Financing Renewable Energy Projects

 Advancing renewable energy projects towards financial closure

We provide legitimate funding for renewable energy on a global hierarchy along with a huge commitment to ensure our client’s satisfaction. Havelet Finance Limited provides the international Renewable Energy financing you need along with deal structuring advisory services that mitigate risk and aggressively protects your interests.

While renewable energy investments have seen steady growth over the last decade, a more rapid scaling-up is necessary in developing countries to meet climate and sustainable development goals.

Renewable energy projects, especially in developing countries, face multiple challenges from the institutional, policy and regulatory level to the market and project level which can hinder the development and uptake of renewable energy. The latter include lack of market transparency, lack of financing and experience in project development, and lack of relevant information on regulations, markets and resource availability. This has led to a lack of bankable projects, making it difficult for investors to identify attractive projects, and therefore reducing available capital for those that are ready to be financed.

Targeting specifically project-level barriers, we are aimed to create a pipeline of investment mature projects by actively supporting early stage project development and bridging the funding gap by assisting project developers access appropriate funding opportunities.

HYDRO POWER

Hydro power

Hydro power is energy derived from flowing water. More than 2,000 years ago, the ancient Greeks used water power to run wheels for grinding grain; today it is among the most cost-effective means of generating electricity and is often the preferred method where available. In Norway, for example, 99% of electricity comes from hydropower. The world’s largest hydro power plant is the 22.5 gigawatt Three Gorges Dam in China. It produces 80 to 100 terawatt-hours per year, enough to supply between 70 million and 80 million households.

Small-scale micro-hydropower projects can make a big difference to communities in remote locations.

The basic principle of hydropower is using water to drive turbines. Hydropower plants consist of two basic configurations: with dams and reservoirs, or without. Hydropower dams with a large reservoir can store water over short or long periods to meet peak demand. The facilities can also be divided into smaller dams for different purposes, such as night or day use, seasonal storage, or pumped-storage reversible plants, for both pumping and electricity generation. Hydropower without dams and reservoirs means producing at a smaller scale, typically from a facility designed to operate in a river without interfering in its flow. For this reason, many consider small-scale hydro a more environmentally-friendly option.

BIOENERGY

Bioenergy use falls into two main categories: “traditional” and “modern”. Traditional use refers to the combustion of biomass in such forms as wood, animal waste and traditional charcoal. Modern bioenergy technologies include liquid biofuels produced from bagasse and other plants; bio-refineries; biogas produced through anaerobic digestion of residues; wood pellet heating systems; and other technologies.

About three-quarters of the world’s renewable energy use involves bioenergy, with more than half of that consisting of traditional biomass use. Bioenergy accounted for about 10% of total final energy consumption and 1.9% of global power generation in 2015.

Biomass has significant potential to boost energy supplies in populous nations with rising demand, such as Brazil, India and China. It can be directly burned for heating or power generation, or it can be converted into oil or gas substitutes. Liquid biofuels, a convenient renewable substitute for gasoline, are mostly used in the transport sector.

Brazil is the leader in liquid biofuels and has the largest fleet of flexible-fuel vehicles, which can run on bioethanol — an alcohol mostly made by the fermentation of carbohydrates in sugar or starch crops, such as corn, sugarcane or sweet sorghum.

SOLAR ENERGY

Energy can be harnessed directly from the sun, even in cloudy weather. Solar energy is used worldwide and is increasingly popular for generating electricity or heating and desalinating water. Solar power is generated in two main ways:

Photovoltaics (PV), also called solar cells, are electronic devices that convert sunlight directly into electricity. The modern solar cell is likely an image most people would recognise — they are in the panels installed on houses and in calculators. They were invented in 1954 at Bell Telephone Laboratories in the United States. Today, PV is one of the fastest-growing renewable energy technologies, and is ready to play a major role in the future global electricity generation mix.

Solar PV installations can be combined to provide electricity on a commercial scale, or arranged in smaller configurations for mini-grids or personal use. Using solar PV to power mini-grids is an excellent way to bring electricity access to people who do not live near power transmission lines, particularly in developing countries with excellent solar energy resources.

The cost of manufacturing solar panels has plummeted dramatically in the last decade, making them not only affordable but often the cheapest form of electricity. Solar panels have a lifespan of roughly 30 years, and come in a variety of shades depending on the type of material used in manufacturing.

Concentrated solar power (CSP), uses mirrors to concentrate solar rays. These rays heat fluid, which creates steam to drive a turbine and generate electricity. CSP is used to generate electricity in large-scale power plants.

A CSP power plant usually features a field of mirrors that redirect rays to a tall thin tower. One of the main advantages of a CSP power plant over a solar PV power plant is that it can be equipped with molten salts in which heat can be stored, allowing electricity to be generated after the sun has set.

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WIND

Wind power is one of the fastest-growing renewable energy technologies. Usage is on the rise worldwide, in part because costs are falling. Global installed wind-generation capacity onshore and offshore has increased by a factor of almost 75 in the past two decades, jumping from 7.5 gigawatts (GW) in 1997 to some 564 GW by 2018, according to IRENA’s latest data. Production of wind electricity doubled between 2009 and 2013, and in 2016 wind energy accounted for 16% of the electricity generated by renewables. Many parts of the world have strong wind speeds, but the best locations for generating wind power are sometimes remote ones. Offshore wind power offers tremendous potential.

Wind turbines first emerged more than a century ago. Following the invention of the electric generator in the 1830s, engineers started attempting to harness wind energy to produce electricity. Wind power generation took place in the United Kingdom and the United States in 1887 and 1888, but modern wind power is considered to have been first developed in Denmark, where horizontal-axis wind turbines were built in 1891 and a 22.8-metre wind turbine began operation in 1897.

Wind is used to produce electricity using the kinetic energy created by air in motion. This is transformed into electrical energy using wind turbines or wind energy conversion systems. Wind first hits a turbine’s blades, causing them to rotate and turn the turbine connected to them. That changes the kinetic energy to rotational energy, by moving a shaft which is connected to a generator, and thereby producing electrical energy through electromagnetism.

The amount of power that can be harvested from wind depends on the size of the turbine and the length of its blades. The output is proportional to the dimensions of the rotor and to the cube of the wind speed. Theoretically, when wind speed doubles, wind power potential increases by a factor of eight.

Wind-turbine capacity has increased over time. In 1985, typical turbines had a rated capacity of 0.05 megawatts (MW) and a rotor diameter of 15 metres. Today’s new wind power projects have turbine capacities of about 2 MW onshore and 3–5 MW offshore.

Commercially available wind turbines have reached 8 MW capacity, with rotor diameters of up to 164 metres. The average capacity of wind turbines increased from 1.6 MW in 2009 to 2 MW in 2014.

OCEAN ENERGY

Tides, waves and currents can be used to produce electricity. Although still at the research and development stage and not yet commercially available, promising ocean technologies include:

Wave energy, whereby converters capture the energy contained in ocean waves and use it to generate electricity. Converters include oscillating water columns that trap air pockets to drive a turbine; oscillating body converters that use wave motion; and overtopping converters that make use of height differences.

Tidal energy, produced either by tidal-range technologies using a barrage (a dam or other barrier) to harvest power between high and low tide; tidal-current or tidal-stream technologies; or hybrid applications.

Salinity gradient energy, arising from differing salt concentrations, as occurs where a river empties into an ocean. Demonstration projects use “pressure retarded osmosis”, with freshwater flowing through a membrane to increase the pressure in a tank of saltwater; and “reverse electro dialysis” with ions of salt passing through alternating tanks of salt- and freshwater.

Ocean thermal energy conversion, which generates power from the temperature difference between warm surface seawater and cold seawater at 800–1,000 metres depth.

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