HORIZONS RENEWABLE ENERGY SYSTEM SL: TRANSPARENCY | CONTROL | PROFITABILITY

Since the beginning of this year, the Horizons group has started its activity in the Spanish market as part of its internationalization plan, seeking to replicate the successes achieved in the Polish and German markets.

SPANISH RENEWABLE ENERGY MARKET IS COMPETITIVE
The illusion, motivation, responsibility and commitment are taken for granted to try to make a niche in a competitive environment such as the Spanish energy sector, but the selection of this market has not only been a matter of dynamism and volume, but above all, because we consider that our business model fits perfectly the profile and needs of the Spanish developer.

DEVELOPMENT OF RENEWABLE PROJECT
i explain. Personally, after 20 years of development in 5 countries, in addition to Spain, in renewable energy projects "utility scale" connected to the electrical grid, for me is clear that the Gordian node of the development is limited to answer a key question: who will be the final owner of the plant under development, acting as an energy producer and in charge of commercial exploitation as well as to manage all kind of contingencies and uncertainties throughout its operational life? This is the dilemma that every developer knows he will have to answer at some point in the development of his project.

HORIZONS CONNECT THE INVESTORS AND DEVELOPERS OF THE PROJECT
Horizons solves this dilemma by the way of the incorporation of the Horizons' client into the project, it means, investors who become the final owner and producer who sells energy in the electrical market, and he becomes part of the business financing the development of the project from an early stage, even when the uncertainty of the process is at its peak. This incorporation of the investor as fund providers of the project allows the developer to resolve several aspects of his work that are interrelated, and all linked to the risk inherent in his activity.

WHY EARLY FUNDING OF THE PROJECT HAS A POSITIVE IMPACT ON ITS DEVELOPMENT?

1. Cover of the costs

   Put the project in positive Cash Flow from the beginning, since signature of agreement milestone, covering not only the direct costs of the project but the indirect costs associated with the developer structure.

2. The developer can focus 100% on his project.

   As a developer i have always found myself in a funds searching process required to continue with the development of my projects and carry them till RTB. Most of the timing administrative procedures take longer than expected and yet you have to maintain a corporate structure that needs to be fed, ergo under that scenario, the developer usually reduces his attention in the quality of the development, because although seeking funds and developing a project are two activities that go together, joining both of them make up a “zero sum game": the more time you spend searching for funds the less you focus on the quality of your development and the risk of making a mistake grows.

3. Managing a larger number of projects

   Developer can expand its management capacity, not only because it reduces the possibility of failure in the development of the project itself, but because it requires less “financial muscle” from its own partners and, due to that it can expand the number of projects to be managed simultaneously, focusing on revenue generation rather on the price things cost.

4. Mitigate regulatory and market intervention risks.

   We all know that it is a sword of Damocles that every developer has to consider in his radar, that there are changes of regulation always on going, that are often necessary, but also the possibility of intervening the market sounds, which carries an important stress burden for any developer since it can lead to the death of any project itself.

HORIZONS REDUCE THE RISKS IN DEVELOPMENT OF RES PROJECTS
Obviously, there are many ways of financing the development of RES project, and many depend on the moment in which the roller-coaster of the sector is located, with all the oscillations that we all know well. However, the Horizons model fits a developer who does not want to be exposed to risks in the face of market uncertainty.

HORIZONS ENGAGES IN VARIETY OF RES PROJECTS
What type of project does Horizons consider to be adapted to its business model? Any photovoltaic, wind or hydrogen production project that is in the green field phase, understanding that are those projects which have not launched their permitting process or brown field -or administratively mature projects-, that are those who are immersed in the development phase but without having reached the Ready-To-Built status.

For example, interesting aspect to be considered by Horizons are those projects that are in the uncertainty of RDL 23/2020 with administrative milestones to be met soon and which must be in place before June 2025 with the aggravating circumstance that since September must be executed payments to ensure that the supply of plant components (mainly wind turbine generators or electrical transformers) will be delivery on time, being therefore projects that need urgent financial support to ensure compliance with the deadlines described above.

HORIZONS: TRANSPARENCY, CONTROL AND PROFITABILITY
Therefore, under all these premises we like to differentiate ourselves working with developers by offering them candor, transparency, legal control and profitability. Horizons proposes guarantees develop and maintain relations with our clients, both developers and investors and help each other to shorten the value chain, in order to help them communicate and create the bond needed to develop common projects.

Félix Guillén Archambault
Administrador de Horizons Renewable Energy System SL
felix.guillen@horizons.energy
July 2023