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Allieds Clean Energy Risk incorporating Maintained Availability™
Allied's Clean Energy Risk: Fund, Start-up, and Protect Risk Mitigation Platform
What you could achieve by aligning Allieds' Clean Energy Risk to your Project ENHANCED FINANCE TERMS.STRENGTHENED EPC GUARANTEES DURING START-UP.PROTECTED DEBT SERVICE after COMMISSIONING for TEN YEARS.RISK TRANSFER to a STRONG COUNTERPARTY.ACCELERATE your TECHNOLOGY into the MARKET.
Allieds' Clean Energy Risk Platform
The most significant problem holding back investment into projects and innovative technologies within the renewable/energy sectors is access to obtaining securities for project capital.
If an unexpected catastrophic event happens, then standard business insurances can step in to help mitigate the loss, but what if the unexpected is a non-catastrophic event where the process underperforms and causes the project difficulties; creating a loss and the project's ability to repay the debt and cover the operational cost.
The risk of these events can be evaluated where the technology has a proven track record, enforced by other risk mitigation procedures, but what if the technology is unproven with limited or no track record, and how can these technologies complete and bring their benefits to market?
The heart of the Platform is supported by an international finance counterparty, to whom the risk of the plant underperforming is transferred.
Other guarantees are available within the Clean Energy Risk Platform for;
Solar Module Performance, PV Project/System Performance, Fuel Cell System Performance and Energy Storage Performance
Different Terms and conditions apply to each sector and are subject to acceptance.
Allied's Pre-Finance Review Service
Assessing the installation and process risk in a business model is critical. Known maintenance regimes and plant closures identify process availability.
This availability is used to calculate the project's minimum level of revenues that can repay the debt and cover operational expenses at break even.
Under our Pre-Finance Review Service, and at no cost to our selected clients*, Allied carry out detailed due diligence to evidence supporting documentation, permits and the strength of the project's counterparties.
Our final report is presented in a format critical to creating a first impression that puts our client's investment requirement on a fast track to the funders and underwriters, further supported by their client's documentation filed and secured in our data room.
* subject to terms and condistions
The Benefits of the Maintained Availabity Platform
We share a common goal with our Clients; to secure their financial requirements and deliver on their project
One of the unique features of the Maintained Avialability Platform is that from an early stage, Allied talk directly to their selected funders and underwriters to obtain their interest and proceed through the review focusing on any issues which are potential areas of concern, providing our client with clear information and allowing them to make informed choices on moving forward.
This process not only identifies the cost related to proceeding to funding but assures our client that any cost incurred is directly aligned with the progress of the funding.
Enhanced Finance Terms for Equity and Debt
No matter how unique, any investment opportunity competes for attention with the diversity of other investment opportunities seeking capital at the time.
Our Clean Energy Platform can provide a solution that enables the project developer to negotiate better terms with the Equity Investor and Debt Provider.
Strengthened EPC Guarantees during Start-up/Repair
All investors require the execution phase of a project to be undertaken by an experienced and robust contractor who is expected to provide financial guarantees to cover the total project risk. In today's environment, this is rarely offered by those contractors, and even if possible, it would be costly and prohibitive to the project's economics.
The Startup/Repair guarantee is designed to reduce high EPC costs and enhance their performance guarantee terms on startup when delivering a process using various technologies and battery limits.
This guarantee is particularly beneficial where the contractor is restricted due to their balance sheet or their contract being limited to their contract price rather than the project value.
Once the startup phase is complete, and the EPC has signed off, the Startup/Repair contract extends for ten years after startup to Protect the project's debt repayment against unexpected downtime.
This total guarantee enhances the project for both Equity Investors and Debt providers.
Protected Debt Service after Start-Up
The Protect Guarantee flows seamlessly from providing additional guarantees during Start-up to providing a 10-year guarantee that ensures that your debt repayment is protected against unexpected downtime that could result in the project being unable to meet the debt provider's requirement.
This guarantee is non-cancellable by the financial counterparty during the ten years.
Because of this, it enhances the equity investors' and debt providers' interest in the project and allows the project developer to negotiate a reduced equity requirement and a more competitive Debt rate.
Transfer of Risk to a strong Financial Counterparty
The challenge for a project developer is obtaining financial guarantees when the technology they want to deploy has limited or no track record or cannot provide any financial securities.
This can add extra cost to the EPC/M contractor, who is expected to cover the financial risk.
Allied Project Services have been working on this issue for many years and can now provide their clients with a competitive solution through their Clean Energy Platform.
This is done through a risk mitigation transfer to a high-worth finance counterparty that provides a level of financial support to the Start-up of the process and, later, Protects the project's senior debt requirement for ten years
This guarantee adds a third party to the funding table. It allows the project developer to negotiate with the other two parties- the equity investor and debt provider.
Accelerate your technology into the market
Allieds pre-accreditation Service undertakes due diligence on your process, keeping in mind funders' requirements. The aim is to understand your process and perceived risk through a lack of track record, offer financial guarantees to your project developer, and accelerate your technology to market.
The benefits of the pre-accreditation Service provide;
Reduced the maturity timeline,
Reduces the need to borrow expensive money to keep the plant running under demonstration status and attracts lower-cost equity investment into the company if required and
Provides an accelerated programme for commercial deployment and export.
By reducing the usual expectations on technology maturity required by funders, which can be up to two years of continuous operations, the requirement by the manufacturer to borrow expensive money such as Seed or Venture Capital is substantially reduced.
We are committed to Innovation and Environmental Change with Clean Energy
The Past is written; the future is ours to write.
Environmental change is driven by innovation in technology. We are committed to continually pushing, provoking, learning, and supporting the creation of clean energy technologies that provide a solution to the environment and its communities and an acceptable return rate to investors.
Our Clean Energy Platform supports project developers and technology manufacturers seeking to deploy such technologies that will make a difference to our environment by reducing air emissions and reliance on fossil fuels.
By providing a financial guarantee to technologies with a limited track record, we support these technologies to grow and provide clean and renewable energy solutions and reduce carbon emissions.
Accelerate your technology into the Market
Enquiry Form
Please provide brief details about your project and requirement including a project summary.
A member of our team will be in contact with you.
Frequently Asked Questions
Q1: What is the Clean Energy Risk Platform?
The Clean Energy Risk Platform uniquely combines the availability of Allieds sources of Equity and Debt Investors with a technology guarantee which is supported by an international third party* to whom the risk of your plant not performing at the design level during construction and underperforming for the first ten years of commercial deployment is transferred.
Q2: What does the Third Party provide?
1. A 10-year, non-cancellable cover
2. A limit up to USD 100m cover
3. Competitive terms
Q3. If I am accepted, what are the principal benefits I can expect?
1. The ability to guarantee pre-agreed expected revenue to support initial financing, refinancing and the funding of retrofits.
2. Access to a broader lender base, introduced through Allieds International sources.
3. An enhanced project credit rating.
4. Lower debt cost, an increased debt-to-equity ratio, or both- because,
5. It provides lenders with the security of guaranteeing their Debt Service Coverage Ratio (DSCR).
Q4. Who should be interested in the Clean Energy Risk Platform?
1. Any developer with a project in renewable energy, energy and power, power cells, biofuels, synthetic fuel, plastic to oils, and similar sectors
2. A Technology Manufacturer
3. Equity and Debt providers
4. Infrastructure funds
Q5. How can I obtain the third-party guarantee?
You buy this through an insurance broker. For more information or contact us direct.
Q6: Who carries out the due diligence?
The Desktop Review and subsequent due diligence for the DPI® Platform are only invited and undertaken by Allied Project Services Ltd (Allied). If selected by Allied, Allied will be required to be exclusively appointed. MORE
Q7: Is the due-diligence process for the Clean Energy Risk Platform exclusive to Allied?
Yes. Allied uniquely combine their due diligence to cover technology guarantee requirement and for the Funders. Combining the two save our client time and possibly additional cost
Q8: I have already engaged consultants to carry out technology and project feasibility reports. Can I use these?
YES! Their due diligence will consider any validated information and evidence used in your own consultants' reports that would expedite the completion of the final report. But, Allied will need to validate these to issue their review and gain access to the funders.
Q9: How much does the due diligence cost, and how long does it take?
This will depend on the time required to carry out the due diligence and the maturity of the project, the technology, or both. For further information visit Allieds' web site.
Q10: Will your due diligence reduce the need for other due diligence requirements and insurances?
Independent to the due diligence carried out by Allied, additional due diligence will be required by all the parties involved in a project, including the contractors for project delivery, operations and management contractor, equity and debt providers, or both, according to their requirements. However, we strive to bring added value to our process and work with all parties to integrate, as far as possible, the due diligence we have carried out.
We are always pleased to answer any other questions not shown here. Contact us for more information.
*Subject to acceptance of your project and the resulting due diligence carried out by Allied Project Services, you will be introduced to a broker to advise the insurance product.Contact Us
Allied Project Services Ltd owns this website and the registered trademark DPI®. All due diligence carried out for the DPI® Platform is carried out by Allied Project Services Ltd. Allied retains the right to use the final report to facilitate funding or insurance for the client. As a result of a funder being identified, further detailed due diligence might be required. It will be carried out and managed by Allied Project Services Ltd and other third parties on behalf of its client at an agreed hourly rate. The time for further due diligence outside the Desktop Review will be in accordance with any further requirements of the funder identified or the client. At this point also, and to enable Allied to continue discussions about the project directly with the funder, Allied will be required to be mandated by the client. The information contained herein we believe to be accurate, but we make no representation or warranty as to its accuracy and should not be read as an offer or recommendation or a solicitation of an offer. Allied do not offer insurance or financial advice. User information should be seen as a guide, not as a recommendation to use any particular insurance or investment strategy. Allied shall have no obligation to update this publication and shall have no liability to you or any other party arising from this publication or any matter contained herein.
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