ECOHZ believes a significant number of renewable projects can be “activated” with top financing from GO². Shrinking public budgets and national support systems, combined with tougher equity requirements for European financial institutions, have resulted in numerous renewable energy projects being put on hold. Many projects have stalled due mainly to a lack of top financing. ECOHZ has created a solution named “GO²”, allowing business to contribute top financing to named renewable projects. The GO² solution builds on the system of Guarantees of Origin, and bundles renewable energy consumption with a contribution to new renewable energy production. This enables customers to ensure that they are consuming clean energy, while adding more capacity.
A product in the ECOHZ GO² portfolio will consist of the following elements:
- Renewable energy documented with Guarantees of Origin (GO), covering existing power consumption
- Prospect of future renewable project and documentation of project under development
- The right to purchase GO from the new power plant
ECOHZ has established a foundation as a separate legal entity, with the sole objective of managing and optimizing the portfolio of renewable projects. The foundation will ensure total transparency and irrefutable verification.
By dedicating funds only to top-financing (up to 15 %) of new projects, the financial contributions from customers are put to use in the most efficient way. This can be instrumental in making the project as a whole “bankable”.
The ECOHZ Renewable Energy Foundation will provide top financing to the projects using an attractive lending scheme. The lending scheme, although preferential compared to traditional sources, will ensure a payback of funds to the foundation. This will create a multiplier effect as the funds can be reinvested in yet another project. Read about the ECOHZ Renewable Energy Foundation Board here.
The GO2 category was first launched in Brussels, the 24th of September, during our hearing in the EU Parliament. Since the launch, ECOHZ GO2 has been presented for numerous commercial players and stakeholder organizations.