How many offshore wind farms has KfW IPEX bank co-financed to date?
So far we hâve supported twelve offshore wind projects at home and abroad. This undoubtedly makes
us one of the leading banks in this sector. We now hâve excellent knowledge of how the fïnancing has
to be structured for an offshore wind farm and how you put together the corresponding bank club that
is reguIred for these high-volume, complex projects. By comparison with the early days of Butendiek,
certain standards hâve now estabiished themselves for the fïnancing of offshore wind farms. There are
still large sums of money at stake, no question. But the risks associated with offshore wind power can
be much better estimated today and are more controllable. Today we hâve a broad bank market and
for a whole sériés of banks the fïnancing of offshore wind farms is one of the top priorities. At the time
of the financial crisis after 2008, it was still absolutely essential to include development banks such as
our parent company, KfW, for example, with its 5 billion Offshore Wind Energy Programme and crédit
insurers such as EKF from Denmark in order to provide the high volumes of borrowed capital required
- and in the end that was what happened with Butendiek, too.
This development would not hâve been possible without the steep learning curve that offshore wind
technology and the industry hâve experienced in the past decade.
What makes Butendiek different from other offshore wind farms that KfW IPEX bank has so far co-financed?
The long history of the project is certainly the fïrst thing to mention. Butendiek had been on the market
so-to-speak for over a decade before it was finally realised under the management of wpd. In my view,
wpd chose a good moment to implement the project: by comparison with the initial projects at sea, the
technology, logistics and handling at sea hâve now advanced markedly. Important regulatory decisions
hâve also been taken in the meantime which help investors. For example, I am thinking of the offshore
liability levy in the Energy Act which has defused the problems to do with mains connection. The wealth
of expérience which wpd had already gained in many onshore wind farm projects, définitely also helped
with Butendiek. wpd is at home in the wind business, that is something we notice time and again in
working with them. That is why the project has run magnificently so far. That is a good reference for
the wpd Group which has ail the management tasks under control and it makes them idéally suited for
further projects in this sector.
wpd has already developed several offshore wind farm projects and with Butendiek it has joined the shareholders side for the first
time. What do you think of this?
We welcome this decision. We and of course the other banks in the consortium, too, like to see a stra
tegic partner invest in the project. We feel more comfortable if one of the equity partners investing in a
project has the necessary expérience of the sector. And that is définitely the case with wpd!
165
So far we hâve supported twelve offshore wind projects at home and abroad. This undoubtedly makes
us one of the leading banks in this sector. We now hâve excellent knowledge of how the fïnancing has
to be structured for an offshore wind farm and how you put together the corresponding bank club that
is reguIred for these high-volume, complex projects. By comparison with the early days of Butendiek,
certain standards hâve now estabiished themselves for the fïnancing of offshore wind farms. There are
still large sums of money at stake, no question. But the risks associated with offshore wind power can
be much better estimated today and are more controllable. Today we hâve a broad bank market and
for a whole sériés of banks the fïnancing of offshore wind farms is one of the top priorities. At the time
of the financial crisis after 2008, it was still absolutely essential to include development banks such as
our parent company, KfW, for example, with its 5 billion Offshore Wind Energy Programme and crédit
insurers such as EKF from Denmark in order to provide the high volumes of borrowed capital required
- and in the end that was what happened with Butendiek, too.
This development would not hâve been possible without the steep learning curve that offshore wind
technology and the industry hâve experienced in the past decade.
What makes Butendiek different from other offshore wind farms that KfW IPEX bank has so far co-financed?
The long history of the project is certainly the fïrst thing to mention. Butendiek had been on the market
so-to-speak for over a decade before it was finally realised under the management of wpd. In my view,
wpd chose a good moment to implement the project: by comparison with the initial projects at sea, the
technology, logistics and handling at sea hâve now advanced markedly. Important regulatory decisions
hâve also been taken in the meantime which help investors. For example, I am thinking of the offshore
liability levy in the Energy Act which has defused the problems to do with mains connection. The wealth
of expérience which wpd had already gained in many onshore wind farm projects, définitely also helped
with Butendiek. wpd is at home in the wind business, that is something we notice time and again in
working with them. That is why the project has run magnificently so far. That is a good reference for
the wpd Group which has ail the management tasks under control and it makes them idéally suited for
further projects in this sector.
wpd has already developed several offshore wind farm projects and with Butendiek it has joined the shareholders side for the first
time. What do you think of this?
We welcome this decision. We and of course the other banks in the consortium, too, like to see a stra
tegic partner invest in the project. We feel more comfortable if one of the equity partners investing in a
project has the necessary expérience of the sector. And that is définitely the case with wpd!
165