• 4 minutes Some Good News on Climate Change Maybe
  • 7 minutes Cuba Charges U.S. Moving Special Forces, Preparing Venezuelan Intervention
  • 12 minutes Washington Eyes Crackdown On OPEC
  • 15 minutes Solar and Wind Will Not "Save" the Climate
  • 9 hours Amazon’s Exit Could Scare Off Tech Companies From New York
  • 46 mins Most Wanted Man In Latin America For AP Agency: Maduro Reveals Secret Meetings With US Envoy
  • 6 mins And for the final post in this series of 3: we’ll have a look at the Decline Rates in the Permian
  • 20 hours Former United Nations Scientist says the UN is lying about Global Warming and Sea-Level changes
  • 16 hours Prospective Cause of Little Ice Age
  • 9 hours L.A. Mayor Ditches Gas Plant Plans
  • 11 hours And the War on LNG is Now On
  • 1 min *Happy Dance* ... U.S. Shale Oil Slowdown
  • 1 day Maduro Asks OPEC For Help Against U.S. Sanctions
  • 1 day Qatar Petroleum, Exxon To Proceed With $10 bln Texas LNG Project
  • 1 day Russia to Turkey: You Can't Have Syrian Safe Zone Without Assad's Consent
  • 1 day Solar Array Required to Match Global Oil Consumption
Alt Text

New York Unveils Offshore Wind Master Plan

New York’s ambitious new master…

Alt Text

U.S. Wind Energy Demand Surges

Exceptional demand for wind energy…

Graham Cooper

Graham Cooper

Graham 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, investment…

More Info

Trending Discussions

Wind Farm Investments Growing in Popularity as Pension Funds Increase Stakes

PensionDanmark, a pension fund with around €14 billion ($20 billion) under management, has made its second investment in offshore wind farms and is planning more.

A consortium led by PensionDanmark is paying Dong Energy DKK 6 billion ($1.1 billion) for a 50% stake in the 400MW Anholt offshore wind farm. Situated off the east coast of Denmark, Anholt is the country’s largest wind project. It is expected to begin generation next year and to be completed in 2013.

PensionDanmark will have a 30% share of the project and its consortium partner PKA, a Danish administration company for occupational pension funds, will have 20%. The payment to Dong will be made in four installments between late 2011 and the end of 2013. The funds will take over responsibility for operation and earnings from the facility, in proportion to their interests, from 1 April 2014.    

The announcement follows PensionDanmark’s purchase of a 50% stake in another Danish offshore wind farm – Nysted – in September last year.

Investments in wind farms are very attractive to long-term investors such as PensionDanmark, said CEO Torben Pedersen. Wind and solar investments “can generate a return in line with what we expect from the equity market. But the risk and sensitivity to the global business cycle is significantly lower than with equity investments,” he added.

“The stable and predictable return comes from the government-guaranteed fixed feed-in tariff, that ensures that the first 12 years of electricity production from Anholt can be sold at prices that are already known,” Pedersen explained.

The fund aims to increase its investments in infrastructure to 10% of assets under management from their current level of 6%, he noted: “Therefore we expect to close more of this type of deal”.

Such funding from institutional investors is vital if the EU is to meet its ambitious target of generating 20% of its energy from renewable sources by 2020, according to power industry executives.

Without this injection of long-term capital, the scale of investment required to reach this target would pose a daunting challenge to energy companies’ balance sheets, they say.

By. Graham Cooper

Source: Environmental Finance




Download The Free Oilprice App Today

Back to homepage

Trending Discussions


Leave a comment
  • Anonymous on April 12 2011 said:
    It is heartbreaking to see critical economic decisions made on the basis of green political fantasy dogma. Denmark's pensioners will have reason to regret the corrupt incompetence of PensionDanmark's managers.

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News