Key regulatory drivers include the price regime but also permitting mechanisms and access to the grid. All of these influence the economics of offshore wind projects and how they can ultimately be financed.
Funding these projects requires equity and, potentially, debt. Equity-only transactions, or “balance sheet” investments have been typically made by utilities. Non-recourse debt in addition to equity has typically been used by smaller developers lacking the funds to build the projects on their own, or by financial investors seeking to create leverage and increase equity returns.
Approximately
