Report on investment opportunities in the DHC sector

Report on investment opportunities in the DHC sector

As part of the commercialisation work package of the D2Grids project, the team at Asper Investment Management have prepared a report on investment opportunities for project in the 5th Generation District Heating and Cooling space (5GDHC). The objective of the report is to provide a framework for project developers to assess the financial feasibility and characteristics of their projects, and to provide guidance on the types and sources of investment available, and typical requirements of those investors.

Different types of projects attract different types on investors depending on the characteristics of their business case. Amongst other factors, the level of risk and return, the size of the investment and the timing of payments and returns can influence which type of investors are most suitable to a particular project. The report finds that 5GDHC projects typically fall in to two categories:

  1. Infrastructure in nature – they are capital intensive, have long asset lives and generate moderate but stable returns. These types of projects can attract long-term, low-cost capital such as project finance debt, green bonds and institutional equity. Smaller projects can attract specialised infrastructure funds as well as utilities
  2. Technology driven – they are early adopters of new technology and leverage these to drive increased returns. This approach can be attractive to specialised infrastructure investors and crowdfunding which are at the higher end of the risk/reward scale. Sustainable – they contribute positively to wider environmental and social issues. This is often a motivating factor behind public investment, but also drives investment through ESCOs, Cooperatives and specialist infrastructure funds.

View the report

Whilst projects seldom fall into both categories, 5GDHC technology enables projects to develop elements in both categories and attract a wider range of potential investors.

Asper is currently working with the D2Grids pilot sites to implement site-specific business cases and investment plans.


Read more on our website

contact[a]5GDHC.eu

 

Share :
Author of the page

D2Grids Project