News: Avapa Energy partners with Silta Finance to explore DeFi for the future funding of solar photovoltaic power plants
The collaboration aims to foster decentralized financing of renewable energy projects to drive the adoption of pure green energy in Italy and around the world.
Avapa Energy is an international developer and structurer of renewable energy power plants in technologies from photovoltaics, green hydrogen, advanced biomethane to offshore wind. Based in Bologna, Italy, and privately owned by a small group of investors, the company has a track record of developing projects of several hundred megawatts in Italy and Southeast Asia, including Japan and Taiwan.
Now, Avapa is looking into DeFi as a way to finance certain transactions and projects under development. The target for financing through the Silta solution is smaller 1 MW sized photovoltaic projects. These could be stand-alone or clustered into groups of several projects. The total costs of such projects are in the range of 700–800k per project, with a 20/80 split between equity and debt financing.
“For projects of this size, conventional sectors for debt finance are often not a viable option due to the cost of structuring relatively small facilities. The advantage of DeFi and the Silta solution in this case is that it can allow access to a new pool of distributed investors. For our smaller photovoltaic projects, distributed sourcing of financing may well prove to be a better and more effective approach than traditional avenues,” says Alberto Dalla Rosa, Partner at Avapa Energy.
The Silta solution is built to enable infrastructure developers to access DeFi liquidity. Silta provides credit assessments and underwrites DeFi loans by providing infrastructure borrowers with on-chain collateral. The borrower’s creditworthiness is reflected by the Silta Score, encapsulated in a dynamic, periodically updating NFT.
“We are fortunate to have known the management team behind Avapa Energy from working with them previously on complex power projects in Japan. A strong management team with a good track record is one of the key factors considered during our Silta Scoring and due diligence exercise. The Avapa team brings a strong approach to project development, which our Silta team can use as a benchmark within our scoring methodology,” says Silta co-founder Stanley Boots.
As part of the scoring, each project is assessed on impact criteria, which presents the opportunity to prioritise funding projects that can demonstrate a positive environmental or social impact. The decentralized governance model means that the Silta DAO (Decentralized Autonomous Organisation) ultimately decides on funding through a community vote. It is the Silta founders’ strong belief that the community will get behind projects which can lead the world towards cleaner energy.
About Silta Finance
Silta is the DeFi bridge to a sustainable future. Silta underwrites loans by providing on-chain collateral to enable real-world infrastructure developers to access DeFi. The Silta Score, which reflects the creditworthiness of an infrastructure borrower, is encapsulated in a dynamic, periodically updating NFT. Silta aims to help balance crypto traders’ portfolios with new products largely immune to crypto winters. Find out more at silta.finance.
About Avapa Energy
Owned by a small group of investors, Avapa Energy was founded in September 2019 in Bologna, Italy. Avapa Energy is an international developer and structurer of renewable energy power plants in technologies like photovoltaics, green hydrogen, and advanced biomethane and offshore wind. Avapa Energy’s mission is to foster the adoption of carbon-free technologies and increase the utilization of pure green energy, operating as a structurer and owner. Being technology-agnostic, Avapa Energy brings together the optimal combination of product, technology, design and financing to provide best in class solutions for the roll out of a specific project. Find out more at www.avapaenergy.eu.
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