TLT LLP, Funding Renewables, Community, Energy, Low Carbon, South West, Business Breakfast, 190515

1. TLT LLP
Low Carbon Business Breakfast
The Localised Energy Landscape
Peter Skeen

2. TLT LLP
Introduction
• Typical bankable corporate structure for renewables
transactions
• Pitfalls in achieving a bankable project?
• New opportunities for community projects and the impact
on corporate structure
• Funding considerations

3. TLT LLP
Bankable corporate structure
• A funder will need recourse to all of the assets and rights
needed to construct and operate the project
• The lender only gets repaid is if the project succeeds
Corporate Shareholder
SPV Project Company

4. TLT LLP
Achieving a bankable project
• From the outset ensure that the land rights, grid
connection and planning permission are granted to the
correct entity
• Consider junior funding – subordinated debt or equity?
• Security
• Share charge
• Direct agreements

5. TLT LLP
Recent developments
• Default position - aggregate capacity of any two solar
installations which are treated as being on the same
"site" must not exceed 5MW to qualify for FIT.
• From 1 April 2015, two solar installations treated as
separate sites if:
• both share a "single grid
connection"
• at least one of the installations is
owned by a "community organisation"

6. TLT LLP
Potential corporate structures
• CIC/Bencom
• Features of a CIC:
• Regulator of Community Interest Companies
• Community interest test
• Asset lock
• Features of a Bencom:
• FCA regulation
• At least three members
• Asset lock

7. TLT LLP
Pitfalls
• Reverse engineering – variations to planning permission
and lease option
• Grid sharing?
• Ceasing to be a community project?

8. TLT LLP
Thank you