Supporting a Green Loan for Renewable Energy Portfolios: The Sunprime Case Study

A Market Redefining the Rules

Sustainability Is No Longer an Option. It Is Part of the Financing Architecture.

Renewable energy portfolio financing is evolving. The focus has shifted from individual assets to integrated energy platforms. Generation, storage, sustainability, permitting quality, and technical bankability must now be assessed as a single, integrated system.

For lenders, this requires an independent Technical Advisor capable of evaluating the transaction holistically, from the permitting and technical robustness of the assets to the strength of the project agreements, expected energy yield, engineering solutions, and compliance with internationally recognized sustainability standards and lenders’ requirements.

Against this backdrop, PRAXI Energy was appointed as Technical Advisor by a syndicate of international lenders for a Green Loan transaction, further strengthening its role in supporting banks and investors with the technical, environmental, and contractual assessment of complex renewable energy portfolios.

Integrated Asset Assessment

The assignment supported a project financing transaction involving two Italian portfolios: one comprising utility-scale photovoltaic plants and the other consisting of battery energy storage systems (BESS), representing more than 400 assets across multiple regions of Italy.

PRAXI carried out an independent Technical Due Diligence, assessing the portfolios as an integrated platform and applying a consistent framework across all assets covering technical, permitting, contractual, and sustainability aspects.

The scope of work included:

• Assessment of site suitability and land availability
• Review of permitting status and grid connection processes
• Validation of energy yield assumptions
• Evaluation of plant design and technical configuration
• Technical review of the principal project agreements
• Verification of the overall consistency of the assumptions underpinning the financial model

For the BESS portfolio, PRAXI also performed an in-depth assessment of the technical and regulatory factors affecting bankability, including compatibility with the Capacity Market, in which the portfolio had already secured participation.

Sustainability represented a central component of the engagement. PRAXI verified the portfolios’ compliance with the principal standards required by the financing institutions, including the Green Loan Principles, the Equator Principles, the specific requirements of the participating multilateral financial institution, and the EU Taxonomy.

The assignment also included a technical review of the key project agreements and validation of the assumptions supporting the financial model, providing lenders with an independent basis for their technical assessment and financing decision.

A Solid Foundation for Credit Approval

PRAXI’s work enabled the lenders to:

• Identify the principal technical, permitting, and contractual risks across the portfolios without identifying issues that would compromise the transaction’s bankability
• Confirm the portfolios’ alignment with the sustainability standards required by the lenders, supporting the transaction’s qualification as a Green Loan
• Establish an ongoing technical oversight framework for the drawdown, construction monitoring, and operational start-up phases

Based on this independent technical assessment, the lenders were able to complete the financing process and successfully close the Green Loan. The portfolios have now entered the implementation phase, contributing to the deployment of new renewable generation and energy storage capacity across Italy.

This engagement further confirms PRAXI’s position as a trusted Technical Advisor for renewable energy project finance transactions in a market increasingly characterized by hybrid portfolios combining solar generation, battery energy storage, and advanced sustainability requirements.