cover image: Financing Offshore Wind - September 2022

20.500.12592/d0jthz

Financing Offshore Wind - September 2022

15 Sep 2022

If they are further asked to take construction risk The cost of capital for a project-financed project is the weighted average of the cost of equity (over (which is not always the case – there are many infrastructure sectors where the investors prefer to the life of the project) and the cost of debt (over the duration of debt), which makes it structurally keep that risk, and in offshore wind it ha. [...] In any The cost of capital for a project funded on the balance sheet of an investor is itself the weighted case, they will want the project to be operated properly for a duration at least as long as the debt average of the cost of the equity of that investor, and that of its corporate debt. [...] The project represented roughly 15 % of the capacity of the portfolio and 25 % of its pro-duction, and was operational at the time of the transaction) and (ii) the banks would need to bear construction risk, as the project owners were simply not able to finance the project otherwise, not having the requisite funds (half of the project was owned by a consortium of Econcern and EIH, both relatively. [...] Together with Borkum West and Meerwind, it heralded the arrival of After the death of the founder and the delayed completion of the project (at the time, the first of Germany in the offshore wind sector and the industrialisation of the sector. [...] The were actually quite advantageous to them, as (i) the performance of the turbines was even better serial nature of the power plants, and the fact that the installation of wind turbines is largely done than they warranted, and (ii) the cost for them of maintaining them was lower than the price the sequentially allows to learn lessons from the early turbines and anticipate problems in subsequent.
Pages
42
Published in
Germany

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