Financing of private small scale hydroelectric projects

Technical Report · Sun Mar 01 00:00:00 EST 1981

DOI:https://doi.org/10.2172/6443433· OSTI ID:6443433

Smukler, L M

This manual is a description of the financing process associated with the private development of SSH projects. It examines the institutional framework and the actors within that framework who will have vital impact upon the potential for success of a project. The manual describes the information a developer should obtain in order to make intelligent decisions concerning the multiple directions in which project development can proceed. This information should assist the developer in formulating a business plan. Factors to be considered in choosing a business organizational form are discussed. Included is an analysis of the federal income tax factors relevant to SSH in context of the treatment of specific items: business expenses, depreciation, the Investment Tax Credit, and the Energy Tax Credit as modified by COWPTA. In addition, the tax and organizational factors are applied to an analysis of two mechanisms which can lower development costs through maximum utilization of available tax benefits: limited partnerships and leveraged leases. The manual lists and analyzes the major sources of debt and equity financing that are potentially available to a developer. Finally, all the previously discussed pieces are put together and how the decisions relating to such factors as marketing, taxation and debt financing interrelate to determine the probable success and profitability of a project are investigated. Furthermore, this part of the manual will provide an illustrated guide to understanding the financing process, leading the reader through the decisionmaking and negotiation points, and highlighting what should be borne in mind, what a developer may be giving up and what the perspective of other key actors will be at those points.

• Research Organization: Franklin Pierce Law Center, Concord, NH (USA). Energy Law Inst.
• DOE Contract Number: AS02-78RA04934
• OSTI ID: 6443433
• Report Number(s): DOE/CE/04934-44
• Country of Publication: United States
• Language: English

Related Subjects

13 HYDRO ENERGY
29 ENERGY PLANNING
POLICY AND ECONOMY
LOW-HEAD HYDROELECTRIC POWER PLANTS
FINANCING
ECONOMIC ANALYSIS
ELECTRIC POWER
FINANCIAL INCENTIVES
MANUALS
MARKET
POWER GENERATION
TAXES
DOCUMENT TYPES
ECONOMICS
HYDROELECTRIC POWER PLANTS
POWER
POWER PLANTS
130500* - Hydro Energy- Economic
Industrial
& Business Aspects
296000 - Energy Planning & Policy- Electric Power