Written by Erikka Askeland
Investors behind two wind turbines in Aberdeenshire have lost out after the
companies behind them were put into administration.
The administrators, who are looking to sell the two standalone turbines to
new owners, cited the impact of cuts in subsidies for wind farm owners, the
expense of leasing land as well as technical “glitches” for the financial
failure of the ventures.
The two turbines are based on farms, one at Cuminestown, near Turriff, and
the other at Cairnie, near Huntly.
Both are operational, although not currently at full capacity due to
various “niggling issues” the administrators are working to resolve or have
already fixed, they said.
Formerly backed by the same group of Edinburgh-based investors, the Ewebrae
turbine at Cumniestown is ready for sale. However the sale of the
Sinsharnie turbine at Cairnie is more complicated as it is involved in a
joint venture with a local farmer who holds certain pre-emption rights, the
administrators said.
Andrew Watling and Carl Jackson, partners at business rescue and recovery
firm Quantuma, are now handling the affairs of RM Ewebrae and RM
Sinsharnie, which are named after the farms on which they are based.
Mr Watling said: “They are generating revenue but it has not been
sufficient historically to service the loans which were taken out to
finance their construction and commissioning.
“Ewebrae has previously been hampered by metering and signal issues which
the joint administrators have taken steps to rectify, by installing new
equipment.
“Sinsharnie is being undermined by software glitches which have led it to
cut out in strong winds. The joint administrators are working with their
retained maintenance contractor to ascertain what can be done to alleviate
and/or fully resolve this issue.”
Mr Watling said Quantuma had already received various expressions of
interest from prospective purchasers of the Ewebrae turbine.
He added: “Turbines are very expensive to build, set up, operate and
maintain, and therefore significant capital investment is required, up front.
“There may be legislative issues and for onshore wind farms there can be
land and lease related issues.
The cutting of subsidies in the UK has undoubtedly impacted the industry,
he said, with many potential operators underestimating the business
lifecycle and therefore finding themselves unable to finance their on-going
costs.
“Whether a project is under construction, or whether it is at a more mature
operating stage and producing revenue, there are still funding issues which
it is all too easy to underestimate,” he said.
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