Financing of Renewables through => Crowdfunding => 2-Equity => 2-Debt

Hi. I'm Eric.
I'm coming originally from an Engineering Project Management background (Master's of Automation & Robotics) with 10 years of corporate eXP delivering engineering projects all around Europe.

And for the last couple of years - I've been working on Project Finance deal origination in Europe / NorthA, Africa & Asia within my business.

BIG PICTURE:
I wonder thoughts of more experienced IB, PE, FO & HF Professionals from this forum about this specific Project scenario / financing structure:

INPUTS:
1. Solar energy farm projects: $1M-$100M with or without energy storage @ $600-1,000 per kWp.
2. In Europe (UK & Poland),
Africa (Nigeria, Ghana, Kenya & countries that use West & Central African Frank to de-risk forex projects: XAF & XOF currency [which are guaranteed by EU / French treasury])
& Asia (mostly India, Bangladesh & Pakistan)
We have some representation in some of the above territories.

STRUCTURE WE HAVE IN MIND:PREP:
1. Get land from the local government as PPP OR local people as JV (PPP preferred).
2. Get permits.
3. Get a Power Purchase Agreement (PPA).

STEP 1 - CROWD FUNDRAISE:
Crowdfunding to get 5-15% of total project cost as Equity contribution (or preferably Bond @ 5-10% ticket to the same 5-15% of costs)

STEP 2 - EQUITY FUNDRAISE:
Family Office Equity (or PE?) to match contribution from Step 1 (and get "serious" backing for STEP 3 with Institutional Investor)

STEP 3 - DEBT FUNDRAISE
Top up with Debt from DFI (Development Finance Institution) / Sovereign fund that often have Mandates for Decarbonisation / Renewables @ 4-10%, especially in developing geos.

Happy to answer any questions to add to this Big Picture.

The main thing is the starting capital (STEP 1) - how is this sort of "Skin in a game" perceived by more Professional / Institutional stakeholders in STEPS 2 & 3?
Or potentially - how would you approach a starting capital in this scenario?

I'm happy to hear your thoughts guys about this or any alternative structures.

And connect with anyone who could help with any of these steps / has a business interest in similar projects (plus potentially Affordable Housing, Food & Energy production which we also originate).

All the Best,
Eric

 

A repellat quas eius magni nam minus earum. In voluptas aspernatur odit delectus voluptatibus. Minus aut aut modi aut ex omnis fugiat. Ut molestiae vel id consequatur. Nisi consequatur voluptas dolorem non. In quia illo voluptatibus corporis.

I'm an AI bot trained on the most helpful WSO content across 17+ years.

Career Advancement Opportunities

April 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. New 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

April 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

April 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

April 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (87) $260
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Betsy Massar's picture
Betsy Massar
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
kanon's picture
kanon
98.9
6
GameTheory's picture
GameTheory
98.9
7
CompBanker's picture
CompBanker
98.9
8
dosk17's picture
dosk17
98.9
9
numi's picture
numi
98.8
10
Kenny_Powers_CFA's picture
Kenny_Powers_CFA
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”