AIB and Enercon think small
Agreement aims to ease financial close burden on developers
Allied Irish Banks (AIB) and Enercon have sealed a framework agreement in a bid to ease the financial close burden on small and medium wind farm developers.
Revealed recently by the subscriber-only reNEWS, the tie-up aims to offer developers a streamlined due diligence process.
According to a statement this morning, AIB and Enercon believe they can save developers up to €50,000 in transaction costs under the plan.
The scheme has been put in place in an effort to reduce the level of legal and technical advisory fees connected to raising capital.
AIB head of business banking Ken Burke said the development of small and medium sized projects has been “constrained” in recent years, partly due to “high transactional costs”.
“Projects with fewer than four turbines sometimes have a tough time getting finance and the due diligence fees can be disproportionately high,” said Burke.
“This challenge can lead to small developers selling to the larger players despite years of hard work getting planning permission and grid connection in place.”
He added: “This agreement between AIB and Enercon will help reduce the costs for the smaller developer. We are championing the smaller wind farm developers by giving them a better chance of getting their projects off the ground.”
Enercon head of sales for Northern Europe Robin Borgert said the deal is a “big step forward” for the small and medium sector.
Image: Enercon E126 wind turbine (Wikimedia Commons)