Is the relatively small investment of around 25 million euros due to the lingering effects of the banking crisis or to Hanseatic understatement?
Hanseatic understatement sounds good and is always a gond thing, no question. No, the size of the
amount represents a good first step in what is for us a new segment where we hâve certainly applied
an appropriate degree of commercial prudence. For this project we wanted to invest a sum which fits
well with our house.
Apart from the volume, what are the most important différences between financing a wind farm at sea and on land?
From a technical and organisational perspective, wind farms on land are built following a procedure
which is now well established. Every partner involved in such a project knows what's important. The development and construction times on land are also significantly shorter than offshore. The uncertainties at sea are much greater than on land, and that is one of the weightiest différences. For example, it
starts with the interface logistics and finishes with implémentation in those weather Windows in which
construction work can take place. Until recently, the lack of connection to the grid was certainly another
of the major risks making finance more difficult. Finally, offshore finance takes up a lot more time and
human resources for bankers, too. That is an aspect that should not be underestimated.
A sériés of offshore wind farms hâve been built in the last decade, initially off the Danish coast, later in greater numbers primarily
around the British Isles. Haven't the risks which you mention fallen due to the expérience gained?
That's right. There has been unmistakeable progress, not just in the foundation structures but also in
the technology of the wind turbines that are used at sea. This progress will continue. The learning curve
in the offshore sector is very steep here. The high availability of the turbines in the most recently built
farms must also be seen as a positive. Also on the plus side, you hâve a wind yield that is exceeding
forecasts. Ail these factors hâve, in my view, helped confidence in the financing of offshore wind farms
to grow.
Butendiek is doubtless something of a pilot project for Bremer Landesbank for the further financing of offshore wind farms. What
conditions hâve to be met for your house to give the green light to more projects?
We will certainly stick to German jurisdiction, in other words focus on German projects in the North Sea
and the Baltic based on the Renewable Energies Act [EEGJ. I think we will be less active in financing
offshore wind farms abroad. If we do so, we would hâve to know and be able to assess the clients behind
the venture from other projects. Our bank is interested in engaging in further offshore financing. But in
view of our focus on onshore projects and considering our resources, we would not be able to look after
several projects at once. Butendiek can become a door-opener for further financing on the part of our
house at sea as the project has turned out favourably.
156
Hanseatic understatement sounds good and is always a gond thing, no question. No, the size of the
amount represents a good first step in what is for us a new segment where we hâve certainly applied
an appropriate degree of commercial prudence. For this project we wanted to invest a sum which fits
well with our house.
Apart from the volume, what are the most important différences between financing a wind farm at sea and on land?
From a technical and organisational perspective, wind farms on land are built following a procedure
which is now well established. Every partner involved in such a project knows what's important. The development and construction times on land are also significantly shorter than offshore. The uncertainties at sea are much greater than on land, and that is one of the weightiest différences. For example, it
starts with the interface logistics and finishes with implémentation in those weather Windows in which
construction work can take place. Until recently, the lack of connection to the grid was certainly another
of the major risks making finance more difficult. Finally, offshore finance takes up a lot more time and
human resources for bankers, too. That is an aspect that should not be underestimated.
A sériés of offshore wind farms hâve been built in the last decade, initially off the Danish coast, later in greater numbers primarily
around the British Isles. Haven't the risks which you mention fallen due to the expérience gained?
That's right. There has been unmistakeable progress, not just in the foundation structures but also in
the technology of the wind turbines that are used at sea. This progress will continue. The learning curve
in the offshore sector is very steep here. The high availability of the turbines in the most recently built
farms must also be seen as a positive. Also on the plus side, you hâve a wind yield that is exceeding
forecasts. Ail these factors hâve, in my view, helped confidence in the financing of offshore wind farms
to grow.
Butendiek is doubtless something of a pilot project for Bremer Landesbank for the further financing of offshore wind farms. What
conditions hâve to be met for your house to give the green light to more projects?
We will certainly stick to German jurisdiction, in other words focus on German projects in the North Sea
and the Baltic based on the Renewable Energies Act [EEGJ. I think we will be less active in financing
offshore wind farms abroad. If we do so, we would hâve to know and be able to assess the clients behind
the venture from other projects. Our bank is interested in engaging in further offshore financing. But in
view of our focus on onshore projects and considering our resources, we would not be able to look after
several projects at once. Butendiek can become a door-opener for further financing on the part of our
house at sea as the project has turned out favourably.
156