Is it possible to finance this Desert Sunlight Project by funding from Equity and Debt ?
The project SaharaGreenLight, can be of course acquired by Financial Services Affiliates of Energy Groups, and managed by another affiliates specialized in EPC Program Management.
The SaharaGreenLight project’s power can be sold under one or more long-term power purchase agreements with Power companies.
To lauch a project like this, a government loan guarantee for the project is necessary. But a guarantee only. The project will not receive any cash from the government through the loan guarantee ; rather the government will partially guarantee the budget in loans provided by a syndicate of private institutional investors and commercial banks headed by lead lenders. The loan guarantee can expand the pool of potential lenders to the project, encouraging development and deployment of clean energy, jobs and reduction of the North Africa country’s reliance on fossil fuels.
Also, Clean Energy Companies which have the strategy to add fully contracted clean energy to their portfolio and to expand their position as North Africa’s leading generator of solar power, can acquire interest in the SaharaGreenlight Project.
In connection with the realization of the SaharaGreenLight project, "clean energy investors" should refer to :
- information related to revenue recognition for the project and certain possible payments that apply to the EPC Solar Company which is responsible to the realization of that project,
- information regarding the SaharaGreenLight transaction
For information, the following foregoing factors should be considered in connection with information regarding risks and uncertainties that may affect Clean Energy Companies future results.
Resources Cautionary Statements And Risk Factors That May Affect Future Results :
•Inability to complete construction of, or capital improvements to, Desert Solar Stations
•Inability to obtain the required regulatory approvals and permits for the construction and operation of the Desert Solar Station
•Inability to obtain the supplies necessary for the construction, operation, and maintenance of the Desert Solar Station
•Inability to hire and retain skilled labor for the construction, operation and maintenance of the Desert Solar Station
•Changes in laws, regulations, governmental policies and regulatory actions regarding the energy industry and environmental matters
•Inability of the EPC Clean Energy Company or its affiliates to access capital markets or maintain their current credit ratings
•Failure of the Desert Solar Station to generate the expected amount of electric generation
•General economic conditions
•Hazards customary to the operation and maintenance of power generation facilities, including unanticipated outages
•Unusual or adverse weather conditions, including natural disasters
•Transmissions constraints or other factors limiting to deliver energy from the power generation facilities
•Volatility in the price of energy
•Failure of customers to perform under contracts
•Increased competition in the power industry
•Changes in the wholesale power markets
•Costs and other effects of legal and administrative proceedings
•Terrorism or other catastrophic events
But the benefits in terms of Sustainable Development are real.
So let's take some risks and enable a Green Economy in the Mediterranean, by using the huge amount of Solar Energy available in the Sahara.
Dr HADROUG Nasser
Chairman of SaharaGreen