As part of this focus, the two wind power companies have recently concluded a negotiation under which Windflow has sold much of its stock of spare parts for the Te Rere Hau wind farm to NZ Windfarms. This has helped increase the liquidity in Windflow’s balance sheet, and provides a stock of spares to complement the turbine assets held by NZ Windfarms.
As part of these negotiations Windflow has also established a subsidiary service company, Te Rere Hau Services Ltd (TSL), from its existing operation to provide O&M support services at TRH. NZ Windfarms has been granted an option to take over TSL in the event of Windflow becoming insolvent (and various other events). Under this arrangement NZ Windfarms will also be granted various securities over TSL, and other WTL’s assets including a licence in favour of TSL to use WTL’s drawings, specifications and other documents for the purpose of ensuring it can maintain Te Rere Hau in the long term.
The wind farm, based on the windy Tararua ranges, has been performing at world class levels achieving over 96% availability in 2010 and over 95% availability for the first half of 2011. The Windflow 500 now has over 165 turbine-years of track record and is commercially proven.