Project finance is a type of structured finance that focuses on the future generated cash flows of a special purpose vehicle or project company, as the main source of debt repayment. The underlying assets, rights and interests arising from the project are being legally held as collateral security. The literature review of the Business Consultancy Project exhibits the distinctive characteristics of project finance, identifies its main differences from other types of financing, explores the criteria to achieve a successful project financing and elaborates on risk management. Project finance theory is applied in the case study of a photovoltaic power plant whereby financing was structured using the principles of project finance. The Business Consultancy Project concludes that the management of risk in project financing is of utmost importance and that proper identification, assessment, allocation, negotiation and management of risks can lead to successful project financings.