In 2016, Europe raised a total of EUR 43 billion for the construction of new wind farms, refinancing operations, project acquisitions, and public market fundraising. Out of EUR 27.6 billion reached in new asset financing, offshore wind accounted for a record-breaking EUR 18.2 billion, while onshore wind new asset financing dropped by 5% to EUR 9.4 billion.
The UK was the biggest market in 2016 with EUR 12.7 billion raised for new onshore and offshore projects, Germany came second with EUR 5.3 billion, according to WindEurope, whose CEO Giles Dickson said that the competitiveness of the wind energy industry and reduced risk perceptions brought in major financial players who are looking to diversify their portfolios.
“What is worrying is the uneven growth geographically. 80% of new investments came from four countries alone, the UK, Germany, Belgium, and Norway. 14 EU Member States did not announce any new wind energy investments in 2016. Many countries struggle to manage the transition to auctions. Only 7 EU Member States have clear policies for renewables beyond 2020 – the unclear policy outlook in the rest makes investors and project developers go elsewhere. The National Energy & Climate Action Plans required under the Clean Energy Package (by 1 January 2019) will be crucial to sustain investments,” Dickson further added.
The organsation expects investment levels to fall in 2017, since they have been inflated in the last two years by projects squeezing through the gate before countries transition to auction-based remuneration mechanisms. With many key markets, including Germany and France, switching to auctions this year, there will be a lull before the auction results lead to new final investment decisions in projects.