WindEurope Mid Year Offshore Statistics 2016
WindEurope Mid Year Offshore Statistics 2016
WindEurope Mid Year Offshore Statistics 2016
windeurope.org
This report summarises construction and financing activity
in European offshore wind farms from 1 January to 30 June
2016.
DISCLAIMER:
This publication contains information collected on a regular
basis throughout the year and then verified with relevant
members of the industry ahead of publication. Neither
WindEurope, nor its members, nor their related entities are,
by means of this publication, rendering professional advice
or services. Neither WindEurope nor its members shall be
responsible for any loss whatsoever sustain by any person
who relies on this publication.
MORE INFORMATION:
policy@windeurope.org
+32 2 213 18 68
CONTENTS
EXECUTIVE SUMMARY...................................................................................................... 5
1 TURBINES GRID-CONNECTED...................................................................................... 7
3 NEW INVESTMENTS............................................................................................................ 12
EXECUTIVE
SUMMARY
In the first six months of 2016, Europe fully grid connected 114 commercial offshore wind turbines with a combined
capacity totalling 511 MW. Overall 13 commercial wind farms were under construction which once completed will have
a total capacity of over 4.2GW.
FIGURE 1
Annual installed offshore wind capacity in Europe (MW)
3,500
3,000
Annual Capacity Installed MW
2,500
2,000
1,500
1,000
500
0
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Full year H1 H2
Source: WindEurope
5 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
Executive summary
New offshore capacity installations during the first half of 2016 were down 78% compared to the same period the
previous year. The work carried out in European wind farms during the first six months of 2016 is detailed below:
114 wind turbines were fully grid connected, totalling 511 MW in 4 wind farms: Westermeerwind (NL), Gemini (NL),
Gode Wind I (DE), Gode Wind II (DE).
182 turbines (44 units or 32% more than during the same period last year) were erected in four wind farms in the
first half of the year: Westermeerwind (NL), Gemini (NL), Gode Wind I (DE), Gode Wind II (DE). Some have been grid-
connected, some have not.
Including installation activity from last year, 128 turbines, totalling 596 MW, are currently erected but awaiting grid
connection.
177 foundations (28% more than the same period last year) were installed in nine wind farms: Nordsee One (DE),
Nobelwind (BE), Nordergrnde (DE), Dudgeon East (UK), Sandbank (DE), Veja Mate (DE), Burbo Bank Extension
(UK), Race Bank (UK), Rampion (UK).
Piling activity at Wikinger (DE) commenced in the first half of 2016, but as of 30 June no foundations were installed.
The average size of wind turbines installed in the first half of 2016 is 4.8MW, or 15% larger than over the same
period last year.
Seven projects, worth 14bn, reached Final Investment Decision (FID) in the first half of 2016. This will finance
3.7GW of new capacity, a doubling from the first half of 2015 (1.8GW).
As of 30 June 2016, cumulatively, there are 3,344 offshore wind turbines with a combined capacity of 11,538 MW fully
grid connected in European waters in 82 wind farms across 11 countries, including demonstration sites.
The European offshore wind industry key trends and statistics 1st half 2016 6
WindEurope
1.
TURBINES
GRID-CONNECTED
OWNERSHIP
Four commercial wind farms connected wind turbines to the grid totalling 511 MW. Figure 2 shows the share of connected
MW per developer from 1 January to 30 June 2016 taking into account each companys share in the projects.
Multiple owners exist at the sites with grid connections. Power producers still account for the majority share, but
infrastructure and pension funds account for 25.2% of the installed MW this year.
FIGURE 2
Offshore wind developers share of new grid connected capacity between 1 January and 30 June 2016 (MW)
3.1% 12 MW
2.3%
Van Oord
Laegernes Pensionkasse
16 MW 12 MW
3.1%
2.3%
Laerernes Pension
21 MW
4.1%
DONG Energy
Industriens Pension
26 MW 129 MW
5.0% 25.2%
Siemens
32 MW Northland Power
PKA
6.3% 96MW
59 MW 18.8%
11.4%
Wester-
meerwind
93 MW
18.2% Source: WindEurope
7 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
Turbines grid-connected
WIND TURBINES
All 114 turbines grid-connected in the first half of 2016 were provided by Siemens. They ranged in size between 3 MW
and 6 MW.
The average wind turbine installed during the first six months of the year is 4.8 MW, representing a 15% increase over the
same period last year. Only three out of the 13 sites under construction in 2016 will use 3MW class turbines, with two
sites using 4 MW turbines, seven sites using 6 MW class turbines, and one site using the first 8 MW turbines.
FIGURE 3
Average rated capacity of turbines installed
3
MW
0
1992
1994
1996
1998
2000
2002
2004
2006
2008
2010
2012
2014
H1 2016
Source: WindEurope
The European offshore wind industry key trends and statistics 1st half 2016 8
WindEurope
2.
CONSTRUCTION
CARRIED OUT
SUMMARY
During the first six months of the year work was carried out on 13 offshore wind farms. Foundations and turbines were
installed and/or grid connected in four countries: Belgium, Germany, the Netherlands and the United Kingdom.
TABLE 1
Summary of work in offshore wind farms between 1 January and 30 June 2016
NETHER- UNITED
BELGIUM GERMANY TOTAL
LANDS KINGDOM
Number of farms 1 6 2 4 13
Number of
14 77 0 86 177
foundations installed
Number of turbines
0 56 126 0 182
erected
Number of turbines
0 43 71 0 114
grid connected
MW fully connected
0 MW 258 MW 253 MW 0 MW 511 MW
to the grid
9 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
Construction carried out
FIGURE 4
Installation and grid connection of wind turbines in offshore wind farms between 1 January and 30 June 2016
250
200
150
100
50
0
Burbo Bank
Extension
Dudgeon East
Gemini
Gode Wind I
Gode Wind II
Nobelwind
(Belwind II)
Nordergrnde
Nordsee One
Race Bank
Rampion
Sandbank
Veja Mate
Westermeerwind
No. of foundations installed No. of wind turbines installed
No. of wind turbines connected to the grid Capacity added in H1 2016
Source: WindEurope
The European offshore wind industry key trends and statistics 1st half 2016 10
WindEurope
Construction carried out
TABLE 2
Summary of work carried out at European offshore wind farms between 1 January and 30 June 2016
Piling activity at Wikinger (DE) commenced in the first half of 2016, but as of 30 June no foundations were installed,
so the project is not included in this report
Gode Wind I and Gode Wind II have been separated out into two projects due to the different ownership structures
of each site
11 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
3.
NEW
INVESTMENTS
FINANCING ACTIVITY
New investments in offshore wind in Europe continue to grow strongly during the first half of 2016. A total of seven
projects across four countries reached Final Investment Decision (FID), for an estimated record-breaking investment
value of around 14bn. This will finance 3.7GW of new capacity, a doubling from the first half of 2015 (1.8GW).
TABLE 3
Investments in offshore wind farms H1 2016
Finland 121 40
UK 10,369 2,502
The European offshore wind industry key trends and statistics 1st half 2016 12
WindEurope
New investments
In addition to the investments in new wind farms, the first half of 2016 also saw 2.5bn in refinancing transactions and
1bn committed for the construction of transmission. The sector generated a total investment of 17.5bn.
FIGURE 5
Investments in the offshore wind sector in H1 2016 (mEUR)
Refinancing: Construction:
wind projects and Transmission assets
transmission assets 1,000m
2,553m 6%
14%
Construction:
Offshore wind projects
14,018m
80%
Source: WindEurope
13 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
New investments
DEBT FINANCE
Power producers continue to be substantial providers of equity capital. Very few power producers have so far made use
of non-recourse finance structures, and this trend has continued throughout 2016. Consequently, the markets were
heavily dominated by balance sheet financing.
FIGURE 6
Projects reaching FID in 2016 H1
4,000
3,500
3,000
mEUR
2,500
2,000
1,500
1,000
500
0
Hornsea 1
(1,200 MW)
East Anglia 1
(714 MW)
Borkum
Riffgrund 2
(450 MW)
Arkona
Becken Sdos
(385 MW)
Horns Rev 3
(400 MW)
Tahkoluoto
(40 MW)
Luchterduinen
(129 MW)
Dudgeon
(402 MW)
Beatrice
(588 MW)
Balance sheet financing Project financing
Source: WindEurope
Project finance has remained an important tool given the scale of the offshore wind sector. This is the case in particular for
independent power producers, new market entrants and refinancing transactions. Non-recourse debt stood at 4.7bn,
with the successful closing of Beatrice (588 MW) offshore wind farm, and the refinancing of Luchterduinen (129MW)
and Dudgeon (402 MW) offshore wind farms.
Financial markets have supported the offshore wind sector through a variety of investors and financial structures. More
commercial banks are entering the sector, with larger financing volumes. New lenders also include institutional investors,
who have been attracted to the debt side in the recent years. While liquidity levels have been on the rise, debt-to-equity
ratios have remained in the margins of 70:30, indicating no appetite for more aggressive structures.
Government-supported banks, export credit agencies and multilateral banks remain important, in particular for larger
greenfield projects. Offshore wind projects have featured predominantly in the European Investment Bank (EIB)
financing, backed also by the European Fund for Strategic Investments (EFSI). Notably in the first half of 2016, the EIB
alone provided 674m for the financing of Beatrice (588 MW) offshore wind farm.
The European offshore wind industry key trends and statistics 1st half 2016 14
WindEurope
Figures and analysis
EQUITY FINANCE
Equity markets have remained active, with two main factors at play: the corporate asset disposal of power producers
with a view to freeing up capital, and the need to refinance projects in operation. In total, 1.6GW have been divested
during the first half of 2016, the majority during pre-construction phase.
Transactions during this period have reflected a diversifying equity mix with both corporate, financial and in particular
overseas investors. Notable deals include:
China Three Gorges acquisition of an 80% stake in Meerwind (288 MW) offshore wind farm
SDIC Power of Chinas acquisition of Repsols offshore wind business and consequently a 100% stake in Inch Cape
(784 MW) offshore wind farm and a 25% stake in Beatrice (588 MW) offshore wind farm
PKA and KIRKBI A/S jointly acquiring a 50% stake in Burbo Bank Extension (258 MW) wind farm
FIGURE 7
Merger and acquisition activity 2014 2016 (in MW)
2,000
1,800
1,600
1,400
1,200
MW
1,000
800
600
400
200
0
Q1' 14 Q2' 14 Q3' 14 Q4' 14 Q1' 15 Q2' 15 Q3' 15 Q4' 15 Q1' 16 Q2' 16
Source: WindEurope
15 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
Figures and analysis
TRANSMISSION ASSETS
Investments in transmission assets in the first half of 2016 stood at 1.2bn. In June 2016, TenneT issued its second
consecutive 1bn green bond. The proceeds will be used to finance four offshore wind transmission projects in the
German North Sea for a total capacity of 3.5 GW. Earlier this year, Westermost Rough transmission assets reached
financial close in the UK.
FIGURE 8
Investments in transmission assets (mEUR)
2,500
2,000
1,500
mEUR
1,000
500
0
2011 2012 2013 2014 2015 2016 H1
Source: WindEurope
The European offshore wind industry key trends and statistics 1st half 2016 16
WindEurope
New investments
TABLE 4
Offshore wind project pipeline and investment requirement
TOTAL INVESTMENT
PROJECT PIPELINE COUNTRY CAPACITY (MW)
REQUIREMENT (mEUR)
WindEurope expects 5.2bn and 1.4GW in Final Investment Decisions (FIDs) by June 2017. This compares to 10bn and
2.2GW for the same period last year. Transactions that are approaching financial close are Rentel (300 MW), Norther
(370 MW), Deutsche Bucht (252 MW), EnBW Hohe See (492 MW).
17 The European offshore wind industry key trends and statistics 1st half 2016
WindEurope
MAKING TRANSITION WORK
REGISTER NOW
windeurope.org/summit2016
teaming up with
27 30 September 2016
WindEurope is the voice of the wind industry, actively
promoting wind power in Europe and worldwide. It
has over 500 members with headquarters in more
than 40 countries, including the leading wind turbine
manufacturers, component suppliers, research institutes,
national wind energy associations, developers, contractors,
electricity providers, financial institutions, insurance
companies and consultants. This combined strength makes
WindEurope the worlds largest and most powerful wind
energy network.