Service: Due Diligence
Client: Owner of a Mid-Sized Wind Farm
Client Objective: Refinance long-term debt obligation
Engagement Description: E3 Consulting was retained by the owner to help refinance the long-term debt obligation on a wind farm. The wind turbine gearbox models in question had experienced a small number of highly public failures in other deployments.
Services provided by E3 Consulting included:
- Review of equipment operating performance
- Examination confidential data from tests conducted by the gearbox manufacturer
- Development of a probabilistic failure model
- Establishment of a quantitative framework to estimate future replacement/repair costs
Client Result: E3's findings and analysis assisted the owner and lender to properly size the Maintenance Reserve Account to a level that was appropriate from the lender's risk perspective while balancing the owner's willingness to invest prompt cash into the project.