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ELO

Power & Energy

A power plant is financed on its offtake.

Power is the gating input to the AI buildout, and the assets that supply it are among the most capital-intensive in the chain. We finance generation, grid, and storage against the contracted revenue they produce, not the sponsor's balance sheet. The contract is the credit.

01 / The Sector

The gating input to the AI buildout.

Compute does not run without power, and the buildout is now constrained by how fast generation and grid can be brought online. Generation, transmission, and storage are capital-intensive and long-lived, with cash flows that arrive over decades rather than quarters.

That profile is why these assets are financed against contracted revenue rather than a sponsor balance sheet. A plant with a signed, long-term offtake carries debt on the strength of that contract, and the structuring turns on the counterparty, the tenor, and the price.

The principle

The contract, not the company, is what carries the debt.

Contracted revenue, a long asset life, and hard collateral are what let these projects hold leverage that a corporate balance sheet never could.

03 / What Secures The Debt

The collateral behind the loan.

Lenders underwrite a power financing against a defined package. It starts with the contracted revenue and extends to the physical asset and the rights that let it operate.

  • 01

    The power purchase agreement

    The long-term offtake contract and the revenue it commits. The contracted price and term are what the debt is actually underwritten against.

  • 02

    The plant and equipment

    The generating asset, the turbines, and the balance of plant, pledged as collateral for the life of the facility.

  • 03

    Interconnection and capacity rights

    The grid connection, the interconnection agreement, and any capacity rights, the entitlements that let the plant deliver and get paid.

04 / Contact

Financing a power or energy asset?

Tell us the asset, the offtake, and what you are trying to finance. We will tell you how we would structure it and which capital would fund it.