دفاتر البحوث العلمية
Volume 12, Numéro 1, Pages 722-737
2024-06-30

Project Finance To Develop Solar Projects: A Case Study Of Hassi R’mel Solar-gas Power Plant

Authors : Douici Zohra .

Abstract

This paper highlights the role of the 'Project Finance' paradigm in fostering renewable projects. This funding method focuses on the project’s long-term profitability because funders will get their repayments from the project's cash flows. We illustrate how this method effectively mitigates the high risks and substantial funding requirements for solar projects. Our analysis of the Hassi R'mel solar gas station, a pioneering renewable solar project built under the project finance model, shows its efficacy. The plant, operational since 2011, continues to generate significant cash flows from electricity sales until 2036 and meet all its financial commitments. We believe this success should catalyse more renewable projects in Algeria.

Keywords

project finance ; solar plants ; cash flows ; Power Purchase Agreement ; Off-taker