Advisory
From the start of the project, through feasibility and financing, to project management and asset optimization, our advisory service accompanies you at each stage of the project to achieve your objectives and optimize results.
Developers and investors need to know, before allocating or raising funds, that a project is an affordable, profitable, stable, and long-lasting solution to undertake.
INERGETIA combines technical capacity with effective strategic analysis, also considering financial, legal, environmental, and social aspects.
We develop effective strategies that meet the expectations of project stakeholders through in-depth analysis, focusing on global best practices, ensuring consistent, innovative, and sustainable solutions, and mitigating risks.
Our scope in Advisory covers:
1. Conceptual Design Report (CDR)
The conceptual design is essential for the development of each project in the energy and industrial sectors. Such a design, also known as a pre-engineering study, describes possible technical solutions and establishes the main parameters and dimensions. A timely and well-prepared concept saves a lot of expenses during the next phases of development.
Our team prepares this CDR that describes the project in sufficient detail to produce a budget estimate and evaluate the characteristics of a project before its inclusion in the selection process.
2. Pre-feasibility Study (PFS)
This study presents and evaluates different proposals and is delivered to the Client for its consideration and evaluation, to decide later which one to continue with a more detailed study or Feasibility Study.
Its objectives encompass:
• Identify and select the best “feasible” project alternatives
• Define the main characteristics and a preliminary design of these options
• Establish a prior technical-economic evaluation
• Estimation of investments with an accuracy of around 30%
• Yield estimation,
• Identify critical points, the subject of a subsequent feasibility study
3. Feasibility Study (FS)
The decision to make a large investment in facilities, such as the construction of a plant, is essential for the Client’s business management.
At this point in the project planning process, also known as the Final Investment Decision (FID), major financial commitments are negotiated, major equipment orders are placed, and EPC contracts are signed.
At INERGETIA we are very accustomed to preparing Feasibility Studies (FS) for the consideration and evaluation of the Client and assisting him in the decision to continue with the development of the project.
Likewise, the FS is also delivered to the corresponding financial entity for its evaluation and approval.
INERGETIA prepares this FS, essential to lay the foundations for said decision, considering the following aspects to evaluate the bankability of the project, as well as its success.
4. Technical Due Diligence (TDD)
The transactional operations of SPVs (Special Purpose Vehicles), companies that own renewable energy projects, have particularities based on compliance with the different phases that these projects must go through before they can begin to produce energy.
Due to the characteristics of the investment, there are numerous acquisition operations of companies that own renewable energy projects under development (greenfield) and in operation (brownfield).
The moment of the transfer of ownership of an SPV is conditioned by the phase in which the project is within its life cycle.
For any acquisition, financing or refinancing (debt or equity), a TDD is an essential tool that aims to carry out a comprehensive risk assessment of the project, identify it, and recommending measures for its mitigation.
At INERGETIA we are aware of the main risks that may exist and how to mitigate them. The scope typically includes natural resources (solar, wind, etc.) and energy production estimates; evaluation of environmental aspects; permit evaluation; technical evaluation of licenses and authorizations; evaluation of the useful life of the assets; and review of contractual technical aspects (EPC, O&M and PPA contracts). The scope can be adapted ad-hoc for each specific project.
5. Tendering Process Assistance (TPA)
INERGETIA personalizes its services whether you play the role of organizer or participant, adapting to the needs and context of each of these roles, and to the required scope:
• Integration and coordination of the entire work team for the development of tasks
• Provide a strategic approach based on the client’s position
• Preparation of bidding procedures, specifications, and other necessary technical documents
• Assistance and support in the negotiation strategy.
For organizers such as public institutions or private developers, our team provides support for:
• carry out IPP or EPC tenders
• search and select potential bidders, and
• propose requirements so that acquisitions organized by us receive comparable, adequate, and advantageous offers.
This service usually consists of several parts, ordered all together or separately:
• Consulting in purchasing planning
• Find potential bidders
• Preparation of bidding documents (including for public procurement)
• Compare the offers received, support communication and help determine the best offer
• Participate in contract negotiations to help the client conclude a good procurement contract, such as EPC contracts, operation and maintenance contracts, power purchase agreements (PPA), supply of major equipment, …
For bidders such as IPP or EPC, we help develop attractive technical and financial proposals and select suppliers and partners to incorporate into the bid.
6. Project Finance Assistance (PFA)
Project financing is a service to mobilize capital, using the project asset as collateral and the project’s cash flow as a means of repaying the loan.
INERGETIA analyzes and reviews the financial conditions of the project according to the Client’s request and supports the optimization of the financing scheme.
We are eager to help you with any technical advice you need, since we have extensive experience in the identification, management, and mitigation of risks through Feasibility Studies as well as TDD, essential for the acquisition and financing of projects, including M&A and refinancing.
