Scottish Wind Farm Development Opportunity Press F5 for Full Screen View
Scotland... is the Wind Energy Capital of The World !
Scottish Water... a major publicly owned company... has given a Windrush client a certain... green light !
... to develop as many wind turbines on all it’s lands as possible !
Scottish Water assets include... Over 47,000 kilometers of water pipes 50,000 kilometers of sewer pipes 1,837 waste water treatment works 297 water treatment works Pumping stations Sludge treatment centres reservoirs
... what is the scale of the Opportunity ?
500 turbines on Scottish Water Land...
... PLUS...
... many more turbines on neighbouring land to Scottish Water Land...
In exchange for your investment my client would give YOUR COMPANY a share of the TOTAL revenue-take from the Opportunity !
... what are those revenues... and how big are they... ?
The Sources of Revenue... 1.The Generation Tariff (or ROCs) 2.The Export Tariff 3.We will sell electricity TO SCOTTISH WATER and by Bespoke Power Purchase Agreements to other Corporate consumers 4.Carbon Credits
Quantifying The Opportunity... See spreadsheetspreadsheet
What does... (NPV – Original Investment) represent ? NPV – Original Investment = ? spreadsheet
It is the value of... spreadsheet
your decision
How much of an investment would we need and how would we deploy it ?
£50,000,000
We estimate that there is scope for about 1,000 turbines in the opportunity in total 500 on Lands owned by Scottish Water, and 500 on Adjacent Lands owned by neighbour farmers
The cost of the turbines would be about £1,000,000 each fully installed (operational)
We would start by constructing 50 turbines with the £50,000,000
Then we would sell outright the rights to the revenues from these operational turbines and re-deploy the sale proceeds into the development of a second batch
We reckon that it would take only4 such cycles to clock-up a total mileage of 1,000 turbines starting out with just 50 turbines in the first cycle because of exponential growth
The mathematical model for this is the equation for the sum of a geometric series... S n = a.(r n -1)/(r-1)
where... S n = the sum of n terms of the geometric series (1,000 turbines in total)
a, is the first term in the series (50 turbines in the first stage)
r, is the common ratio between the terms (e.g. the number of turbines constructed in the second stage divided by the number constructed in the first)
n, is the number of terms in the series (in our case that would be the number of times we would have to re-cycle the original investment in order to harvest the entire opportunity of 1,000 turbines)
We estimate that the capital value of a brand new turbine with a 20-year life ahead of it to be about 3.5 times it’s construction cost
But with UK Corporation Tax of 25% this figure goes down to and this is ‘r’ in the equation
So the number of turbines constructed in each stage would look like
... so, I have to ask you the big question...
Can I have the investment from you for my client ?
Safe and Steady Deployment of The Investment Suggestion... Set-up an ‘Asset Reserve’ Bank Account (Escrow Account) for the funds in YOUR COMPANY’s name Use a RICS Chartered Surveyor to value/approve progressive drawdowns of funds from Escrow as required
Windrush & YOUR COMPANY Partners in Renewable Energy Joint Venture