Final Investment Decision (FID)

In the energy project context, FID stands for “Final Investment Decision”. It’s basically the point at which everything is in place for a project to say “yes, let’s go ahead”. It’s when the project execution phase begins and the big money starts being spent on project construction (i.e. often when an EPC contractor gets to work). To reach FID, a project has to have a wide range of contracts and permits in place which have allowed it to agree its investment structure and terms with its finance providers (both debt and equity).