The project planning phase is done before construction actually starts. In this phase, the project developer compiles all of the details that are prescribed by the authorities for construction and subsequent operation of the plant.

This phase varies complexity depending on the country, but consistently takes up a lot of time and capital. It involves land purchasing, supply points with approval, energy supply contracts, technical planning, approval, environmental authority, operators’ licenses, company foundation, etc.

The external costs for specialist planners, lawyers and authorities quickly amount to six-figure totals for medium-sized plants between 1 and 5 MWp. There are a few projects that never receive final approval.

In previous years, a market price has developed for fully approved projects. This amounts to between 250 Euros and 500 Euros per approved kW; sums in excess of this have also been paid in individual cases. Assuming a price of 350 Euros per kW, you could afford project rights for approximately a 3 MWp plant with 1 million Euros.

In Spain for example, you are obliged to deposit an amount of 500 Euros per Kw to the administrations at the time of application, even before it is processed. This guarantee serves the state as security that an approved project also definitely finds an investor and is executed, causing a temporary liquidity issue but not a being permanent cost factor.

The period of time between the initial search for a suitable location and the release of the final construction permits can last between 9 and 18 months. For rapid investment plans, acquiring a ready-made license is worth considering, as long as the project developer’s price demands are realistic.