A recent reduction in feed-in-tariffs for offshore wind projects was a surprise to many, but the industry was ready for it, Barbara Zuiderwijk, Founder and director of Green Giraffe, said during the Offshore WIND Conference in Amsterdam.
Speaking at the session titled Profitability and Financeability of Offshore Wind, Zuiderwijk said that the investors and financial advisors responded positively to the industry’s readiness to adjust to the cost reductions.
“We were ready for it because the builders were ready for it, all of the suppliers were ready for it, there was a supply chain and they were actually big drivers of those costs. But also financing optimization was required and is still required in order to get fully inverted risk projects still viable,” Zuiderwijk said.
Commenting on the tendering procedure in offshore wind, Andreas Funke, Partner at PwC Germany, pointed out that bids must be perfect given the competitive environment.
”It must be perfect in whole relevant disciplines – construction, its design, its operation, its financing, everything,” Funke said.
”When you hand in your bid, the project must be ready to go. You have to find the right balance, the balance between risk and return and a balance between risk and competitiveness.”
Reporting: Nadja Skopljak; Editing: Adnan Durakovic, Adrijana Buljan