REEEP

How to find money for your renewable energy project

Singapore, 19.02.2007 - Peter Richards

Even though there is no lack of funds available and no lack of financially viable projects, the still immature nature of the green energy market makes it difficult for entrepreneurs and financiers to find each other.

Even though there is no lack of funds available and no lack of financially viable projects, the still immature nature of the green energy market makes it difficult for entrepreneurs and financiers to find each other.

The Renewable Energy Exchange (REEX) aims exactly at filling this gap in the value chain by connecting capital with clean energy projects. REEX has a unique positioning as a financial intermediary focusing on Renewable Energy and Energy Efficiency sectors in Asia. In other words, the company helps project developers to raise finance through matchmaking with Financial Institutions, Development Banks, Corporate Investors, Clean Energy Private Equity funds and Carbon funds.

As commented by Dr. Mike Allen, chairman of the company, “Our goal is to accelerate the implementation of green projects so we are not asking for exclusive mandates with clients.  It’s up to REEX to be faster and better at fundraising. Project developers appreciate keeping their flexibility and we are confident in the business model as we have tight relationships with a large group of investors and lenders. Incentives are aligned since REEX gets a success fee only at financial closure”.

REEX was started mid-2006 in Singapore supported by an advisory board of individuals from major institutions (REEEP, DEG, EcoSecurities, E+Co, CVC Group, SEFI/BASE, IUT Global and Greenbank capital) giving the company a lot of credibility from inception. It was funded by REEEP, the Renewable Energy and Energy Efficiency Partnership, and DEG, the development finance arm of German KfW Bank.

The Renewable Energy Exchange is sourcing and reviewing biofuel and infrastructure power generation (wind, biomass, biogas, hydro, etc) investment opportunities across Asia. For the pre-selected projects, REEX provides the necessary added value to end up with a bankable deal ready for debt and/or equity financing. As of February 2007, REEX has 20 projects in its pipeline ranging from US$5M to several hundred million.

For example, in the next few weeks, the Renewable Energy Exchange will be closing a US$16 million financing transaction for a 11.5MW biomass power plant in Malaysia using Palm Empty-Fruit-Bunches. Other deals in advanced due diligence phase include the expansion of an energy service operations company with projects in Guam and the Philippines, M&A transaction for a solar business and seed capital for a biogas developer with power plant projects in Vietnam, India and Indonesia.

For further information on REEX, please visit the website www.reexasia.com