Cloudberry Clean Energy Annual report 2020

103 Cloudberry Annual report 2020 Financial statements Please see note 18 Inventory for information about projects with construction permit and backlog. Please see note 25 Lease agreements for informa- tion about the office lease. Included in Producing power plants as of 31 December 2020 are Røyrmyra Windfarm and Finnesetbekken Hydropower plant. The 14 producing hydro power plants included in the Forte portfolio are equity consolidated and hence not included in the table. Power plants under construction are projects with construction permit and where final investment deci- sion have been made. In some cases, Cloudberry has acquired a completed power producing plant, but which is currently under construction by a third party. In those cases the risk and control of the power plant assets is transferred to Cloudberry and included in the accounts when the power plant is ready to produce. The following plants have been acquired: Nessakraft, Bjørgelva Kraft, Åmotfoss Kraft, Selselva Kraft, Skåråna Kraft and Ramsliåna Kraft. Included in power plants under construction are Cloudberry’s costs related to the acquisitions of these plants (the acquisition price will be transferred to Cloudberry’s accounts when the plant is ready to produce). The investment in Odal Vindkraft which is under construction is equity consolidated and hence not included in the table. The carrying amount of an PPE asset comprises its purchase price or construction cost, any costs directly attributable to bringing the asset into oper- ation, initial estimate of decommissioning obligation (asset retirement costs) and, if any, borrowing costs incurred in the construction period. Each significant component of an item is depreciated separately on a straight-line basis over the estimated useful life of the component. When determining the useful life, Cloudberry considers the useful life of the assets and the commissioning period given the power plant. Asset retirement obligation capitalised Provision for asset retirement costs have been made for Røyrmyra Wind farm. The timing is expected at the end of the concession period which also coincide with the expected useful life of the wind asset. The amount is included in the initial cost and is depreciated over the expected useful life on a straight-line basis. Power plant assets are pledged as security for long term debt, see note 23. For contractual commit- ments related to power plants under construction, please see note 24 Provisions, guarantees and other contractual obligations and 21 Cash, cash equiva- lents and corporate funding. Please note that in the half year report released in September 2020, PPE also included construction permits and backlog, these assets are now classi- fied as inventory.