Jorge Rodrigues de Almeida the secretariat’s financial lead has introduced the concept and aims of the newly established Island Marketplace in a one-and-a-half-hour online event, Isabel Rayo, from SUMA Capital provided her viewpoints, tips, and insights into the requirements for projects to be financed.
How does the Island Marketplace work?
The matchmakers of the Clean energy for EU islands secretariat are using the “Project Maturity Level Framework” to identify the need of projects. There are six levels of project maturity included in this framework. It was developed to ensure that projects can be showcased to investors according to their needs.
After the migration of the website, there will be a dedicated page where projects can be found by investors and checked for their requirements. It is possible to search for technologies so investors can easily find suitable projects. Projects don’t have to be on the website to be matched, it is the submitters choice whether they want their project to be accessible on the website.
A financial guide will be available on the website in its financing corner. The guide will be available for download within the next couple of weeks. It is filled with strategies to move projects forward.
The Clean energy for EU islands secretariat will use the already existing investor network of the Smart Cities Marketplace since most of the registered investors are investing in clean energy projects. SUMA capital also belongs to the Investor Network of the Smart Cities Marketplace and will be looking for island projects too.
How to apply?
Fill out the project intake form here.
Tips on how to fill out the project intake form by Jorge Rodrigues de Almeida, the secretariat’s financial lead:
- Provide as much information as possible. Information is crucial for investors. If there’s not enough, they might think that the project is at a very early stage and refuse investment.
- Clearly state what stage your project is in so that we can match you with a suitable investor.
- The amount of capital is a piece of important information.
- Do not mix projects to create a bigger project. If the projects don’t have much to do with each other, it might keep an investor from investing since many only invest in one area.
- Make sure to show the impact of the project on the environment or community e.g., by generating jobs or avoiding CO2, this is becoming increasingly important for investors.
Do not be afraid of presenting your projects only because it is a small project or on a small island! We want to bring local and regional players to the table who will be dedicated to investing in these projects. Very small islands can also group together and develop an island spanning project that could increase the investment amount and make it easier to find an investor.
How does SUMA Capital choose their investments?
Isabel Rayo spoke about the investment criteria of SUMA Capital, their structure, and how money is transferred. Technical partners usually approach SUMA Capital to get finance for their projects. Technical partners can be various types of companies like utilities, facility managers, construction companies, etc. They then invest when the project is in an advanced development stage with a business plan and stable cash flows. The investment is repaid by the cash flows generated by the project.
An important aspect for SUMA capital is that the technology works and its proven. The only warranty is project itself, if it does not work out, there is no way for the company to get their investment back. While the market for clean energy technologies is involving, so is the investment of the company. There will be investment in new proven technologies as well as in older technologies.
Find out more about the Island Marketplace here.