Renewable Energy - Crossdykes Wind
Crossdykes Wind is the first subsidy-free onshore wind farm to be built in Scotland and is situated 8 miles North-East of Lockerbie. It consists of ten 176.5 metre turbines which has the capacity to generate 46MW of electricity – enough to power almost 45,000 homes.
The project is being developed by Muirhall Energy Ltd, a long-standing Renewable Energy client of Bruce Stevenson. Muirhall has made a shared ownership offer to a number of local councils and community organisations and to date discussions have been positive.
The intention is to set up an annual fund of £322,000 that will be put in place for the long-term benefit of neighbouring communities. This amounts to £8m over the 25-year lifespan of the wind farm.
Our Renewable Energy team first became involved with Crossdykes in May 2018 when we were asked to provide an indication of the required insurances for the project. Early engagement with ourselves is key when developing a project of this nature as we can contribute to budget planning by providing an accurate estimation of the insurance costs.
The broking process involved an analysis of the project and potential risks for these brand new models of turbines. Protecting the future revenue of the project is one of the most vital elements of the insurance programme to mitigate any cash flow interruption following a claim and therefore, there needs to be careful consideration given to the figures used for each revenue stream when calculating
This is particularly true when building a new project and during its first year of operation where there is no historical wind data to base figures on. The actual quoting and placement of insurance is only part of the process.
Our team was also heavily involved with the reviewing of the various contracts that our client would be entering into such as the Turbine Supply Agreement, Balance of Plant Contract, Management Service Agreement and Facility Agreement. Each agreement or contract had insurance requirements outlined for the involved parties and it was our role to ensure these were understood and that the cover provided was compliant.
We also carried out due diligence on the insurances of each contractor to ensure they also had adequate insurance and limits of indemnity in place, protecting our client from any negligence. After working with the project for some 15 months, in August 2019, we were instructed to place the insurances for the construction stage of the project.
We're delighted to be involved in such a ground-breaking project which reinforces our position as the number 1 insurance advisor to the Renewable Energy sector.
"We have a great working relationship with the renewable energy team at Bruce Stevenson, having worked with them on a number of complex projects. They demonstrate a strong knowledge of our business needs."