Restructuring in the renewable energy sector publication

What does the future hold?

Conclusion

There is no doubt that renewable energy and green energy sources are important in securing sustainable growth. The sector has seen significant development and is set to continue to grow, with pace likely accelerated as the UK rebuilds in the wake of COVID-19. The availability and reliance on subsidies and the identification of stable alternative revenue streams, the complexity of the technology, and the required infrastructure to support energy projects will all pose risks that businesses and lenders will need to carefully manage as they plan and put projects in place. It is undisputable from an economic, business and legal perspective, the scope for action and chances of success for distressed companies decrease over time, and in turn, the potential losses for the creditors increases. Timely intervention is, therefore, a key success factor. Funders and owners should obtain specialist technical, commercial, regulatory and project construction advice, both at the planning stage and throughout buildout and deployment. Many projects that fail do so due to insufficient knowledge, rather than from a lack of funding. The consequence is often that avoidable technical, regulatory or environmental issues are not picked-up in planning and lead to further issues later down the line. Bringing fresh eyes to review such complexities that arise when taking any project from planning, through to implementation and development, is a tried and tested way to reduce these risk factors and increase a project’s prospects of succeeding.

There is no doubt that renewable energy and green energy sources are important in securing sustainable growth. Jason Baker Restructuring Advisory

Restructuring Advisory

Corporate restructuring

Corporate advisory

Contentious insolvency

Solvent restructuring

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