20 mins with: Orsted meets EIFO

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.