The European offshore wind industry key trends and statistics 2015
February 2016
A report by the European Wind Energy Association
Contents
Contents
Executive summary
3
Annual market in 2015
4
Cumulative market
10
Market outlook for 2016 and 201714
Finance
19
Information presented here uses best information at time of publication and may
include revised data for previous periods.
If you have a query on the distribution or reproduction of this report, please contact
Oliver Joy at EWEA at communication@ewea.org.
Contributors:
Author and Statistical analysis:
Construction analysis Andrew Ho (the European Wind Energy Association, EWEA)
Financial analysis
Ariola Mbistrova (EWEA)
Turbine orders analysis Giorgio Corbetta (EWEA)
Editor: Review: Data: Photo: Iván Pineda (EWEA)
Kristian Ruby (EWEA)
Clean Energy Pipeline
Courtesy of A2SEA
The European offshore wind industry - key trends and statistics 2015
2
Executive summary
Executive summary
Offshore wind power
market in 2015
• 3,019 MW of net installed, grid-connected capacity was added in 2015, 108%
more than in 2014. A net addition of 754 new offshore wind turbines in 15
wind farms were grid-connected from 1 January to 31 December 2015.
• 419 new turbines were erected in 2015. Seven turbines were
decommissioned in the UK and Sweden, resulting in a net addition of 412
turbines.
• 53 of these turbines equivalent to 277 MW are awaiting grid connection.
• 14 projects were completed in 2015. Work is on-going on six projects in
Germany, the Netherlands and the UK.
Cumulative offshore wind
power market
• 3,230 turbines are now installed and grid-connected, making a cumulative total
of 11,027 MW.
• Including sites under construction, there are 84 offshore wind farms in
11 European countries.
• 80% of substructures are monopiles, 9.1% are gravity foundations, jackets
account for 5.4%, tripods account for 3.6% and tripiles account for 1.7%.
Market outlook
• Once completed, the six offshore projects currently under construction will
increase total installed grid-connected capacity by a further 1.9 GW, bringing
the cumulative capacity in Europe to 12.9 GW.
Trends:
turbines, foundations,
water depth and distance
to shore
• The average offshore wind turbine size was 4.2 MW, a 13% increase over
2014. This was due to the increased deployment of 4-6 MW turbines in
2015.
• The average size of a grid-connected offshore wind farm in 2015 was 337.9
MW, 8.2% less than the previous year. There were some large offshore wind
farms: 576-600 MW sites at Gwynt y Môr and Gemini. However, the majority
of German sites were 288 MW.
• The average water depth of wind farms completed, or partially completed in
2015 was 27.1 m and the average distance to shore was 43.3 km.
Financing highlights and
developments
• Ten projects, worth €13.3bn, reached final investment decision (FID), a
doubling over 2014. In total 3,034 MW of new capacity reached FID during
2015.
• Total investments for the construction and refinancing of offshore wind farms
and transmission assets hit a record level of €18bn.
• Reduced risk perception for offshore wind projects has led to the emergence
of project bonds as a means of financing. For the first time in 2015, €1.5bn
was raised through project bonds for the construction and refinancing of
offshore wind farms.
The European offshore wind industry - key trends and statistics 2015
3
Annual market in 2015
Annual market in 2015
Offshore wind installations
3,018.5 MW of new offshore wind power capacity was
connected to the grid during 2015 in Europe, a 108.3%
increase over 2014 and the biggest yearly addition to
capacity to date.
• During 2015, work was carried out on 22 offshore
wind farms in Europe.
• 14 utility-scale wind farms were completed.
• Work continued on two other wind farms where
several wind turbines were erected.
• Work has started but no turbines are yet connected
in five other wind farms.
• Two sites had decommissioning of turbines, with a
full decommissioning at the Yttre Stengrund site in
Sweden.
TABLE 1: SUMMARY OF WORK CARRIED OUT AT EUROPEAN OFFSHORE WIND FARMS DURING 2015
Wind farm name
Country
Status
DanTysk
Germany
Fully grid-connected H1 2015
Gwynt y Mor
United Kingdom
Fully grid-connected H1 2015
United Kingdom
Fully grid-connected H1 2015
Meerwind Süd Ost
Germany
Fully grid-connected H1 2015
Westermost Rough
United Kingdom
Fully grid-connected H1 2015
Amrumbank West
Germany
Fully grid-connected
Baltic 2
Germany
Fully grid-connected
Borkum Riffgrund I
Germany
Fully grid-connected
Butendiek
Germany
Fully grid-connected
Global Tech 1
Germany
Fully grid-connected
Luchterduinen
Netherlands
Fully grid-connected
Nordsee Ost
Germany
Fully grid-connected
Trianel Windpark Borkum
Germany
Fully grid-connected
Kentish Flats 2 Extension
United Kingdom
Fully grid-connected
Westermeerwind
Netherlands
Partially grid-connected
Gode Wind II
Germany
Turbines installed
Gemini
Netherlands
Foundations installed
GodeWind I
Germany
Foundations installed
Nordsee One
Germany
Foundations installed
Sandbank
Germany
Foundations installed
Robin Rigg
United Kingdom
Turbines decommissioned
Yttre Stengrund
Sweden
Fully Decommissioned
Humber Gateway
1
1 Meerwind Süd Ost was incorrectly cited in 2014 as being fully grid-connected. 15 turbines were grid-connected in 2015. All necessary
changes are reflected for both 2014 and 2015 in this report.
The European offshore wind industry - key trends and statistics 2015
4
Annual market in 2015
FIG 1: SHARE OF NET ANNUAL OFFSHORE WIND CAPACITY
INSTALLATIONS PER COUNTRY (MW)
Netherlands
180
5.9%
75.4% of all net capacity brought online was in Germany
(2,282.4 MW), a four-fold increase in its grid-connected
capacity compared to 2014. This was in large part due
to the delay in grid connections finally coming online in
2015 in Germany.
UK
566
18.7%
Germany
2,282
75.4%
The second largest market was the UK (566.1 MW, or
18.7% share), followed by the Netherlands (180 MW, or
5.9% share).
TABLE 2: NUMBER OF TURBINES AND MW FULLY CONNECTED TO THE GRID DURING 2015 PER COUNTRY (MW)
Country
Germany
Netherlands
Sweden
UK
Total
No. of farms
10
2
-1
4
15
No. of turbines connected
546
60
-5
153
754
MW connected to the grid
2,282.4
180
-10
566.1
3,018.5
Baltic Sea
278
9.2%
Irish Sea
141
4.7%
FIG 2: SEA BASIN SHARE OF 2015 NET ANNUAL INSTALLATIONS (MW)
Of the total 3,018.5 MW connected in European waters,
86.1% were in the North Sea, 9.2% in the Baltic Sea, and
4.7% in the Irish Sea.
North Sea
2,598
86.1%
Annual market share in 2015 - wind turbine manufacturers
MHI
Vestas
392
12.9%
Adwen
550
18.2%
FIG 3: WIND TURBINE MANUFACTURERS’ SHARE OF 2015 NET
ANNUAL INSTALLATIONS (MW)
Senvion
271
8.9%
Siemens
1,816
60%
The European offshore wind industry - key trends and statistics 2015
Siemens continues to be the top offshore wind turbine
supplier in terms of net annual installations. With
1,816.4 MW of new capacity connected, Siemens
accounts for 60% of the 2015 market.
Adwen (550 MW, 18.2%), MHI Vestas (391.5 MW,
12.9%) and Senvion (270.6 MW, 8.9%) are the other
turbine manufacturers who had turbines grid-connected
in full-scale wind farms during 2015.
5
Annual market in 2015
FIG 4: WIND TURBINE MANUFACTURERS’ SHARE OF 2015 NET
ANNUAL INSTALLATIONS (UNITS CONNECTED)
Senvion
44
5.8%
Similarly, in terms of net grid-connected units, Siemens
remains at the top with 476 turbines of various
individual turbine capacities (3-6 MW, accounting for
62.7% of connected capacity) connected in European
waters during 2015.
Adwen
110
14.5%
Siemens
476
62.7%
MHI Vestas
129
17.0%
MHI Vestas connected a net total of 129 turbines
(ranging from 3-3.3 MW) representing 17%2.
Adwen connected 110 turbines to the grid, each rated
at 5 MW, representing 14.5% of all turbines connected.
Senvion also connected 44 turbines, with an individual
turbine rating of 6.15 MW, making up 5.8% of gridconnected turbines in 2015.
Annual market share in 2015 - wind farm developers/owners3
E.ON was the largest developer in the European offshore sector in 2015 with 17.1% of total connections. Combined
with RWE Innogy (344.4 MW, 11.4%), EnBW (288 MW, 9.5%), Stadtwerke München (235.5 MW, 9.5%), DONG
Energy (234 MW, 7.8%), the top 5 developers added 1.6 GW of installed capacity, representing 53.6% of total
installations in 2015.
FIG 5: DEVELOPERS’ SHARE OF 2014 ANNUAL INSTALLATIONS (MW)
Others
1,054
34.9%
E.ON
515
17.1%
RWE Innogy
344
11.4%
EnBW
288
9.5%
Vattenfall
148
4.9%
Trianel
200
6.5%
Stadtwerke
München
236
7.8%
DONG Energy
234
7.8%
2 MHI Vestas numbers factor in two turbines decommissioned at Robin Rigg. Five NEG Micon turbines at Yttre Stengrund are not considered
part of the MHI Vestas portfolio and are recorded seperately.
3 Grid-connected market shares are indicative only. Projects owned or developed by several companies have been split according to their
respective shares. Where the shares are not known, they have been split in equal parts between the partners.
The European offshore wind industry - key trends and statistics 2015
6
Annual market in 2015
Annual market share in 2015 - substructures
FIG 6: FOUNDATION TYPES’ SHARE OF 2015 ANNUAL MARKET
Jacket
12
3%
Monopile substructures remained by far the most
popular substructure type in 2015 with a net total of
385 installed (97%), taking into account the seven
monopiles that were decommissioned in the UK and
Sweden.
Monopile
385
97%
12 jacket foundations were also installed, representing
3% of all newly installed substructures.
FIG 7: SHARE OF FOUNDATIONS INSTALLED IN 2015 BY MANUFACTURING COMPANY4
Foundations installed in 2015 were supplied by EEW (41.1%), Sif (34.1%), Bladt (21.6%), Smulders (3.8%), with
decommissioning of AMEC foundations resulting in a decrease in market size by 0.6%
AMEC
-3
Smulders
15
Bladt
86
-20
Sif
136
EEW
163
0
20
40
60
80
100
120
140
160
180
Net installation of foundations
4 Shares are calculated according to the actual number of individual foundations installed in 2015. When the project developer contracted
more than one company to manufacture the foundations, and where the respective shares (in case of consortia/joint venture) were not
specified, foundations installed were split in equal parts between the partners. Shares also consider decommissioned infrastructure.
The European offshore wind industry - key trends and statistics 2015
7
Annual market in 2015
Annual market share in 2015 - cables5
FIG 8: SHARE OF INTER-ARRAY CABLE SUPPLIERS TO OFFSHORE
WIND FARMS IN 2015 (NO. OF CABLES, PERCENTAGE)
ABB
39
5.2%
JDR
15
2.0%
Parker Scanrope
57
7.6%
Prysmian
218
28.9%
Nexans
104
13.8%
NSW
198
26.3%
NKT
123
16.3%
LS Cable & System
3
6.4%
In 2015, 218 inter-array cables manufactured by
Prysmian were energised, representing the largest
market share at 28.9%.
198 cables connecting wind turbines manufactured
by NSW were energised, representing 26.3% of all
energised cables.
123 cables manufactured by NKT were also energised
(16.3%), together with 104 by Nexans (13.8%), 57 by
Parker Scanrope (7.6%) 39 by ABB (5.2%), and 15 by
JDR (2%)
FIG 9: SHARE OF EXPORT CABLE SUPPLIERS IN 2015 (NO. OF
CABLES, PERCENTAGE)
NSW
6
12.8%
Prysmian
21
44.7%
ABB
7
14.9%
NKT
10
21.3%
In terms of export cables in 2015, 47 export cables
manufactured by Prysmian were energised (44.7% of
all export cables).
Ten export cables manufactured by NKT (21.3%), along
with seven from ABB (14.9%). Six from NSW (12.8%),
and three from LS Cable & System (6.4%) completed
the market in 20156.
5 Shares are calculated taking into account the number of grid-connected turbines in each wind farm during 2015 and considers
decommissioned infrastructure.
6 Shares are calculated by taking into account the number of export cables in wind farms fully completed of partially completed.
The European offshore wind industry - key trends and statistics 2015
8
Annual market in 2015
Wind turbine capacity and wind farm size
The average capacity rating of the 754 offshore wind
farms under construction in 2015 was 4.2 MW, 12.9%
larger than in 2014. Larger capacity turbines were
deployed by all manufacturers in 2015.
The completion of large numbers of German offshore
wind farms designed at 288 MW overall capacity offsets
the completion of the large 576 MW Gwynt y Môr site,
and construction at the 600 MW Gemini offshore wind
farm, affecting the overall average size of sites.
The average size of wind farms in construction in 2015
was 337.9 MW, an 8.2% decrease from 2014.
Water depth and distance to shore
The average water depth of offshore wind farms where
work was carried out in 2015 was 27.2 m, slightly more
than in 2014 (22.4 m). The average distance to shore
for those projects was 43.3 km, significantly more than
in 2014 (32.9 km). This reflects the greater share of
projects that were under construction and completed
in Germany, which are sited further from shore when
compared with other countries.
FIG 10: WATER DEPTH, DISTANCE TO SHORE AND SIZE OF OFFSHORE WIND FARMS UNDER CONSTRUCTION DURING 2015
120
Distance to shore (km)
100
80
60
40
20
0
5
10
15
20
25
30
35
40
45
50
Water depth (m)
United Kingdom
The European offshore wind industry - key trends and statistics 2015
Netherlands
Germany
9
Cumulative market
Cumulative market
Europe’s cumulative installed capacity at the end of 2015 reached 11,027.3 MW, across a total of 3,230 wind
turbines. Including sites under construction, there are now 84 offshore wind farms in 11 European countries.
With installed capacity now capable of producing approximately 40.6 TWh in a normal wind year, there is enough
electricity from offshore wind to cover 1.5% of the EU’s total electricity consumption7.
FIG 11: CUMULATIVE AND ANNUAL OFFSHORE WIND INSTALLATIONS (MW)
3,500
12,000
11,000
3,000
10,000
9,000
2,500
7,000
Annual (MW)
2,000
6,000
1,500
5,000
Cumulative (MW)
8,000
4,000
1,000
3,000
2,000
500
1,000
0
1993
1994
1995
1996
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
-
2.00
5.00
16.8
-
2.80
-
4.00
50.5
170.
276.
89.7
90.0
92.5
318.4
373.5
576.9
882.7
873.5
1165
1567
1446
3018
4.95
6.95
11.9
28.7
28.7
31.5
31.5
35.5
86.0
256.1
532.3
622.0
712.0
804.5
1122
1496
2073
2955
3829
4994
6561
8008
11027
Annual
Cumulative
1997
1998
1999
2012
2013
2014
2015
TABLE 3: NUMBER OF WIND FARMS WITH GRID-CONNECTED TURBINES, NO. OF TURBINES CONNECTED AND NO. OF MW FULLY CONNECTED
TO THE GRID AT THE END OF 2015 PER COUNTRY.
Country
BE
DE
DK
ES
FI
IE
NL
NO
PT
SE
UK
Total
No. of farms
5
18
13
1
2
1
6
1
1
5
27
80
No. of turbines
182
792
513
1
9
7
184
1
1
86
1,454
3,230
Capacity
installed (MW)
712
3,295
1,271
5
26
25
427
2
2
202
5,061
11,027
The UK has the largest amount of installed offshore wind capacity in Europe (5,060.5 MW) representing 45.9% of all
installations. Germany follows with 3,294.6 MW (29.9%). With 1,271.3 MW (11.5% of total European installations),
Denmark is third, followed by Belgium (712.2 MW, 6.5%), the Netherlands (426.5 MW, 3.9%), Sweden (201.7 MW,
1.8%), Finland (26 MW), Ireland (25.2 MW), Spain (5 MW), Norway (2 MW) and Portugal (2 MW).
7 The most recent data (2013) for EU 28 final energy consumption of electricity from Eurostat Is 2,770 TWh. Source: Eurostat [nrg_105a],
extracted on 17 January 2016.
The European offshore wind industry - key trends and statistics 2015
10
Cumulative market
FIG. 12: INSTALLED CAPACITY - CUMULATIVE SHARE BY COUNTRY
FIG. 13: INSTALLED WIND TURBINES - CUMULATIVE SHARE BY
COUNTRY
Finland
26
0.2%
Ireland
26
0.2%
Finland
9
0.3%
Ireland
7
0.2%
Sweden
202
1.8%
Spain
5
0.05%
Sweden
86
2.7%
Norway
1
0.03%
Portugal
2
0.02%
Belgium
182
5.6%
Portugal
1
0.03%
Netherlands
427
3.9%
Belgium
702
6.5%
Norway
2
0.02%
Denmark
1,271
11.5%
Netherlands
184
5.7%
Spain
1
0.03%
Denmark
513
15.9%
UK
5,061
45.9%
Germany
3,292
29.9%
UK
1,454
45%
Germany
792
24.5%
FIG. 14: INSTALLED CAPACITY, CUMULATIVE SHARE BY SEA BASIN
Atlantic Ocean
0.1%
Baltic Sea
12.9%
Irish Sea
17.6%
North Sea
69.4%
In terms of the number of grid-connected wind turbines
in Europe, the UK leads the market with 1,454 turbines
(45%), followed by Germany (792 wind turbines, 24.5%),
Denmark (513 turbines, 15.9%), Belgium (182 turbines,
5.6%), the Netherlands (184 turbines, 5.7%), Sweden
(86 turbines, 2.7%), Finland (nine turbines, 0.3%) and
Ireland (seven turbines). Norway, Portugal, and Spain
all have one wind turbine each.
The 11,027.1 MW of offshore wind capacity are mainly
installed in the North Sea (7,656.4 MW, 69.4%).
1,943.2 MW or 17.6% are installed in the Irish Sea, and
1,420.5 MW (12.9%) in the Baltic Sea, and 7 MW in the
Atlantic Ocean.
The European offshore wind industry - key trends and statistics 2015
11
Cumulative market
Cumulative market share: wind turbine manufacturers
WinWind
0.5%
GE Renewable Energy
0.4%
BARD
3.6%
Other
0.3%
Adwen
5.7%
Samsung
0.1%
Senvion
7.4%
MHI Vestas
18.5%
Other
1.4%
WinWind
0.6%
BARD
2.5%
GE Renewable Energy
0.5%
Samsung
0.03%
Senvion
4.3%
MHI Vestas
23%
Siemens is the lead offshore wind turbine supplier
in Europe with 63.5% of total installed capacity. MHI
Vestas (18.5%) is the second biggest turbine supplier,
followed by Senvion (7.4%), Adwen (5.7%), and BARD
(3.6%).
Turbine portfolios for GE and Alstom are consolidated
into GE Renewable Energy following the acquisition
of Alstom’s power unit in 2015. Areva and Gamesa
turbines are also consolidated into Adwen.
Siemens
63.5%
Adwen
3.9%
FIG. 15: WIND TURBINE MANUFACTURERS’ SHARE AT THE END OF
2015 (PERCENTAGE)
Siemens
63.6%
The European offshore wind industry - key trends and statistics 2015
FIG. 16: WIND TURBINE MANUFACTURERS’ SHARE AT THE END OF
2015 (PERCENTAGE)
In terms of the total number of wind turbines connected
to the grid at the end of 2015, Siemens remains the
top supplier with 2,059 turbines, accounting for 63.6%
of the market.
MHI Vestas has 750 grid-connected turbines
representing 23.2% of total turbines, followed by
Senvion (140 turbines, 4.3%), Adwen (127 turbines,
3.9%), BARD (80 turbines, 2.5%), WinWind (18 turbines,
0.6%), and GE Renewable Energy with 15 turbines
(0.5%).
12
Cumulative market
Cumulative market share: wind turbine developers/owners
FIG. 17: OWNERS’ SHARE OF INSTALLED CAPACITY (PERCENTAGE)
DONG Energy maintains its position as the biggest
owner of offshore wind power in Europe with 15.6% of
cumulative installations at the end of 2015.
DONG Energy
15.6%
Other
31.8%
E.ON
9.6%
E.ON (9.6%), Vattenfall (8.9%), RWE Innogy (6.4%) and
Stadtwerke München (3.8%) complete the top five
developers and owners.
RWE Innogy
9%
CPDQ
1.4%
SEAS-NVE
1.5%
Vattenfall
8.8%
EnBW
1.6%
ENECO
1.7%
Stadtwerke München
3.8%
Iberdrola
1.8%
Ocean Breeze Energy
3.6%
Trianel
1.8%
SSE
3.2%
Blackstone
2.1%
Green Investment Bank
2.8%
Substructures
FIG. 18: SHARE OF SUBSTRUCTURE TYPES FOR ONLINE WIND
TURBINES END 2015
Tripiles
Experimental
55
1.7%
2
0.1%
Tripods
Floating
120
3.6%
2
0.1%
Jacket
Share of monopiles increased to 80.1%, as did jackets,
which now account for 5.4% of the 3,313 foundations
installed in Europe, a figure which includes those
awaiting turbine installations or grid connections.
178
5.4%
Gravity
303
9.1%
Monopiles
2,653
80.1%
The European offshore wind industry - key trends and statistics 2015
13
Market outlook for 2016 and 2017
Market outlook for 2016 and 2017
The volume of new grid-connected installations will be
lower in 2016 than it was in 2015. This is due in part
to the high volume of turbines installed in 2014 that
were only grid-connected in 2015 in Germany; and in
part to the reduced number of project starts in 2015
compared to 2014.
Iberdrola’s Wikinger wind farm in Germany and E.ON’s
Rampion in the UK, meaning that overall average
wind farm sizes will increase in 2016. Average turbine
size will also increase as the industry develops larger
models.
Once completed, the six offshore projects currently
under construction will increase installed capacity by
a further 1.9 GW, bringing the cumulative capacity in
Europe to 12.9 GW. EWEA has identified 26.4 GW of
consented offshore wind farms in Europe that could be
constructed over the next decade. A total of 63.5 GW
of projects are understood to be in the planning phase.
However, turbine orders in 2015 were stronger
than in 2014, presenting an early indication of good
momentum for offshore wind after 2016. Year-on-year
orders grew by 74.5% to 5.1 GW of firm and conditional
orders placed.
Offshore construction work is expected to start at
sites larger than those worked on in 2015, such as
FIG. 19: QUARTERLY OFFSHORE WIND TURBINE ORDERS 2014-2015 (MW)
2,500
2,000
MW
1,500
1,000
500
0
Q1 14
Q2 14
Q3 14
Q4 14
Turbine Orders
Q1 15
Q2 15
Q3 15
Q4 15
Trend
FIG. 20: OFFSHORE MARKET: PROJECTS ONLINE, UNDER CONSTRUCTION AND CONSENTED (GW)
70
60
50
GW
40
30
20
10
0
Planned
Under consenting
procedure
The European offshore wind industry - key trends and statistics 2015
Consented
Under construction
Online
14
Market outlook for 2016 and 2017
Ireland
3.8%
Denmark
2%
Belgium
4.2%
Others
1.3%
FIG. 21: SHARE OF CONSENTED OFFSHORE CAPACITY PER
COUNTRY (PERCENTAGE OF MW)
The UK has the highest share of consented offshore
wind capacity (55%), followed by Germany (26.2%).
Sweden (7.5%), Belgium (4.2%), Ireland (3.8%) and
Denmark (2%) have the remaining share of consented
sites.
Sweden
7.5%
UK
55%
Germany
26.2%
Irish Sea
8.6%
Mediterranean Sea
1%
Baltic Sea
12.4%
North Sea
78%
The European offshore wind industry - key trends and statistics 2015
FIG. 22: SHARE OF CONSENTED OFFSHORE WIND FARMS BY SEA
BASIN (PERCENTAGE OF MW)
In the medium term, an analysis of consented wind
farms confirms that the North Sea will remain the main
region for offshore deployment (78% of total consented
capacity) with significant developments also foreseen
in the Irish Sea (8.6% of consented capacity) and in the
Baltic Sea (12.4%). Whilst consented projects exist in
the Mediterranean, there is no immediate outlook for
deployment.
15
Trends: turbines, water depth and distance to shore
Trends: turbines, water depth
and distance to shore
Wind turbine capacity
Wind turbine capacity has grown 41.1% from 2010 to 2015. In 2015, the average capacity of new wind turbines
installed was 4.2 MW, a significant increase from 3.0 MW in 2010, reflecting a period of continuous development
in turbine technology to increase energy yields at sea.
The deployment of 4-6 MW turbines seen in 2015 will be followed by the gradual introduction of 6-8 MW turbines
closer towards 2018.
FIG. 23: AVERAGE OFFSHORE WIND TURBINE RATED CAPACITY
4.5
4
3.5
3
MW
2.5
2
1.5
1
0.5
The European offshore wind industry - key trends and statistics 2015
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
16
Trends: turbines, water depth and distance to shore
Wind farm size
In the last five years, the average wind farm size has more than doubled, from 155.3 MW in 2010 to 337.9 MW in
2015. Multiple consents granted last year in the UK for 1.2 GW sites in the Dogger Bank provide indications for the
scale of offshore wind farms in the longer term.
FIG. 24: AVERAGE SIZE OF OFFSHORE WIND FARM PROJECTS
1,000
900
800
700
600
MW
500
400
300
200
100
The European offshore wind industry - key trends and statistics 2015
Planned
U/C
Consented
2015
2014
2013
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
1997
1996
1995
1994
1993
1992
1991
0
17
Trends: turbines, water depth and distance to shore
Water depth and distance to shore
Offshore wind farms have moved further from shore and into deeper waters. At the end of 2015, the average water
depth of grid-connected wind farms was 27.1 m and the average distance to shore was 43.3 km. This is primarily
the result of increased deployment in Germany during 2015, where sites are an average of 52.6 km from shore.
By comparison, UK projects were on average 9.4 km from the shoreline. Dutch projects were sited at an average
of 31.4 km away from shore.
FIG. 25: AVERAGE WATER DEPTH AND DISTANCE TO SHORE OF ONLINE, UNDER CONSTRUCTION AND CONSENTED WIND FARMS
120
100
Distance to shore (km)
80
60
40
20
-
(20)
-
10
0
10
20
30
40
50
60
Water depth (m)
Online
The European offshore wind industry - key trends and statistics 2015
Consented
Under construction
18
Finance
Finance
Highlights and developments in 2015
The financial markets in 2015 continued to support the
offshore wind sector across a variety of instruments
and actors. The record level of commercial debt that
was raised in 2015 through project finance, green and/
or non-recourse bonds indicates that financial markets
are willing to back well-structured projects.
Ten projects worth €13.3bn in total reached final
investment decision in 2015, compared to €6.5bn,
a doubling from 2014. In total, 3 GW of new gross
capacity were financed across four countries, 66% of
which was in the United Kingdom.
FIG. 27: TOTAL INVESTMENT REQUIREMENT FOR NEW ASSETS 2010-2015
14
12
bn EUR
10
104%
8
-10%
46%
6
-27%
-19%
4
2
0
2010
2011
2012
Investment requirement
FIG. 28: INVESTMENTS IN THE OFFSHORE WIND SECTOR IN 2015
Total investments in offshore wind in 2015 were more
than €18bn; this includes investments in construction
of offshore wind projects, transmission assets and
refinancing.
2013
2014
% y-o-y change
Construction: Transmission assets
Construction: Offshore wind projects
Refinancing: Offshore wind projects and
transmission assets
2,987
This makes 2015 a record year in terms of total
committed funds.
2015
1,783
€18 bn
worth of investments
in offshore wind
and transmission
assets
13,251
The European offshore wind industry - key trends and statistics 2015
19
Finance
In 2015 the UK had the largest level of investment
in new offshore wind farms, at €8.9bn. Cumulatively,
over the last 5 years, Germany has received the most
investment, attracting €19.8bn for the construction of
new offshore wind projects, or 43% of the total funds
committed to the sector for the same period.
FIG. 29: INVESTMENTS IN NEW OFFSHORE WIND FARMS 2010-2015
Sweden
2010
2011
2012
2013
2014
2015
10,000
12,000
14,000
16,000
18,000
20,000
Portugal
Denmark
Belgium
Netherlands
United Kingdom
Germany
0
2,000
4,000
6,000
8,000
Investments in new assets (mEUR)
Non-recourse debt
Given the scale of the offshore wind sector in 2015,
project finance remained an important tool in the
market.
€5bn, equivalent to 44% (1.3 GW) of the new gross
capacity was financed on a non-recourse basis. This
is a significant increase from the previous year. As a
trend, offshore wind farms in Germany are completed
utilising project finance. On the corporate finance side,
the UK generally favours on-balance sheet financing.
FIG. 30: CORPORATE FINANCE AND NON-RECOURSE DEBT LEVELS 2010-2015
6,777
7,000
6,362
5,923
6,000
5,026
mEUR
5,000
4,000
2,000
3,228
2,971
3,000
3,181
2,724
2,007
1,563
1,464
1,000
1,256
0
2010
2011
2012
Corporate finance
The European offshore wind industry - key trends and statistics 2015
2013
2014
2015
Non-recourse debt
20
Finance
FIG. 31: PROJECT FINANCE TRANSACTIONS 2010-2015
5,000
Nordergründe
111 MW
Belwind
(Phase 1)
165 MW
4,500
Nobelwind
165 MW
4,000
Nordsee One
332 MW
3,500
mEUR
3,000
Westermost
Rough
210 MW
2,500
2,000
Baltic 1
48 MW
1,500
1,000
Gemini
600 MW
Walney
367 MW
Meerwind
288 MW
Borkum
West 2
200 MW
Veja Mate
400 MW
Westermeerwind
144 MW
Galloper
336 MW
London Array
630 MW
Northwind
216 MW
500
C-Power2
295 MW
Lincs
270 MW
Gunfleet Sands
172 MW
Global
Tech 1
400 MW
0
2010
2011
2012
Five new projects and one re-financing (Belwind) were
recorded in 2015. The general trend of easing loan terms
continued in 2015, with three factors at play. The liquidity
in the financial markets, the low interest rate environment,
and the considerable experience gained throughout a
decade have all contributed to the competitiveness of
offshore wind in the infrastructure sector.
Commercial banks are willing to take a larger share of
financing. Debt-to-equity ratios remain largely in the
margins of 70:30. However, there is sufficient appetite
from the financial sector to push the margins further on
the debt side, with many international names.
The European offshore wind industry - key trends and statistics 2015
2013
Buitendiek
288 MW
2014
2015
The larger capacity size of projects has increased financing
needs. As a result, multilateral backing remains important
as a form of risk sharing on projects. Notably in 2015,
the European Investment Bank (EIB) directly committed
€817m for offshore wind projects under the European
Fund for Strategic Investments (EFSI). The EIB has been
involved this year in the financing of Galloper (336 MW),
Nobelwind (165 MW), and Nordergruende (111 MW)
offshore wind farms.
However, certain projects have progressed without
multilateral backing as risks are better understood.
Nordsee One became the first project to be completed
without the presence of any multilateral financial
institution.
21
Finance
Equity finance
The equity markets have remained active, in particular
during the pre-construction phase. In total, 2.8 GW have
been divested in 2015, compared to 1.8 GW divested in
2014. The current trend of increasing project size, cost,
and distance from the shore are all factors that have
contributed to this peak volume of capacity divested as
part of recycling capital. Partnerships are turning into a
key strategy to free up capital from the balance sheets
through the sale of project stakes.
FIG. 32: DIVESTMENTS IN THE OFFSHORE WIND SECTOR
1,751
1,800
1,600
Capacity in MW
1,400
1,200
1,000
824
800
600
474
400
200
0
775
274
207
Q1 14
107
Q2 14
Q3 14
Pre-construction
Q4 14
Construction
FIG. 33: MARKET SEGMENTATION OF MAJOR EQUITY INVESTORS
IN 2015
Power producers continue to lift the majority of equity
capital in the offshore wind sector. However, due to
the large scale investment and stable income returns,
there is greater interest from the financial services
industry.
The involvement of financial services in equity financing
so far has been mainly limited to assets under
construction.
The European offshore wind industry - key trends and statistics 2015
Q1 15
Q2 15
176
Q3 15
Q4 15
Operations
Diversified
financial services
11%
Policy driven
lenders
5%
Independent
power producer
4%
Institutional
investors
10%
Power
producers
70%
22
Finance
Transaction highlights: project bond issuance
One of the main developments in 2015 was the
diversification of the financial structures employed during
construction and operation project stages. Project bonds
are emerging as a competitive lending tool compared to
the more established sources of corporate debt or project
finance.
The Gode Wind 1 (330 MW) project bond became the
first of its kind issued within the offshore wind sector. The
bond was issued by Global Infrastructure Partners (GIP) to
finance their 50% stake acquisition from DONG Energy in
the currently under-construction project. The €780m deal
was supported by GIP, an infrastructure fund, with €230m
in equity finance. A group of institutional investors, with
Talanx as cornerstone lender, subscribed to the project
bond.
Later in the year came the refinancing of Meerwind Süd Ost
(288 MW) offshore wind farm. Having previously reached
financial close in 2011, Meerwind Süd Ost is now in the
operational stage. The transaction of €960m provided
windows of opportunity for new investors to emerge.
Transmission assets
FIG. 34: INVESTMENTS IN TRANSMISSION ASSETS 2011-2015
2,200
2,000
Total investment requirements for transmission assets in
2015 reached €2bn, including refinancing. €1.9bn was
raised through commercial debt, out of which €1.5bn was
through bond issuances. In Germany alone, Dutch grid
operator TenneT raised €1bn for DolWin 1 transmission
line through a green bond issuance that was twice
oversubscribed.
1,800
1,600
mEUR
1,400
1,200
1,000
800
600
400
200
-
2011
2012
2013
2014
2015
With the offshore wind sector, transmission lines have also
evolved into a strategic asset class due to their inflation
linked, stable revenue streams. Capitalising on this low
risk exposure and solid credit quality, transmission asset
sponsors have been able to utilise the liquidity in the
capital markets to finance their transactions.
Total investment requirement
Transaction value
Outlook for 2016
€11bn of estimated financing will be required for 3,052
MW of new capacity in 2016. Several transactions are
already under appraisal or expected to go through final
investment decision in 2016. Projects under appraisal
include Otary Rentel (294 MW) wind farm, Hornsea
The European offshore wind industry - key trends and statistics 2015
Phase 1 (1,200 MW), Hohe See (492 MW), Dudgeon
(402 MW), Beatrice (664 MW), and the refinancing of
Luchterduinen (129 MW).
23
Finance
Offshore
Wind Energy
2017
6 - 8 June 2017
London, UK
The world’s largest
offshore wind energy
conference and exhibition
www.offshorewind2017.com
CO-ORGANISED BY:
The European offshore wind industry - key trends and statistics 2015
24