One of the first steps in planning a wind power plant is to obtain financing for the project.
When banks consider the financing of a wind power project, they tend to focus on the underlying credit-worthiness of the project participants. That’s why it’s good to choose Vestas. We’re a global organisation built on more than 30 years’ experience in the wind industry, with over 48,000 turbines installed worldwide. In the eyes of your lenders and investors, that makes us a reliable and trustworthy partner for your wind power project. We can contribute to the success of your financing by providing business case certainty through our proven technology and product reliability.
Banks prefer wind turbine suppliers that have a strong financial platform, as they look at how the supplier will meet potential warranty problems and honour availability guarantees. Again, partnering with Vestas will be a benefit. We can capitalise on our long-standing relationships with banks to help you bridge any potential ‘finance gap’ (although we do not offer finance ourselves). For instance, in the case of multilateral finance, we have a strong track record of working with EKF, the Danish Export Credit Agency, to facilitate insurance cover and finance for wind power projects.
Securing project finance
Project finance is expected to become increasingly important for bigger wind power projects. In today’s economic climate, banks and investors care about the return on their investment, as well as its certainty over the typical 20-year investment lifespan of a wind power plant. So to guard against uncertainty, the financing of a project often depends on the turbine supplier offering schemes and committed services that adds comfort and security during both the construction and operation phases of the project.
In the case of the construction phase, project finance can depend on the turbine supplier accepting turnkey responsibility. This is something that Vestas can take on. We can ensure that quality is consistent throughout delivery, thanks to our long-established relationships with reliable sub-contractors. And when it comes to the operation phase, we offer the high quality service and availability agreements, for example AOM 4000. These offerings provide a significant contribution to the bank's requirements for protection against downside risks, and strongly support creating business case certainty for investors.
It’s a solid combination of benefits that make Vestas the ideal partner for easing the finance process for a wind power project.