Investors need to find companies with a strong cash flow to support expansion. A clean energy project has an earning life of 20-25 years, and it’s usually 80% debt-funded. In the first 10-12 years, a large amount of profit is spent on servicing debt. In the later period, investors have access to a higher share of earnings. Therefore, a company needs to have the right mix of underconstruction portfolio and mature assets where the debt repayment is over.
