Alphabet Soup
A three letter abbreviation.
An official, written document issued by a project owner or contracting authority to a contractor, authorizing them to start work on a project.
What is NTP? Notice to Proceed.
This pair contrasts lending based on a company's overall credit, cashflow, and balance sheet with financing backed primarily by a single project's contracted cashflows, non‑recourse structures, and dedicated SPV. (Two answers)
What are corporate banking and project finance?
This 10-25 year agreement guaranteed a fixed price for electricty from renewable projects.
What is a PPA?
This document outlines the key financial terms of a deal before lawyers draft the full investment agreement
What is a term sheet?
This Canadian artist holds the record for most Grammy Awards won by a Canadian artist, with 5 wins.
Celine Dion
ERCOT, MISO, PJM, CAISO are all called this three-letter abbreviation.
What is an ISO?
Which ISOs have greater renewable build outs?
These large corporate loans are arranged and funded jointly by a group of banks to spread risk and provide bigger capital than a single lender could
Syndicated loans
The price difference between a local price for electricity (or natural gas) and a regional benchmark price (such as Henry Hub for gas or a major ISO hub for power).
What is basis differential?
This party typically provides the majority of equity capital and manages the acquired company.
What is the sponsor (or financial sponsor)?
These back up generators re called upon during high demand periods and typically set the highest electricity prices.
What's a peaker plant?
IRA, ITC, PTC and OBBA
Why are they related and why is that important to our customers?
IRA - 2022 Inflation Reduction Act
ITC - Investment Tax Credit
PTC - Production Tax Credit
OBBA - 2025 One Big Beautiful Bill
When a renewable project has the following capital stack:
Secured lending, preferred equity/mezzanine, Equity
Who gets paid first?
Secured loan
Secured loan has cheapest cost of capital and takes on the least amount of risk.
Sponsor equity sees the greatest upside.
A market to ensure long-term grid reliability by paying power generators to guarantee availability during high-demand periods, preventing blackouts.
What are capacity markets?
In a private equity fund, this two-letter abbreviation refers to the firm that manages investments and makes decisions on behalf of limited partners.
What is GP (General Partner)?
What are typical private equity infrastructure return ranges?
8-14%, mid to low teens
This financial metric, popular with analysts and investors, measures a company's operating performance by excluding interest, taxes, depreciation, and amortization from earnings.
What is EBIDTA:
Earnings before interest, tax, depreciation, depreciation and amortization shows how well a company's core business operations are performing.
This service helps companies buy, sell, or merge with other companies.
M&A advisory
These tradeable certificates represent the environmental attributes of renewable electricity
What are RECs (Renewable Energy Certificates)?
These two metrics refer respectively to the total enterprise value of a transaction and the investor’s individual equity check in that transaction
What are deal size and ticket size?
Canadian ISO that is shifting to a deregulated, nodular market.
IESO Ontario
This phase in project finance is the critical milestone when a facility ) passes performance tests, connects to the grid, and begins commercial operations.
What is COD?
Commercial Operation Date
A large corporation with substantial tax liability partners with renewable developers. This strategy is needed because this renewable energy developers often doesn't have enough of this to use tax credits.
What is a tax equity investor?
Provided by battery storage systems, these services help maintain grid stability through frequency regulation, spinning reserve, and voltage support
What are BESS ancillary services?
This ratio measures a project's available cashflow relative to its scheduled principal and interest obligations, used by lenders to size debt and set covenants
DSCR - the Lender's Yardstick
Debt Service Coverage Ratio
8760
The # of hours in a year