Alcazar Energy is an independent developer and power producer focused on mid-market renewable energy generation across META region (Middle East, Turkey and Africa).
Alcazar Energy’s role is the origination, development, structuring, acquisition and operation ofrenewable energy projects. The company’s focus is on Solar PV and Onshore Wind technologies.
Alcazar Energy was formed in early February 2014 and is positioned to capitalise on the region’s shift towards renewable energy as it has become a competitive source of power generation below grid parity.
Alcazar Energy targets emerging economies which have attractive underlying market fundamentals and developed regulatory frameworks.
The company has fully resourced Business Development, Investment, Project Finance, Delivery and Operations teams. Alcazar Energy has invested in achieving the right blend of development and financing skills necessary to create value for its shareholders at all stages of the development life-cycle.
Regarding Alcazar Energy current assets and funding strategy, the company currently owns 466 MW of projects that require equity commitments in excess of a USD 250 million.
This portfolio includes projects that are either in operation, construction or at an advanced stage of development (with secured PPAs or licenses in place).
Alcazar Energy has a pipeline of further projects that would require additional equity commitments of USD 360 million by the end of 2020. Many of these projects have already achieved significant development milestones.
Alcazar Energy’s market positioning is to fill a space created by the modular nature (lower transaction base) of the renewable energy industry. Alcazar Energy focuses on the mid-market segment of renewable energy, hence it does not compete directly with major energy companies.
Alcazar Energy has an initial focus on acquisitions with a gradual shift towards greenfield development, considering opportunities in mature, operational assets with the option to hold on to developed assets benefiting from the project cash flows.
Regarding risk appetite and mitigation, Alcazar Energy will only commit to projects with guaranteed off-take agreements with creditworthy counterparties. For example, a PPA with a government or quasi sovereign entities. The company has limited appetite for merchant risk unless downside protection can be secured.
Projects will be funded by nonrecourse project finance on closing or bankable within two years of closing. Alcazar Energy intends to work with multilaterals to procure country and political risk guarantees for protecting against sovereign contractual defaults. The company’s preference is for “turnkey, lump sum, fixed price and date certain” EPC (Engineering Procurement and Construction) contracts.