FINANCING TRENDS Once seen as exotic fare, offshore wind investments have become a staple diet for pension funds. The crumbs that fall from their table are these days being eagerly fought over by new types of investor with healthy appetites and new ideas ... Money in the bank or placed in bonds is not an attractive investment in a world of historically low interest rates. Investments that deliver healthy revenues long-term are in demand and offshore wind station projects often fit the bill perfectly. But getting in as a new investor is difficult. “There’s a lot of money out there and a lot of investors are very keen to get into offshore wind and are willing to compete on price,” says Henrik Stamer, CEO at K2 Management, a wi ...
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At any given moment wind power supplies between zero and 140% of Denmark’s electricity. A robust grid network, flexible operation of power production and a well functioning electricity network make sure the lights stay on, also in hurricane-force winds.
Harvesting the wind’s energy sounds like a straightforward task. Hoist a rotor into the air and its blades rotate, turning the attached generator, which produces electricity; the windier the selected location, the more electricity generated. Wind, however, is not just wind.
Denmark’s offshore wind tender model is being looked to as a shining example of how to drive down cost through proactive government action. Others may adopt the market model, too.
Offshore wind in the US is in its early infancy. A century old law is making life unnecessarily difficult and is hindering market growth.