Projects require finance to subsidise and finance start-up and capital costs. The relatively high capital cost of modern energy is beyond the ability of the poor to pay for upfront and/or to pay for fully. Moreover, it is usually time-consuming and costly to access the available capital, and project developers often lack the skills necessary to prepare an adequate Business Plan and/or a credible track record to satisfy donors.
Financiers require robust projects, structured for success, and strong governance.
The Helios model is intended to act as a credible conduit of funds to “de-risked” projects. Funds come from a variety of sources:
- Multilateral and specialist funds. The Helios Business Model positions it well to raise equity and debt financing from established sources of finance for projects in developing countries, such as specialist energy, climate change, environmental and social investment funds. By bringing commercial and technical expertise and management skills to LSEs, Helios will “de-risk” projects for such financiers.
- Companies operating in developing countries. Helios is also a credible conduit by which private companies can implement a significant part of their social responsibility strategies.
- The general public. Helios is grateful for the generous support from individuals concerned about the need to alleviate poverty in developing countries by improving access to affordable modern energy, and from individuals concerned about the need to mitigate the effects of climate change.
- Micro-Finance: The Helios model provides a framework for the development of micro-financing – either directly with end consumers or via consumer credit within the LSEs.
- CO2 Credits: By amalgamating projects, Helios will be able to overcome some of the transaction costs associated with accessing financing sources such as the Clean Development Mechanism.