Hive has built up a vast knowledge and expertise in the development of solar parks over the last 7 years.
Hive specialises in:
- Locating the site
- Securing the land rights
- Securing the grid capacity
- Obtaining the necessary local and regional planning approvals.
- Negotiating the EPC contract
- Identifying investors and negotiating a successful sale of the solar park
Hive has signed Project Development Agreements with a number of investors to develop the projects in its pipeline.
Under the Project Development Agreements:
- The investor funds the development of the project, and pays to Hive an agreed Developer Fee.
- Hive develops the project, and transfers an equity stake in the project to the investor.
The Developer Fee, payment terms and equity stake vary between PDAs, but the profit generated for Hive by each project is expected to be in the region of $50,000-$100,000 per MW; and payment terms are usually:
- 2.5% of the development fee paid to secure exclusivity over the pipeline.
- 7.5% of the development fee paid at project acceptance less return of exclusivity fee on projects not accepted.
- 70% of the development fee paid at shovel ready less return of projects acceptance fees on unsuccessful projects.
- 20% of the development fee paid at COD.