Riscs

The most important risks in a wind turbine investment relate first of all to how much electricity the turbine can produce and second of all to what the operating costs are.

When assessing the risk that an investor takes on, on should examine whether the assumptions that form the basis for the budget, are realistic. We calculate all our projects, as if we were investors ourselves. This means that we use wind reports or indexes from the Danish EMD (Energi & Miljødata A/S) to determine a realistic production of electricity for the budget. Furthermore, conclude full-service agreements with the manufactureres, and if that is not possible, we include financial provisions in the budget for larger repairs or replacement in accordance with the recommendations from the Danish Wind Turbine Owners’ Association. In addition we always use the minimum feed-in tariffs guaranteed by the EEG-legislation. We put together realistic and somewhat conservative budgets, where potential upsides such as increasing electricity prices etc. are for the benefit of the investors.

Most of our wind turbine projects are sold to investors who know us from previous investments or who have heard of us from current investors. We take that as evidence that we have succeeded with our strategy of only offering credible and serious wind turbine investments in a market, where many golddiggers are trying to make a quick profit.

Before deciding to invest in a wind turbine, we always recommend that each investor seeks specific advice with their own auditor and lawyer to get a clear understanding of the financial, legal and taxable consequences. At the same time, the investor should review the budget and the budget assumptions with relevant advisors. We are always happy to participate in such meetings.