Renewable energy has affected positively to the growth global economy. The construction of wind farm projects is gaining ground. Financing and Loans for Wind Farm needs multi-billion dollar investments. China, India and the United States continue to lead the wind power sector. More than 60 GW of installed capacity was added during 2019 alone. This is motivated by the need to reduce dependence on fossil fuels and minimize the carbon dioxide emissions associated with energy production.
Reports has it that European wind energy investments totaled € 52 billion in 2019, with the UK, US, Germany and France remaining the industry leaders. Despite impressive reserves of oil and natural gas, current hydrocarbon exporting countries such as Russia and the UAE also need to develop renewable energy sources to ensure a sustainable future.
Financing and loans for wind farm projects is becoming a serious issue, requiring the use of combined financial models.
Given the high initial investment, ranging from 1 million to over 3 million euros per megawatt of installed capacity, attracting low-cost financing is becoming critical to the viability of wind energy.
Viola Funding Limited promotes the development of energy projects around the world. Together with our high-net-worth Angel investors, we are always ready to offer a long term loan and financing for the construction of your facility. We not only invest, but also develop individual financial solutions for each client. We also provide comprehensive engineering services, including engineering design, procurement and delivery of wind turbines and electrical equipment, construction and installation, operation and maintenance, repair and modernization of wind power plants.
Means of securing financing loans and for wind farm projects
The question here is how to obtain loans and financing for a wind farm projects. This should be the concern of any person/or companies before considering starting renewable energy production. The search for sources of funding for the construction of wind farms begins with a detailed economic study of the project. After conducting a comprehensive study, we can determine the best ways to implement a specific project. This stage includes an analysis of the technical, economic and legal part of the project. At the next stage of the project implementation, a specific action plan is developed.
The main Source of loans financing for a wind power project remains as follows:
•External financing. The project requires attracting investments and bank lending. In this case, it is necessary to decide on the types of financing available in particular market.
•Internal financing. The project is fully financed from the initiator’s own funds, without attracting additional borrowings.
•Combined financing. This option assumes a combination of own and borrowed funds in the form of various financial models. The main external financing options that can be used for wind energy projects will be listed below ;
One of the most well-known models for financing wind energy projects is credit lines or loans. Usually financial institutions require a company to have a certain credit history in order to obtain a large loan on favorable terms. The credit line is provided for a specific period, but it can be renewable and expandable. The bank provides the client with an account from which he can receive funds within the established limit. The client pays a percentage calculated based on the funds actually used.
Financing and loans of wind farm construction can be carried out through leasing instruments. Leasing is a long-term lease of an energy facility with the right to subsequently renew the contract or buy out the asset after a certain period.
The use of Financial instruments for wind farm Projects
Financing and loans for a wind farm may come a time when a company’s financial health could be in danger by the implementation of several expensive projects. In these cases, the solution may be to fund each project through a separate legal entity, SPV. A project company is created specifically for the implementation of a specific project.
A set of financial instruments usually includes several financial mechanisms used to attract and effectively use funds within a project. The most important instrument in wind farm project finance is the project company, also known as SPV (Special Purpose Vehicle). The need to create a dedicated structure has arisen as a result of the growing demands on energy projects.
Basic principles of loans and Financing a Wind farm project
Loan is a financing mechanism for large-scale projects based on the ability of the future enterprise to generate cash flows that allow it to pay off debts and provide profit for all participants. These are predominantly reliable and highly efficient projects using mature and well-established technologies.
Project finance is widely used in the telecommunications sector, but it is now gaining momentum in sectors such as power and infrastructure, allowing large investments, historically associated with public finance, to be transferred to the private sector.
Long- term loans and financing for wind power projects around the world: our core services
We will help your company to find loans for wind farm energy projects anywhere in the world. The demand for project financing for the construction of wind farms around the world is growing. Viola Funding Limited is ready to act as your financial advisor and reliable partner in the field of investment lending.
We offer assistance in obtaining financing and loans for the construction of wind farms in the amount of up to 90% of the project cost. Our company has experience in implementing dozens of successful investment projects and relies on a team of highly qualified specialists in the fields of finance, banking, project management and law. We guarantee our clients professional advice and reliable financing models for each project.
Contact us to learn more about wind farm project finance services.