Learning From Round OneFinance - Overview

Fintan Whelan

Corporate Finance Manager

Airtricity

Ground To Cover

• Round One Constraints

• Impact on Projects

• Funding Challenge

• Partnership Approach

Site SelectionFinancial Qualifications

Number of Turbines

Decommissioning Length of Lease PeriodImpact on

Risk/Uncertainty&

Bankability

Round One Issues

Project Uncertainties

Revenues : ROCs, Warranties

Costs : Premium to Build & to Operate

Risks:Insure, Share or Manage

Structure ComparisonOnShore / OffShore

80%

20%

50%

50%

50%

20%

30%

0%

20%

40%

60%

80%

100%

OnShore Offshore

Senior Debt Grants Equity

Risk Allocation

• Transfer to those set up to take them

• Government has role for uninsurables

• Share them among Community of Interests

• Manage them within Project

Community of Interests

CrownEstates

Govt

Developers TurbineMakers

Banks Insurers

OffTakersContractors

Enlightened self interest will kick start the industry

Reduced Risk or Enhanced Rewards for early participation

Investors

Route to Success

• Reduce Uncertainty

• Establish Track Record

• Draw on Similar Experiences

• Educate Funders

• Partnership to share risks