Analysis of the Week: M&A activity for offshore wind assets in Europe rises by ~32% year-on-year in 2022

published on 05 June 2023

Amid challenging market conditions in Europe’s offshore wind sector, investor appetite for operational projects in the continent’s mature markets such as the UK, Germany, and the Netherlands has surged in 2022. This is primarily due to the long-term revenue guarantee of these assets, which are backed by CfD/FiT contracts secured during the period of 2012-15 at power prices as high as $200/MWh. Meanwhile, activity for development assets in mature markets fell by 50% y/y in 2022, as a result of falling CfD prices in the UK and negative bidding tenders in Germany, which is challenging the economic viability of offshore wind projects in these countries. However, the Nordic region witnessed a rise in transactions for development projects, primarily due to stable power prices and supportive government policies.

The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.

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