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.
The independent engineer’s role in financing
An independent engineer evaluates defined technical questions for a lender or investor. The engagement scope matters: it may review design, production, construction progress, operating performance or a subset of those areas. Independence does not make the report a guarantee.
What to evaluate
Agree on the documents, tests, assumptions and reliance rights. The financial model should use the same approved production, cost and completion assumptions. Differences between vendor claims and reviewed estimates need explicit explanation.
Build a defensible comparison
Track qualifications and unresolved findings through closing and construction draws. Clarify how the engineer handles changes in equipment or design. A technical report supports underwriting; legal, market and counterparty risks require their own review.
Documents and questions to prepare
- Engagement scope and reliance
- Reviewed production and cost assumptions
- Construction and commissioning criteria
- Findings, qualifications and follow-up
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.