Europe’s offshore wind market is becoming an increasingly attractive investment option as it grows and matures. Writing a special report for Investment & Pensions Europe, Michael Ferguson, Director at Standard & Poor’s, describes how offshore wind will play a leading role in European power generation as technology costs continue to fall, efficiency improves and governments seek low-carbon sources of power. In fact, he notes that over 11,000 megawatts (MW) of capacity have already been installed across the continent.
Ferguson also outlines the various risks faced by institutional investors: from the complexities of construction, operations and maintenance at sea, to the challenges of variable wind resources and technological performance – not to mention the specialised contracts and subsidies needed to mitigate market risks. Building on S&P’s experience of rating the 288 MW farm Meerwind, off the coast of Germany, he shows that understanding where such risks exist can help to mitigate them.
Please read the article online here.