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.
Intercreditor agreements in energy finance
An intercreditor agreement defines how lenders share collateral, payments and enforcement rights. Senior and subordinated claims can interact differently during normal operations and default. The borrower should understand those interactions before signing.
What to evaluate
Review payment blockage, lien priority, standstill, notice, cure and purchase rights. Confirm who controls enforcement and when another creditor can act. Project consents and tax-equity arrangements may impose additional restrictions.
Build a defensible comparison
Test a default scenario using the actual document waterfall rather than the intended commercial summary. Refinancing and new borrowing should be checked for permitted-debt and release conditions. Specialized legal review is essential to interpreting the agreement.
Documents and questions to prepare
- Collateral and payment priority
- Enforcement, standstill and cure rights
- Project and tax-equity interfaces
- Refinancing and release 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.