ENERGY AS RATING
Energy investments must be transparent accessible to the companies outside the energy industry. There's a knowledge gap between the capital market and the energy market: they have both their own specialisms, but they need (the conclusions) of each other specialistic knowledge. From finance to energy the case results are transparent: this this the finance model that can be offered (as in: this are the conditions we can offer). The by finance delivered 'material' (capital) is very transparent. The by energy needed input 'material' is also very transparent: equity, third party capital and interest. The by energy delivered output material is also very transparent: kWh. There are three not transparent facets (call them wild cards) in each energy case: 1) The market price of kWh on each moment of delivery (this wild card is facilitated by the Energy as Variable model), 2) The kWh production of the investment (quantity, operational stability and hours of the day), 3) The ex-capital maintenance demand of the investment (which will give a certain OPEX). As said: the first facet is serviced by the Energy as Variable model, to classify the last two facets (kWh and maintenance) there are objective rating tools needed. Within Planck Foundation and Open Foundation there is an open rating matrix is currently in development. It will be adjust during operation and also facilitates conversion of earlier ratings to new calculation rules. Rating agencies than could use this model to rate energy investments (like IPOs and ETFs) based on transparent basic data and by a transparent calculation model. This third party external of the new energy industry 'quality of investments' rating than can be delivered by each rating agency (and if they will not pick this up quite rapid: by special energy rating agencies). As result investors will have a instant summary of any project on one page. For the performance of the new energy industry in general the Energy as Rating model will have a huge overall performance improving influence. The projects with the highest positive scores will get more easy finance. Energy as Rating is a crucial part in the battle for the best ROIs. The Energy as Rating model will drive the energy industry to better scores. Energy as Rating is a concept capable of generating a massive energy transition investment wave.
Author: Gijs Graafland
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