3.1.2 Decommissioning

At Project End a renewable energy site has to be decommissioned. The ground has to be set back to the original condition mostly. The costs for this decommissioning should be budgeted during Project Lifetime, to secure the decommissioning.

To define the decommissioning correctly, the following entities are necessary:

Decommissioning Reserve (Reserves)
Provision for Decommissioning (Opex)
Guarantee Commission (Aval Provision) (Opex)

Decommissioning Reserve and Provision for Decommissioning have to be equal (same amount). A Reserve of for example EUR 480'000 respective 30'000 EUR / MW with an installed capacity of 16 MW results in a Opex entity of EUR 480'000. The Decommissioning Reserve is mostly external financed. Thus the financing bank usually charge a Guarantee Commission. This commission is for example 1.5% of the Reserve amount per year (1.5% of EUR 480'000 = EUR 7'200 per year).

Reserve:

Opex entity:

Guarantee Commission:

Decommissioning Reserve	∑	01.2016	01.2017	01.2018	01.2019	01.2020	...	01.2028	01.2029	...	01.2034	01.2035
Profit & Loss statement	0	0	0	0	0	0	...	0	0	...	0	0
Cashflow statement	0	-480'000	0	0	0	0	...	0	0	...	0	480'000
Balance Sheet	-	480'000	480'000	480'000	480'000	480'000	...	480'000	480'000	...	480'000	0
Provision for Decommissioning	∑	01.2016	01.2017	01.2018	01.2019	01.2020	...	01.2028	01.2029	...	01.2034	01.2035
Profit & Loss statement	-480'000	-24'000	-24'000	-24'000	-24'000	-24'000	...	-24'000	-24'000	...	-24'000	-24'000
Cashflow statement	-480'000	0	0	0	0	0	...	0	0	...	0	-480'000
Balance Sheet	-	24'000	48'000	72'000	96'000	120'000	...	312'000	336'000	...	456'000	0
Guarantee Commission	∑	01.2016	01.2017	01.2018	01.2019	01.2020	...	01.2028	01.2029	...	01.2034	01.2035
Profit & Loss statement	-144'000	-7'200	-7'200	-7'200	-7'200	-7'200	...	-7'200	-7'200	...	-7'200	-7'200
Cashflow statement	-144'000	-7'200	-7'200	-7'200	-7'200	-7'200	...	-7'200	-7'200	...	-7'200	-7'200
Balance Sheet		0	0	0	0	0	...	0	0	...	0	0