Revenues Structures in Energy Project Finance

This video breaks down revenue structures in energy project finance: fully merchant exposure, short-term PPAs, and long-term PPAs, each offering different levels of price predictability and market risk. We cover key contractual parameters lenders scrutinize, including tenor, pricing mechanisms, pay-as-produced structures, and P50 coverage, as well as the standard conditions any PPA must meet to satisfy lender requirements, from offtaker licensing and creditworthiness to pledged accounts, default interest, and bank guarantees. A must-watch for anyone analyzing revenue risk in project finance.