Marketers , who purchase power from developers and resell it to consumers as a green power product. Consumers , who willingly pay a premium price for green power. The participants commonly are linked by a chain of transactions. The developer borrows money from the lender and sells power to the marketer. The marketer resells the power to consumers.
Variations are possible.
But the structure described here lender to developer to marketer to consumer will serve to illustrate the dynamics of price and price risk in the green power market. The dynamics of price and price risk are heavily influenced by the capital-intensive nature of renewable energy. Its capital intensity means that its cost is significantly affected by the terms on which lenders provide funds. 15 Low-cost power requires a reasonable interest rate and amortization term. To obtain a reasonable rate of interest, the developer must offer firm assurances that principal and interest will be paid.