HEC are currently working with a number of finance models and discussing options with asset and fund managers to generate the upfront investment package to deliver the ambitious targets of the proposed microgrid.

Our current work is delivering some interesting highlights:

Renewable energy is one of the few remaining active areas of project finance

• Loans are already being offered on our co-operative's shared and limited liabiltity basis

• The market for UK renewable energy sector is now opening up, given the need to attract international banks to increase lending capacity

• Debt pricing has increased significantly

• Credit structures have tightened

• The market is moving back to originate and distribute model to satisfy investment requirements. New bank and non-bank lenders are supporting the sector

Significant investing and financing opportunities are being created by Europe’s plan to source 20% of its energy consumption using Renewable Energy

• Wind and Solar are expected to play leading roles in achieving the above target

• Hardware supply constraints are easing, which will have a positive impact on both new builds and re-powering projects such as HEC

• Utilities and power producers are looking to acquire or create portfolios with geographical diversification as a hedge against higher fossil-fuel prices and to meet their regulatory obligations

• The current liquidity crisis and a growing trend towards larger portfolio financing have opened up lending opportunities for foreign banks (such as SMBC, HSBC) in what has been traditionally the domain of local relationship banks

• Renewable energy finance will remain a key sector for top project finance banks, given the attractive risk and return profile and more limited conventional power financing opportunities in Middle East and emerging markets

If you would like to discuss how HEC may be of interest to your own portfolio please feel free to get in touch via the contact form.