Jupiter developed the Guaranteed WindPower system in order to decrease the cost of renewable energy and to increase the value of renewable energy assets.
The best way to do this is to allocate risk to the parties that are best able to understand the risk.
By transferring the risk, we lower the cost of capital for the project and increase the value of the project.
Like leasing structures, provides 100% finance
Like Natural Gas Prepayments, can provide off-credit treatment during the guarantee period
The system reinforces renewable energy development fundamentals because the guarantors (the parties taking the risk) have strict underwriting guidelines
The benefits for developers and investors are optimized for both book and tax treatment.
Benefits
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Increased enterprise value
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Increased development fee
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Decreased energy rate
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Increased leverage
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Increased IRR
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Decreased variability of returns
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Off-credit treatment
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Highest advance rate for construction financing
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The central pie shows the capital you can raise using a traditional structure at a given energy rate
- The full pie shows how you have increased the value of your project by using Guaranteed WindPower
- The additional leverage can also drive energy rates down by up to 25% while maintaining profitability
Existing implementations
- Tax-Exempt Prepayment Model
- Utility Prepayment Model
- Long Term Ownership Model Portfolio Model
uncertain maintenance
costs have been the industry norm.
True third party risk transfer decreases
risks and variability for investors while
increasing value for developers.