National Renewable Solutions utilizes a development model across all of its projects that is as unique as it is effective. The key features of this model include:
Project Size Matters.
All of NRS project entities are “utility scale” (at least 50MW’s) and are designed to capitalize on the scale and cost efficiencies of larger projects, so as to compete broadly within their development region. The project financing options generally applied to multi-national and foreign corporations are readily available to these locally owned projects, thereby generating much more substantial economic benefits in the region.
- At start-up, all the local capital and land investments are invested to assure a comprehensive development strategy.
The combined efforts of NRS and the local landowners and investors “de-risk” the development process. All of these projects have sufficient land secured, met towers in place, interconnection options filed and/or pending, and key environmental issues identified and addressed. Over $8 million has already been invested in the projects, so that their development viability can be accurately assessed.
- Establishment of Local Advisory Boards.
For each of these projects, the local members have established an “Advisory Board” that meets with the manager, at least on a quarterly basis. These advisory boards review project details and progress, and provide counsel to the developer on key issues associated with project leasing, development standards and local political issues. These advisory boards have increasingly important roles in supporting permitting processes, helping to ease construction issues and ultimately guiding the contribution process once funding becomes available.
- Landowner and Investors - “Development period payments – converted to equity”.
In addition to the start-up capital required to initiate these projects, the landowners will agreed to convert 80 to 90% of their “development holding payments” into equity, generally for a period of five years. This represents a continuing investment in the projects (collectively), estimated at $450,000 a year, substantially reducing on-going operating cost for the projects.
- Dedicate an ownership percentage in each project entity to a local foundation.
To be classified as a true “community project” there needs to be a feature of the project that benefits more than the just the investors and landowners. To meet this objective, NRS has encouraged the creation of local foundations with a stated purpose of providing grants for local schools and other worthwhile area wide programs. The foundations will be funded by a dedication of 2% to 3% of the equity interests in each project entity.
- Provide the opportunity for local investors to invest “Across the Portfolio.”
One of the advantages to NRS aggregating these six projects is that it provides the Company the opportunity to consider allowing the project entity investors to “exchange” up to 50% of their local project investment for Notes and/or Units in the Company. This “re-investment” would mitigate their individual project risk and likely enhance their individual returns.