HAVELET FINANCE LIMITED

  Funding & Financing A Sustainable Energy Projects Financing a Sustainable Energy project remains a core/is a key ingredient in the energy transition — but there is a large gap between what is available and what is required. The market cannot close this gap on its own; policy-makers will also need to play a large role. Sustainable energy finance plays an essential enabling role in the energy transition and innovation. Meeting a future global increase in energy demand in a sustainable way while reducing emissions from existing infrastructure will require trillion dollars of investment. However, there is currently a gap of many hundreds of billions of dollars between existing investments and what is required. With the COVID-19 crisis also rippling through the energy sector, a new lens through which to view the energy transition has emerged. Renewable energy sources have strengthened their position in the global electricity mix as a result of changed energy production and consumption

  How to achieve non-recourse financing for renewable power projects Given the current bankability status of PPAs, it is important to secure a loan for the projects which is guaranteed by a charge on specific assets or on the revenues  generated from a specific project or assets . This is how a non-recourse financing works. If the borrower defaults and the security does not realize the full value of the loan, the lender cannot recover the shortfall from the borrower or from its other assets or revenues. In essence, the ability to reach  non-recourse financing  arrangement will mostly depend on the negotiation between the lenders and the borrowers, e.g. whether or not the collateral is sufficient to cover the repayment obligations, as well as the  potential economy benefits of the projects , from the lenders’ point of view. Meanwhile, the concept of non-recourse financing is barely introduced Globally, and it is quite difficult to find a bank which is willing to finance projects on non-