The initiative is a global effort to standardise contracts in order to streamline the development and finance of solar projects. Launched in 2016, it brings together leaders in energy, finance and law to define and agree on a standard template for solar project documents that are effective and acceptable to finance institutions. Through simplifying the contractual documents and in turn reducing transaction costs, it is hoped that the industry will attract more private investment.
The latest meeting saw the leaders of the various work streams come together to discuss progress to date and next steps.
“Simplifying the contractual documents is crucial if the industry is to meet the targeted $1.2 trillion investment of private capital into solar by 2030” said Bree Miechel, partner at Reed Smith, who is leading the construction work stream. “The impact of the work we are carrying out to harmonise project documentation and procedures cannot be understated.”
“We are making good progress as a team to meet the initiative’s aims” said Jean-Pascal Pham-Ba, Secretary General of the Terrawatt Initiative. “Since we launched the initiative in 2016, we have seen market demand for standardisation of contracts for solar projects increase vastly. As a result, the work of the initiative is becoming more and more important in helping the solar industry meet its investment needs.”
“The progress we are making is a testament to the commitment of all those who have lent their support to the initiative”, said Henning Wuester, Director of IRENA’s Knowledge, Policy and Finance Centre. “We are grateful for their time and dedication to making our goal of a common industry language across all the assets, contracts or markets needed to develop renewable energy projects close to becoming a reality. We look forward to furthering the initiative’s progress in 2018.”
Reed Smith is providing support to the project on a pro bono basis, alongside a collection of energy, finance and law firms.
ENDS
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About the International Renewable Energy Agency (IRENA)
IRENA is mandated to be the global hub for renewable energy cooperation and information exchange by 153 Members (152 States and the European Union). Roughly 27 additional countries are in the accession process and actively engaged. IRENA promotes the widespread adoption and sustainable use of all forms of renewable energy, in the pursuit of sustainable development, energy access, energy security and low-carbon economic growth and prosperity. irena.org
About the Terrawatt Initiative (TWI)
The Terrawatt Initiative is a global private sector non-profit organisation, launched at COP21, which aims to: promote competitive solar power as a decisive tool to address power needs, sustainable development goals and climate change; engage in dialogue with the Governments and International Organisations to achieve at-scale design and fast implementation of a global common market of affordable solar power; and promote actual deployment of affordable capital in solar power generation assets at the trillion USD scale. terrawatt.org
