You are here: YMAC > Renewable Energy Projects > Project Timeline > Financial close

YMAC Project Timeline

Financial close

Comprehensive agreements may take years to negotiate and financial close is the culmination of the years of development work. In this stage, banks, financiers and investors commit to the project, and finance is approved. This means that the project can proceed to construction and implementation.

Prescribed Body Corporate (PBC) economic participation, loan agreements, and the financing agreement will all be finalised prior to financial close. Banks/financiers provide a level of funding for the project based on the project design, including rehabilitation during all stages as well as at the end of the project’s life. PBCs should be fully informed about negotiations with financiers and other third parties.

By this stage the Renewable Energy Developer (RED) will aim to finalise Power Purchase Agreements (PPAs), i.e., secure a buyer/s for the energy ‘product’. Financial close should be celebrated with the PBC and community. Each PBC will have their own way of commemorating this. Communication and announcement opportunities arise in this stage and must be jointly managed with full consultation and agreement, e.g., community celebration, media announcement, newsletter to Common Law Holders. Failure to do so may be perceived as coercion, intimidation or manipulation and undermine free, prior, and informed consent (FPIC). Processes and outcomes must be documented along with regular review at agreed intervals, particularly when new information comes to light. Sharing this with PBCs, in a timely manner, is an effective way to achieve FPIC at every stage throughout the process and keep the project on track.

Important notes about this timeline

YMAC’s Renewable Energy Guide has been developed for use by Prescribed Bodies Corporate (PBCs), Traditional Owners, Renewable Energy Developers (REDs), government and industry.

It is designed as a ‘big picture’ framework for renewable energy projects. Its intention is to support a best practice approach by all parties involved in a project.

All projects are different, and the Project Timeline is not intended to be a perfect fit for all projects. That is, for any project, stages may occur or commence at different times or not be required. Some stages are linear, and others may occur, in whole or in part, concurrently. Each stage incorporates considerations for other stages, as relevant to a project.

The Project Timeline is a GUIDE ONLY.