WindEurope Mid Year Offshore Statistics 2016

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The European

offshore wind industry


Key trends and statistics 1st half 2016
The European
offshore wind industry
Key trends and statistics 1st half 2016
Published in July 2016

windeurope.org
This report summarises construction and financing activity
in European offshore wind farms from 1 January to 30 June
2016.

WindEurope regularly surveys the industry to determine


the level of installations of foundations and turbines, and
the subsequent despatch of first power to the grid. Data
includes demonstration sites and factors in decommissioning
when they occur, representing net installations per site and
country unless otherwise stated.

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.

TEXT AND ANALYSIS:


WindEurope Business Intelligence
Andrew Ho (Construction highlights)
Ariola Mbistrova (Financing highlights)
EDITORS:
Ivn Pineda, WindEurope
Kristian Ruby, WindEurope
DESIGN:
Clara Ros, WindEurope
FINANCE DATA:
Clean Energy Pipeline.
All currency conversions made at EURGBP 0.7788 and EURUSD 1.1115
Figure includes estimates for undisclosed values
PHOTO COVER:
Courtesy of DONG Energy

MORE INFORMATION:
policy@windeurope.org
+32 2 213 18 68
CONTENTS

EXECUTIVE SUMMARY...................................................................................................... 5

1 TURBINES GRID-CONNECTED...................................................................................... 7

2 CONSTRUCTION CARRIED OUT.................................................................................... 9

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)

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)

HVC Global Infrastructure


16 MW Partners

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

Average turbine capacity in installation year

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

OFFSHORE WIND INSTALLATIONS


Seven out of 13 projects with construction activity are new starts in 2016, representing 2.9GW of additional capacity
upon their completion. As of 30 June, the status of projects with construction activity is as follows:

TABLE 2
Summary of work carried out at European offshore wind farms between 1 January and 30 June 2016

WIND FARM NAME COUNTRY STATUS


Westermeerwind Netherlands Fully grid-connected

Gemini Netherlands Partially grid-connected

Gode Wind I Germany Partially grid-connected

Gode Wind II Germany Partially grid-connected

Nordsee One Germany Foundations installed

Nobelwind (Belwind II) Belgium Foundations installed

Nordergrnde Germany Foundations installed

Dudgeon East United Kingdom Foundations installed

Sandbank Germany Foundations installed

Veja Mate Germany Foundations installed

Burbo Bank Extension United Kingdom Foundations installed

Race Bank United Kingdom Foundations installed

Rampion United Kingdom Foundations installed

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

TOTAL INVESTMENT FINANCED NEW


COUNTRY
REQUIREMENT (mEUR) GROSS CAPACITY (MW)
Denmark 999 400

Finland 121 40

Germany 2,529 835

UK 10,369 2,502

Total 14,018 3,777

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

Pre-construction Construction Operations

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

Investment requirements Transaction value

Source: WindEurope

The European offshore wind industry key trends and statistics 1st half 2016 16
WindEurope
New investments

OUTLOOK FOR H2 2016 AND 2017

TABLE 4
Offshore wind project pipeline and investment requirement

TOTAL INVESTMENT
PROJECT PIPELINE COUNTRY CAPACITY (MW)
REQUIREMENT (mEUR)

Rentel Offshore Wind Farm Belgium 1,250 300

Norther Offshore Wind Farm Belgium 1,300 370

Deutsche Bucht Offshore Wind Farm Germany 1,162 252

EnBW Hohe See Germany 1,500 492

Total 5,212 1,414

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
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