IPP projects.

To capture faster economic growth in the power sector, concerned efforts from the government for developing an appropriate legal framework is essential. It should be noted that government’s involvement in independent power producer (IPP) project is a prerequisite for its development which eventually has significant influence on the financial structure of a project. Important issues are related to sovereign support policy, involvement of financial institutions and export credit agencies, (water, heat and) power purchase agreements, and credit enhancement mechanism. What is necessary is to provide a competitive strategy that will help governments and IPPs to develop a legal framework for IPP project financing.

One of the most important hindrances that still impede many renewable energy projects is the perception of such projects by potential lenders and investors as low-profit and risky undertakings. Different types of green power generators and the market position of green independent power (green IPPs) producers, involved governments and lenders have to manage the risks of renewable energy projects following a structural approach of a risk classification into technical, commercial and other mainly political risks.

This is where KEMA has a sound track record as independent service provider in fossil and green IPP projects, either in the role of owners engineer, independent engineer or lenders engineer.

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