Timely co-operations with strong partners – a successful path for small developers, even during the "turbulent times" of calls for tender

Extremely controversial discussions about EEG 2016 are currently taking place. What is certain, however, is that next year there will be calls for tenders for new wind energy projects in Germany. The emerging new frameworks are likely to have a significant impact on the established business models of small and medium-sized developers, and can even pose a threat to their very existence.

Project developers face the challenge arising from the fact that planning times for wind park projects have become considerably more prolonged in recent years, coupled with a steep rise in their own preliminary work and the external costs (e.g. expert reports, fees) that have to be outlaid in advance. This can cause considerable liquidity bottlenecks, particularly for smaller project developers. This situation will be considerably aggravated by calls for tenders, since an immediate realisation of a wind farm after the Federal Emission Control Act (BImSchG) permit has been granted is no longer assured, as used to be the case in the past. For this reason, further delays can be expected – or even a non-realisation if a contract is not awarded to the tenderer, therefore resulting in a total loss.

Övermöhle Consult & Marketing (ÖCM), together with project developers, investors and partners, has developed a milestone model at project level for working in an economically successful manner under the anticipated tender conditions.

"With the active support of our long-standing consultant Klaus Övermöhle, we have just concluded a further co-operation contract with a leading enterprise in the industry. This concerns a project pipeline for around 80 MW, which is scheduled for realisation in no later than the next two to seven years. The existing agreements afford our company long term economic security, even in the stormy times looming ahead. Our nine employees and their families will also benefit from this, of course, as the workplaces we offer will continue to be safeguarded," explains Christian Wenger-Rosenau, CEO of Windenergie Wenger-Rosenau in Nietwerder/Brandenburg.

In the ÖCM milestone model, incurred third-party costs are borne for the large part by the partner. The project developer receives a fixed agreed planning remuneration upon conclusion of a contract, which is paid out after the planning goals for the respective project have been achieved. The model is fundamentally open. Further new projects can be added to it at the pre-arranged conditions following consultation between the partners.

"Our milestone model brings early economic security for the project developers, even in tender scenarios, while the strong partner gains unrestricted access to interesting wind farms – which in our experience is a classic win-win situation," explains Klaus Övermöhle.

Profile of Windenergie Wenger-Rosenau

Since mid-1995, Christian Wenger-Rosenau has planned numerous wind power installation sites and guided them through to the approval stage. Having started out as a freelancer, he has been the owner and CEO of Windenergie Wenger-Rosenau GmbH & Co. KG since 2001. The company meanwhile has nine employees, who have obtained construction permits for a total of 163 wind turbines with an output of 259 MW, most of which have already been built. In the most recent project, a mediation procedure could be successfully implemented for Windpark Elbenröder Dick near Alsfeld (Hesse) with its eight Vestas V126, for which a BImSchG permit was granted in February 2016.

Profile of Övermöhle Consult & Marketing

Övermöhle C&M has collected over 15 years of expertise in the wind energy sector. The company develops market strategies together with its SEM customers, and actively supports them in achieving their set goals more quickly. On account of its wealth of experience in providing consulting services, the company maintains personal contacts not only to most wind power project planners, but also to many manufacturers and suppliers, which are brought to bear at every available opportunity. The company also advises domestic and foreign investors in their investment decisions. Together with its customers, Övermöhle C&M has to date successfully marketed 18 wind farms with 107 wind turbines (222.8 MW) and an investment volume of € 315 million.

Contact details:
Christian Wenger-Rosenau
Windenergie Wenger-Rosenau GmbH + Co. KG
Dorfstraße 53
D-16816 Nietwerder
Phone: +49 3391 7758 0
Fax: +49 3391 7758 11
Dipl. Volkswirt Klaus Övermöhle
Övermöhle Consult & Marketing GmbH
Poppenbütteler Weg 236c
D-22399 Hamburg
Phone: +49 40 8669 3641
Fax: +49 40 8797 2867

Publication free of charge; please send a specimen copy to Windenergie Wenger-Rosenau GmbH + Co. KG and Övermöhle Consult & Marketing GmbH.

Niels immerkjaer