Taking security over immoveable assets in renewable energy projects
Under the Amended National Power Development Plan for the Period from 2011 to 2020, with a vision toward 2030, it is expected that renewable energy will account for 10.7 percent of the total power capacity of 572 billion kWh by 2030. The Government’s outlook requires a high demand for capital, including loan capital. In this regard, the project finance should play a significant role in meeting that expectation. Generally, the lenders will expect perfected security interests over all of the property and assets of the project company. This article discusses notable issues in taking security over the immoveable assets of renewable energy projects.