within defined cost targets, achieves desired efficiency and is implemented within committed time frames
- Quasi equity financing (up to ~50%+) using carbon credits
- An option of putting up a ‘waste’/alternate fuel based power plant for meeting captive needs/IPP. The energy business is not the core for most clients
- The flexibility for the developer to use the technical and financial resources for main business if they can help it
EVI provides complete EPC facilitation on turnkey basis, with best technology and at minimum cost.
EVI structures the financial closure by bringing in equity in form of preference capital, and supports the client in availing the subsidies available for renewable energy projects.
EVI provides CDM advisory services to facilitate entire registration process; EVI also provides monitoring and verification support throughout the credit period.
EVI helps in prefeasibility analysis & survey for the proposed project, and in assessing the techno-economic viability of the project.
In essence, EVI provides integrated solutions to its clientele.
Benefits:
- Developer gets the following benefits
- World class technology and project development
- Project design with improved viability (supplementary fuels, better technology, carbon credits, financing innovation, electricity sale contracts)
- No hassles of project management
- Assured performance (cost, plant performance, delivery/lead time for development)
- Releases management attention and financial resources for managing growth for core business
- In case where EVI participates in Management of the Plant (management lease)
- Developer still owns the plant right from beginning
- Equity requirement by the developer goes down, if EVI brings in carbon backed financing
- Debt repayment assured by the plant management led by EVI, if fuel/waste supply is assured for a minimum level
- Development of supplementary fuel resource improving the profitability
- Plant management according the global best practices
- Comfort to lenders that plant will be managed by experts and loans will be repaid.
- Future Support in other areas of mill modernization/energy efficiency etc
- E.g. ethanol for sugar mills; sugar mill modernization
- Extra earning for local community for waste fuels
Risk Reduction:
The biggest risks are
- CDM Registration risks
- The project may fail registration requirement of CDM Executive Board
- Implementation Risks
- The project may not be implemented due to lack of financial closure, implementation capability of management
- Cost, time overruns
- The project may not generate desired number of credits due to faulty designs
- Operational risks
- The fuel for the plant may not be available and therefore the plant may not run up to expected level of performance (reduced generation of Credits)
- Counterparty risks
- The project developer may default on agreements (willful default)
The proposed structure and services are designed to takes care of these risks
- Additionality argument is strengthened because finance and technology is arranged driven by Carbon Credits
- EPC structure reduces implementation risks
- O&M/management lease structure reduces operational risks
- Involvement of EVI/Investors reduces the counterparty risks for lenders, buyers of electricity and buyers of carbon credits
This facilitates
- CDM registration
- Financing of the project- debt
- Upfront quasi equity for the project against CERs
For more details, contact us at carbonfinance@emergent-ventures.com. |
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