Project Development

Mesoamerica Energy has the capability to develop greenfield projects and to evaluate existing development assets.  The in-house expertise, leveraging years of industry experience in the wind and energy business, coupled with Mesoamerica 's financial evaluation and structuring background, enables the professional team to apply world-class standards to project evaluation.

The development process includes the determination of a project's technical and economic feasibility, as well as the steps required to secure the rights and assets that will be needed for project completion. The goal is to take a potential site from concept to financial closing to commercial operation.

In a renewable energy project, Mesoamerica Energy views the building blocks of development as:

• Resource: The quality and quantity of the resource (wind force, water flow, etc.) available at the site must be quantified (wind, for example, requires understanding average wind speeds, turbulence intensity, wind speed distribution, wind direction, climatic conditions). This issue is essential for projecting the potential production of the plant, as well as for identifying the suitable equipment for the particular site.  

• Infrastructure: A developer must determine constructability constraints (access roads, ports, construction equipment availability, local engineering capabilities), as well as electrical grid considerations (interconnection point, length of transmission line, system stability).  These issues affect the choice of equipment, and the required investment in civil/electrical infrastructure.

• Regulation: Any potential project is subject to the rules and regulations that govern the electricity sector in a particular country.  It is important to understand the environment and legal framework because it affects the economics of the project (incentives, duties, permit process, energy prices and contract structure).

• Market: Energy projects are long term investments that require a significant capital commitment.  In order to reduce uncertainties on forecast cash flows for the project and facilitate structured finance, a long term Power Purchase Agreement (PPA) is needed in most cases.  A developer must engage prospective offtakers, and secure a PPA that enables the financing of the project and assures a steady revenue flow.