BigWind is in BigTrouble in Illinois

If BigWind’s energy is so competively priced, then why would they have trouble finding a buyer? Particularly, when we subsidize a good portion of their startup, give them $0.02/kWH x 10 years, give them PILOTs, give them advantages in the energy capacity auctions, etc. Hmm. What will happen if this farm truly goes belly up? History shows us that the turbines will NOT be decommissioned, irregardless of what their leases state. Let us pray that Ohio learns from this situation -oh, and we need to tell OSU to quit overpaying for wind energy through our wind farms! If the taxpayers weren’t subsidizing this industry, Illinois wouldn’t be in this pickle…

Suzlon agreed in 2009 to finance the project’s debt despite the fact that Big Sky didn’t have a long-term contract to sell its power at a price that would have ensured its costs would be covered. Project loans by turbine manufacturers aren’t unheard of, but they typically are made when there’s a long-term power purchase contract in place.

Suzlon opted to take the risk at the time because it wanted to demonstrate the quality of its turbines following questions regarding the functionality of earlier versions, according to people familiar with the background of the deal.

When wholesale power prices dropped shortly thereafter, Suzlon’s loan was put in jeopardy….

…“If a restructuring of the loan or a sale effort is unsuccessful, Suzlon may foreclose on the project resulting in a write-off of the entire investment in the project,” the Edison Mission filing states.

As of Sept. 30, Edison Mission’s investment in Big Sky totaled $451 million in assets and $369 million in liabilities, according to the filing.

Ms. Denning said she’s confident Big Sky will continue operating, even if Suzlon takes ownership in lieu of collecting the $200 million-plus it’s owed.

via Suzlon Group could take over Big Sky wind farm in Illinois – Utilities News – Crain’s Chicago Business.

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