Output Guarantees for Renewable Energy Projects, What Are The Predictions?

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Most renewable energy deals are long-term. For example, power purchase agreements often have 20-year terms. Although debt financings for these projects typically have shorter lives, those too run multiple years. As a result, in order that these transactions get financed and completed, it is very useful that there be a tolerably reliable basis for believing that the projects will generate sufficient levels of energy and thus revenues for, say, at least the first 10 years and that meaningful remedies are available if energy output falls short. What's next?

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