Acquiring Renewable Energy Finance

1. Acquiring Renewable Energy Finance The projects of infrastructure financing offer a number of benefits and an opportunity of sharing the risks, expanding the capacity of debts, releasing free cash and also in maintaining competitive advantages in the competitive market. Project financing is considered to be an extremely useful weapon for the companies which want to avoid issue of the corporate guarantee for repayment. The route of project financing allows the sponsor to expand the debt capacity as it helps the sponsor in financing the project by taking a guarantee. The sponsor may raise funds for the infrastructure project on the basis of contractual commitments. What Does Project Finance Do Renewable energy finance or project finance lets the sponsors share the risks of the project with the other investors. The main structure of the project financing demands that sponsors divide the risks with the help of arrangements of network security, agreements and contracts, supplemental assistance, etc. to the financially efficient parties who are ready to take the risks. It also helps to reduce the risk of exposure. The route of project financing helps the renewable energy project finance providers in deciding the right way of managing the free flow of cash which remains after the maintenance as well as the operational costs have been paid. Also, the corporate form of organisations and the corporate management takes the decision about using the free flow of cash. The decision regarding the investment of cash in the new projects or paying dividends to shareholders. Similarly, as funding agencies get the capital, especially the investors, they may take the decision about reinvesting it. Since the project firm has got a

2. very long life and the business of such companies depend on projects only, there’re absolutely no clash of interests between the management and the investors, since it happens with the traditional forms of corporate organisations. Maintaining The Important Information Financing the projects with the help of renewable energy funding sources may help the sponsors in maintaining the confidentiality of the important information regarding the project apart from the competitive benefit. This benefit is related to raising of equity financing. However, this is a limited advantage while take help from the financial market. Where you need to raise equity funds like for oil and gas m&a, through the market, the information related to the project should be shared. This information maybe about the sponsors as well as the project company.