EU offshore attracts €18bn

A record €18.2bn was invested in new offshore wind farms in Europe last year, out of total wind farm investments of €43bn, according to data released by WindEurope.

WindEurope’s ‘Financing and Investment Trends 2016′ report showed wind farm investments were up 22% in 2016 from €35bn in 2015.

The €43bn covers the construction of new wind farms, refinancing, project acquisitions and public market fundraising, WindEurope said.

However, the report indicated that onshore investment dropped by 5% to €9.4bn, the first decrease in five years.

The UK was the biggest market in 2016 with €12.7bn raised for new onshore and offshore projects, Germany came second with €5.3bn.

The high level of total wind investments was driven by several initial public offerings, including Dong Energy, Innogy and Senvion, which accounted for €5.2bn.

WindEurope said that investment levels are expected to fall in 2017 because they have been “inflated in the last two years by projects squeezing through the gate before countries transition to auction-based remuneration mechanisms”.

WindEurope chief executive Giles Dickson said: “Wind was the largest recipient of power sector investments in 2016.

“The competitiveness of our industry and reduced risk perceptions have brought in major financial players who are looking to diversify their portfolios.”

But, he added, that the growth is uneven, with 80% of new investments coming from just four countries – Belgium, Germany, Norway and the UK.

“Fourteen EU member states did not announce any new wind energy investments in 2016,” said Dickson.

“Many countries struggle to manage the transition to auctions. Only seven EU member states have clear policies for renewables beyond 2020 – the unclear policy outlook in the rest makes investors and project developers go elsewhere,” he said.

Image: Dong Energy