Planck Foundation



Supply Chain Finance is about pulling the financial strength of the customer(s) into the investment case. This pulling the financial strength of customers into the investment case can be done if the product is something that fulfils the demand of the customer(s) and the customers want to sign for that. That such an arrangement is in favour of the investing party is clear at first sight. For the customers this also has several upsides: a) they put their financial strength of the future into insuring today the fulfilment of their energy demand of tomorrow (as in: free energy supply insurance), b) give them price fixation without costs (as in: free energy price guarantee) and c) give them the opportunity to profit from energy price rises (as in: giving them a free energy price rise hedge). Supply Chain Finance is about a financials that see the needs of both the supplier and the customers and builds a mutual interests serving finance model between those two perspectives. SCF can facilitate the investment swift from real estate to energy severely, dwarfing real estate investments by out performing them in ROI and risk reduction. There will be a lot of energy focused SCF financials on the market the coming years. It's almost a blue ocean market. Full of demand and almost none supply yet. SCF parties will in a certain way benefit from the harvested energy to by the Energy as ROI concept. The Energy as ROI model for the SCF party lowers the need for point of investment profits and thereby reduces the capital need of an investment case and makes it more attractive for third party financiers. Energy as Factoring is a concept capable of generating a massive energy transition investment wave.

Author: Gijs Graafland

Back to index page of Energy Economics | Energy Finance

Download the full Energy Economics report in PDF

Planck Foundation