GBP 300M to large Scottish offshore wind farm
Size matters. More than anything else when it comes to offshore wind farms. Offshore wind farms are so expensive to build that having a certain size is important for the economy of the projects. Beatrice Offshore Windfarm with its size of 588 megawatt and a total investment of GBP 2.6 billion testifies to this. (Foto: Siemens Gamesa Renewable Energy)
Guarantee provided by EKF og EIB
The UK is not just the single largest market for offshore wind in the world, it is also the most advanced and developed market. The UK leads the market for offshore wind and the surrounding countries in the North Sea follow – when it comes to the increasing size of wind farms as well as scope and complexity of the financing behind.
Facts about the case
What: Offshore wind farm 13 km off the Scottish coast
Supplier: Siemens Wind Power A/S
Size: 588 MW divided between 84 turbines
Construction period: 2016-2019
How much: GBP 2.6 billion
EKF's share: GBP 300 million corresponding to 20% of the senior debt
EKF product: Project Financing Guarantee
Coverage: A drawdown period of up to four years and a repayment period of 15 years
EKF has played a part in the development of the market for offshore wind in the North Sea, and in 2016, EKF participated in the financing of the Beatrice Offshore Windfarm – the project will be one of the largest private investments ever made in Scottish infrastructure.
With the Beatrice project, EKF once more enters the UK market where EKF has not been since the financing of the 630-megawatt London Array offshore project in 2010. In comparison, the Beatrice wind farm consists of 84 Siemens turbines with a total capacity of 588MW. When the wind farm is fully operational in 2019, it is expected to power approximately 475,000 homes.
Large farms mean large loans. Typically, when large loans need financing, the parties involved turn to EKF. Basically, EKF can cover a large part of the total amount and is happy to cover offshore wind farms.
In the case of Beatrice, EKF provided a guarantee of GBP 300 million corresponding to 20% of the senior debt in cooperation with the European Investment Bank (EIB).