A solar developer in Scotland spent 18 months securing planning permission for a 50 MW solar farm. They had landowner agreements signed, grid connection approved, and a credible offtake agreement in place. The project economics were solid: £75 million capital requirement, 12% IRR, and strong environmental credentials.
Three investment funds expressed serious interest. Due diligence began, and that’s when everything started to unravel.
The developer couldn’t quickly produce complete land title documents. Environmental assessments were scattered across multiple systems. Grid connection correspondence took days to locate. Financial models had inconsistencies between versions. By the time everything was organised, two of the three investors had moved on.
The third investor eventually committed but at a lower valuation and with more onerous terms. Delays cost the developer both time and money, nearly derailing a fundamentally sound project.
This scenario is common in renewable energy. The problem is rarely project quality—it is due diligence preparation.
Why Renewable Energy Financing Is Different
Renewable energy projects face unique challenges that traditional M&A or corporate finance rarely encounter.
Multi-Stakeholder Complexity
A typical project involves numerous parties:
- Development: Project developers, landowners, planning and environmental consultants, grid specialists, community liaison teams
- Financing: Equity investors, debt providers, tax equity investors, development finance institutions, export credit agencies
- Operational: EPC contractors, O&M providers, asset managers, insurance brokers, technical advisors
- Regulatory: Planning authorities, environmental agencies, grid operators, offtake counterparties
Each stakeholder requires different information at different stages, creating a major coordination challenge.
Long Development Timelines
Unlike corporate acquisitions that close in months, renewable energy projects can take years before financial close. Over this time:
- Documents accumulate across phases (feasibility, planning, pre-construction, financial close)
- Team members change
- Regulations evolve
- Market conditions shift
Without disciplined document management from day one, projects end up fragmented or missing critical information when investors arrive.
Technical and Environmental Complexity
Investors rely on technical and environmental due diligence to validate project feasibility:
- Technical: Wind or solar resource assessments, equipment specifications, energy yield calculations, grid requirements
- Environmental: Impact assessments, ecology surveys, noise and visual studies, habitat regulations
- Legal: Land rights, planning permissions, grid agreements, offtake contracts, subsidy eligibility
Incomplete or inaccessible documentation increases costs, extends timelines, and heightens the risk of deals falling through.
The Most Common Due Diligence Failures
Incomplete Land Documentation
Missing title deeds, unsigned leases, unclear access rights, or expired wayleave agreements often stop deals before they start.
Fragmented Planning Records
Planning approvals, committee minutes, condition discharge correspondence, and Section 106 agreements are frequently scattered across multiple systems. Investors must see the full planning picture; gaps erode confidence.
Inconsistent Financial Models
Models with mismatched assumptions, multiple versions, missing sensitivity analyses, or incorrect tax treatment make investors wary.
Incomplete Technical and Environmental Assessments
Missing, outdated, or non-credible reports force investors to commission new studies, delaying financial close and increasing costs.
How Leading Developers Prevent These Problems
Build the Data Room from Day One
Start organising your project documents immediately. Upload:
- Emails with landowners
- Planning submissions
- Consultant reports
- Financial models with version control
- Grid correspondence
Organise for How Investors Think
Structure folders to reflect investor due diligence priorities, e.g.:
- Executive Summary
- Project Overview
- Site and Land
- Planning and Permits
- Environmental
- Technical
- Grid and Offtake
- Financial
- Legal and Contracts
- Corporate and Governance
- Insurance and Risk
- Community and Stakeholder
Use clear file names and maintain a living index for easy navigation.
Use Version Control Religiously
Number document versions clearly, archive old versions, and track changes. Investors trust disciplined document management.
Address Gaps Proactively
List known issues, provide draft documents with clear labels, and explain when missing files will be available. Transparency builds investor confidence.
The Technology That Makes This Possible
Purpose-built virtual data rooms for energy projects provide:
- Unlimited storage for large technical and environmental datasets
- Drag-and-drop folder uploads
- Granular permissions for different stakeholders
- Auto-numbering and indexing for professional presentation
- Activity tracking and Q&A management
- Multi-jurisdiction hosting to comply with data protection laws
For investors, features like advanced search, annotation tools, download controls, audit trails, and secure Excel viewing accelerate analysis and decision-making.
Real-World Impact: Speed as a Competitive Advantage
In renewable energy, speed matters:
- Offtake agreements have deadlines
- Equipment pricing fluctuates
- Subsidy eligibility windows are limited
- Competitors move quickly
Projects that can complete due diligence in six to eight weeks rather than four to six months have a real competitive advantage.
Beyond Financing: Ongoing Uses
A well-maintained project data room supports:
- Construction phase collaboration with EPC contractors
- Operations handover to asset managers
- Refinancing and portfolio sales
- Regulatory inspections
It becomes a permanent project infrastructure for the full operational life of 25–30 years.
The Bottom Line
The projects that secure financing quickly are not necessarily the best technically—they are the best-prepared. Developers who build comprehensive, well-organised data rooms from day one consistently outperform competitors.
Preparation is a competitive advantage in renewable energy markets where capital is scarce and timing windows are tight.
Ready to see how purpose-built energy project data rooms accelerate your financing? Start a free trial or book a demo to see how Projectfusion supports renewable energy developers across solar, wind, and green hydrogen projects.