Funding Renewable Energy Projects

Renewable Energy is a sector which has experienced year on year growth, funders now have large appetites in funding renewable energy projects. If we change our habits, we can easily make use of renewable resources instead of raping the earth for fossil fuels. Using renewable resources can increase productivity and efficiency at low cost which can have a positive impact and a brighter future for generations to come.

World Governments have agreed to cut carbon emissions by 2% but unfortunately, some have cut funding in these areas.  Countries like China are becoming a global superpower in renewable energy as they have recently cut their carbon emissions. Given the worlds incline to go green, funding renewable energy projects is a must!

Fossils Fuels

When fossil fuels are burned, they create harmful greenhouse gases that contribute to global warming. New research and innovation in manufacturing can change our dependent on fossil fuels. We can decrease dangerous gas emission levels and pollutants by discovering new materials and technologies.

Coal Mining

Due to climate change concerns and a society less dependent the use of coal as a heat source, coal mines have closed. As a result of closure, thousands of people worldwide have lost their jobs. This is also due to the commodity price decreasing in value and government regulations changes in mining operations. The challenge now is to find a different way of converting existing materials into cleaner, efficient energy. A new wave of jobs in the renewable energy industry is on the increase. This boosts new economies and as a result, it helps energy poor countries to prosper.

Oil Imports

Crude oil prices can be attributed to three simple reasons:

  • Demand
  • Supply
  • US Dollar

Currently, there is less demand for oil imports as world economies have slowed down. There is an over supply in the oil market where barges are reported to be sitting in Oceans waiting to unload. Wars and conflict in regions can make the oil market extremely volatile.

Funding Renewable Energy Projects

The “clean energy” race is very important. The winners in this race will experience many political as well as economic benefits in years to come. Green energy sources increased in productivity back in 2006 which include hydroelectric power 6.3%, nuclear 8.5%, and others (geothermal, solar, tidal, wind, wood and waste) to 0.9%.

In 2012, the world saw an increase in renewable energy use which accounted for around 13.2% of its total primary energy supply. In 2013 renewable energy accounted for almost 22% of global electricity generation. Nowadays financiers see the long term benefits of funding renewable energy projects.

International project finance is available for industries positioning themselves to build new technologies that makes harnessing energy more efficient, centres to help eliminate waste and make chemicals that breakdown stubborn materials.

What is “renewable energy?”

Solar, wind and water are excellent renewable sources that have almost unlimited potential. The list also includes geothermal energy and biomass from bio-fuels.  All these resources have excellent potential to satisfy our energy needs. By using such resources we would drastically improve our energy security and energy independence.

Manufacturing new green technology from renewable energy sources is extremely important for the future of our planet. Renewable energy projects can change the future of human habits into an positive sustainable society for our children’s future.

Due to the instability of the world economy and current wars in the Middle East, there is a delay tackling climate change. Green energy investment can help decrease carbon emissions and tackle climate change. There is a greater need for businesses to enter the renewable energy sector and today more funders are open to funding such projects.

Global Renewable Energy Finance

Biomass

As the world is being more proactive on recycling, it’s becoming easier to divide them from common waste. Biomass is the end product of organic matter, giving us fuel. Materials such as wood, metal and plastics can either be up cycled or be burned to become direct energy source. Biomass combustion can be used indirectly, using steam turbines and gasifiers producing various forms of bio-fuel. The biochemical products produced from the conversion process can be harnessed and converted. It is turned into a usable form of energy such as methane or transportation fuels like methanol, ethanol and biodiesel.

Wind

Wind power is clean, constant energy and produces no greenhouse gas emissions. Technologies such as wind farms consist of several hundred individual wind turbines. Every turbine is connected to the electric power transmission network. The main problem with wind turbines is; they need a decent amount of wind power to drive the blades to generate electricity. Funders are waiting to finance wind projects that have a solution to this problem.

Waste To Energy

The world has a responsibility to tackle the climate change. Countries like England have built recycling plants to turn waste into a source of energy. Recycling plants help combat land and sea pollution as materials are removed from waste sites and taken to centres for recycling. Rubbish is separated by magnets and shakers into their common materials and taken for further processing. The next process breaks down materials by chemical reaction. Man made materials like plastic and foam aren’t easy to break down, there is a need to find a solution to this problem.

Up-cycling has become a recent trend though it’s not going to sort out waste dumps anytime soon. These energy centres can partly use their own power and sell energy to the national grid. Lenders are looking to fund waste to energy projects as they see the benefits, a step forward to cleaning up the Earth.

Hydro Electric Power

Hydro electric power is one of the oldest and cleanest forms of energy production. It provides the world with approximately 20% of the electricity. Hydro electric technology is more common than other renewable energy technologies because it is more cost effective and easy to build. It accounts for about 80% of electricity from renewable sources. The advantages of generating hydro electric power are:

  • Very low operating and maintenance costs
  • There is minimal pollution
  • Water to run the plant is provided free by nature
  • The technology is constantly improving
  • It is a renewable energy resource

Renewable Energy Funding

Clean technology companies that need a business loans can apply for equity, debt funding or a hybrid of the two. These documents below should be submitted to us if you have them in place prior to funding (along with your business plan and executive summary).

  • Financials (Projected for startups)
  • Commercial Land Ownership
  • Feasibility Report
  • Power Purchase Agreement

If you are sitting on a commercial asset and your company is looking to expand it’s operation, there are ways in which you can beef up your balance sheet. You can use your assets as collateral for a loan or reinvest capital back into your business, contact us for more information about business growth and investment.

Power Purchase Agreement

A Power Purchase Agreement is an important document to obtain prior to funding. This is a contract between you, the energy provider and a third party, the energy buyer. The contract is a legal guarantee for both parties. It guarantees that the buyer will purchase electricity from you from the start of the project for a certain length of time. The contract guarantees the buyer that they will receive a certain amount of electricity in accordance to the agreement.

Renewable Energy Solutions

Ending Energy Poverty

Renewable energy resources yield a net reduction in greenhouse gas emissions. Operating in the “clean tech” industry, businesses need to think about using byproducts from renewable energy sources. By converting organic and/or inorganic biomass from waste streams to high-value bio-fuels, businesses can facilitate production of clean electrical and thermal energy. Today we see three trends in the market;

  1. Building new houses using waste materials
  2. New synthetic materials in clothing material
  3. Up-cycling, a “make and mend” wartime trend

Below is an image to show how we can all act responsibly. Everyone can do their bit to help combat pollution thus producing climate change. If your idea makes a positive impact to the environment, why not apply for renewable energy project finance? We have venture capitalist, hedge funds and investment banks who have all displayed an interest in funding green energy businesses.
Funding renewable energy projects. Finance available for projectscreating sources of electricity

 

Funding Renewable Energy Projects was last modified: July 13th, 2017 by Denise