Rethinking transactionS

Unlock the Transactions door to achieve Well below 2 cents’

The key to successfully accomplishing the mission:


To succeed in achieving the renewable energy transition, the first step is to decrease radically the cost of renewable power (E), in particular solar power, to initiate the energy intelligence revolution (I).

While hard costs have provided most of this reduction so far and economies of scale are reaching their limits, efforts must now focus on the reduction of soft costs. This will require market standardisation and market innovations, based on the standardisation of processes and data.

Off-balance sheet
financing techniques

Off-balance sheet financing techniques are very sound and are necessary to reach scale. They imply, however, complex contractual schemes and arrangements to manage and allocate risks properly and to create trust between a large number of parties. They therefore entail high transaction costs which are detrimental and sometimes fatal to an operation.

Scaling solar power deployment requires the simplification and automatisation of these transactions.

Open Solar Contracts


In 2016 TWI and the International Renewable Energy Agency (IRENA) joined forces and federated tier 1 international law firms, investment banks and industry associations to develop an entire suite of contractual templates, the Open Solar Contracts.

Open Solar Contracts aim to simplify transactions and set the basis of international contractual standards for on-grid solar power generation, in order to reduce transaction costs significantly and contribute to more efficient risk management at project level.

Digitalisation of the
transactional chain

Digitalisation can dramatically improve the efficiency of the market to deliver lower cost renewable power but will require newly-designed information flows.

The environment should provide at least the following seven functions:

1. Compliance

  • Assists all candidates in accessing the ecosystem, including provision of technical assistance and templates (advisory services);
  • Manages access and the ‘licence’ for all participants in the environment (including investors) on a permanent and 360 ‘Know Your Counterpart’ basis;
  • Manages compliance of all processes with all applicable rules and requirements in the environment;
  • Issues certificates of compliance from time to time

2. Demand

  • Provides demand-side support, aggregation and management, project preparation

3. Guarantee

  • Manages the process of de-risking the demand-side parties from first contact with de-risking providers to issuance of the de-risking instruments to the benefit of the lenders and all claims and counterclaims arising from the de-risking instruments

4. Contracting

  • Manages energy producer/buyer contracting under any contracting process (public tender or other public supported schemes, corporate procurement …);
  • Manages all key contractual relationships between the energy producer and its contractors based on standardised documentation and processes;
  • Offers all participants an accelerated and cost-efficient alternative dispute resolution solution

5. Permitting

  • Manages all permitting of the assets over their lifetime

6. Financing

  • Provides all information on projects and assets for financial structuring, investing, asset and securities management

7. Data sharing

  • Manages data related to the energy assets over their lifetime in a virtual data room and its publishing in various formats for the purpose of the various stakeholders, data control and management


With the support of IBM and KPMG, TWI explored an end-to-end functional platform for this new form of market to interconnect more than a dozen types of users efficiently.


And you,

what would you do?


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