npower need buyer for half of the 250 turbine Gwynt-y-Mor windfarm

Dec 18 2008 by Judith Phillips, North Wales Weekly News

ENERGY company npower renewables is looking for a buyer for almost half of the 250 turbine Gwynt-y-Mor windfarm before it has even been built.

The news has sparked conjecture as to whether the company can meet the estimated £2.2 billion cost of the scheme.

Earlier this week it was reported that npower has asked banks to find partners to buy into new projects to defray costs. These include Gwynt y Môr, in which it has been suggested npower could sell a stake of up to 49%.

Clwyd West MP David Jones believes this casts serious doubt on the financial viability of the project and he has written to energy minister Mike O’Brien to say as much.

He wrote: “It is well recognised that escalating development costs are proving a disincentive to the development of windfarms and a deterrent to potential investors.

“Royal Dutch Shell recently withdrew from participation in the London Array, which would be the world’s largest off-shore windfarm.

“It is a matter of concern to learn that npower is obliged to seek a new partner for the Gwynt y Môr project so soon after consent was granted. It seems to me the commercial viability of Gwynt y Môr was a matter into which the department should have inquired before granting consent. Given that the consent was issued as recently as December 3, it would appear that npower had its own concerns as to the viability of the project before consent was granted,” he added.

Mr Jones said he was also concerned about the potential impact on property values and businesses as a result of the windfarm’s uncertain future.

A spokesman for npower said wind power developers regularly reviewed their project portfolios to seek opportunities to best manage their risk profile.