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Equity Investments
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| moderator: Murray Cameron, EPIA
Vice-President |
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Project developers perspective - Project
Placement – From market approach to closing the deal
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| Barbara Flesche, Epuron |
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Presentation (PDF) |
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Ms. Flesche (Epuron) showed the different
possibilities of funding projects from equity
capital during its several phases and explained the
best practices when searching reliable investors (those
who are familiarized with the PV sector) for long-
term relationships. |
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Investors’ perspective - Practical example:
challenges from the investors side
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| Peter van Egmond Rossbach, Impax
Asset Managment |
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Presentation (PDF) |
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The investors’ perspective was given by Mr.
Rossbach (Impax Asset Management Ltd.) who
examined the current market challenges, noting that
high costs are not only due to silicon shortage and
explained how to invest after the equity is in but
before banks’ funding and how to deal with a multi-project
entity. |
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Project Developers and Investors: challenges,
risks and conclusions on financial strategies
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| Robert Kröni, Edisun Power Europe
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Presentation (PDF) |
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Other practical examples were put forward by Mr.
Kröni (Edisun Power). He analysed technical
risks of projects and recommended the equity capital
as the best way of project funding. Having enough
projects in the pipeline and providing appropriate
financial products for the investors, will guarantee
a sufficient equity base. |
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Debt financing
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moderator: Christian Langen, EPIA Board Director |
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Project developers’ perspective, - How to
achieve cash neutral project finance?
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| Miguel Fernandez, BP Solar |
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Presentation (PDF) |
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Mr. Fernandez (BP Solar) presented the
advantages of project finance from the project-developers’
point of view and focused on large projects. |
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Example for financing Building Integrated
Photovoltaic project
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| Thierry Lepercq, Solaire Direct |
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Presentation (PDF) |
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On the other hand, Mr. Lepercq (Solairedirect)
presented the best practices when financing small
projects, especially in the BIPV field. Reducing
debt service and risk (by offering warranties and
O&M contracts, monitoring plans, insurance,
attribution of responsibilities, etc.) as well as
marketing and management costs are some of the key
factors to optimize the financing of a PV system. |
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Bank perspective - Non recourse financing from a
PV project
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| Nikolai Ulrich, HSH Nordbank |
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Presentation (PDF) |
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The bank’s point of view was brought by Mr.
Ulrich (HSH Nordbank) who evaluated the risk of
the investment, based on cash-flow models. The
robustness of the project’s cash flow will determine
the debt capacity and the debt service will differ
depending on each market.
Spain and Germany were the two reference cases
when comparing market and financial situations.
Whereas Spain presents a more unstable and uncertain
market (the new feed-in-tariff will be published at
the end of September 2008), but with high investment
return rates (~12%), Germany presents a stable
market with smaller benefit rates (~8%).
Despite the uncertainty resulting from the new
Spanish regulation due in September, developers are
still working on future projects and investors have
not slowed their contracts. |
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Limiting investments risks
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moderator: Christian Langen, EPIA Board Director |
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Capital markets financing versus bank debt
financing for PV projects
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| Christian T. Junior, Commerzbank |
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Presentation (PDF) |
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The first presentation was held by Mr. Junior
(Commerzbank) who analysed the best ways to reach
securisation on non-recourse financing projects
which represent around 30% of the total PV projects.
Securisation will help to reduce all-in financing
cost and gain additional security and transparency
in the financing process. Standardisation was
highlighted as an important step in terms of
evaluation of project risks (i.e. standards
certification and „rating“ of the technology) and
legal documentation facilitates. |
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Addressing technical and performance risks via
adequate contractual structures at the outset
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| Fabrizio Donini Ferretti, Dexia |
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Presentation (PDF) |
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Mr. Ferreti (Dexia) analysed the risk of
investment from a more technical point of view. One
of the most risky aspects of a PV project is that
you have to invest 99% of the total capital at the
beginning of the project. For this reason, an
accurate estimation of the performance of the system
for its whole life-time, a good initial system
design (avoiding future shadows, making the best use
of the inverter), selection of high quality modules
(fulfilling all quality certifications) and a system
monitoring plan are some of the necessary aspects to
be taken into account in order to reduce the
investment risk. |
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