European Energy Financial Overview
EUROPEAN
-ENERGY
M
Development - risk management in the investment process
Project Risk Committee and the investment criteria
Market conditions
■ Are the site-specific wind resources and/or irradiation sufficient to meet production thresholds?
■ Do the power prices suffice to provide a successful business case given the production levels, and/or do existing feed-in-
tariff/subsidy regimes prevail in the market?
■ What is the condition of the infrastructure and where is the nearest connection point?
■Market opportunities to make bankable Power Purchase Agreements (PPAs)
Risk profile
How stable are the political and economic factors in the market?
Project Risk Committee
The scope of the committee is to
identify and asses potential risks
of new development projects.
The committee is comprised of
three members and a number of
observers, all from the
management team.
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Local resources
■ Does European Energy have local knowledge and/or local partners in the relevant
market?
■ Are top-tier suppliers active in the market?
Exit & finance opportunities
■ Is it possible to find sources of external project financing in the market?
■ Does European Energy sense an appetite for renewable-energy assets in the market?
Legal & permits
■ Assessment of the difficulty of acquiring building permits for the project
■ What is the environmental impact of construction on the project site?
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Investment decision
■ Can European Energy develop a wind or solar farm that provides attractive long-term returns given the risk level embedded in the asset
for both financiers and equity investors?
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