Requirements for the projects

Since Green Asset Partners GmbH makes 100% equity investments together with its investors and thus does not use debt financing, there are special investment requirements to ensure the return of the invested capital to the investors as well as corresponding dividend payments.

Power Purchase Agreement

The first requirement is the conclusion of a power purchase agreement (PPA) of at least 20 years with a fixed feed-in tariff for the entire term of the agreement. Whether the respective feed-in tariff, and thus the entire project, satisfies the capital repatriation provisions as well as the dividend payments is subject to our actuarial review.

Additional guarantee coverage through investment grade

The second important requirement is that the payments of the feed-in tariff are guaranteed over the entire period of the contract by an investment grade institution or bank in such a way that the guarantor will make one or more payments unconditionally in the event of default. Moreover, this particular guarantee must be irrevocable. Examples of such guarantors may be banks with a corresponding rating, such as KFW Kreditanstalt für Wiederaufbau (“AAA”), or other banks with a comparable rating. However, any type of institution or company with a rating of at least “BBB” by S&P or comparable ratings by the rating agencies Fitch or Moody’s is also eligible.

Special triple net leasing constructions

The requirement can be replaced, for example, by an operator of the respective plant, who must, however, be investment grade, taking over the plant by means of a triple net leasing contract for the term of the PPA, whereby he can then collect the feed-in tariff directly. An example of this is when an investment grade manufacturing company wants to switch to renewable energy for its own production facilities. In this case, Green Asset Partner GmbH, together with its affiliated investors, is in a position to develop the corresponding solar plant for this company at its own expense and to make the plant available to this company via a long-term triple net leasing contract. This construction can then of course also take place within the framework of a sale and lease back.