The management of CBWP has currently refined its approach for financing from traditional sources of capital (bank financing) , the majority of which are mandated to have "power purchase agreements" PPAs from public utilities or contractual off-takes in place, to creating joint ventures with suppliers, financiers and construction companies, to create value from resources idle in the current market place.
The strategy to utilize idle wind turbines in joint ventures is a benefit for all involved. These wind idle turbines and construction equipment are the result of the policy of financial institutions to have PPAs, or contractual off-takes, with little regard to the necessity of the actual ability to inject the power into the grid without substantial upgrades to the system. Future financing efforts will benefit when CBWP has revenues for power sold through open access transmission tariffs (OATT).
Turbine financiers are open to the idea of placing wind turbines, either repossessed or in default, on CPWP’s wind farm sites contingent on construction financing as the next stage of development. CBWP management believes that with the grid interconnect agreements in place at construction ready locations, value can be created quickly for all concerned.
Independent wind energy developers like CBWP, with grid interconnect agreements in place while retaining the RECs (Renewable Energy Credit), will benefit the company as a Federal energy polices develop.
The current environment in the US market place is positive for alternative energy, and our company is dedicated to wind energy generation as an independent power producer.