SAM GmbH is an Austrian consulting company specialized in developing sustainable and socially responsible renewable energy investments in emerging markets. It provides technical, financial, legal, and project management services. The company works with private and institutional investors, banks, and technology providers on hydro, solar, wind, and other renewable energy projects. It helps investors mitigate risks at each stage from development to operations. SAM is looking to support more renewable energy projects in emerging markets to help drive economic growth and environmental sustainability.
2. SAM GmbH
• An Austrian Consulting Company
• Specialised in the development of sustainable, social
repsonsible and feasible investments in emerging markets
• provides comprehensive services covering
– Technical and Engineering expertise
– Financial Advisory
– legal services and
– project management support
3. Our Team
• Management Team covering different aspects of Business
– Gerhard Sabathiel: Strategy and Finance
– Asu Ergueler: Technology and Sustainability
– Andreas Weiler: Legal and Compliance
• Business and Expert Teams in different countries supporting
customers locally
• International Experts Pool securing international expertise and
standards
4. SAM supports Investors in
• Hydro Power
• Bio Energy/Biomass
• Solar Energy
• Geothermal Energy
• Waste to Energy
• Waste Management
• Energy Efficiency
5. SAM works with
• Private and Institutional investors
• Commercial and Development Banks
• Multinational Financial Institutions
• Private Equity Firms
• Technology Providers
• Governmental Organisations
6. Agenda
Renewable Energy Key Drivers
Challenges of Expanding Renewables
Investments in Emerging Markets
Project Financing
Renewable Energy Project Finance Structure
Renewable Energy Investment Case
Risk and its Mitigation in Renewable Energy Project
Financing
Types of Financing
Forms of Financing
Contact Details
7. Renewale Energy Key Drivers
Economic
• Rising oil price makes Renewables more attractive
• Utilizes domestic resources that can displace imports
• Generates employment and new enterprises
• By-product sales improve enterprise viability (i.e. solar)
Environmental
• Represents reduced air emissions
• Helps combat climate change/global warming
• Supports sustainability/eco-efficiency at enterprise level
Social
• Can help rural areas combat large scale migration to urban
areas
• Governments, industry, and local population recognize value
• Individuals want to support “green energy”
8. Challenges of Expanding Renewables
Investments in Emerging Markets
• Developing bankable private infrastructure projects is a
complex business
• The nature of renewable energy projects often compounds
these challenges: small sponsors, limited experience, high
cost, lack of scale, regulatory barriers, etc)
• Smaller Size and longer preparaion time lead to higher
transaction cost
• Funding for project preparation support
• New technologies create higher operational risk and higher
financing cost as they are often unknown to the financiers
9. Project Financing
… is the raising of funds to finance an economically
separable capital investment in which the cash flow from
the project itself is used as the source to service loans and
provide return on equity, but …
… Capital investment by the sponsors of a project usually
necessary and …
… is not a way to finance a project that is economically too
weak to service debt and/or generate an acceptable return
of investment for equity investors
11. Renewable Energy Investment Case
Generally a renewable energy investment can
be divided into 5 phases:
Start up Phase
Exploration Phase
Feasibility Phase
Design and Construction Phase
Operating Phase
12. Risk and its Mitigation in Renewable
Energy Project Financing
Sponsor Risk – financial strength, equity
Financing Risk – create bankable documents, financial
consultants
Completion Risk – insurances, turn-key contracts
Operation Risk – third party O&M contractor, efficiency
Revenue/Sales Risk – business plan, PPA
Regulatory Risk – legal framework
Political Risk – currency, political risk insurance
Force Majeure Risk
And …
13. Types of Financing
Project Development
• covering cost for :
– preparation of pre- feasibility and feasibility studies
– business plans
• in form of loans or grants
Project Finance
• Finance arrangement focused more on projected revenue streams than
on creditworthiness of the project sponsor
Corporate Finance
• Based on underlying assets of balance sheet used as collateral for
projected revenues
Trade Finance
• Often in form of export credit to support export of goods
• Arrangement with local bank needed to support Bank guarantees or L/C‘s
Venture Capital
• Used for start up companies, which do not have a track record or financial
base to support conventional bank financing
14. Forms of Financing
Equity
– Provided by project sponsor
– Provided by equity investors in return for an ownership
interest in the project
Debt
– Loan being secured by assets of a company and/or a
project
Grants
– Available from governmental organizations
– Shall support project development and/or feasibility
15. Contact Details
Gerhard Sabathiel Mobile +43 6991 612 61 76
General Manager & Member of the Board Tel: +43 1 205 108 5538
Franziskanerplatz 3/11 Fax: +43 1 205 108 5539
1010 Vienna, Austria sabathiel@s-a-management.com
Dr. Ing. Michael Hofer
SAM GmbH - Representation Partner Office Peru
Jr. San Lorenzo No.300 - Surquillo Lima 34, Peru
Tel: + 51 1 2414370
E-mail: m.hofer@s-a-management.com
www.s-a-management.com