Accessibility of investments: project financing of energy infrastructure is traditionally the domain of specialised infrastructure banks (usually French or Japanese) or Private Equity funds (usually US based). With such platform, an investor does not need the deal flow network, nor the established network of 3rd party service provider; any professional investor is able to identify opportunities and source the required 3rd party services. As a result, direct investing in this profitable investment class becomes accessible for local banks, funds, family offices of high net worth individuals.
Address underbanked SME : due to the current lack of access to financing, local developers are limited in the projects they can undertake. Only large, multinational companies have the ability to efficiently acquire capital for the projects. Such digital platform enables local SME to cost-effectively finance their projects. As a result, they can undertake much more projects and compete with large multinational project developers, promoting both local business development and local employment.
Lower project costs: project developers are able to reach a much wider community of investors, finding the lowest cost financing possible, reducing interest by up to 2%. Such solution also reduces the time and resources spent by developers to finance their projects.
Shorter cycle to finance: Investors are able to very quickly screen, perform due diligence, and value opportunities, lowering their internal costs by 50%. Both parties can agree on financing much faster, from an average of 6 to 3 months. Investors can thus faster deploy their funds. The developer can now use external funding for the project, rather than financing 100% by itself. The developer will have capital left to pick up additional projects, accelerating the deployment of renewable energy.
Enabling secondary market: The platform facilitates the process for investors who want to sell their investment. With the community of potential buyers already identified, all data already on the platform, and the validity secured with blockchain technology, it will be easier to sell investments, freeing up more capital for new projects
Decarbonisation: By 2030, enabling small- to midszie renewable energy projects could avoid 400 million tons of CO2 and by then avoids 80 million tonnes annually – the equivalent of 20 million cars. The barriers to finance smaller projects are significant as indicated earlier; some would be delayed due to slow financing but some might not be executed at all due to lack of financing. With the current interest in green financing in Europe and the US, the actual availability of capital does not seem to be the problem – getting it into the projects is.
While the share of renewable energy in the total global energy space is on the rise, demand is outpacing supply. Faster project execution and for that faster investments are needed to accelerate the transition towards a sustainable future. The use of platforms to source small to medium size projects and digitilise the renewable energy finance workflow can remove major roadblocks to a faster energy transition. A more productive relationship between project owners/developers and investors lowers the barrier of entry for business allowing more projects to get funded. The use of blockchain helps create the transparent and trustworthy environment necessary for this mutually beneficial eco-system to work. Technology lies at the heart of the global energy transformation. We strive to make our platform a trigger of a greener future