Energy project finance reference. This educational resource covers project investment and financing concepts. It is separate from Jaken Energy’s commercial electricity and natural gas procurement service; it is not a financing offer or a promise of funding.
Energy project due diligence: one reconciled evidence set
Due diligence connects technical performance, legal rights and financial cash flow. Each workstream should use the same project boundaries, ownership entity and operating assumptions. Inconsistent reports can make a seemingly complete diligence package unreliable.
What to evaluate
Reconcile capacity and output across engineering reports, permits, interconnection documents and financial models. Trace historic revenue to settlement and bank records. Confirm the entity that owns equipment and the contracts it can enforce.
Build a defensible comparison
Maintain an issue register with evidence, owner, required action and closing implication. Separate items that must be resolved before closing from ongoing monitoring. A favorable report in one discipline does not remove unresolved risks in another.
Documents and questions to prepare
- Technical output and asset condition
- Site, permits and enforceable contracts
- Revenue, expense and cash reconciliation
- Open issues and closing conditions
For commercial property owners
Start with the property’s actual accounts, lease responsibilities and plans for ownership or sale. Keep commodity procurement, building improvements and project investment as separate decisions. Include the costs you retain and the savings you retain after tenant reimbursement. An improvement that lowers a tenant-paid expense may benefit tenants without producing the same increase in owner income.
Prepare a base case and a downside case using dated evidence for costs, revenue and funding. Any financing rate, tax benefit or return is a project assumption until supported by current documents. Legal, tax, engineering and lender review should follow the actual transaction.
For the existing property’s supply-cost decision, use the contract-cost calculator or request a property energy review.
Primary sources
Reviewed October 12, 2026. Program rules, tariffs and financing terms should be checked again before a transaction.