ENERGY AS EQUITY
The Energy as Fee as model to deliver Tier-One will switch the banks instant and massive into energy investments. Certainly as they also can obtain the liquidities by 'Energy as QE' programs of the Central Banks. Project developers will need equity and they can't create it (like the banks will can do) by the 'Energy as Fee' model. Project developers will try to use one of the involved parties as project equity supplier. This could be a land owner who brings in the land (against a better price, or against Energy as ROI) to deliver equity. This could be a manufacturer that use the profit part on the products as equity. That could be nation that facilitates manufacturers in this 'delayed' profit facilities. This could be the banks that brings the Energy as Fee part as equity into the deal. This could be a local/regional/national/continental/global business that wants to contribute in a project in exchange of delivery guarantees. This could be an investment fund that is specialized in energy project equity based on Energy as Collateral and/or Energy as ROI model. Power companies will also become huge players in energy facility equity in return of the right to sell the harvested power. Power companies are on a cross road right now: investing in central or investing in decentral power is the choice for both the marketing model as the business model. The fuel-less characteristics of renewable energy will be the reason why many of them will chose for the decentral model. The uncertainly on future coal prices too. The parent guarantee of governments for nuclear fission operations is something shareholders not fancy. Renewable is also a huge marketing facet for them. Energy as Equity just needs the in this Energy Finance paper described energy finance tools to grow to maximal attractive ROI on investments. Energy as Equity is a concept capable of generating a massive energy transition investment wave.
Author: Gijs Graafland
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