In addition to being selected as a shortlisted idea for the Global Lab 2015-2016 cycle, CEIA was also a finalist in the 2016 Fire Awards.
Private investors require high-quality, vetted and de-risked projects that are “construction ready” (e.g. all permits, licenses, EPC, etc. secured and finalized) before investing. Smaller renewable energy and energy efficiency developers in emerging markets tend to be undercapitalized and unable to fund the early stage project preparation necessary to get projects to this “investment ready” phase. The result is thousands of megawatts of partially-developed “stranded” small scale clean energy projects across the developing world. Significant leverage can be realized through deployment of working capital to transition assets from “pre-commercial” to “investment ready.”
The objective of the CEIA is to provide working capital to renewable energy and energy efficiency project developers in both proven and emerging new technologies in ASEAN. The CEIA will be a first-of-its-kind capital facility for early-stage project development that includes a combination of working capital – made available at below market rates through a revolving debt facility-combined with an early stage venture investment model directed at projects, pools of projects, or new business models (as opposed to technology development which is venture capital’s traditional area).
CEIA will bring together commercial debt and equity from the private sector, alongside philanthropic and institutional capital in the form of grants and concessional finance. Grant money will be deployed to de-risk and provide first loss guarantee for the private equity investors and other capital contributors as necessary. The CEIA will facilitate technical assistance for promising projects through partnerships with existing programs.
The CEIA will provide early-stage project development working capital for:
1. Consulting costs for pre-feasibility and feasibility assessments, environmental & social impact analysis
2. Engineering and planning costs associated with project design
3. Legal and development costs for permitting, PPAs, EPC contracting, financing, etc. with the aim of creating banks of “semi-standardized” contracts that will enable future developers to lower this barrier
Allotrope Partners, a California-based LLC, will partner with public, private and philanthropic organizations to implement the CEIA.