Due diligence for Wheatrig Wind Farm

Due diligence for Wheatrig Wind Farm 2017-05-19T06:22:09+00:00

Project Description

Our due diligence work for Downing LLP on the purchase of Wheatrig Wind Farm allowed Downing to be sure of the condition and value of the assets they were purchasing. By forecasting the expected annual energy production (AEP) for the next 10 years, we also gave Downing assurance on their likely future revenue flows from the purchase. The acquisition proceeded to completion in April 2017.

Downing LLP was considering purchasing Wheatrig Wind Farm comprising two WTG 250 wind turbines, near Kilmaurs, Ayrshire UK from the current owners who developed the site.

The turbines were installed and commissioned by Hallmark Power, acting as agents for the wind turbine manufacturer Wind Technik Nord (WTN) in November 2013.

Before finalising any purchase, Downing needed to be sure that the development was in good shape and the expected annual energy production (AEP) and hence revenue would be in line with vendor claims.

We carried out pre-purchase technical due diligence on the acquisition of the wind farm. This included due diligence on the wind turbine technology, site development including legals, planning, grid connection, subsidy schemes, installation, commissioning and servicing agreements, as well as estimates of  P50 and P90 AEP.

Our due diligence work covered credit rating of the turbine suppliers, compliance to planning conditions, examination of installation and commissioning records and a thorough analysis of maintenance records. Component level reviews for each turbine examined past performance and likely component life based on general reliability and specific maintenance records.

Our AEP assessments included forecasts of the likely 10 years by modelling both forecast data and actual production over the operating period.

“The due diligence BVGA carried out was extremely helpful for our purchase of Wheatrig. Throughout the project, they were responsive, reliable and thorough. Each individual involved in project showed great knowledge, attention to detail and practicality while delivering the work with a very quick turnaround”

Ben Richmond, Investment Executive, Downing LLP