There are several reasons why capital funding based only on project viability is difficult to secure:

  • refurbished turbines have limited track record to gauge risk
  • good long-term Power Purchase Agreements (PPA) are not available
  • short term PPAs are considered higher risk
  • keeping the borrowing amount low, reduces lender interest.

Securing income will likely be through a PPA. This is because:

  • short term PPA contracts often offer the best tariffs (6 months to 2 years)
  • the Smart Export Guarantee is likely to be for a lower tariff
  • Contracts for Difference tariffs are likely to be lower than a PPA
  • direct or sleeved supply to a third party usually increases costs.