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Due diligence
Certainty, transparent and effective approach, value drivers, cost drivers, risks and controls
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Certainty with KEMA
The development or acquisition of a wind farm requires a substantial investment. As an investor or financier interested in reducing risks (technical and financial) to the bare minimum, KEMA offers independent, dedicated consultancy to help manage the risks by providing a solid basis for the investment decision or project finance.
KEMA acts as an Independent Engineer for Banks, Energy Companies and other related (co-)financing parties. We have vast experience in international due diligence projects concerning wind energy, combined heat and power projects, energy distribution and waste to energy projects. We have acted for blue chip banks (Rabobank, ABN AMRO, ING Barings, World Bank), major utilities and wind farm owners.
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Transparant and effective approach
KEMA addresses the three key factors that determine the
feasibility of a wind farm and that are necessary to underwrite a
due diligence exercise.
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Value drivers
Wind farm energy yield
The main source of income is the wind farm energy yield. Unfortunately, this is also the largest source of uncertainty within the financial projections. KEMA’s review of the energy yield predictions includes an assessment of- the wind turbine site
- quality of measured data
- meteorological reference stations
- (complex) terrain and roughness modelling
- correlation procedures and the uncertainty limits in the energy yield prediction.
Our team has more than 20 years of experience in wind resource studies and uses state-of-the-art tools.
Value of wind power
Our experience in the energy business makes us the ideal partner for a contract review of- Power Purchase Agreements
- Tax Credits and Subsidy schemes
- Green Premium Pricing contracts, and
- Renewable Portfolio Standards.
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Cost drivers
The project costs are related to the capital costs of- investments in the acquisition of the wind turbines and the construction of the wind farm
- land use
- grid connection
- project staff
Moreover, the operation and maintenance costs, related to the type of (full) service contract and performance guarantees, are reviewed and evaluated.
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Risks & controls
Permits
The main obstacle for realizing wind farms is in gaining consent. KEMA's experts review the complex of necessary permits, including:- Environmental impact statements
- Environmental and planning permits
- Construction permits, and
- Future regulatory and market developments
Warranties
Modern wind turbines are reliable machines if they are operated according to the design specifications. A life time assessment of the wind turbines reveals whether this is the case. This includes:- Turbulence and wind shear conditions (complex terrain and wind farm induced effects)
- compliance with applicable safety certificates
- manufacturer and EPC O&M contracts and warranties
For more information please contact us.
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