Solar Energy Partners arranges investments in solar parks for institutional investors.

Overview

We have considerable expertise in sourcing renewable energy assets, structuring the assets for investment, and conducting the ongoing management of the assets.

Solar Energy Partners’ team has extensive experience in the following:

• Arranging the acquisition of the asset.
• Managing the assets.
• Arranging debt for acquisitions.
• Structuring efficient international cross-border investment vehicles.
• Effecting risk management strategies and hedging of foreign currency returns
• Managing interest rate exposure.

Completed Transactions

Solar Energy Partners has advised on renewable energy projects In solar, wind and biomass.

Solar Energy

Solar Energy Partners has advised on the financial packaging and acquisition of Spanish and Italian solar photovoltaic projects totalling 60MW with a total purchase price of €374 million.

Wind Energy

We have advised on the structuring and acquisition of wind parks totalling 237MW with a total purchase price of €355M.

Biomass

The team has advised on the acquisition of various types of  biomass projects exceeding 100MW. 

Capabilities

Case study on acquisition of Spanish solar pv park.

We performed the following:

1. Identified the projects through long-standing relationships maintained in the international energy and utilities industries. The industry relationships are with utility companies, EPC contractors, and solar energy developers in Europe.
2. Negotiated the acquisition of the assets with the developer. These negotiations involved the selling price and the payment terms during construction and the adjustment to the purchase price in the event completion and Inscription on the Register is not completed by 28 September 2008.
3. Conducted the due diligence process and interviewed four technical consultants and three law firms in and negotiated the scope of work and fees. The scope of work was expanded to include a full review of all equipment performance, panel degradation and all supply contracts. Warranties from the panel and equipment suppliers were renegotiated to ensure all operating risks were adequately covered.
4. Appointed the technical consultant and legal advisor and managed the compilation of their respective reports. All reports were reviewed for adequacy and detail and further information was obtained from all consultants as the process progressed.
5. Discrepancies in energy production due to differences in output performance ratios were resolved.
6. All issues relating to warranties of panels and inverters were amended to meet the Lender’s requirements and further documents were requisitioned.
7. Arranged the transaction structuring including identifying relevant tax issues. Various structures were analysed which involved the analysis of different tax regimes. Advice was sought from international tax consultants in London and Madrid to devise the most efficient tax structure for the transaction.
8. Negotiated the Letter of Intent (LOI) and sale and purchase agreement (SPA). The LOI was drafted by London and Madrid lawyers and then reviewed by Solar Energy Partners prior to presenting it to the seller. The LOI provided adequate time for the completion of due diligence and further negotiations on the SPA and other payment details.
9. Negotiated the SPA and sought extensive legal advice from the Madrid lawyers.
10. Negotiated and arranged competitive term sheets from leading UK/International banks for 18 to 20 year term facilities.
11. Conducted further negotiations on price with sellers.
12. Conducted the financial modelling and analysis on the transaction and established a detailed monthly financial model which incorporated all actual operational results for investors and debt providers. The base case model included all bank assumptions including optimisation of bank debt and sizing and terms of bank debt.
13. Developed full procedures for the construction management where required.
14. Advised on selection of contractors including management of EPC tender.
15. Reported on the construction process.
16. Advised on materials selection.
17. Consulted on engineering design.

Ongoing Project Management

The ongoing management provided by Solar Energy Partners includes:

• Ensuring revenues are maximised through the management of the O&M contractors.
• Management of the debt facilities.
• Providing tax, accounting, audit and regulatory administration of the various SPVs.
• Management of the land lease.
• Management of construction obligations and warranty period.
• Regulatory and compliance with local and regional governments.
• Providing monthly performance reports to the investor.

Future Strategy

Solar Energy Partners is expanding its capabilities in sourcing renewable energy assets in Europe, Asia and North America.

Additional solar photovoltaic and thermal parks will be sourced through our existing network of developers and EPC contractors.

Solar Energy Partners will be aggregating a portfolio of solar parks in the EU with a select group of institutional investors.