May 28, 2022

Volume XII, Number 148

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Finding and Structuring Development Capital for Renewable Platforms and Projects

Early to mid-stage development of renewables projects is expensive. From site leases to interconnection deposits and permit fees, the costs prior to reaching project notice to proceed (NTP) can add up. In addition, management teams need capital to grow their businesses while pursuing ongoing project development. In lieu of traditional construction debt, which is generally not be available until NTP (or close to NTP), various development capital solutions are available in the market to provide financing for renewables developers during critical stages of project development (and business expansion).

On January 19, McDermott Partners Chris Gladbach and Joel Hugenberger will be joined by Angel Fierro, managing partner of PLEXUS Solutions (which provides investment management, advisory and consulting services to clients in the renewables sector), and Jorge Vargas, managing partner & co-founder at Aspen Power Partners, for a lively, 30-minute discussion to cover:

Sources of development capital available to renewables developers, including equity earn out structures, platform investments, preferred investments, convertible instruments and mezzanine financing

  • Project or platform criteria for providing this type of capital

  • What are the challenges to developers and financiers in structuring these products?

  • Is it still a seller’s market for projects and platforms? Thoughts about the cost of capital and pools of capital

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