EWEA 2013 ANALYSIS: Weighing offshore's risks

Anholt offshore wind farm, in which Danish pension fund PensionDanmark is an  investor

Anholt offshore wind farm, in which Danish pension fund PensionDanmark is an investor

The EU’s drive to drain the risk out of major financial institutions is colliding with its desire to see offshore wind built in the run-up to 2020, experts warn.

Two issues lie at the heart of the matter: the view that credit-rating agencies take of offshore wind projects at various points during their gestation, and the extent to which regulators allow institutional investors to sink money into such “risky” assets.

Like pension funds and other institutional investors, large insurance companies such as Germany’s Allianz are seen as a critical source of funding for the offshore wind industry, given their long investment time horizon.

Many observers believe the industry's future success hinges on its ability to bring institutional investors on board…

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