How We Support Photovoltaic Project Financing: Our Collaboration with Esparity Solar

Spain is experiencing a boom in photovoltaic solar energy, with a proliferation of projects leading to specific financing needs. As specialists in providing financial solutions for businesses, Kaizen Consulting is actively involved in this sector, assisting companies and applying our expertise to meet their needs. Our collaboration with Esparity Solar, a leading company in photovoltaic solar projects, is a prime example of this. Francisco Clavel, General Director located in Valencia, discusses in this interview the key aspects of Kaizen Consulting’s support for their financial strategy.

– How has Kaizen Consulting assisted Esparity Solar?

– Over the past year, Kaizen Consulting has helped us explore various financing options and secure debt from traditional banks. Our business model presents a challenge due to Spanish accounting practices, which make it difficult to reflect our market value and the true worth of our projects on the balance sheet. Kaizen Consulting has helped us overcome this initial hurdle, which is crucial for negotiating financing with traditional banks. The Kaizen team is experienced in the renewable energy sector and, with their contacts in traditional banking, has supported us in communicating the true value of our assets to the appropriate representatives of financial institutions. This accurate valuation of Esparity Solar is essential for financing our projects.

– Has the pandemic affected your projects?

– Fortunately, we have not been significantly impacted by the pandemic. The renewable sector is currently seen as a lifeline for driving economic recovery, and our projects have continued to progress normally. Esparity Solar is a developer of large-scale photovoltaic solar projects. Although we are an international company with only three years of existence, our team has extensive experience in renewables. We aim to reach one gigawatt, i.e., 1,000 megawatts, with 610 megawatts already projected. This was our initial business plan, but we are now revising it to triple our goal by 2026, reaching 3,000 megawatts. We believe that there is a window of opportunity in Spain right now. From Kaizen Consulting, we received the advisory and support needed to maximize our financing options, including traditional and alternative banking.

– Your model is based on large projects and requires financing solutions.

– Beyond the company’s capital, financing is crucial when working on large projects, and those of Esparity Solar are indeed substantial: the 610 MWp currently projected correspond to seven photovoltaic solar parks. The average size of our projects is large. Additionally, we are also working on PPA (Power Purchase Agreement) models for large industrial consumers. This aspect is crucial for securing project financing for our photovoltaic installations, and thanks to Kaizen Consulting, we have several alternatives available.

– How do you rate the advisory services provided by Kaizen Consulting?

– We rate their work very highly, as they have helped us overcome the challenge of making third parties understand our company’s nature and potential. Furthermore, they have been very proactive, leading banking relationships, expediting processes, and, most importantly, achieving results.

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