Debt financings for European offshore wind assets surged to $8.3bn in 2023, compared to $4.2bn in 2021-2022, according to Enerdatics data. Despite cost inflation and dampened lender appetite, recent measures to improve financing and permitting, such as the InvestEU-EIB agreement and accelerated permitting guidelines under the REPowerEU programme, have stimulated offshore wind investments. A 26% quarter-on-quarter drop in monthly day ahead power prices in Europe in Q1 2023 also incentivized off-takers to lock-in long-term supply contracts.
Recent deal: Ocean Winds-led consortium secures $2.6bn in debt for 500 MW Dieppe Le Tréport offshore wind farm in France from 17 international banks, led by Japan Bank for International Cooperation. Construction begins this month, with commercial operation expected in Apr'26, backed by a long-term power purchase agreement with a French utility.
Other significant transactions: The $2.5bn financing for the 882 MW Moray West offshore wind farm in the UK, $2.4bn debt for the 500 MW Iles D’Yeu et Noirmoutier wind farm in France, and $2.5bn loan for the 960 MW He Dreiht offshore wind farm in Germany.
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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