Financial close
Also known as: FC
The point at which all project financing agreements are signed and funds committed. A milestone in BESS development — full construction typically cannot begin until financial close.
In energy storage
For a project-financed BESS, financial close requires executed EPC and O&M contracts, confirmed grid connection, an acceptable independent engineer report, and insurance coverage — lenders will not release funds until all conditions precedent are satisfied. Debt typically comprises 60–80% of total project cost, with repayment structured against forecast revenue over a 10–15 year tenor.
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