- Published: 10 October 2005 10 October 2005
Over the past few years, it has become increasingly difficult to finance German wind farms. This is partially because of the instruments applied. ‘New methods of finance, such as leasing models, are still not the norm in Germany,’ explains Frank Trauboth, Chairman of the International Project Realization committee at the German Federal Wind Power Association. One example of the new routes being taken is the Roth wind farm, which Nordex AG constructed in the North Eifel region in Germany with funding supplied by a leasing bank. A leasing company provided the capital for the turnkey completion of the wind farm, which comprises a total of 15 turbines with a nominal output of 22.5MW. The equity component was financed by Babcock & Brown, Nordex AG’s final customer. The overall project had a value of around € 25 million. ‘Following the favourable experience gained with lease financing for smallish projects outside Germany, the Roth wind farm is a model for future project financing in Germany for us,’ explains Thomas Richterich, CEO of Nordex AG. The leasing bank also wants to extend this business, particularly in Eastern Europe. However, what is important is that the pilot project proves to be economically viable. Babcock & Brown has entered into a full-service maintenance contract with Nordex.