Energy efficiency projects viola-funding February 27, 2024

Energy efficiency projects

Energy efficiency projects financing
Energy efficiency projects financing

Today it is obvious that the further development and implementation of energy efficiency projects financing helps society and business to solve numerous environmental, social and economic problems in the long term.

For this reason, the financial team of Viola Funding Limited develops flexible energy efficiency financing solutions for different sectors.

Rising energy prices, increasing complexity of production processes, the risk of closures and staff cuts, tightening environmental regulations require businesses to pay close attention to improving energy efficiency

We are ready to offer innovative project finance models, long-term loans, guarantees and other tools adapted to a specific investment projects.

Local communities, non-governmental organizations, authorities and other stakeholders emphasize the benefits of solving environmental problems through the introduction of energy efficient projects and technologies.

The importance of energy efficiency project financing and it social economic benefits includes:

Proper management of soils and fossil resources.
Improving the condition of water basins and air.
Mitigation of the effects of global warming.
Landscape improvement.
Biodiversity conservation.

In addition to these considerations, environmental and energy aspects are also spilling over into issues of increasing profitability due to significant savings in fossil fuels. For example, the initial investment in building a combined cycle thermal power plant with a heat recovery steam generator (HRSG) is much higher compared to a conventional thermal power plant. However, after a few years of operation, fuel costs may outweigh any potential initial benefits.

Energy efficiency projects financing aim to achieve greater productivity, better operation parameters of energy facilities.

The preliminary analysis of the investment project includes the following steps:

Estimation of necessary investments.
Cost estimate for each alternative solution.
List of benefits of each alternative.
Payback period assessment.

For any viable project, the B/C ratio must be greater than 1, and the higher this ratio.

Contracts in the field of energy efficiency

When it comes to projects to modernize energy-intensive production, it is relatively easy for the financial team to determine whether the goals of the project are being met.

When developing the structure and terms of contracts, the parties should strive to achieve low costs and high expected benefits. Companies often require the involvement of professional expert groups, the use of special equipment and techniques to achieve these results.

Contracts in the field of energy efficiency projects financing must necessarily include adequate provisions regarding monitoring, operation, expert support, etc.

Since it can be difficult for a company to determine in advance everything that is required for future success, experts recommend being flexible in contracting and setting sufficient financial reserves to mitigate the risks that arise during the energy efficient modernization of large facilities. Investments to reduce energy consumption and control the environment can be costly, depending on the particular methods, technologies used, waste minimization plans, performance targets, and the availability of specific technologies / equipment.

The higher the technical complexity, the higher the requirements for the operation and maintenance of the facility. In some cases, such equipment may slightly increase productivity, but require specialized personnel and high additional costs throughout the life of the facility.

Large projects also provide companies with unexpected sources of funding.

In addition to the costs and benefits directly related to solving environmental problems and improving energy consumption, each project has important macroeconomic effects, and these effects can be part of the contract.

If you need professional support in developing contract documentation or tailoring financing schemes for your energy efficiency projects financing , please contact the VIOLA FUDING LIMITED

Instruments for financing energy efficiency projects

Green loans is also energy efficiency financing . This type of financing is in high demand among large companies from various sectors, allowing businesses to implement environmental projects with a long payback period, such as the conversion of production facilities to renewable energy sources.

Viola Funding Limited, offers long-term loans for large corporate clients starting from 50 million euros.

We are ready to assess your project and develop a financial model that is best adapted to the specific situation.

Our experts have extensive experience in financing large projects in the energy sector, oil and gas sector, mining and processing of minerals, heavy industry, chemical industry, agriculture, tourism and other industries.

Contact us to find out more.

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