Renewable Energy Generation said it is making progress on four new British onshore wind projects with a combined output of 26 megwatts.
Discussions are ongoing with potential funders for Mynydd Portref (12MW), Rodbaston (4MW), Brackagh Quarry (6MW) and French Farm (4MW).
The projects are unaffected by the early closure of the Renewables Obligation (RO) for onshore wind. With respect to the Company’s recently consented wind sites at Mynydd Brombil, Abergorki and Pen Bryn Oer, REG is awaiting further clarity from Government regarding support for these projects.
In addition to early removal of the RO, the Government has announced substantial changes to both the planning system for onshore wind projects and early closure of the small scale solar feed in tariff.
As a result of these changes and as previously announced on 9 July 2015, REG has undertaken a detailed assessment of the carrying value of capitalised development costs.
Subject to any further clarification issued by DECC and completion of its external audit, REG expects to report an exceptional, non-cash impairment charge in the year to 30 June 2015 of not less than £7million. Underlying EBITDA, excluding this charge and the profit from asset disposals, is expected to be in line with market expectations at approximately £1.3million.
The balance of capitalised development costs will total approximately £6.5million, relating to projects that continue to have development potential.
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