Developing Wind and Solar Energy Projects

Wind and solar energy project development generally follows four phases:

1. Find location and secure permits

2. Establish SPV and define suppliers

3. Financing

This phase includes the sourcing of banks for bridge and project financing and the signing of credit contracts. European Energy has long standing experience in establishing project financing for renewable energy projects with major international banks and financial institutions. We handle part of the technical and legal due diligence through our internal staff.

A typical example of project financing in Germany looks as follows:
• 70% - 80% first priority non-recourse KFW and/or ERP loan with an interest rate of approx. 3.75%
• 5% second priority loan. This is possible in the case of expected strong cash flow from the project.
• 15% equity from a joint venture with private or institutional investors for approx. 75% of the cash flow