Uncertain electricity supply, undeveloped infrastructure and a loss of profit due to icing. These are all factors which may lower the availability of loans for wind energy in cold climates.
– “We need proven technology”, says a Swedish bank.
Swedish bank Nordea provide credit to renewable energy projects, mostly water and wind power.
– “Wind power conducted in a cold climate is not an obstacle even though it comes with risks”, says Paul Nilsson, Credit Analyst at Nordea
– “We don’t have a geographic limit for our loans. There is no rule saying we do not lend money for projects north of Sundsvall”, says Nilsson.
The banks are seeking proven technology for de-icing. A product is only considered to be credit safe when it has been up and running on the market for a few years with positive results.
– “We are a bank, not technicians. The technology has to prove itself”, says Paul Nilsson.
Leverage in cold climates may be lower due to the increased risks. Before the bank approves a credit they review all aspects of the wind power and its potential to be successful. This is always done with the help of independent consultants. The review must be based on at least one year of wind measurements. No credit is approved if the financial forecast does not look positive.
-“ We only provide bank loans on commercial terms”, says Nilsson