Cloudberry Clean Energy Annual report 2020

95 Cloudberry Annual report 2020 Financial statements Statement of profit or loss and comprehensive income Note 12 Sales revenues and other operating income The consolidated revenues are presented in the table below. NOK 1 000 2020 2019 Power revenue 2 580 - El certificates and guarantees of origin 743 - Management fee 310 279 Sales revenues 3 633 279 Sale of power plant project - - Public grants - El certificates and guarantees of origin 8 - Other -1 - Other income 7 - Total revenue 3 640 279 For information about the revenue split between Production and Develop see note 4 Business segments. Sales revenue Cloudberry has implemented the 5-step model for revenue recognition in accordance with IFRS 15 Revenue from contracts with customers. See accounting principles in note 2. For Cloudberry there will be mainly two types of rev- enue generating customer contracts. This is revenue from sale of power, including sale of el certificates and guarantees of origin from a producing power plant and revenue from management services. For Cloudberry’s power producing assets the customer contract is when connected to the grid, the production for spot sale to the grid or a purchase price agreement (PPA) with a contract customer. The performance obligation is to deliver power, and the consideration is the transaction price which can be spot or a predefined price. The performance obligation is delivered over time, and therefore the consideration will be accounted for when each unit is delivered, a practical approach is the considera- tion that Cloudberry has the right to invoice at the transaction date. The right to invoice is when the power is produced and delivered to the grid. In the cases that the power is sold at Nord pool, this is defined as the customer. In other cases, the cus- tomer is a specific partner. For PPA agreements, the customer contract is the contract to sell the production to a specific price to the contract party. Cloudberry also has contracts for management services for producing power plant portfolios. This is accounted for as revenue when the service is provided, and Cloudberry have a contractual right to the consideration. Cloudberry Develop can also in some cases have fee for management services (project management service), in these cases it must be made an assessment of the timing of when the performance obligation is fulfilled. This will be determined from the nature of the assignment in each contract. When the payment profile for the consideration deviates significantly from the transfer of the services, it is assessed if necessary to separate the finance element in the transaction consideration. For revenue from sale of power and management services the recognition in most cases coincides with the right to invoice the consideration. Unsatisfied performance obligation will be recognized if any.