Financial Aspects

Financing a Project

Different types of financing phases can be defined for a project, depending on its primary activity. Each phase represents a different financing stage and can often require a different type of financing. Understanding these stages and their respective financing needs is crucial for successfully launching and sustaining a renewable energy community project.

1. Pre-Planning Phase

In this initial phase, the groundwork for the project is laid out. The focus is on planning and assessing the feasibility of the project.

• Project Planning: Outline the project’s scope, goals, and timelines.
• Identification of Project Site and Type of Renewable Energy Source (RES): Select the optimal location and energy source (e.g., solar, wind).
• Feasibility Study: Analyze the technical, financial, and environmental viability of the project.
• Business Plan: Develop a detailed plan outlining the financial model, projected costs, and expected revenue.
• Legal Agreements: Draft and review preliminary legal contracts and agreements.

2. Development Phase

This phase involves securing the necessary permissions and finalizing plans to move towards construction.

• Business Plan Refinement: Update the business plan based on further analysis and feedback.
• Permitting Procedures: Obtain the required permits from local and national authorities.
• Grid Access Permit: Secure permission to connect the project to the electricity grid.
• Legal Agreements: Finalize legal contracts, including land leases and partnership agreements.
• Financial Due Diligence: Conduct a thorough review of financial assumptions and secure initial funding commitments.

3. Construction Phase

In the construction phase, the focus shifts to building the infrastructure needed to produce energy.

• Construction Contracts: Contracts with builders and contractors.
• Material Procurement: Purchase the necessary materials and equipment for construction.
• Connection to the Grid: Establish the physical connection to the electricity grid to enable energy distribution.

4. Operating and Maintenance Phase

Once the construction is complete, the project moves into the operational phase, where the focus is on producing energy and maintaining the infrastructure.

• Production: Begin generating and distributing energy.
• Operation and Maintenance Contracts: Manage ongoing operational tasks and maintain equipment to ensure continuous energy production.