1 / 16

Financing offshore wind in 2011

Financing offshore wind in 2011. Tuesday 15 March 2011 (14:00 – 15:30) - Panel discussion Chairs Clémentine TASSIN, Dexia Jérôme GUILLET, Green Giraffe Energy Bankers Speakers Marc SCHMITZ, Rabobank Filip MARTENS, C-Power Christos KOLLIATSAS, Mott MacDonald

ramya
Télécharger la présentation

Financing offshore wind in 2011

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Financing offshore wind in 2011 Tuesday 15 March 2011 (14:00 – 15:30) - Panel discussion Chairs Clémentine TASSIN, Dexia Jérôme GUILLET, Green Giraffe Energy Bankers Speakers Marc SCHMITZ, Rabobank Filip MARTENS, C-Power Christos KOLLIATSAS, Mott MacDonald Fintan WHELAN, Mainstream Renewable Power

  2. Financing offshore wind in 2011 • Facts : onshore wind vs offshore wind • Onshore wind project finance works • Offshore wind project finance is still in its infancy

  3. Financing offshore wind in 2011 • Facts : onshore wind vs offshore wind • Onshore wind project finance works • Offshore wind project finance is still in its infancy

  4. 1. Onshore wind versus offshore wind • Onshore wind is mature in many European countries but will grow for another decade (new markets) before slowly declining • Offshore wind is entering the full industrialisation phase and is growing strongly • Offshore is expected to overtake onshore within 15 years, although that will happen in several countries (UK, Germany) much faster Source: free translation from « EWEA, PWC analysis »

  5. 1. Onshore wind versus offshore wind Source: BWEA/ Garrad Hassan, UK Offshore Wind: Charting the Right Course, 2010 Source:ExxonMobil WEO 2011 • Onshore wind is largely expected to be cost competitive in the coming decade • Support regimes should focus on price stability rather than price levels • Offshore wind has seen substantial cost increases in recent years and remains more expensive per kWh (12-15c/kWh vs 6-8c/kWh) • Support regimes require subsidy component

  6. Financing offshore wind in 2011 • Facts : onshore wind vs offshore wind • Onshore wind project finance works • Offshore wind project finance is still in its infancy

  7. 2. Onshore wind project finance works • 60% of total investment in the sector over the past several years provided by PF • Risks are well identified and understood • A number of proven financing structures exist and are used worldwide • Strong track record on onshore wind deals • Long list of banks having financed onshore wind deals • But detailed risk analysis must remain the rule • Wind studies have been a bit too optimistic • Regulatory uncertainty / instability still a worry • New markets have less experience with PF due diligence discipline

  8. 2. Onshore wind project finance works • The financial crisis did hit the sector in 2009-2010 • Banks retrenched to core markets and well-known clients • Funding is available, but not for the aggressive structures of 2006-2007 Source: GGEB estimates

  9. Financing offshore wind in 2011 • Facts : onshore wind vs offshore wind • Onshore wind project finance works • Offshore wind project finance is still in its infancy

  10. 3. Offshore wind project finance is still in its infancy Source: EWEA Source: EWEA, Oceans of Opportunity • Investment volumes are growing rapidly from almost nothing to several billion euros per year • The learning curve is very steep as projects go deeper, further, and get larger Source: KPMG

  11. 3. Offshore wind project finance is still in its infancy • The market exists • Banks have financed 20% of investments so far on a non-recourse basis • 6 transactions so far, 3-5 more expected this year • Continental market more active, successful & experienced than London market • Serious challenges remain • Offshore is still new and scary for banks, with few precedents to refer to • Size of transactions is an obstacle in the absence of underwriting capacity • Utilities need to accept more intrusive due diligence and contract review • Transactions today can happen and will happen, but only with appropriately conservative structures, high quality due diligence and full transparency

  12. FINANCING OFFSHORE WIND IN 2011 Chairs: JérômeGuillet, Green Giraffe Energy Bankers, France ClémentineTassin, Dexia, France • Marc Schmitz • Rabobank, The Netherlands.   • Filip Martens • C-Power, Belgium • Christos Kolliatsas • Mott MacDonald, United Kingdom • Fintan Whelan • Mainstream Renewable Power, Ireland 

  13. FINANCING OFFSHORE WIND IN 2011 Chairs: JérômeGuillet, Green Giraffe Energy Bankers, France ClémentineTassin, Dexia, France • Marc Schmitz • Rabobank, The Netherlands.   • Filip Martens • C-Power, Belgium • Christos Kolliatsas • Mott MacDonald, United Kingdom • Fintan Whelan • Mainstream Renewable Power, Ireland 

  14. FINANCING OFFSHORE WIND IN 2011 Chairs: JérômeGuillet, Green Giraffe Energy Bankers, France ClémentineTassin, Dexia, France • Marc Schmitz • Rabobank, The Netherlands.   • Filip Martens • C-Power, Belgium • Christos Kolliatsas • Mott MacDonald, United Kingdom • Fintan Whelan • Mainstream Renewable Power, Ireland 

  15. FINANCING OFFSHORE WIND IN 2011 Chairs: JérômeGuillet, Green Giraffe Energy Bankers, France ClémentineTassin, Dexia, France • Marc Schmitz • Rabobank, The Netherlands.   • Filip Martens • C-Power, Belgium • Christos Kolliatsas • Mott MacDonald, United Kingdom • Fintan Whelan • Mainstream Renewable Power, Ireland 

  16. FINANCING OFFSHORE WIND IN 2011 Chairs: JérômeGuillet, Green Giraffe Energy Bankers, France ClémentineTassin, Dexia, France • Marc Schmitz • Rabobank, The Netherlands.   • Filip Martens • C-Power, Belgium • Christos Kolliatsas • Mott MacDonald, United Kingdom • Fintan Whelan • Mainstream Renewable Power, Ireland 

More Related