ABSTRACT
This chapter aims to help project developers, energy services company, contractors and their customers avoid this problem by identifying and explaining specific risk and structural provisions that are key to creating bankable Energy efficiency (EE) and distributed generation (DG) projects. EE and DG projects, in all their varying forms, are technically complex undertakings, requiring significant design, engineering and development efforts to create a transaction that is economically compelling to the end-use customer. Assessing, allocating and mitigating risk is the foundation of a successful transaction development process and serves as the initial point of focus for achieving bankable transactions. In order to attract capital markets investors, a transaction must present a risk profile commensurate with the nature of the financing and anticipated investor returns. Obligor credit risk is the keystone risk for all financing transactions and can be simply stated as the end-user’s ability to satisfy all of its obligations under the terms of the transaction.
