Low risk, good returns

At present, wind power and the energy sector are highly capital-intensive, and attract the most demanding investors. Low risk and good returns are two of the benefits which, for many, make wind power a preferred investment area.

Traditionally, energy companies have been the primary investors in wind power. But as wind power has become an attractive investment area, there has been a marked increase in investments from more institutional investors in recent years.

Growing trend
In 2015, 22,3 GW (of totally 29 GW) net of renewable energy was installed in the EU, and wind power is now the largest renewable energy source with a 15,5 percent share. The installed capacity of wind power increased by 11 GW corresponding to a growth of 6,3 percent compared with the previous year.

€26,4 billion was invested in Europe in 2015 to finance wind energy development. This was 40 percent more than the total investment in 2014.

The target of an average of 20 percent of total energy consumption from renewable sources in the EU by 2020 seems, according to the latest forecasts, to be achieved, and proposals from the

Case: The REIF fund

Ralph Seraphim, Goodyields Capital

Ralph Seraphim, Managing Partner at Goodyields Capital, REIF fund’s managing director. Photo: Goodyields Capital

“Investments in wind power give long-term and predictable cash flows, which is precisely what institutional investors are looking for”

REIF – the fund which focuses on profitable investments in wind and solar energy

European Commission have been submitted to increase the proportion to 45 percent by 2030. Bloomberg go even further in their forecasts and expect a 50 percent share of renewable energy in the EU by 2030. Given these forecasts averagely about 40 GW of renewable capacity has to be built in the EU by 2030.

Advantageous investment
For many Nordic and international players, wind power production means less risk and better return than many alternative investments such as property, fixed-interest securities and the stock exchange. Investment companies, energy and infrastructure funds, pension funds and insurance companies are currently behind a large proportion of wind power investments in the Nordic region as well as in the rest of Europe. Also, companies in energy-intensive sectors who invest in large-scale wind power do so for financial reasons.

Vast experience
OX2 has vast experience of working with these investors to achieve an optimum financial and legal structure. The delivery of turnkey wind power plants with the associated commercial and technical management services are usually a central part of OX2’s agreements with investors.

OX2’s project portfolio
To date, OX2 has erected around 1,000 MW of wind power, involving a significant proportion of the Nordic region’s large-scale onshore wind power. Our project portfolio includes new wind farms in Sweden and Finland with good wind conditions and a nameplate capacity of more than 2,000 MW. More than €1,2 billion in total has been invested successfully in wind power projects developed by OX2.

More ownership models
In addition to investment in whole wind farms, we also offer the opportunity to invest in individual wind turbines or shares in turbines. This set-up works well for investors who, for example, want to spread the risk by becoming shareholders in several different wind turbines.

More information on large scale wind farms:
Major electricity users

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