Scottish Wind Farm Development Opportunity

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Scotland . . . is the Wind Energy Capital of The

World !

Scottish Water . . . a major publicly owned

company . . .has given a Windrush

client a certain . . . green

light !

. . . to develop as many wind turbines on all it’s

lands as possible !

Scottish Water assets include . . .

Over 47,000 kilometers of water pipes50,000 kilometers of sewer pipes1,837 waste water treatment works297 water treatment worksPumping stationsSludge treatment centresreservoirs

. . . what is the scale of the Opportunity ?

500 turbines on Scottish Water Land . . .

. . . PLUS . . .

. . . many more turbines on neighbouring land to Scottish Water Land . . .

In exchange for your investment my client

would give YOUR COMPANY a share of the

TOTAL revenue-take from the Opportunity !

. . . what are those revenues . . .

and how big are they . . . ?

The Sources of Revenue . . .

1. The Generation Tariff (or ROCs)2. The Export Tariff

3. We will sell electricity TO SCOTTISH WATER and by Bespoke

Power Purchase Agreements to other Corporate consumers

4. Carbon Credits

Quantifying The Opportunity . . .

See spreadsheet

What does . . . (NPV – Original

Investment) represent ?

NPV – Original Investment = ?

spreadsheet

It is the value of . . .

spreadsheet

your decision

How much of an investment would we

need and how would we deploy it ?

£50,000,000

We estimate that there is scope for about 1,000

turbines in the opportunity in total

500 on Lands owned by Scottish Water, and

500 on Adjacent Lands owned by neighbour farmers

The cost of the turbines would be about

£1,000,000 each fully installed (operational)

We would start by constructing 50 turbines

with the £50,000,000

Then we would sell outright the rights to the

revenues from these operational turbines and

re-deploy the sale proceeds into the

development of a second batch

We reckon that it would take only4 such cycles to clock-up a total mileage

of 1,000 turbines starting out with just 50

turbines in the first cycle

because of exponential growth

The mathematical model for this is the equation

for the sum of a geometric series . . .

Sn = a.(rn -1)/(r-1)

where . . .

Sn = the sum of n terms of the

geometric series (1,000 turbines in

total)

a, is the first term in the series (50

turbines in the first stage)

r, is the common ratio between the terms

(e.g. the number of turbines constructed in the second

stage divided by the number constructed in the first)

n, is the number of terms in the series (in our case that would be

the number of times we would have to re-cycle the

original investment in order to harvest the entire opportunity of 1,000

turbines)

We estimate that the capital value of a

brand new turbine with a 20-year life

ahead of it to be about 3.5 times it’s

construction cost

But with UK Corporation Tax of

25% this figure goes down to 2.875

and this is ‘r’ in the equation

So the number of turbines constructed in each stage would

look like

50 . . . 144 . . . 413 . . .

. . . so, I have to ask you the big question . . .

Can I have the investment from you for

my client ?

Safe and Steady Deployment of The

InvestmentSuggestion . . . Set-up an ‘Asset Reserve’ Bank

Account (Escrow Account) for the funds in YOUR COMPANY’s name

Use a RICS Chartered Surveyor to value/approve progressive drawdowns of funds from Escrow as required

Windrush & YOUR COMPANY

Partners in Renewable Energy Joint Venture

www.Windrush.Biz