ESFARM is already working on developing a standard solution for installing and financing renewable energy systems on farms in Southern Europe.
The RESFARM consortium has begun a dialog with the stakeholders of the financial market that bring the skills and competencies needed to design the best proposal and apply it on a continental scale. For more information, see
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The types of RES technologies that can be installed on farms are capital intensive with low operating costs and no fuel costs. Thus, the cost of capital is a critical component in the economic viability of RES on farms. Most farms in the targeted countries have a low credit profile that disqualifies them for traditional bank financing, a fundamental barrier to unleashing the economic, social and potential environmental benefits of a green energy producing agricultural sector.
To fully take advantage of last years´ cost reductions and the performance advancements of RES technologies, the agrarian sector must develop the capacity to facilitate broad access to low-cost capital. Traditionally, RES investment has been limited to project-finance structures or bank debt that greatly limits the supply and raises the overall cost of capital. Further, it requires time-consuming due diligence processes. Importantly, only a small subset of capital is available for project-level finance due to the complexities of the deal structures and the lack of liquidity and transparency of the investment.
Instead, the majority of global capital – managed by pension funds, insurance companies, and other institutional investors – is invested in debt and equity securities that are priced by the market, easily traded, and highly liquid. -
To develop the capacity of the sector for RES production it needs to attract capital from those capital markets and especially from institutional investors. It will be able to do so only if appropriate financing mechanisms are in place, investment returns are high enough, and investment conditions are appealing.
Changing the model of financing of renewable energy projects on farms from private sources of capital to public capital markets will require 1) the availability of standardized contracts and valuation methodologies and 2) the engagement of both the agrarian and financial sector actors.
RESFARM will deliver the required materials based on extensive research and dialogue among both sectors. These materials will include system-level data of performance of RES systems on farms, a detailed description of the financial instrument adapted to the necessities and reality of the agrarian and financial sectors, standardized contracts and valuation methods agreed by the markets, and protocols to identify and validate suitable projects.
RESFARM is collecting information and support from potential stakeholders in the financial sector in order to develop the most appropriate model for promoting on-farm RES.
You can be part of this process and put yourself on the front lines of the green energy revolution in Europe.
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The agricultural sectors’ potential for generating clean and sustainable energy is immense. Through RESFARM specific investment needs, to the value of more than €65 billion, in efficiency and consumption systems have been identified. Projects include from biomass boilers for poultry and pig farms to photovoltaic systems of more than 2 MW.
All projects will be developed using standardised contracts and protocols of good practice in the planning, work undertaken, the operation and maintenance and remote monitoring of systems. This approach will create project pools of the size and characteristic needed for both specialised and institutional investors who can access high quality assets, such as those backed by energy systems on farms.
If you are an investor and you are seeking opportunities in the clean energy sector or the agricultural sector in southern Europe, then RESFARM may well be of interest to you.
For more information please fill in the form below and we will contact you and provide you with detailed information on the RESFARM business opportunity.
