So you got your licenses, permissions and studies to develop your project, however, one thing’s missing: capital.
In this week’s blog, we have collected some tips and pointers to help energy project developers catch investor’s interest and get their energy project financed.
1) Start small
One of the first questions potential investors will ask or investigate, is how many projects have you already implemented, how long have you been in business. Generally, more experienced developers will be considered less risky.
2) Have your documentation in order
Inadequate or even missing information would not just cost time and hence money, it would also be a major red flag to any potential investor. Insufficient documentation will be reflected in the independent engineer’s status report. Therefor it is essential to deliver all the documentation on time in order not the delay the formal technical review.
3) Present with integrity
Do not try to hide any flaws in the project planning eg. a wind study of insufficient duration. Being honest about it gives the investor the chance to consider from the start whether to move along with it. In contrast if the investor finds out later in the process, the uncertainty about any other yet undetected flaws increases and might very well end a possible collaboration.
4) Build long-term partnerships
Especially if you are developing one of your first projects, it is crucial to establish trust to your partners in order to build a lasting relationship for projects to come. Because as mentioned above, the track record of a developer is crucial in order to be able to develop projects of a higher scale. Hence, keep in mind: Sustaining a relationship is easier than building one.
5) Consider different financing options
The majority of project developers act on the believe that leverage is the cheapest way to finance a project. Which might be true, however, it is also the least flexible form of financing. Mixing in equity into your funding plan will reduce your service costs.
6) Let investors find you
Actually knowing where to find investors interested in your project and how to approach them can already turn out as a challenge. Instead, you can let them approach you. On E-nable+, currently more than 400 active investors are looking for energy projects to invest in. You can sign up and publish your project and we make sure that only adequate offers reach you.
Sign up now on portal.e-nable.eu! Our team is happy to help you realize you project.
Thomas Helige, 24. February 2017, 09:48