Access to Capital - Regensw
Renewable Futures 2009: Power for Growth Day 2 Access to capital
Lee Richards Business Support Manager Regen SW
Mark Heuff Assistant Director Ernst & Young
Access to Capital Mark Heuff, Assistant Director, Ernst & Young 11 November 2009
Overview of talk ►
► ► ►
Introduction to Ernst & Young Access to debt finance Access to equity funding Key considerations for project development
Page 5
11 November 2009
Access to Capital
Ernst & Young’s Energy team
Aberdeen Glasgow
2008
Edinburgh
Manchester Bristol
Financial Advisor of the Year – Renewables Ernst & Young
London
Exeter 2008: 13 deals $1.5bn fundraising
Page 6
11 November 2009
Access to Capital
Access to debt finance ►
► ► ► ►
Very few UK deals closed in last 18 months Appetite appears to be returning Renewables seen as target sector Less appetite for risk Different structures and terms to pre crunch
Page 7
11 November 2009
Access to Capital
Access to debt finance – less appetite for risk Need to ensure you stay in area of availability
Lenders margin
Limited lending now
Limited lending in past
Risk
Page 8
11 November 2009
Access to Capital
Access to debt finance – key project risks ►
► ► ► ►
Technology – track record Construction – EPC Operation – O&M Off-take – PPA Feedstock – long term contract
Page 9
11 November 2009
Access to Capital
Access to equity funding
Infrastructure fund Private equity Funding sources
Strategic investor Venture capital Government grants
Development progress Government grants Venture capital Strategic investor ► Technology/sector ► Short return cycle ► Potentially long specific term investment ► Availability of horizon ► Can be hard to finance access ► Expensive source ► Can bring development skills of funds ► Access to finance
Page 10
11 November 2009
Access to Capital
Commercialization Private equity Infrastructure fund ► Look to exit ► Lowest return post operation requirements start ► Long term ► May take some investment horizon development risk
Key considerations for project development ►
► ►
De-risking the project Targeting approaches to funders Timing of equity investment
Page 11
11 November 2009
Access to Capital
Financing a sustainable future Mark Heuff Renewable Energy Group Tel: +44 (0)1392 284 346 E-mail: [email protected] www.ey.com/renewables
Page 12
11 November 2009
Access to Capital
Thank you
Lee Richards Business Support Manager Regen SW
Mark Heuff Assistant Director Ernst & Young
Access to Capital Mark Heuff, Assistant Director, Ernst & Young 11 November 2009
Overview of talk ►
► ► ►
Introduction to Ernst & Young Access to debt finance Access to equity funding Key considerations for project development
Page 5
11 November 2009
Access to Capital
Ernst & Young’s Energy team
Aberdeen Glasgow
2008
Edinburgh
Manchester Bristol
Financial Advisor of the Year – Renewables Ernst & Young
London
Exeter 2008: 13 deals $1.5bn fundraising
Page 6
11 November 2009
Access to Capital
Access to debt finance ►
► ► ► ►
Very few UK deals closed in last 18 months Appetite appears to be returning Renewables seen as target sector Less appetite for risk Different structures and terms to pre crunch
Page 7
11 November 2009
Access to Capital
Access to debt finance – less appetite for risk Need to ensure you stay in area of availability
Lenders margin
Limited lending now
Limited lending in past
Risk
Page 8
11 November 2009
Access to Capital
Access to debt finance – key project risks ►
► ► ► ►
Technology – track record Construction – EPC Operation – O&M Off-take – PPA Feedstock – long term contract
Page 9
11 November 2009
Access to Capital
Access to equity funding
Infrastructure fund Private equity Funding sources
Strategic investor Venture capital Government grants
Development progress Government grants Venture capital Strategic investor ► Technology/sector ► Short return cycle ► Potentially long specific term investment ► Availability of horizon ► Can be hard to finance access ► Expensive source ► Can bring development skills of funds ► Access to finance
Page 10
11 November 2009
Access to Capital
Commercialization Private equity Infrastructure fund ► Look to exit ► Lowest return post operation requirements start ► Long term ► May take some investment horizon development risk
Key considerations for project development ►
► ►
De-risking the project Targeting approaches to funders Timing of equity investment
Page 11
11 November 2009
Access to Capital
Financing a sustainable future Mark Heuff Renewable Energy Group Tel: +44 (0)1392 284 346 E-mail: [email protected] www.ey.com/renewables
Page 12
11 November 2009
Access to Capital
Thank you
