Traditional BOOT models have existed for many years in the Independent Power Producer (IPP) space, whereby over a period of time the off-taker/customer own the asset. In the shorter term projects, the model has been one of rental where at the end of the contract the equipment is taken away.
From our experience, more often than not, that same rental equipment is required the year or two after, thus requiring a new rental contract at a high cost. What we have done is introduce the traditional IPP BOOT model to the shorter term projects to provide a fully financed solution with an O&M contract.
At the end of the day, customers are thereby able to own the assets outright with no upfront payments or balloon payments at the end of the projects. Customers can either then keep the existing plant as back-up to maintenance, for peaking requirements, future growth or redistribute it to other areas of their network to reduce transmission losses.
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