Keys to Wind Park Bankability

Keys to Wind Park Bankability
Vaasa Wind Exchange & Solar 2015
Dr. Hans Bergmann
Managing Partner at Bergmann Attorneys at Law
17.3.2015
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Our firm
Industry-focused Legal Solutions
Advising international
businesses in Finland
since 1992
• Focus on key sectors
•
– Construction
– Energy
– Infrastructure
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Energy and Environment practice
•
Special focus on renewable energy and
cleantech
› Bergmann Attorneys at Law has advised
international investors and wind power operators
in relation to (potential) acquisitions of wind
parks of more than 400 MW in Finland.
› In addition, we assist our clients in the
development and construction stages of wind
park projects.
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Bankability
The Finnish wind power market
Pros
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New market with great
potential and opportunities
Feed-in tariff
Economically and politically
stable country
Government active in taking
measures to promote wind
energy and removing
obstacles
Offshore demonstration
project: know-how
Cons
Challenges in permitting
practice and neighborhood
acceptance
• Limited know-how affects
project development quality
and qualification for project
finance
• Seller’s market
• Sales processes started early in
the development process,
while many development risks
still open
•
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Feed-in tariff
•
Guaranteed target price for production
– until 2015: EUR 105.30 / MWh
– from 2016: EUR 83.50 / MWh
Paid for 12 years
• Granted only up to total capacity of 2,500 MVA
• Reservation
•
– Originally no advance reservation
– Now quota reservation possible
– Reservation valid for two years
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Changes in the investment climate
Cumulative capacity in FIT scheme
2 500,00
2 000,00
1 500,00
1 090,00
MVA in scheme
Incl. reservations
1 000,00
840,00
710,00
500,00
380,00
190,00
20,00
0,00
2011
•
2012
2013
2014
until now
Future subsidy scheme?
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Key elements of bankability
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Quality of the project
Finance aspects
Project parties and contractual arrangements
Due diligence
Security package
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Due Diligence
•
Key objects:
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Permits and statements secured for construction and operation
Grid connection and capacity reservation
Sufficiency of land rights
Project participants
Coordination of project contracts to secure project implementation
Implementation of results into project agreements
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Security package
•
Key security interests:
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Charge over the shares of the project company
Charges over project company's assets (‘floating charge’)
Charge over project accounts
Charge over land/leaseholds
Assignment of project contracts and rights
Assignment of insurances
Direct agreements between lenders and key
contractual partners (e.g. O&M)
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Thank you!
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Bergmann Attorneys at Law
Eteläranta 4 B 9
00130 Helsinki
Finland
Tel. +358 9 6962 070
Fax +358 9 6962 0710
[email protected]