Distributed Energy Capital; A Platform Empowering Microgrids & Distributed Energy Developers

Yesterday, we have announced the launch of Distributed Energy Capital, a platform created in partnership with Correlate Energy to solve the critical issues facing microgrid and distributed energy developers across the US.

If you are developing a microgrid or distributed energy project, and are looking for capital, commercial & technical support, please reach out to us at [email protected]

While the adoption of renewable energy projects at scale is currently hindered by the the interconnection backlog, distributed energy projects are also facing significant challenges that is slowing the sectors growth including; significant development costs, technical and commercial complexities to meet the offtakers needs, and limited funding options.

Distributed Energy Capital provides capital, commercial, and engineering support to developers of microgrids and distributed energy projects; providing them access to an exceptionally talented team & resources to support the project throughout the development process from inception to the finish line.

Major Issues Facing Microgrid & Distributed Energy Project Developers.

Costs:?

Due to the complex/customized nature of microgrid projects, they are more costly and require more risk/project management. The significant development and construction capital requirements, along with the various equipment/tools needed for the project, makes the projects more risky for investors and limits small developers from being able to undertake the projects independently.

The Offtaker:?

Given the size, customization and captive nature of the projects, more attention is needed to ensure the offtaker (i) is creditworthy and (ii) the terms of the agreements covers the requirements of the investors.

Transaction Costs:

with the customization more expensive?legal and technical diligence is required to finalize the offtake, EPC agreements and secure financing. The major issue with transaction costs is that its usually underestimated or not accounted for, which could jeopardize the economic viability of the project.

Financing:?

For the same reason above, investors might need to spend more time upfront understanding the specifics of the project. If the risks are not clearly identified along with the relevant risk mitigants, developers might face a challenge financing their projects, especially the development capital needed to bring the project to shovel ready status.?