This case explores how energy project financing has evolved in terms of risks accepted by lenders.  Borrowers who employ project financing usually are attracted by the loan being “non-recourse” to project sponsors.  This means that the sponsors, who provide the equity financing for a venture, can expect the project loan to be repaid solely from the project’s cash flows and/or assets.  Such “fully non-recourse” loans enable sponsors to limit their financial exposure to a project; they also allow sponsors to evaluate project economics on a Return on Equity basis rather than using Return on Total Capital.