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Case study: UK Investor in the Czech renewables market

We were working with a foreign investor looking to enter the Czech renewables market. To do so effectively, they needed to understand the local political and regulatory environment impacting the sector. We began by mapping the political and regulatory risks, which could impact returns. Following the investment, we provided the client with non-financial due diligence services. Thanks to our services, the client was able to adapt their plans to make a more effective and secure investment, while taking advantage of the opportunity presented by the political and regulatory environments.



Client

An independent investment fund from the United Kingdom specialising in ethical technological investments with a positive social impact. They choose to avoid capital from non-democratic countries.


Task

Map the political and regulatory risks in the Czech renewables sector. Asses the nonfinancial and reputational risks related to potential partners and stakeholders.


The solution

Regular monthly reports

We presented monthly tailor-made reports on the political risks in the Czech renewables sector consisting of three sections:

  • A description of the political environment and its impact on renewable energy. This involved an analysis of the party spectrum, attitudes towards the renewables sector, legislative initiatives, and plans.

  • An analysis of the regulatory developments and their impacts on investments into renewables. This involved tracking national and European legislation changes and their effects on investment conditions.

  • Mapping stakeholders and their role in the renewables sector. This involved identifying key players in the private, public and political sectors, their interests, motivations, influence, and relations to our client.


Consultations reacting to current developments

We followed up with ad hoc consultations about related risks and circumstances, which surfaced during the investment process. The consultations were brief, flexible, and responsive to current developments. We also provided non-financial due diligence on partners and persons connected to the investment. These checks involved checking the integrity, reputation, histories, and possible risks related to the potential partners and persons the client was in contact with.



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