Project finance and photovoltaic power plants : a theoretical and practical perspective

Abstract

Project finance is a defined structure for developing new activity which involves establishing the project as a separate unit. The review of literature exhibits the distinctive characteristics of project finance and provides a rationale of this form of financing. Project finance entails financial modelling, risk management, legal aspects and the creation of a financial structure. The thesis explores practical use of project finance in a case study of a photovoltaic power plant and presents a financial model looking into central drivers of financial viability in a project. The thesis finds that there is consensus between theory and practice regarding the advantages of risk management facilitated by project finance.