The wind power industry has boomed with an average growth rate of 28% per year the last 15 years (GWEC, 2012). With an expected life-span of about 20 years, the first commercial wind turbines are gradually reaching their end-of-life and a vast number of turbines will do so during the coming decades. As they do, the turbines must be dismantled, removed and recycled and the sites rehabilitated (if no new turbines are replacing them). The waste management of end-of-life turbines constitute a significant cost and it is often unclear who is responsible for paying the bill. To avoid having the costs being borne by society, legislators are increasingly demanding that wind power companies provide financial guarantees that cover the future waste-management of their turbines.
In France, new legislation came into place in 2011 that require wind power companies to provide financial guarantees of at least €50,000 per MW for offshore turbines. In Sweden, different areas of the US and other countries, local authorities have the right to demand the appropriate financial guarantees to suit the local conditions.
EIS helps wind power companies to set up appropriate financial guarantees to cover the future waste-management costs. Each company is set up as a protected cell within the PCC structure, allowing EIS to provide low-risk cost-effective solutions tailored to each company’s needs. Some of the advantages of EIS’ financial guarantees for wind power companies are listed below:
- EIS PCC Ltd. provides the most cost-effective and low-risk alternative on the market
- EIS PCC Ltd. can help wind power companies foresee otherwise “unexpected” costs and reduces the economic risk related to turbine dismantling and site rehabilitation
- The financial guarantee provided by EIS PCC Ltd. ensures that money is kept for future waste-management costs, even in the event of a wind power company’s bankruptcy. This ensures that society will not have to bear the costs which helps to gain public acceptance, improve corporate reputation and boost competitiveness
- The insurance provided by EIS PCC Ltd. is tied to the turbines, giving them additional market value
- The financial guarantee provided by EIS PCC Ltd. facilitates the tender and licensing process
If your company is in need of a financial guarantee, other insurance solution or just curious about the services that we offer – do not hesitate to contact us.