Development and finance
The lifecycle of an energy project, from idea to end of contract
A generation plant outlives most of the contracts around it. It goes through development, financing, construction and years of operation, and in the end it is renewed, removed or transferred. GIS Power stays with the project through all of those stages, as a single accountable party.
The eight stages
In orderEach stage ends with a deliverable the next one needs. A project moves fast when every deliverable is complete; it stalls when one is left for later.
When the full lifecycle is not a fit
- If your company only needs design and construction and will operate the plant itself.
- If the load is temporary: bridge power is installed and removed without this cycle.
- If the project is smaller and fits a loan or a lease without an SPV.
- 01 · Origination
Site, demand and energy offtaker.
- 02 · Development
Engineering, permits, interconnection, environmental and social impact.
- 03 · Structuring
SPV, energy contract, payment trust and security.
- 04 · Financial close
Equity and debt committed.
- 05 · Construction (EPC)
Design, procurement and construction under one party.
- 06 · Commissioning (COD)
Testing, interconnection and start of commercial operation.
- 07 · Operations and asset management
O&M with contractual availability and reporting.
- 08 · End of contract
Renewal, removal or transfer (BOOT).
Detail
What happens at each stage
And what is delivered at the endOrigination
We review demand, load profile, site and offtaker. Deliverable: the decision to develop and the contracting model.
Development
Basic engineering, resource study, permits, interconnection and environmental and social impact. Deliverable: a project with a documented permitting path.
Structuring
The SPV is incorporated, the energy contract is signed, and the trust and security are put in place. Deliverable: the data room.
Financial close
Technical, legal and financial due diligence; signing of the loan and equity agreements. Deliverable: funds committed to build.
Construction (EPC)
Detailed design, equipment supply with brand-authorized commercial partners, civil and electromechanical works.
Commissioning (COD)
Performance tests, interconnection and the commercial operation date: the energy contract runs from there.
Operations and asset management
24/7 operation, preventive and major maintenance, reporting to the offtaker, shareholders and lenders.
End of contract
When the term ends, the contract is renewed, the plant is removed or, under a BOOT, it passes to the offtaker.
What happens at the end of the contract
Three paths, agreed from the start| Renewal | Removal | Transfer (BOOT) | |
|---|---|---|---|
| What happens to the plant | Keeps running under a new contract | Dismantled and removed from the site | Passes to the offtaker |
| Owner afterwards | The SPV | The SPV | The offtaker |
| When it makes sense | The plant has useful life left and the offtaker stays | The offtaker leaves the site or its demand changes | The offtaker wants the asset long term |
Contract terms of 48 to 180 months, depending on the model. Comparison in contracting models.
Frequently asked questions
Which stage takes longest?
Almost always development, because of permits and interconnection. Construction has a schedule set in the EPC contract.
What is COD?
The commercial operation date: the day the plant, already tested, starts delivering energy under the contract.
Who operates the plant during the contract?
GIS Power, under an operations and maintenance contract with contractual availability.
At which stage can I come in as an investor?
At any of them, with a different risk profile at each. See capital sources and investors.
Discuss your project
Tell us what stage you are at, and we will tell you what comes next.
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