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Delegates are invited to meet and discuss with the poster presenters during the poster presentation sessions between 10:30-11:30 and 16:00-17:00 on Thursday, 19 November 2015.

Lead Session Chair:
Stephan Barth, ForWind - Center for Wind Energy Research, Germany
Sibylle Weiler SK & Partner, France
Co-authors:
Claire BRETHEAU (1) F Sibylle WEILER (1) Karlheinz RABENSCHLAG (1)
(1) SK & Partner, Paris, France

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Poster

Poster Download poster (7.85 MB)

Abstract

Challenges of the direct marketing model for wind farm project financing

Introduction

The EU Guidelines (2014/C 200/01) published on 28 June 2014 have for consequences that EU Countries have or are currently revising the legal framework of the feed-in tariff scheme to sustain renewable energy. The EU Guidelines are notably in favor of a price structure comprised of a market price and a premium and have been implemented in Germany by the Erneuerbare – Energien- Gesetz (EEG 2014) dated 21 July 2014 in force since August 2014. Likewise in France, the draft of the Loi de transition énergétique pour la croissance verte is currently under discussion before the French parliament and should be passed before the end of the year.

Approach

While the direct sale of electricity produced by renewable energy sources on the wholesale market is transposed in the different EU Member States, project developers and owners of wind farms have or will have to adapt to a new remuneration scheme and find solutions with lending banks to secure non-recourse project financing.

Main body of abstract

Wind farm developers/owners will be facing new constraints in the structuring of their wind farm projects, in particular:
• Balance perimeter and applicable rules of the relevant network operators;
• Sale of the power output on the wholesale electricity market through energy stock exchanges (for instance, the European Power Exchange “EPEX”) or through over-the-counter (OTC) transactions including but not limited to European Federation of Energy Traders (EFET) framework agreements and various types of agreements that are/could be implemented with owners of wind farms, for example:
o market access agreements;
o power purchase agreements, terms are agreed on a case by case basis;
o agreements with aggregators;
• Particularity of renewable energy for sale on the wholesale markets compared to other energy sources;
• Importance of local constraints (ex. lower levels of liquidity in the French electricity market as compared to the German electricity market).


Conclusion

In this respect, the structuring of wind farm projects in view of a sale of their production on the wholesale market could increase the risk assessment of lenders providing for long-term project financing.


Learning objectives
This presentation will outline the possible legal structure of wind farm projects in the framework of the direct sale of electricity on the market. The presentation will focus on the French and German market and on the provisions to be included in project contracts and in financing documentation to enable the long-term debt financing of wind farms. Our French and German experience will enable a comparison with the situation in other EU countries.