Bilfinger Berger Magazine 2/2008

OFFSHORE WIND POWER LIFTED OUT OF THE DOLDRUMS
US investment group Blackstone, which to date has made a name for itself in the field of major corporate takeovers, surprised the public at large in July 2008 with the announcement that it was moving into offshore wind power. Blackstone intends to invest €1 billion in the “Meerwind”wind farm off Helgoland. The investment group is taking a majority stake in an offshore installation which, given its location, is particularly attractive. From 2012, the wind farm is slated to generate enough power for up to 500,000 people.
Blackstone’s appetite for the deal was whetted by a new investment incentive by the German government: From 2009, every kilowatt hour of offshore power will benefit from a generous 15 cent reimbursement, rather than the previous nine cents. It will also be up to the network operator to cover the cost of the undersea cable and connection to the grid. Industry experts now expect more investors to put their money in offshore wind power, leading in turn to a greater commitment on the part of the major energy suppliers. Investments by such companies in the technology had been cautious because it competes with conventional land-based power plants. Ralf Bischof, Head of the Wind Energy Association, told the Financial Times Deutschland that to nudge the energy suppliers further in the right direction, it is important for independent investors such as Blackstone to “break the investment logjam.”
Approval has already been given for a total of around 20 wind farms around Germany’s coasts. Other projects are on the drawing board. If they are built, there could be 3,000 to 5,000 wind turbines in German waters within a decade. And if the German government’s plans succeed, in twenty years offshore wind farms will cover 15 percent of Germany’s energy needs. No other energy source has so much growth potential. “Even if only a part of these plans are realized,” as the newspaper “Welt am Sonntag”wrote,“there will be billions of euros invested in German waters in the next few years.” (ha)

Bilfinger Berger Magazine 2/2008