Case study: Renewable energy financing solutions
A power producer needed financing and payment solutions to import solar panels for a large supermarket chain that wanted to reduce electricity costs.
Challenges
- Our client had been awarded a tender for a power purchase agreement to install solar panels across a large supermarket’s chain stores and depots
- The supermarket chain was facing increased electricity costs and a reliance on expensive diesel generators, the company therefore wanted alternative energy solutions to be implemented across the stores and distribution centres, including solar panels and energy efficient solutions instore
- To meet the supermarket’s needs the power producer required financing of the solar panels and international payment solutions to import these panels from overseas
Solutions
- Our renewable energy technical experts visited the various sites to assess the technology, the market and the capacity of the off-taker
- Based on our assessment, we were able to provide asset financing to our client for the solar panels
- We were also able to provide international payment solutions to assist with purchasing of the solar panels from overseas
- Foreign exchange volatility was hedged through securing a competitive forward foreign exchange rate to convert the rand to foreign currency