Renewable Energy M&A: Enbridge's offshore wind acquisition in Germany from CPPIB at a record-high metric of $4.24mn/MW

published on 07 November 2023

💼 Enbridge has invested $663.5mn for a 24.5% stake in the 522 MW Hohe See and 118 MW Albatros offshore wind farms in Germany from Canadian pension fund CPPIB. This acquisition was agreed at a record high deal metric of $42.4mn/MWh - representing one of the highest valuations for operational offshore wind assets in the country since 2020. The strategy? Betting big on assets with guaranteed earnings for an extended duration, at attractive FiT contract prices awarded under the EEG act.

📊 Enerdatics breaks down the trend: With over 9 years of guaranteed revenue at $185/MW, these projects are attracting elite investors, commanding top-tier valuations. 

🔮 The forecast - a continued rally for assets with ample remaining contractual life under the FiT period, such as Deutsche Bucht and Kaskasi, is expected in the near future. 

Meanwhile, assets nearing the end of their FiT period are catching the eye of prudent investors like Greencoat, who are seizing the opportunity to invest in a contracted asset at a relatively lower valuation.

To gain a deeper insight into M&A trends at the corporate and asset level globally, request a trial of the Enerdatics Energy Transition M&A database today.

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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