Development and finance

Contracting models

You choose how to pay for energy

Models: 4ways to pay for a power plant
Terms: 48–180 monthsdepending on the model
Vehicle: SPVone company per project
Operations: 24/7with contractual availability

Contracting models

Your company can have a power plant without investing in it

GIS Power develops and finances each project through a special purpose vehicle (SPV). That separates two decisions: who invests in the plant, and how you pay for the energy. These are the four models and when each one fits.

Assess my case Compare the models

Power purchase agreement (PPA)

Pay for the energy, not the plant

The SPV builds, owns and operates the plant. Your company signs a long-term contract to buy the energy the plant produces, at a rate agreed from the start.

You do not invest, the asset stays off your balance sheet and you do not carry maintenance. What you take on is a purchase commitment for the term of the contract.

When it fits and when it does not

A fit if your demand is stable and you will stay at the site for the term.
A fit if you prefer to keep the plant off your balance sheet.
Not a fit if your operation at that site could change or close before the contract ends.

Energy as a service

Pay for capacity, availability and operations

Instead of paying per kWh, your company pays a monthly fee for available capacity and an operating plant, with performance targets set in the contract. If the plant misses its availability, the contract reflects it.

It is the natural model for loads that cannot stop, such as data centers and continuous processes, where what you are buying is continuity.

Green Data Center

When it fits and when it does not

A fit if an outage costs you more than the energy does.
A fit if you want a single party accountable for power being there.
Not a fit if your load is small or can tolerate interruptions: a PPA is simpler.

Build, own, operate, transfer (BOOT)

Ownership at the end, no outlay at the start

The SPV builds and owns the plant, operates it and collects payments for the term of the contract. At the end of the term, the plant transfers to your company on the agreed terms.

For companies thinking long term, it combines the best of both: no upfront investment, and the plant is yours in the end.

When it fits and when it does not

A fit if you plan to stay at the site beyond the contract term.
A fit if you want the asset eventually but not the investment today.
Not a fit if you do not want to take over the plant when the contract ends.

Lease, loan or cash

Your company owns it from day one

Your company buys the plant, paying in installments through a lease or a loan, or upfront. GIS Power designs and builds it and can operate it under an operations and maintenance contract.

It delivers the full savings to your company, because no third party is earning a return on the investment. In exchange, the investment and the asset sit on your balance sheet.

When it fits and when it does not

A fit if you have the balance sheet or access to credit and want the full savings.
A fit if you can use the tax incentives for investment in generation equipment.
Not a fit if you would rather deploy your capital in your own business.

The four models side by side

Who invests, who owns and who is accountable

	PPA	Energy as a service	BOOT	Lease, loan or cash
Who invests	The SPV	The SPV	The SPV	Your company
Plant owner	The SPV	The SPV	The SPV; your company at the end	Your company
What you pay	The energy you use	Capacity, availability and operations	Energy or a fee, during the term	The plant, in installments or upfront
On your balance sheet	No	No	At the end of the term	Yes
Operations and maintenance	GIS Power	GIS Power	GIS Power during the term	Optional contract with GIS Power
Performance risk	The SPV	The SPV, with targets	The SPV during the term	Your company, or the O&M contract

Contract terms of 48 to 180 months, depending on the model and the project.

Behind every model

The structure that makes it bankable

What banks and funds want to see

One SPV per project

Ring-fences the plant, its contracts and its debt from any other company.

Payment trust

Payments under the energy contract flow into a trust that services the debt first.

Long-term contract

Energy or service, with a clear rate, term and performance targets.

Permits and interconnection

With CNE and CENACE, secured before financial close.

Single-point EPC

Design, procurement and construction with brand-authorized commercial partners.

O&M with contractual availability

The operations that sustain the payments for the life of the contract.

Frequently asked questions

How is the PPA rate set?

It is based on the cost of the plant, its financing, its operation and the contract term, and it is agreed from the start, with whatever indexation rule the parties set.

What happens at the end of the contract?

It depends on the model: under a PPA or energy as a service the contract can be renewed or the plant removed; under BOOT, the plant transfers to your company.

Who pays for maintenance?

In the three models where the SPV invests, operations and maintenance are included. If your company buys the plant, they are contracted separately.

Can I start with one model and switch later?

Some contracts include an option to buy the plant before the end of the term. It is defined when the project is structured.

Which model fits you?

Tell us about your demand, your site and your horizon, and we will tell you.

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