Project financing

Hydropower projects require significant capital investment and there are a number of funding alternatives. We can explain your options in simple no-nonsense terms and help you structure and finance your project in the most tax-efficient, fair and low-risk way.

We may be able to help in some or all of the following areas:

Early-stage feasibility and planning costs – Early-stage feasibility costs can be expensive and if outcomes are uncertain and you are reluctant to take this risk we are willing to fund these initial costs in exchange for a minority share in the scheme. If the scheme fails to proceed for any reason then all costs are met by Gilkes.

Joint Ventures ("JVs") – banks tend to typically lend approx 70% of a project’s total cost and the remainder (30% or more) of a project is usually financed by equity. Not everyone has access to this amount of money or wants to commit the full amount. In these scenarios we would be willing to invest equity alongside you to make up any shortfall. The simplest form of Joint Venture is a 50/50JV where both the landowner and Gilkes each fund 50% of the equity and own 50% of the project. Gilkes takes a flexible approach and other forms of JV are possible for example 60/40 or 40/60 depending on the landowner’s capital available and attitude to risk.

Financial modelling services - we have developed a sophisticated financial model which captures every aspect of a hydro development. From project capital costs, through expected energy prices, recurring operating and financing costs, to expected net income after tax, the model captures every aspect of Project Finance. Using our model we can help you liaise with lenders and potential investors to make sure the project is structured in such a way that makes it a fair deal for everyone.

Contact us for a no-obligation initial conversation about financing options.