A “difficult” problem to be resolved…<\/strong>\n<\/p>\n\n\tLet’s discuss a bit about a major problem that I encounter, during my activity in the Romanian Green Energy sector. The market is full of projects indeed, but in 80% of the cases…\n<\/p>\n
\n\t• People appear and disappear, like ghosts.\n<\/p>\n
\n\t• Many say “white” and when you search for the truth, you discover it’s “black”.\n<\/p>\n
\n\t• Almost everyone says “turnkey” project and when you ask for the papers, the “key is still under construction and cannot be turned”.\n<\/p>\n
\n\t• You ask to verify the documents and too many owners refuse, using plenty of different excuses.\n<\/p>\n
\n\t• There is a kind of attitude that defines people who “are the only ones in the world with oil and they behave like small gods”.\n<\/p>\n
\n\t• Adding to the picture all kinds of “involved” people, who usually don’t know how to do business and simply want money “fast and easy”, helps us realize that serious owners are not always easy to come by.\n<\/p>\n
\n\tAll these remind to me of the behavior of many owners during the Real Estate explosion. They felt like “small gods” and we all know what happened in the end.\n<\/p>\n
\n\tBut investors are not desperate to buy. On the contrary…<\/strong>\n<\/p>\n\n\tSo while 80% of project owners behave like this, there is no sign on the market that there are desperate clients out there, who search to buy “whatever is for sale”. On the contrary…\n<\/p>\n
\n\t• Due to the severe economic crisis, almost all investors are careful.\n<\/p>\n
\n\t• There is not such a thing as “an investor who will buy the project at any price, at any stage and without a detailed and cautious due diligence”.\n<\/p>\n
\n\t• People do not like to risk.\n<\/p>\n
\n\t• Investors are aware of the “bottleneck” situation that exists in the Romanian market today. Projects with a cumulated capacity of over 20.000 MW are on the market nowadays, while just 2.000 MW can still be part of the subvention scheme that Romania has allocated. More or less 1.000 MW are constructed or will be constructed in the following months.\n<\/p>\n
\n\t• So there is a real interest indeed, but nothing like the period before the crisis.\n<\/p>\n
\n\tMission Impossible 1: How to explain to many Green Energy project owners that they risk losing their investment?<\/strong>\n<\/p>\n\n\tRight now a licensed, “turnkey” project for Green Energy in Romania has a big value indeed. But this is not a game, where you can buy and sell at double price, like investors did with Real Estate in the previous decade. Here the value is created only by constructing the project. And when 20.000 MW are on the market and only about 2.000 can still receive subventions, isn’t it clear that many people “are playing with fire” and they risk to remain with an un-sold project, in a market that will not provide any more green certificates?\n<\/p>\n
\n\tYou know… each person is free to do whatever he likes. But on the other hand all the Real Estate owners who are “crying” today keep on saying that “at that time no one came to tell me the truth and convince me to get back to reality”. But how can we now explain to many Green Energy project owners that they risk losing their investment? They seem to be blind by the interest of some clients and they forget (again…) the basic rules of business.\n<\/p>\n
\n\tHonesty, transparency and seriousness, the first 3 steps for a successful transaction<\/strong>\n<\/p>\n\n\tDuring 2011 we participated in the signing of many transactions for Green Energy projects in Romania, with the latest one having been signed last week. We dealt with all kinds of problems, but I am happy that I met many interesting people and I created many new trustworthy business partners.\n<\/p>\n
\n\tAfter all these transactions, I think that we can achieve even more by working like this:<\/strong>\n<\/p>\n\n\t· No one forces you to sell with a low price, you are the one who decides after all. But…\n<\/p>\n
\n\t· If you really want to sell, I suggest you to start with honesty, describing the real situation of the project.\n<\/p>\n
\n\t· Also, try to be transparent. Everything will be controlled before you get the money, so there is no reason to create stories etc.\n<\/p>\n
\n\t· Try to verify that the client is real. Like this you will not treat all clients in the same way.\n<\/p>\n
\n\t· Collaborate \/ trust specialists. Good lawyers, consultants and other specialists should be by your side every step of the way.\n<\/p>\n
\n\t· Being serious, honest and transparent is the surest path to a successful transaction.\n<\/p>\n
\n\tIn 2011, I encountered problems in the 80% of the situations, while the remaining 20% were very professional. Is it “mission impossible” to explain to the rest of the project owners that they risk a lot by “playing games”? I hope not.\n<\/p>\n
\n\tWhat is your opinion?<\/p>\n","protected":false},"excerpt":{"rendered":"
1. How to explain to many Green Energy project owners that they risk losing their investment? This week I will go to the cinema, no matter what happens. “Mission Impossible” is one of my favorite series (Batman and James Bond will come in 2012) and if you didn’t watch the trailer, you can […]<\/p>\n","protected":false},"author":3,"featured_media":59454,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[216,17,236],"tags":[],"_links":{"self":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/12529"}],"collection":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/comments?post=12529"}],"version-history":[{"count":0,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/posts\/12529\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media\/59454"}],"wp:attachment":[{"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/media?parent=12529"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/categories?post=12529"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/www.iliaspapageorgiadis.ro\/english\/wp-json\/wp\/v2\/tags?post=12529"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}