SWG takes on the role of project developer: SWG identifies suitable projects and prepares indicative offers and feasibility studies for the customer.
The subsequent process might look as follows – though alterations to suit the particular project in question are very possible:
Once the project has reached the letter of intent (LoI) stage, SWG draws up a project structure for the concrete project in consultation with the customer. SWG works out the financing model for the project (who provides how much, and whether the capital is provided in equity or as loans, etc.) and draws up draft contracts.
A project consortium is then set up. This is the body that will own the plant to be built. The equity capital needed is committed from funds and other investors and bank loans are agreed. The partners then agree the level of participation for the customer. Then the project consortium issues the relevant heat delivery contract.
SWG and the project consortium selects a well-established and financially solid trading partner. This partner will provide access to the energy balancing market and facilitate the necessary trading operations in the power and gas markets. The contracts will keep the project consortium essentially free of any market risks not already covered by the chosen heat price formula.
With the assistance of a network of consultants and lawyers, SWG applies for the necessary construction and operation permits on behalf of the project company.
SWG has secured access to cutting-edge expertise through a non-exclusive cooperation agreement with a leading CHP plant manufacturer.
Once the ground has been prepared by SWG, the project consortium issues its contracts for plant construction. There is no obligation that binds it to any particular supplier.
The project development services provided by SWG are remunerated by the project consortium.
SWG takes over commercial management of the project consortium, including its trading strategy and the ongoing dispatch operations of the plant.
A typical project structure
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