Financing. Siting. Grid requirements. Local policy and regulations. You need to consider a wide range of crucial factors when you invest in a wind power plant. And not just at the planning stage, but for the whole lifecycle of the project.
1. Financing
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 smart to choose Vestas. We’re a global organisation built on more than 30 years’ experience in the wind industry, with more than 51,000 turbines installed worldwide. In the eyes of 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. Although we do not offer financing ourselves, we can capitalise on our long-standing relationships with banks to help you bridge any potential ‘finance gap.' 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. To guard against uncertainty, the financing of a project often depends on the turbine supplier offering schemes and committed services that add 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.
2. Grid Compliance
Support for grid code compliance
Grid codes specify the electrical performance and documentation that a wind power plant needs to gain connection to a grid. Demonstrating grid code compliance and achieving a grid connection agreement are therefore essential milestones in the development of a wind power plant project. This is where Vestas comes in.
How can Vestas help you connect to the grid?
We provide support in assessing and optimising the overall electrical configuration and performance of a wind power plant, so that the increasingly challenging requirements of grid connection are met.
We perform feasibility and transmission system impact studies, and we support the transmission system operators (TSO) with regards to grid connection agreements. We can also design and procure the most appropriate plant and grid connection equipment.
We have a strong track record with extensive experience in:
- Developing and verifying power system simulation models for system impact studies
- Validating stationary and dynamic performance on site
- Designing wind power plant electrical infrastructure
- Early prediction of performance and grid code compliance
- Plant solutions involving advanced dynamic reactive power compensation solutions, and connection to weak networks
- Grid code compliance testing
How is wind energy integrated in the grid?
Wind energy represents the most competitive renewable energy source and many countries have set ambitious targets for wind energy.
Renewable energy sources, like wind energy, create new challenges for electricity systems in terms of planning and operation. In addition, many transmission systems were constructed back in the 1970s and require substantial, technical updates and expansion to cope with the increasing percentage of renewable energy.
Vestas works actively to improve conditions related to system integration of wind energy. The aim is to ensure a grid well-suited for a non-fossil fuel future. Standardisation of grid codes, procedures, certification and documentation are examples of our efforts in this field.