Wind farm project an attractive proposition
Kilmeedy Windfarm is offering investors a second tranche of EIIS investment in 2013. The wind farm project is located outside Newcastle West in Co Limerick. In 2012 circa €870,000 was successfully fundraised by McKeogh Gallagher Ryan Accountants (MGR Accountants) on behalf of the promoters.
“In 2012 we had great interest in this project and with the removal of the high income earner’s restriction we are confident this year’s offering will be fully subscribed as individuals can claim tax relief on the total €150,000 maximum investment,’’ said Mary McKeogh, tax partner with MGR Accountants.
“Wind farms are good options for investors – the costs involved in constructing the wind farm can be calculated beforehand with a high degree of accuracy. Power purchase agreements means the revenue stream can also be accurately forecast. Once thorough wind surveys are done a lot of the variables are already quantified which gives investors a great deal of comfort,’’ she said.
“Kilmeedy is also being developed by two extremely experienced promoters. Between them they have more than 20 years experience in the Irish wind energy industry. They have a successful track record of developing small to large scale projects nationwide as well as successfully raising BES/EIIS wind farm investments,’’ said McKeogh.
She has more than 20 years’ advisory experience – advising, structuring and fund-raising for BES (the precursor to EIIS) – and EIIS investments. “My experience has taught me investors like wind farms. Most investors believe they have an understanding of the business model. The project is detailed fully in our investment memorandum which is easily understood,’’ she said.
“The rising costs of energy and a growing awareness of the needs to meet our energy requirements through renewable sources also make wind farms very attractive,’’ said McKeogh. While wind farms might be well suited to EIIS investment, what makes Kilmeedy so attractive? Eoin Ryan, the commercial partner overseeing the investment, said: “Two tranches strengthen the EIIS investors’ equity stake and reduce the company’s overall reliance on available bank debt.
“Combined with this, most aspects of this development are covered by fixed price contracts and the promoters have engaged a specialist wind energy company to provide operational and development management. This company is controlled by the promoters so they can directly manage the development phase of the project. All of these factors put this EIIS investment on a good footing.’’
This article appeared in the Sunday Business Post print edition on 24 November 2013