Podcast, Webinar
14 March 2025
20 mins with: Orsted meets EIFO
In:
Renewables
Region:
Americas, Asia-Pacific, Europe
TXF spoke with Orsted's Peter Highmore, senior vice president, head of partnerships and M&A and EIFO's Kurt Martin Larsen, managing director for transactions and global wind to outline the major opportunities and challenges in the offshore wind sector — from crowding in Taiwanese state-owned banks to supporting new Ukrainian developments. Why take the ECA funding route?
Here are the main AI-generated takeaways from the podcast:
Market challenges and developments:
- The industry faced significant challenges in 2024, including regulatory, supply chain, and macroeconomic headwinds. These factors led to pressure on business cases and delays in project progression.
- Despite initial hurdles, several of these issues have been addressed, leading to renewed investor interest, especially in higher quality, de-risked projects.
Taiwan's offshore wind market:
- During the COVID pandemic, the first round of projects in Taiwan was built, facing numerous restrictions and supply chain challenges. However, competent international sponsors have effectively managed these issues .
- The successful completion of projects in Taiwan symbolizes a step forward for the industry in that region and demonstrates the overcoming of initial startup challenges.
Risk management and investment Strategy:
- The concept of de-risking construction projects is critical for attracting investors with limited experience. This approach emphasizes the importance of value over volume in new markets .
- Experienced developers and sponsors are now dominating the market, providing opportunities for local banks and insurance companies to invest confidently.
Financial structuring and strategies:
- Orsted is known for offering a de-risked investment product in Taiwan and beyond, facilitating engagement from state-owned banks through wrapped construction arrangements and long-term operation agreements.
- The structuring of Power Purchase Agreements (PPAs) in Taiwan allows for better risk allocation compared to older state deals .
Long-term market vision:
- There is a collective vision among lenders and stakeholders to establish a sustained presence rather than pursuing quick gains. This includes extensive cooperation with local ECAs to support financing and building projects.
