Financing for the 2MW Smart Photovoltaic Energy Storage Container Project in Zambia

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Technical FAQs 4

Can you finance a solar energy storage project?

Since the majority of solar projects currently under construction include a storage system, lenders in the project finance markets are willing to finance the construction and cashflows of an energy storage project. However, there are certain additional considerations in structuring a project finance transaction for an energy storage project.

How big will energy storage capacity be in 2022?

An estimated 387 gigawatts (GW) (or 1,143 gigawatt hours (GWh)) of new energy storage capacity is expected to be added globally from 2022 to 2030, which would result in the size of global energy storage capacity increasing by 15 times compared to the end of 2021.

Why is project finance difficult for energy storage?

It has traditionally been difficult to secure project finance for energy storage for two key reasons. Firstly, the nascent nature of energy storage technology means that fixed income lenders and senior debt providers are naturally risk averse.

Are solar and wind projects a good investment?

These projects will have long-term predictable revenue streams. In addition, lenders may be willing to finance merchant cashflows, but with less leverage and subject to detailed market studies and cash sweeps. These trends for solar and wind projects also apply to energy storage projects.

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Financing for the 2MW Smart Photovoltaic Energy Storage Container Project in Zambia

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