Description

In a project, we spend money on capital assets before any revenue is earned, so we need to secure funding to bridge the gap between when we are investing in capital assets and when the project begins earning revenue. Projects are usually funded by a combination of equity and debt. In this module, we will explore the concepts of interest during construction (or IDC), circular references, debt amortization, refinancing, and Debt Service Reserve Accounts (or DRSA) in the context of renewable energy projects.

Learning Objectives

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1. Recall the function of interest during construction (IDC) in renewable energy projects.
2. Recall the function of circular references in renewable energy projects.
3. Recall the function of debt amortization in renewable energy projects.
4. Recall the function of refinancing in renewable energy projects.
5. Recall the function of Debt Service Reserve Accounts (DRSA) in renewable energy projects.