Vestas sees offshore wind funding gap
BRUSSELS, BELGIUM - The huge investment required to meet offshore wind development targets cannot be funded by large utilities alone, a project finance manager for Vestas, the world's top supplier of wind turbines, said.
"Even strong utilities cannot fund investment in offshore wind only with their balance sheet, this is not sustainable," Erik Sejersen told the Projects & Infrastructure International conference in Brussels.
Only a handful of projects have been funded on a project finance basis as the high costs and technical challenges of installing and maintaining offshore wind turbines has discouraged many banks from lending to projects.
But Sejersen said that project finance was necessary for small offshore wind developers to see projects through as well as for financial investors to leverage. Unlike competitors Siemens and General Electric, Vestas does not provide vendor financing.
"We do not bring funding to the table but we can facilitate the process through our relationships with banks and export credit agencies such as Denmark's EKF," said Sejersen.
Vestas has installed more than 1,000 MW of capacity in offshore projects in the Northern Europe, where the vast majority of Europe's offshore wind projects are being developed.
Sejersen said the project finance market for wind installations was starting to pick up, echoing the views of Siemens, which says it is No. 1 in the market when it comes to offshore wind turbines.
Related News
Key Ontario power system staff may end up locked down at work sites due to COVID-19, operator says
TORONTO - A group of personnel key to keeping Ontario's electricity system functioning may end up locked down in their control centres due to the COVID-19 crisis, according to the head of the province's power operator.
But that has so far proven unnecessary with a change-up in routine, Independent Electricity System Operator CEO Peter Gregg said.
While about 90 per cent of staff were sent to work from home on March 13, another 48 control-room operators deemed essential are still going into work, Gregg said in an interview.
"We identified a smaller cohort of critical operations room staff that need to go in…
