Proximo Infra’s Post

Structuring lessons from the wave of portfolio/platform financings shared by Allens Pooling diverse projects, whether in development or operating stages, wholly owned or partially owned, can indeed create many complexities. But if you manage them properly, you can get diversification and efficiency benefits compared to individual project financings. Although initially based on the practice of the Australian renewables market - these insights are pretty much applicable to other jurisdictions and scaleable assets in the energy transition space. #portfoliofinancing #energytransition #projectfinance

  The last 24 months or so has seen a rise in the uptake of debt financing over whole portfolios of renewable energy assets under a common financing platform. This has included transactions by Atmos Renewables, Squadron Energy, and upcoming financing transactions for Fotowatio Renewable Ventures (FRV) and the Global Power Generation (to name a few that Allens has been involved in).   We've had a lot of discussions with our sponsor clients expressing interest, and of course from financiers who are keen to be involved, especially with the potential for the platforms to incorporate additional assets. Portfolio financing activity certainly has advantages compared to project financing individual assets on a standalone basis.   Portfolio financings do, however, introduce unique structural considerations and challenges that both sponsors and lenders must carefully navigate.   With that in mind, we've put together some of the key points for consideration by sponsors and lenders when contemplating the financing of a renewables portfolio.   https://lnkd.in/etcqkdMK

Solar dominates renewables financings in the first six months of 2024 The solar PV sector has seen the greatest share of debt raised in the global project finance market relative to other renewables sectors in the first half of this year. According to Proximo data, solar PV developers have secured a significant amount of non-recourse debt between January and June, compared to a substantial amount for onshore wind – the second largest sector by total project finance deal volume. The offshore wind space has, notably, seen fewer deals so far this year, which is perhaps reflective of the higher costs and supply chain issues faced by the sector. Additions may be made to this data as further transactions come to light. Solar PV deals have closed in a highly diverse range of countries, with just a few examples including the financing for the Doornhoek project in South Africa; the financing for the Box Canyon project in the US; and the Matrix Renewables portfolio financing in Spain. There are multiple reasons for the high volume of solar deals. Some include the relative ease of construction and permitting for solar projects in relation to other renewables sectors, as well as the shorter development timelines typically needed for solar projects. Financings for solar projects have also become fairly commoditised in many markets, as lenders are highly familiar with financing solar plants and generally consider construction and technology risk to be low for such projects. In the US, the Inflation Reduction Act unlocked additional capital for solar developers by making production tax credits available to solar projects, which have also benefitted from the growth of the transfer market. Subscribers can access more of Proximo data here: https://lnkd.in/du6gmwqJ If you're not a subscriber, explore Proximo's subscription options here: https://lnkd.in/dUgMipF7 #Proximo #projectfinance #SolarPV #RenewableEnergy #GreenEnergy #Solar #ClimateAction Source: #ProximoIntelligence

Spanish utility Iberdrola and the sovereign wealth fund of Norway managed by Norges Bank Investment Management have announced plans to invest more than €2 billion (US$2.17 billion) to add 1.3GW of renewables in Spain and Portugal over the next two to three years. A total of 674MW of solar and wind capacity was in the development stage, with the rest to be included in the coming months. Solar accounted for 60%, or about 404MW, of the capacity in the development stage. Wind accounted for 40% or about 270MW of the capacity. Iberdrola said final negotiations on exclusivity were also taking place, including an additional 643.5MW of operational and under-development solar PV capacity to the development plan. Iberdrola will have a majority stake of 51% in the assets. Under the terms of the agreement, the valuation of the 674MW capacity amounted to €627 million. In the future, the agreement could be extended to other countries. https://lnkd.in/dP53hjYN

In a bold stride towards a greener future, Iberdrola has just unveiled a substantial €15.5bn commitment to renewable energy, signifying an intense push towards electrification by 2026. This investment forms the core of a wider €41bn strategy that underscores the significance of sustainability in their ethos. Steering this remarkable endeavour, over €15.5bn will bolster renewable projects, with partnerships contributing an additional €5bn to the pot for previously identified ventures. Offshore wind takes the lion's share, drawing over 50% of this funding across pivotal markets in the US, UK, France, and Germany—all targeting projects already in motion. In concert with these investments, Iberdrola is wielding €1.5bn towards amping up pumped storage solutions—a vital piece in the renewable energy puzzle. But it's not just about generation; investment in transmission is strategic, too. With €21.5bn, comprising a hefty 60% of total investments, Iberdrola is fortifying its transmission networks, ensuring the robust delivery of this newly minted green power in countries that are pivotal to its operations. Looking forward, Iberdrola sets its sights on an ambitious Vision 2030. The plan involves commissioning an awe-inspiring 3000MW of new offshore wind power by 2027, eyeing nearly 5000MW in total. Furthermore, an additional 6000MW of onshore wind and solar is anticipated to come online, supporting their roadmap to develop a staggering 100,000MW renewables pipeline by 2030. Iberdrola's chair, Ignacio Galán, laser-focuses on a strategy that fortifies the grid for unwavering supply security and champions the renewables surge, driven by fossil fuel replacement and burgeoning demand. Recognising the critical role of storage to maintain supply-demand balance around the clock, Iberdrola not only paves the way for environmental advancements but also pledges economic growth, job creation, and escalating dividends. As renewables take centre stage in Iberdrola's grand vision, we're not just witnessing an investment but a declaration of a future where clean energy is king. 🌿💡🌬️ #RenewableEnergy #GreenInvestment #Iberdrola

Check out this article in EMEA Finance by Abi Millar on a positive outlook for Europe’s renewables market, featuring Portfolio Manager and Managing Director at Ecofin, Michel Sznajer. “There is so much growth, especially in Europe, because Europe wants to decarbonise and reduce its dependence on natural gas,” he said in the story. Read more below. #Ecofin #EMEAFinance #Renewables #Market

♻️ ⚡ We are pleased to support Intera Renewables' AUD 258 million project financing as the Cornerstone Mandated Lead Arranger. The financing will support Intera's approximately 1GW portfolio of operational onshore wind and solar projects across Australia. Intera Renewables, established by Palisade Investment Partners, manages a portfolio of operational wind and solar assets across the country. With a focus on long-term value creation and stable income returns, Intera aims to expand its renewable energy footprint through the development and construction of new projects. Michael Volkermann, Global Head of Project Finance at Deutsche Bank, commented on the partnership: "We are delighted to enter into a strong renewables portfolio for the next 10 years with Intera Renewables. This transaction not only aligns with our commitment to sustainable finance but also marks our first collaboration with Intera. We look forward to supporting their innovative approach to renewable energy and contributing to Australia's transition to a greener future." This is our first partnership with Intera Renewables. It highlights our ongoing commitment to sustainable financing, supporting renewable energy initiatives that contribute to environmental sustainability and economic growth, in Australia and beyond. #SustainableFinance #RenewableEnergy #GreenFinance #GlobalHausbank

UK utility SSE blamed adverse weather conditions for a lower than expected performance of its renewable energy assets as it flagged a dip in its expected earnings. SSE announced today (Wednesday) that it expects to report adjusted earnings per share of at least £0.30 ($0.36), which it said largely reflected the “normal seasonal nature of operations” that deliver most annual earnings in the second half of its financial year. This guidance takes into account renewables performance, which SSE said “remains below expectations, with output around 19% behind plan for the six months to 30 September, mainly due to adverse weather conditions.” “This represents around a 7% shortfall relative to the full year's planned output,” it said. https://lnkd.in/eyaB-aU2

☀️🍃🔋Aviva has invested in an Italian renewables firm. "Innovo Renewables currently has a five-year pipeline of more than 2.8GW in solar PV, onshore wind and battery storage projects across its core markets of Italy, the UK and Spain, with ambitions to expand into additional markets across Europe". This investment will enable us to further our aim of creating a greener, more sustainable future. We believe that investing in renewables is the right thing to do, and it's something we're deeply passionate about. We're committed to helping the planet and its people, and this investment will help us to do that. We're looking forward to seeing the positive impact this investment will have on the Italian renewables market. #sustainableinvesting #renewableenergy #greenfuture #solar #windenergy #climate17

Government's renewables targets at risk with no offshore wind bids: The government has today unveiled the results of its fifth Contracts for Difference (CfD) auction (AR5), securing 3.7GW of renewable capacity. This is a marked reduction from last year's secured capacity of 11GW, with government renewables targets potentially at risk. #capacitymarketauction #CfDs #CornwallInsight #Finance&Markets #offshorewind #offshorewindcapacity #renewablecapacity #Renewables #UKGovernment