• 4 minutes Will We Ever See 100$+ OIL?
  • 8 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 11 minutes Energy Outlook for Renewables. Pie in the sky or real?
  • 2 hours Shale Oil will it self destruct?
  • 12 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 2 hours Today in Energy
  • 2 days Excellent Choice: Germany's Von der Leyen Secures Powerful EU Executive Top Job
  • 3 hours Drone For Drone = War: What is next in the U.S. - Iran the Gulf Episode
  • 2 hours Oil Rises After Iran Says It Seized Foreign Tanker In Gulf
  • 1 day Mnuchin Says No Change To U.S. Dollar Policy ‘As of Now’
  • 1 day Populist, But Good: Elizabeth Warren Takes Aim at Private-Equity Funds
  • 2 days Migration From Eastern Europe Raises German Population To Record High
  • 2 days Washington Post hit piece attacking oil, Christians and Trump
  • 17 hours Why Natural Gas is Natural
  • 13 hours LA Solar Power/Storage Contract
  • 2 days White House insider who predicted Iran False Flag, David Goldberg found dead in his New York apartment
Alt Text

Can Wind Farms Actually Weaken Hurricanes?

Simulations have shown that spinning…

Mark Nicholls

Mark Nicholls

Mark is a writer for Environmental Finance. Environmental Finance is the leading global publication covering the ever-increasing impact of environmental issues on the lending, insurance,…

More Info

Premium Content

Cash Floods Into Offshore Wind Projects

Investment in clean energy hit $37.9 billion in the third quarter, as a flood of cash into offshore wind infrastructure in the North Sea helped drive a record $32.8 billion in asset financing.

The headline figure from information provider Bloomberg New Energy Finance (BNEF) was up 11.5% year-on-year and 12% on last quarter’s $33.9 billion. But it masked a slump in venture capital and private equity investment in the sector, which fell 39.6% to $1.4 billion in the third quarter.

Michael Liebreich, BNEF chief executive said clean energy investment in 2010 revealed “hot spots and cold spots”.

“The latest hot spot is infrastructure spending for North Sea offshore wind. It is reassuring to see billions being committed, although this is only a start – to make the most of this huge resource, countries such as the UK, Germany, Denmark, Netherlands, Belgium and France will have to commit many tens of billions of dollars to offshore wind transmission.

Among the $1.9 billion in North Sea wind infrastructure investment for the quarter, Bloomberg pointed to the HelWin 1 and DolWin 1 cabling projects off the German coast, developed by Transpower and expected to come online in 2013. 

China's saw an all-time high of $13.5 billion in asset financing was an all-time high, but the US market remained relatively subdued, with just $4.4 billion of clean energy project financing, down from $5.1 billion in the second quarter. BNEF cited low natural gas prices, which make it hard for renewable energy developers to negotiate attractive power purchase agreements.

“One of the cold spots is venture capital and private equity investment. Funds have found it difficult to raise new money in the last two years. Many are heavily committed to existing portfolio companies and being cautious about extending equity to new opportunities. This problem could ease if we see more exits as a result of a pick?up in the IPO [initial public offering] market, or a big rise in corporate [mergers and acquisitions],” Leibreich said.

Public market investments rose to $3.7 billion, up from $2.6 billion in the second quarter, with BNEF forecasting a more robust fourth quarter. Italian utility Enel is expected to launch a €3 billion IPO later this month.

Total investment in 2010 – which will also include clean energy research and development, corporate investments and small-scale projects – is expected to come in at the high end of BNEF’s $175 billion-$200 billion forecast. This compares with $162 billion last year and $173 billion in 2008.

By. Mark Nicholls

Source: Environmental Finance




Download The Free Oilprice App Today

Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play