Financing your project
What is IEC 61,400 certification and why is it important?
Small turbines, i.e. with diameter less than 16m, need to meet MCS certification in order to be eligible for Feed-in-Tariffs. Large turbines are generally designed and certified to IEC 61,400 in order to access bank lending. However, there is currently no standard requirement for medium-sized turbines.
The IEC certification is a rigorous set of design and testing requirements. The Edition 3, which the Windflow 500 is certified to, is the most recent and has become increasingly tough as the industry has gained experience. There are four wind speed classes, 1 - 4, which define the annual mean wind speed for which the turbine is designed. There are two turbulence intensity levels, A and B, which define the turbulence level the turbine must cope with. Read more about the IEC wind classes here.
Many older turbines and some new ones have not been designed or certified to IEC 61,400. As a prospective purchaser you should ask why a turbine is not certified to IEC 61,400 Edition 3, as design criteria have toughened up significantly since some older model turbines were designed. IEC certification will increases lenders' confidence and the bankability for your project.
Which banks will lend you money for a Windflow?
Windflow turbines are easier to finance than most other turbines thanks to their full IEC certification and strong track record. They are pre-approved for finance by many major UK lenders, including: AMC Finance, Barclays, HSBC, RBS/NatWest and Peregrine Finance.
To date these lending agreements are on the basis of “secured loans”. This requires the lender to provide security, often in the form of assets such as buildings or property. They may also ask for the borrower to provide a proportion of up-front investment in the project and maintain a “debt service fund” of some months of interest as contingency e.g. in case of a low wind period.
Windflow UK and its Dealers can help provide your financer with information to help you secure finance for your project.
We are also working with some of our customers on the basis of Windflow investing in part of the project, with flexible buyout options. This has the benefit of avoiding the bank lending and due diligence processes and ensuring that the turbine manufacturer retains an interest in the success of the project. If you would be interested in such an arrangement please contact your Windflow Dealer or one of our UK staff.
Which insurance firms will insure your Windflow?
Most turbine owners will insure against a number of risk areas, including: Transit, Construction Operational and Third Party Liability. There are a number of insurers who will provide insurance for your Windflow turbines. Windflow and its Dealer can help to provide you with the relevant information.