10 FINANCIAL - WINDBANK 
  WINDBANK – Introduction and step-by-step guide ......................................................................... 2 
  Introduction to WINDBANK ................................................................................................... 2 
  WINDBANK Step-by step-guide ............................................................................................ 2 
  WINDBANK – Calculation methods and key figures ........................................................................ 3 
  Calculation methods .............................................................................................................. 3 
  WINDBANK – Entering data ................................................................................................................ 4 
10.1.0  Start the WINDBANK module ................................................................................................ 4 
  Setup ..................................................................................................................................... 4 
  Project .................................................................................................................................... 5 
  Electricity Price ...................................................................................................................... 6 
  Budget ................................................................................................................................... 7 
  Loan ....................................................................................................................................... 9 
  O&M (Operation and Maintenance) ..................................................................................... 10 
  Inflation, etc. ........................................................................................................................ 11 
  Taxation ............................................................................................................................... 12 
  Description ........................................................................................................................... 12 
  WINDBANK – Calculation and printouts.......................................................................................... 13 
  Starting calculation .............................................................................................................. 13 
  Printouts ............................................................................................................................... 13 
 
 
 
   

WINDBANK – Introduction and step-by-step guide 2

WINDBANK – Introduction and step-by-step guide

Introduction to WINDBANK

The financial evaluation of a wind energy project may be the most important project development task. It is, in

the end, when all needed approvals are settled, the financial circumstances of the project, which decide

whether or not the project will be realized. With the windPRO module WINDBANK such a decision will be

taken on a well-documented basis.

All the documentation, as well as a survey with few key figures and a complete budget, which will satisfy

bankers and other qualified office managers, can be printed.

The windPRO module WINDBANK is, in the present version, furnished with a line of specific facilities which

correspond to the Danish tax law, but it will operate under more general conditions when investor is located in

other countries.

WINDBANK handles 4 different “owner constructions”:

Cooperatives - where special calculations for each coop can be generated

Private owned – where the owners private tax issues can be mixed with the wind farm investment

Company owned – “standard” company investment

Company coop – more companies has shares in the project, prints for a specific share is possible.

WINDBANK can also be used for economic evaluation (the value for the community), it is just a question of

proper selection of the relevant input data.

The WINDBANK module is based on templates, which makes it fast to define a new calculation based on

previous calculations, where only minor corrections has to be made.

WINDBANK Step-by step-guide

▪ Calculate the energy production with PARK or METEO/MODEL (to be able to transfer WTG-type, size

and energy production automatically)

▪ Start the WINDBANK module – load a template from "Standard" or other previous calculation.

▪ Go through all tab-sheets in order to define all parameters.

▪ Calculate and Print reports.

WINDBANK – Calculation methods and key figures 3

WINDBANK – Calculation methods and key figures

Calculation methods

As previously mentioned, WINDBANK is furnished with special features which are constructed for calculations

based on Danish regulations (especially tax regulations), but in all other cases, WINDBANK operates after the

often standardized general taxation and depreciations regulations which are used in most other countries.

Facilities for calculations based on specific regulations in other countries but Denmark will be developed upon

request.

Basically, an annual account is divided into the following items (based on general accounting principles):

Operation budget:

+Income (sale of electricity + optionally any value of replaced consumption generated by the WTGs)

-Expenditures (O&M + Book Depreciations = reduction in the value of the Installations)

=Working Profits, Ordinary, before tax and interests

-Financing (Interests only)

-Taxation

=Working Profits

Balance budget:

ASSETS

Installations (value of hardware after Book Depreciations)

Cash Balance (amount on account where the annual liquidity is accumulated)

LIABILITIES

Net Worth (own capital)

Debts

The Annual Liquidity consists of the annual growth of the cash balance. It is important to face the difference

between “operation budget” and “liquidity budget”.

The liquidity budget (or cash flow) gives the year by year amount available for investor including taxation.

The operation budget expresses the year by year value of the project. Here the depreciation reflects the

annual loss in value, whereas in the liquidity budget, the depreciation is “replaced” with the annual repayment

of loans and thereby the amount that “in real” is withdrawn from the cash balance.

Operation budgets as well as liquidity budgets can be printed.

WINDBANK – Entering data 4

WINDBANK – Entering data

10.1.0 Start the WINDBANK module

Go to the System Integration tab and click on WINDBANK

Setup

In Setup you specify:

Country, project; The name of the country for the project location in question has already been selected under

Project Properties.

Country, Investor – gives at present only any difference if the investor is located in Denmark, while this gives

access to specific Danish tax regulations.

Currency can be entered freely - this is only a text, which is appended to all printed figures. The choices for

amounts/reports shall reflect the size of the project you are going to calculate.

Type of project refer to the owner type, which for some input options gives access to different features.

You can save this template and use it again in another calculation or project.

If you mark the ‘use every time’ under Template you will always begin with this template when you activate

WINDBANK.

If you mark ‘Cooperative owned’ as project type, you must enter the size of a share (in kWh) and number of

shares for the “typical” Coop you wish to make a calculation for.

WINDBANK – Entering data 5

Project

The name of the calculation will appear on all the printed pages. This can be used to specify the particulars of

the calculation in question - e.g. High Inflation Rate, Low kWh Price, etc.

The data regarding the production of the WTGs can be entered in various ways:

➢ User defined: All data input are free.

➢ Use WTG from object list: You get a list box with the names of the WTGs established as objects in the

project (if any).

➢ Use WTG from WindCat: You get a list box with the names of all the WTGs in the WTG Catalog.

➢ Load from Energy Calculation: You import information from an already performed Energy Calculation

into this project.

➢ Link to Energy Calculation: As the above option, but with an automatic update of the calculation

whenever the information in the Energy Calculation is changed.

The field ‘Calculated Production - 10%’ will often be used to balance the uncertainties of the Energy

Calculation. The 10% will often not be sufficient, as the estimated figure depends heavily on the terrain

conditions and the available Wind Data. The 10% can be set to other value in the energy calculation and will

by “load from energy calculation” be transferred to WINDBANK.

You can choose to perform calculations on “existing WTG”, meaning that instead of Expected life span, you

are asked to enter Remaining life span. The life span of a turbine project is normally 20 years, while the design

basis of turbines typically is 20 years. Although there seem to be a trend in expanding the life span to 25-30y.

Installation date is very important to know how works: If the month 12 is used, AND Ultimo month, the project

is assumed installed the 31.12 and thereby there will be tax savings due to depreciation for the year “0”

(installation year), but no income or costs – these will be 12 months based for the year 1. If month 1 AND

primo month is used, Year 1 will be a full year, and also the first year where tax savings can be seen. If other

combinations, the year 1 will not be a full year, the income and costs will be divided to match the number of

months the first year.

WINDBANK – Entering data 6

Electricity Price

You can construct your own specific profile for the expected kWh price over the life span. If a part of the

electricity is used for own consumption and another part is sold, both parts can be given individual pricing

profiles.

The options for each input line are:

Name; e.g. Market price or Subsidy etc.

Share of production; If production is sold to different purchasers, or some of the production is used by owner

specific prices can be given for specific parts of the production. In most cases there is only one and 100% is

used.

Price; remember to input in the right unit as specified in tab “Project”.

Properties, the options are (in combination with the field Hours… to the right):

• Input annual increase – input the annual increase percentage in field to the right.

• Inflated – the inflation specified at the “Infl. Etc” tab is used for increasing the annual price.

• Annual values – freely defined annual values, see below.

• Limited by full load hours - input the number of full load hours with the increased price in field to the

right.

Tax free; can be checked, if all or part of the income are tax free. E.g. House hold turbines, that produced

private consumption, direct into own installation, will typically be tax free income

When “Annual values” is chosen, the input form below appears: