For further information, contact us at: investir@eolfi.com
Investing in wind power is economically lucrative and ecologically sound in a booming innovative industrial sector.
High-growth market:
The demand for "pure energy" is growing rapidly in France and the rest of Europe:
- For 2010, a European Union directive sets the objective of electricity from renewable sources at 22.1% of the electricity consumption of each Member State versus 13.9% in 1997
- Wind power will benefit from this growth due to the saturation of hydro-electric power and high cost of other renewable energy sources
Profitable investment:
A wind farm offers a yield similar to that of long-term bonds. In France, the standard parameters of a wind farm are the following:
- Production capacity: 12 MW
- Number of wind turbines: 6
- Producible: 2,100 hours a year
- Electricity production: 25,200,000 kWh/year
- Turnover: €2 M per year
- Total investment: €15 M
- Capital: €3 M
- Debt: €12 M
The internal yield for the investor generally varies between 7 and 9% per year.
Tax advantages:
Wind power can benefit from several tax advantages, some of which are specific to renewable energy sources, and others which are not specific to wind power, but allow full income tax exemption when the securities are held for 5 years.
Wind power can benefit from three major types of tax advantages:
- Accelerated amortisation of facilities over 12 months,
- Income tax exemption on venture capital investment vehicles when the securities are held for 5 years,
- Income tax reduction of 25% of the amounts invested by natural persons in certain savings funds.
Limited risks:
To produce wind power, you need... wind. This risk is limited as wind curves are highly predictable over long periods of time. Moreover, all investments in wind power are based on in-depth studies carried out by specialists.
The technical risk is also under control: performance guarantees concerning construction and production given by turbine manufacturers, multi-year maintenance contracts, and insurance covering equipment and losses.
Commercial risks are low. Indeed, EDF (in France) is committed to buying all electricity produced by wind farms at a price known in advance for a period of 15 years. This price is indexed on inflation.
Total visibility: 72% of the costs of a wind power project are set and known from the start. Only 28% are affected by inflation. Even if all combined operational risk factors are unfavourable, the projects pre-selected by Eolfi maintain a positive yield and cash flow. For Eolfi, this principle is an investment rule aimed at guaranteeing the farms' solvency.
The above data is provided for information purposes only and is subject to special conditions.
Find out more about Eolfi's investment funds: FVCMF Eolinvest and FIP "Energies Nouvelles"
For further information, contact us at: investir@eolfi.com