2021 saw global headwinds have a direct and expensive impact on the solar industry as supply chain constraints and materials prices rose dramatically. This has led to some project delays and investors re-working the economics in their projects. In this panel, we ask specifically what impact this has had on investor confidence.
- Hindsight is 2021 but what have we learnt?
- Volatility was everywhere in 2021 and we saw gas and oil prices rise alongside other key commodities and – crucially – equipment and services for projects, what is the long-term outlook and how have these changed project economics?
- Are we ready if interest rates increase?
- There is often talk about a “wave” of capital and we have seen the relationship shift between investor and developer – where is this wave headed and how can developers ensure ongoing access to capital?
- Has the cost of capital or investor expectations changed?
- Evolution of equity investment strategies into development and construction territories
- Lower cost of capital sources venture into smaller deals while others migrate to new geographies
- Alternative financing products fill the gap for merchant risk using innovative debt structures
As module suppliers expand their ranges and what’s on offer becomes more complex (ntype, ptype, bifacial, mono, 182 mm wafers, 210 mm wafers...not to mention inverter selection!) We delve into what this means for developers and investors as they look towards projects that stand the test of time and recover higher CAPEX.
We’re in the middle of a gas crisis which is having a direct impact on the power market. Other factors such as extreme weather and high penetration of intermittent power in some markets are also having an impact on power prices. How might this play out in the long term and how should investors factor these into future project development? Are these a long-term trend and how much can they serve as an offset to higher CAPEX?
Join this session for a specific breakdown of potential merchant structures (corporate PPA, PPA with an intermediary, hedging contracts, fully merchant) and the pros, cons and revenue streams of each option. We will learn what a project sponsor needs to do to get these projects over the line and outline lenders’ appetite for merchant projects – which of the banks are comfortable with these deals and how will lenders approach each structure?
With solar assets expected to last for 30-40 years, investors need to really understand the ways to optimise projects from cradle to grave. With a large portion of EU projects being deadline-driven in the past, many assets are underperforming. What can be learnt from that, how are asset owners improving existing portfolios? When do you repower and how can you extend a project’s life without redeveloping?
The 2020 edition of SFIE started a dialogue around repowering and revamping where we heard about the disconnect within some asset owners between new build and optimising existing assets. This session will bring the two sides together to develop an understanding of how they can work together to ensure projects are not left behind.
The solar industry in Europe is expected to be a beneficiary of the European Green Deal with 25.6GW of installations predicted in 2022 by the IEA. We have also seen the European Commission, update its Renewable Energy Directive to increase the overall binding target from 32% to a new level of 40% renewables of the power mix by 2030.
More locally, we have seen shifts in national politics with an incoming administration in Germany, the UK’s net zero plan taking on shape and more auctions the march in some markets towards batteries or green hydrogen.
These breakouts will give the audience an early opportunity to meet new contacts, network and see what’s happening at a local level.
Group 1 14:00 – 15:00
- Republic of Ireland
- The Netherlands
Group 2 15:00 – 16:00
This session will explore the impact that mega projects are having on the market, whether they are having any impact in communities’ appetite to live near solar projects and the appetite that lenders and investors have in this segment of the market.
As the industry matures alongside growth in wind, storage, EVs and green hydrogen, we hear from asset owners dealing with complexity. What kind of opportunities are they seeking now? Which countries have they identified as interesting markets and how are they managing their assets to maximise performance and minimise downtime?
We have seen auctions in Portugal, Spain, the UK (late 2021), Poland and more but the economics don’t always pencil out. We will hear from auction winners about their plans for some of these key markets but also discuss options for those companies who decide not to compete. How are developers approaching markets of interest if they don’t participate in auctions?