Practical difficulties in raising finance for wind farms

摘要

The 15 year term of NFFO3 will significantly alter the financial structures of wind farm projects. Senior debt terms will extend to 10-12 years and returns are unlikely to reach the levels required by venture capitalists. Returns to equityinvestors can be enhanced by debt and equity gearing techniques, for example the introduction of preference shares. Two investment schemes and an additional capital gains relief which were introduced in the November 1993 budget could benefit potentialinvestors in wind farms.