Innogy’s Executive Board has approved a capital expenditure budget of over EUR 3 billion for fiscal 2018, more than 25% above the figure expected for 2017.
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The EUR 2.2 billion Triton Knoll offshore wind farm in the UK – for which the final investment decision is set to be made in mid-2018 – will be a major CAPEX target as innogy plans to further expand its renewable energy capacity in the years ahead. Nevertheless, expansion and modernisation of network infrastructure will be a focal point of innogy’s investing activity in 2018.
Regarding the Triton Knoll offshore wind farm, innogy said it is currently assessing various options for commercially optimising the project, including partnership models and financing structures.
Works on the onshore electrical infrastructure to provide the grid connection are scheduled to begin in 2018, with the commissioning of the wind farm expected to start in 2021.
Looking at the expected financial performance in 2018, innogy anticipates that its Renewables division will post earnings on a par with fiscal 2017, with an adjusted EBIT of about EUR 350 million, an estimate based on normalised weather conditions. Below-average wind and precipitation levels are weighing on earnings in the financial year underway, innogy stated.
The company also intends to put more renewables capacity online, including the full commissioning of the 353MW Galloper offshore wind farm in which it has a 25% stake. The fact that innogy benefited from the one-time effect of the revaluation of the Triton Knoll offshore wind project following the initial full consolidation in 2017 will have a counteracting effect, innogy added.