|Refinancing Renewable Energy Sources Project via Special Purpose Vehicle
|Energy Services Company
Resalta is a medium size independent energy service company (ESCO) that specializes in providing innovative and technologically advanced energy solutions to reduce environmental footprint and improve energy supply and consumption management for their clients. Their mission is to deliver reliable and efficient energy services and carbon offsetting solutions that help their clients improve their business competitiveness, energy efficiency (EE), and environmental footprint. In addition to EE projects, Resalta also develops renewable energy source (RES) projects to promote the growth of RES in the energy mix of the EU central and south-east countries where they operate. This helps to reduce the reliance on fossil fuels and decrease greenhouse gas emissions. Resalta has been recognized by the Carbon Disclosure Project, the world’s leading emissions reporting institution, as the first Accredited Services Provider in the region. This highlights the company’s commitment to environmental sustainability and providing reliable and efficient energy services. Resalta’s shareholders include the European Investment Fund (EIF), SID Bank, two venture funds, and two local energy suppliers. These shareholders have provided substantial growth capital to support the company’s mission. Resalta was founded in 2011 and is headquartered in Ljubljana, Slovenia.
Resalta’s goal is to design, build and operate EE, RES and energy performance contracting (EPC) investments. To achieve this goal, Resalta offers financing services to its clients too. Resalta is interested in the development of financial instruments that support EE, RES, and EPC. By promoting the development of such financial instruments, Resalta aims to increase the availability of capital for EE, RES, and EPC projects.
Resalta’s refinancing instruments, beside forfaiting, include the option to offload photovoltaic (PV) assets into a special purpose vehicle (SPV) that takes care of the design, construction, operation, and financing of power purchase agreement (PPA) projects. This SPV, branded RES SPV, is an off-balance sheet vehicle that is created by Resalta and a joint venture partner – major insurance company. By offloading PV assets into the SPV, Resalta can free up balance sheet capacity and gain additional capital after the successful implementation of the PV project and the sale of RES SPV ownership to the joint venture partner. This allows Resalta to originate more assets, fund expanded operations, and grow its market share. Resalta also operates and maintains the PV plant over the 25-year contract period, replacing worn-out components and assuming all production risk.
The REFINE partner Jožef Stefan Institute provided analysis and expertise in the residential sector renovation market and EPC market in the public sector to help Resalta design effective financing models for EE and renovation projects in the residential sector. One of the models being developed is an on-bill repayment model that allows homeowners to finance EE and RES upgrades through their renovation services bills. This model helps spread the cost of the upgrades over time and makes it easier and more affordable for homeowners to invest in EE and RES improvements. Several meetings have been held between Resalta and JSI to discuss the development and pilot implementation of this financing model.
It’s important to note that the demand for additional capital is still high, which indicates that there are significant growth opportunities in the EES/RES market. Beside refinancing via sale of receivables, Resalta was able to secure a EUR 6m capital injection from investment funds and private investors, with half of the amount provided by a joint instrument of the European Investment Fund (EIF) and the Slovenian Development Bank (SID), and the other half provided by the Bulgarian BlackPeak Capital investment fund and private investors. This will provide the company with the necessary funds to continue expanding its operations in the EES/RES market in the region.