Crownbutte Wind Power Inc. (OTCBB: CBWP) of Mandan, ND continues to pursue project financing for the development of its wind park portfolio.
The management of CBWP has currently refined its approach for financing from traditional sources of capital (bank financing) , the majority of which are mandated to have "power purchase agreements" PPAs from public utilities or contractual off-takes in place, to creating joint ventures with suppliers, financiers and construction companies, to create value from resources idle in the current market place.
The strategy to utilize idle turbines in joint ventures is a benefit for all involved. These idle turbines and construction equipment are the result of the policy of financial institutions to have PPAs , or contractual off-takes, with little regard to the necessity of the actual ability to inject the power into the grid without substantial upgrades to the system. Future financing efforts will benefit when CBWP has revenues for power sold through open access transmission tariffs (OATT). See: www.midwestiso.org (http://www.midwestiso.org/) .
Turbine financiers are open to the idea of placing turbines, either repossessed or in default, on CPWP's park sites contingent on construction financing as the next stage of development. CBWP management believes that with the grid interconnect agreements in place at construction ready locations, value can be created quickly for all concerned.
Independent wind developers like CBWP, with grid interconnect agreements in place while retaining the RECs (Renewable Energy Credit), will benefit the company as a Federal energy polices develop.
The current environment in the US market place is positive for alternative energy, and our company is dedicated to wind generation as an independent power producer.
Although CBWP does not have contractual obligations for the financing in place as of this writing, management is working diligently and is optimistic. We will keep the investors updated as we proceed with our talks. CBWP wants to thank the investors for their support and patience and looks forward to bringing our parks online.