Project summary
- FG were instructed by Cubico on behalf of themselves and GLIL to review the decommissioning and reinstatement liabilities for various wind and solar assets from across their UK portfolio
- The project was primarily undertaken for management and audit purposes but represented prudent forward planning by the asset owners
- Understanding the lease and life-end costs for major energy infrastructure is important for both the owner (tenant) and landlord
Solution
- FG reviewed each SPV’s contractual obligations under the terms of the Lease and any decommissioning bond/reinstatement fund
- The conditions of the planning consent were considered and cross-referenced with legal obligations
- Decommissioning and site restoration scope of works were prepared for each SPV/asset and subsequently costed by independent civils contractors
- FG produced a short report for each wind farm/solar park summarising Cubico’s/GLIL’s obligations and liabilities
Benefits
- Cubico received concise asset-by-asset reports detailing their decommissioning and reinstatement commitments and associated costs
- The reports were presented in an easy-to-understand format capable of being shared/used internally and externally (i.e. with auditors or landlords)
- Up to date lease and life-end costings will enable Cubico/GLIL to proactively forward plan and make prudent financial investment decisions
