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I think the crucial point is that fewer prepay energy credits are delivered then the amount of energy produced/consumed. Because then what Chris writes holds true, investors can always sell them to consumers at energy price. Otherwise it doesn't.

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by A swedish kind of death on Sat Sep 7th, 2013 at 04:03:28 AM EST
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When examining and judging energy prepay unit issuance you have to have regard to the rate, and the likelihood, of a flow of energy over time.

This implies what I have heard described as 'confidence accounting'. ie the probability that a particular flow will be achieved.

Over its design life, a wind turbine will produce a 'pool' of energy production, and part of that will be shared with landlords/communities/maintenance contractors.

The balance is then available to be 'unitised' into prepay electricity units which may - if the electricity sale price is adequate - be sold forward to fund the turbine.

The process of project assessment will be similar to that which Jerome probably makes every day of the week using conventional finance capital.

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by ChrisCook (cojockathotmaildotcom) on Sat Sep 7th, 2013 at 04:38:16 AM EST
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