Risk management policy
By being an industrial investment, there are some risks that can affect the profitability of the investment while running it. It is an obligation for Acapital Cogeneración to previously identify such risks and know perfectly how and what to apply to minimize their impact, at the time of deciding where the investment will be (Host), selection of technical partners –engineering's, suppliers, assembling companies, operators- also within the legal environment, legal framework and coverage of risks. There are mainly three types of risks:
* Legal framework: by being a project related to the Special Regime (RD 661/2007) the investment benefits from a premium by the sale of electricity to the network and a potential premium extra, although by being part of cogeneration it is quite low (close to 0,10,-€/MW). When concentrating on plants of a higher size than 4MW, Acapital Cogeneración is resigning part of the premium so therefore a variation on the legislation would not affect the IRR of the project. In the particular case of the first investments the investor IRR is calculated without counting the benefit of the premium.
* Technological risk: Acapital Cogeneración only works with main machinery manufacturers (Rolls Royce, Wartsila, Daimler, etc) and with maintenance contracts with them that guarantee the 95% of the operation of the installations. The same criteria is applied to the engineering's and setting up businesses.
* Host: solvency and guarantee of energy consumption: it is essential in the project that the Host maintains a level of consumption that guarantees the profitability of the investment during its full time. In this case Acapital is extremely careful when selecting the Host where the installation will take place, concentrating only in big businesses (multinationals if possible) with contracts that guarantee a minimum consumption needed to achieve a return on the plant and protect the investment in case of closure or relocation, being those commitments guaranteed by the parent company binding on all parties.
