Economic Viability
In
developing countries, RE projects are not economically viable
due to a very low power price. Revenue from electricity sale doesn't
cover high upfront cost of the initial investment.
RforD distills a purely commercial part out of RE projects:
We separate project preparation (non-commercial phase) activities
from project execution (commercial phase) activities.
Project preparation is financed by grants or soft loans.
Project execution is financed by commercial funds.
(Learn
more about financing)
Risk
Minimisation
Uncertainty
about developing markets and the fear of project failures before
investment is amortised keep many investors away. The two main
threats to project longevity are political risk and sustainability
risks. RforD mitigates both.
Political
Risk
-
is mitigated through involvement of national and local authorities.
Our approach is backed up by EU and Chinese authorities and in
general in line with national sustainable development priorities
and policies.
-Pools of small decentralised projects under local ownership
Sustainability Risks
Economic
risk
- is mitigated through income generation for sale of surplus power
by the rural RE enterprise
Social risk
-is mitigated though empowerment of the rural poor and their full
involvement in project activities at all stages, notably through
the creation of local ownership and direction for the RE enterprise.
(Learn
more about project sustainability)
Investor's
Risk is Minimised at Maximum
Concept
/ Multiplication/ EU-China
Bridge/ All Stakeholders
Approach/Income Generation/
Organigram/
