What are the main stakeholders & contracts in project finance for energy / power generation projects / PPA?
The main stakeholders and contracts in project finance for energy / power generation projects include:
1. Sponsors (developers, equity investors)
2. Lenders (banks, bondholders)
3. EPC Contractor (Engineering, Procurement, Construction)
4. Operations and maintenance (O&M) contractor
5. Power purchaser (utility, off-taker)
6. Regulatory authorities (government, energy agencies)
7. Equipment suppliers
8. Insurance providers
9. Tax authorities
10. Environmental agencies.
The main contracts involved include:
A. Shareholder agreement
B. Project finance loan agreements
C. Engineering, procurement, and construction contracts (EPC)
D. Operations and maintenance agreements
E. Power purchase agreements (PPA)
F. Equipment supply agreements
G. Insurance policies
H. Performance guarantees
I. Environmental permits and agreements
J. Taxation agreements
K. Financial modelling and due diligence reports.
Of course, there are certain differences between renewables & fossil fuels power generation projects but that’s the subject for another article.
If you want to read this article and join our Community on LinkedIn – please click here:
https://www.linkedin.com/feed/update/urn:li:activity:7026202459962236930
Or see our full Project Finance & Marketing blog here:
https://itoma.co.uk/blog
