Due Diligence on Wind Farm Assets

Abstract

The purpose of this article is to assess the importance and the procedure of applying due diligence as a measure to evaluate financially, technically and legally a wind farm asset. When an investor is interested in acquiring a certain asset or obtaining a loan for development of a project, he needs to be aware of the risks, costs and benefits that might be laying under a hypothetically healthy investment. This is the reason why, especially when the funds are sourced from a bank or a financial institution, due diligence might be held from an independent third party with the scope of providing subjective judgement. Many consultancy companies that take action in the development, construction and operations phase of wind farm assets provide this kind of service as well and usually are assigned to deliver the due diligence report. The more aspects this process covers, the more secure can the finance and loan conditions be considered since the quality and amount of information processed is enhanced leading to wise decision making.