1. Corporate balance sheet: Financing through equity contributions or corporate-guaranteed bridge facilities by senior debt providers (to pay expenses until due diligence of the limited recourse debt is completed) usually through the use of a special purpose vehicle.
2. Non-recourse project finance: Senior non-recourse debt is probably the largest source of capital for renewable energy projects. Senior limited debt is money lent by the banks to the project that is repaid to the bank exclusively from the assets of the project. If there is a default by the SPV, these senior debt providers will have a priority right to collect before any unsecured senior lenders or equity providers. The financial crisis in 2009 affected market liquidity, but now the market has rebounded and project finance is on the rise for energy projects in Mexico and elsewhere.
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