Financial Self Assessment

The National Strategy for the Environmental Action foresees that by 2012, 8% of the generated electric energy will be based in renewable energies, without considering the mayor hydroelectric in México. Comisión Reguladora de Energía – CRE

Obtaining financing is the most difficult challenge involved in completing an energy efficiency retrofit or installing on-site power generation in commercial buildings or industrial plants.

Numerous factors influence a site owner’s decision to self-finance or seek third party investors and whether financing is defined as debt, equity, or both. Often, the inherent energy savings benefits translate to significant return on investment and justify the effort needed to proceed with a project. Energy project investments involve specialized financial institutions and sources. Historically, financing for projects under $100 million in capital costs has been limited. However, new enterprise funds, multi-lateral bank programs and equity investors have initiated capital pools for energy efficiency, cogeneration, and renewable energy projects. Financial techniques such as performance contracts, equipment leasing, and “shared savings”have evolved to address energy efficiency needs. A key to obtaining financing is knowing the due diligence requirements of the capital sources.

The possibility to use the Clean Development Mechanism offers additional incentives for the renewable energies in México. Comisión Reguladora de Energía – CRE

The Western Governors’ Association partners recognize the need to facilitate project financing and offer information and contact names to enhance your ability to seek sources of capital. This website section includes two financial handbooks (in PDF format) that describe the project financing process. Each handbook includes a self-evaluation test for project developers to help determine your financial readiness and relative risk of your project as perceived by a potential investor. International Project Financing, Volume I: A Handbook for International Energy Project Developersincludes the self-assessment test, identifies factors to define project opportunities, and provides a step-by-step process for completion of a project. It addresses power generation projects primarily. A second handbook, Financing Readiness: A Handbook for International Energy Project Developers is a companion document that addresses energy efficiency projects.