Subtittle if needed. If not MONTH 2018 Published in Month 2018

Offshore Wind in Europe Key trends and statistics 2018

Offshore Wind in Europe Key trends and statistics 2018 Published in February 2019

windeurope.org This report summarises construction and financing activity in European offshore wind farms from 1 January to 31 December 2018.

WindEurope regularly surveys the industry to determine the level of installations of foundations and turbines, and the subsequent dispatch of first power to the grid. The data includes demonstration sites and factors in decommissioning where it has occurred. Annual installations are expressed in gross figures while cumulative capacity represents net installations per site and country. Rounding of figures is at the discretion of the author.

DISCLAIMER This publication contains information collected on a regular basis throughout the year and then verified with relevant members of the industry ahead of publication. Neither WindEurope, nor its members, nor their related entities are, by means of this publication, rendering professional advice or services. Neither WindEurope nor its members shall be responsible for any loss whatsoever sustained by any person who relies on this publication.

TEXT AND ANALYSIS: WindEurope Business Intelligence Florian Selot Daniel Fraile Guy Brindley

EDITORS: Colin Walsh, WindEurope

DESIGN: Laia Miró, WindEurope

FINANCE DATA: Clean Energy Pipeline. All currency conversions made at EUR/ GBP 0.8774 and EUR/USD 1.1330 Figures include estimates for undisclosed values

PHOTO COVER: Courtesy of MHI Offshore Wind

MORE INFORMATION: [email protected] +32 2 213 18 68 CONTENTS 4. 3. 2. 2. 1. 1.

INVESTMENTS ...... INVESTMENTS INDUSTRY ACTIVITY AND SUPPLY AND ACTIVITY CHAIN INDUSTRY TRENDS: TURBINE SIZE, WIND LOCATION SIZE, TURBINE TRENDS: OFFSHORE WIND INSTALLATIONS WIND OFFSHORE EXECUTIVE SUMMARY 4.2 4.1 4.3 3.1 3.4 Cables 3.3 3.2 2.3 2.2 2.1 Cumulativeinstallations 1.3 1.2 1.1 Overview Offshore wind debtfinanceOffshore wind Financing activity in2018 Acquisition activity ...... manufacturersWind turbine Substructuresand foundations ownersWind farm Water depth anddistance to shore ...... Wind farm sizeWind farm Wind turbine rated capacity...... National breakdown of 2018installations...... 33 33 37 36 31 25 29 25 27 22 21 18 20 20 7 14 11 11

EXECUTIVE SUMMARY

In 2018 Europe connected 409 new offshore wind -tur Europe now has a total installed offshore wind capacity bines to the grid across 18 projects. This brought 2,649 of 18,499 MW. This corresponds to 4,543 grid-connected MW of net additional capacity. wind turbines across 11 countries.

FIGURE A Annual offshore wind installations by country and cumulative capacity (MW)

4,000 20,000 3,500 17,500 3,000 15,000 2,500 12,500 2,000 10,000 1,500 7,500 1,000 5,000 500 2,500

Annual Installed Capacity (MW) 0 0 Cumulative Installed Capacity (MW)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

UK Germany Belgium Denmark Spain Sweden Netherlands France Finland Norway Portugal

Cumulative Installed Capacity (MW) Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 7 WindEurope Executive summary

Separately, twelve new offshore wind projects reached of additional capacity, which will come on line in the next Final Decision Investment (FID) in 2018. Investments in couple of years. new assets amounted to €10.3bn. This financed 4.2 GW

FIGURE B New offshore wind investments and capacity financed: 2010-2018 (€bn)

20 20 18 18 18.2 16 16 14 14 12 13.1 12 €bn 10 10 10.3 GW 8 8 8.4 8.8 6 7.2 7.5 6 6.1 4 5.0 4 2 2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total investments (€bn) New capacity financed (GW) Source: WindEurope

Installations in 2018

• Europe added 2,649 MW of net offshore capacity. • For the first time in Europe, GE Renewable Energy This is 15.8% lower than in 2017, which was a record connected their latest turbine: the Haliade 150-6 year. MW. 20 of these turbines were grid-connected at the Merkur wind farm, Germany. • The 2,649 GW represent 409 grid-connected offshore wind turbines across 18 wind farms.

• 15 wind farms were completed (fully grid- Cumulative installations connected). Another 3 got partial grid connection and will continue to connect turbines in 2019. • 4,543 offshore turbines are now installed and grid- Construction work started on other 6 wind farms connected, making a cumulative total of 18,499 MW. where no turbines have yet been grid-connected. • Including sites with partial grid-connected turbines, • Installations in the UK and Germany accounted for there are now 105 offshore wind farms in 11 85% of all new additions. European countries.

Renewable Energy and MHI • The UK has the largest amount of offshore wind Vestas Offshore Wind accounted for 95% of all capacity in Europe with 44% of all installations in MW. the connected turbines in 2018 (62% and 33% Second is Germany with 34%, followed by Denmark respectively). (7%), Belgium (6.4%) and the Netherlands (6%).

8 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Executive summary

Trends: turbine and wind farm size, depth, distance Financing highlights from shore • Investments in new offshore wind amounted to • The average size of newly-installed offshore wind €10.3bn, a 37% increase from 2017. turbines in 2018 was 6.8 MW, a 15% increase on 2017. The UK connected the largest turbine in the world • Twelve projects reached FID, totalling 4.2 GW of (the V164-8.8 MW from MHI Vestas Offshore Wind). additional capacity.

• The average size of wind farms in construction in • The 37% increase in investments generated an 86% 2018 was 561 MW. In the UK, construction work increase in capacity financed. started on the largest wind farm in the world: the 1,200 MW Hornsea One project. • Refinancing of offshore wind farms hit a record level of €8.5bn, bringing total investments including • The world’s current largest operational wind farm – transmission lines (€0.7bn) to €19.6bn. Walney 3 extension (657 MW) – was fully connected in the UK. • Non-recourse debt for new and operational wind farms raised €16.5bn. • The largest wind farm in Germany – Borkum Riffgrund II (465 MW) – was fully commissioned. • There were 3.8 GW of project acquisition activity and 2.3 GW of potential projects acquired at the pre- • The largest wind farm in Belgium – Rentel 309 MW – development stage. was fully connected.

Offshore Wind in Europe - Key trends and statistics 2018 9 WindEurope Photo: Ørsted 1. OFFSHORE WIND INSTALLATIONS

1.1 OVERVIEW

Europe connected 2,649 MW of net offshore (61 MW), and Belgium doubled its annual installations capacity in 2018. This is 15.8 % lower than in 2017, which in comparison to 2017 (309 MW). The Netherlands did was a record year. It added 2,660 MW of new (gross) ca­ not grid-connect any offshore wind, but is set to have a pacity. 7 turbines were fully decommissioned at the Ut- record year in 2019 with about 1 GW of new offshore grunden I wind farm in Sweden, which was commissioned installations3. back in 2000. This accounts for the decommission of 10.5 MW in 20181. Installations were in line with previously Europe’s cumulative offshore wind capacity reached forecasted scenarios2. 18,499 MW at the end of 2018. Including sites with partial grid connection, there are now 105 offshore wind farms The UK and Germany connected slightly less capacity than in 11 European countries and 4,543 grid-connected wind in 2017, with 1,312 MW and 969 MW respectively. Den- turbines. mark had new connections for the first time since 2013

1. Separately, 2.75 MW were boosted into 3.3 MW due to rotor and blade upgrades in 5 turbines. See page 14 for more info. 2. WindEurope Market Outlook, September 2017. 3. WindEurope Market Outlook, September 2017.

Offshore Wind in Europe - Key trends and statistics 2018 11 WindEurope Offshore wind installations

FIGURE 1 Annual offshore wind installations by country and cumulative capacity (MW)

4,000 20,000 3,500 17,500 3,000 15,000 2,500 12,500 2,000 10,000 1,500 7,500 1,000 5,000 500 2,500

Annual Installed Capacity (MW) 0 0 Cumulative Installed Capacity (MW)

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

UK Germany Belgium Denmark Spain Sweden Netherlands France Finland Norway Portugal

Cumulative Installed Capacity (MW)

Source: WindEurope

TABLE 1 Overview of grid-connected projects at the end of 2018

NO. OF NO. OF WIND CUMULATIVE NO. OF NET CAPACITY TURBINES COUNTRY FARMS CAPACITY TURBINES CONNECTED CONNECTED CONNECTED (MW) CONNECTED IN 2018 IN 2018

TOTAL 105 18,499 4,543 2,649 409

United 39 8,183 1,975 1,312 222 Kingdom

Germany 25 6,380 1,305 969 136

Denmark 14 1,329 514 61 42

Belgium 7 1,186 274 309 8

Netherlands 6 1,118 365 0 1

Sweden 4 192 79 -10 -7

Finland 3 71 19 0 0

Ireland 1 25 7 0 0

Spain 2 10 2 5 1

France 2 2 2 2 2

Norway 1 2 1 0 0

12 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Cumulative installed capacity GW at the end of 2018 2.6 GW OF NEW OFFSHORE GW WIND POWER IN EUROPE Gross installations in 2017 18.5 GW TOTAL EUROPE

8.2 0.2 0.07

0.003 0.002

6.4

1.3

0.06

1.3 3 1.1 0.05 1

1.2 0.3

0.002 0.002

0.01 0.005

-

Source: WindEurope Offshore Wind in Europe - Key trends and statistics 2018 13 WindEurope Offshore wind installations

1.2 NATIONAL BREAKDOWN OF 2018 INSTALLATIONS

The with 1,312 MW represented 49% Denmark connected 61 MW from Horns Rev 3, which of Europe’s gross capacity brought online in 2018. Out should be completed in 2019 with a total 407 MW of of the 7 wind farms that got grid-connected, 6 were ful- capacity. ly commissioned and one (Beatrice 2) started to connect turbines to the grid. The Walney 3 Extension wind farm Spain saw the connection of its second offshore wind tur- was completed in October 2018, becoming the largest op- bine off the coast of Grand Canaria. This interesting pro- erational offshore wind farm worldwide with 87 turbines ject, realised under the EU-funded ELICAN project, has a and a capacity of 657 MW. One floating turbine, Kincar- self-installing telescopic substructure for low-cost crane- dine Pilot, was connected off the Scottish coast. less installations, allowing for deep offshore projects.

Germany with 969 MW across 3 wind farms represent- France saw the grid connection of two floating offshore ed 36% of the European gross capacity brought online in wind turbines. The Floatgen project (2 MW) off the coast 2018. One of them, Borkum Riffgrund II (465 MW) was of Brittany, and the Eolink 1/10 project, which connected fully connected to the grid, becoming the largest offshore a prototype turbine of about 200 kW in Brittany. wind farm in Germany to date. Sweden did not install any new offshore wind farms. How- Belgium, with 309 MW connected to the grid from the ever, 5 turbine rotors (including the blades) in the Bocks- fully completed Rentel wind farm, represented 12% of tigen wind farm were boosted, increasing the rated pow- the European gross capacity brought online in 2018. er of each turbine from 550 to 660 kW. The Utgrunden I wind farm decommissioned 7 turbines, totalling 10.5 MW.

FIGURE 2 Annual offshore wind capacity installations per country in 2018 (MW)

United Kingdom 1,312 MW

Germany 969 MW

Belgium 309 MW

Denmark 61 MW

Spain 5 MW

Sweden 3 MW

France 2 MW

0 200 400 600 800 1,000 1,200 1,400 Gross Installed Capacity (MW) Source: WindEurope

14 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Offshore wind installations

In total 24, offshore wind farms across 7 countries had but started work with foundation installations (see tables works going on in Europe in 2018. 18 of these connected 2 and 3). turbines to the grid, and 6 did not connect any turbine

FIGURE 3 Projects connected to the grid per country (MW)

ELISA ELICAN Bockstigen (blade upgraded) 5 MW 3.3 MW

Nissum Bredning Floatgen 28 MW 2 MW

Horns Rev 3 Eolink 1/10 scale prototype 33.2 MW 0.2 MW Rentel Walney 3 (Extension 308.7 MW Phase 2 - East) Spain Sweden 329 MW Merkur Offshore 5 MW 3 MW 120 MW Denmark France Galloper 61 MW 2 MW 277.2 MW Belgium 309 MW

United Kingdom Germany 1,312 MW Beatrice 2 Arkona 969 MW 384 MW 273 MW

Rampion 220.8 MW

European Offshore Wind Development center (EOWDC) 93.2 MW Borkum Riffgrund II 464.8 MW Walney 3 (Extension Race Bank Phase 1 - West) 50.4 MW 66 MW

Kincardine Pilot 2 MW

Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 15 WindEurope Offshore wind installations

TABLE 2 Summary of work carried out at European offshore wind farms with grid connection during 2018

CAPACITY NUMBER COUNTRY WIND FARM CONNECTED OF TURBINES TYPE STATUS4 IN 2018 (MW) CONNECTED IN 2018 Walney Extension 329 47 Bottom-fixed Phase East

Galloper 277.2 44 Bottom-fixed

Beatrice 2 273 39 Bottom-fixed

Rampion 220.8 64 Bottom-fixed United kingdom EOWDC 93.2 11 Bottom-fixed

Walney Extension 66 8 Bottom-fixed Phase West

Race Bank 50.4 8 Bottom-fixed

Kincardine Pilot 2 1 Floating

Borkum Riffgrund II 464.8 56 Bottom-fixed

Germany Arkona 384 60 Bottom-fixed

Merkur Offshore 120 20 Bottom-fixed

Belgium Rentel 308.7 42 Bottom-fixed

Horns Rev 3 33.2 4 Bottom-fixed Denmark Nissum Bredning 28 4 Bottom-fixed

Spain ELISA ELICAN 5 1 Bottom-fixed

Bockstigen Sweden 3.3 5 Bottom-fixed (boosted)

Floatgen 2 1 Floating France Eolink Prototype 0.2 1 Floating

4. One bar <25% grid connected. 2 bars <50% grid connected. 3 bars <75% grid connected. 4 bars <100% grid connected. 5 bars: fully grid connected

16 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Offshore wind installations

TABLE 3 Summary of work carried out at European offshore wind farms without grid connection during 2018

FOUNDATIONS TOTAL TYPE OF COUNTRY WIND FARM INSTALLED NUMBER OF FOUNDATIONS IN 2018 FOUNDATIONS East Anglia 1 37 102 Jacket United Kingdom Hornsea One 156 174 Monopile Deutsche Bucht 29 31 Monopile Hohe See 63 71 Monopile Germany Trianel Windpark 32 32 Monopile Borkum 2 Belgium Norther 44 44 Monopile

The North Sea registered the largest amount of grid con- lations, driven by connections in the Arkona wind farm. nections (1,651 MW), representing 62% of the -installa The Atlantic Oceanregistered 9% of the new installations, tions. This was followed by the Irish Sea (15%), with the driven by the work in . Walney 3 extension Phase 2 - East and Walney 3 exten- sion Phase 1 - West. The Baltic Sea saw 14% of the instal-

FIGURE 4 Gross annual installations by sea basin in 2018 (MW)

North Sea 1,651 MW

Irish Sea 395 MW

Baltic Sea 387 MW

Atlantic Ocean 229 MW

0 500 1,000 1,500 2,000

Net Installed Capacity in 2018 (MW)

Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 17 WindEurope Offshore wind installations

1.3 CUMULATIVE INSTALLATIONS

By the end of 2018, there were 18,499 MW of installed ca- with 34%, followed by Denmark (7%), Belgium (6.4%) and pacity, with a total of 4,543 turbines connected to the grid the Netherlands (6%). across 11 countries. 98% of this capacity is concentrated in just five countries. Other countries – including Spain, Finland, France, Swe- den, Norway and Ireland – cumulatively represent only The UK has the largest amount of offshore wind capacity 2% of the installed capacity. in Europe with 44% of all installations. Germany is second,

FIGURE 5 Cumulative Installed capacity (MW) and number of turbines by country

UK 44% 8,183 MW / 1,975 turbines Germany 34% 6,380 MW / 1,305 turbines

Denmark 7% 1,329 MW / 514 turbines

Belgium 6% 1,186 MW / 274 turbines Netherlands 6% 1,118 MW / 365 turbines

Others 2% 303 MW / 110 turbines

TOP 5 REPRESENTS 98% OF ALL CAPACITY CONNECTED

Source: WindEurope

18 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Offshore wind installations

The North Sea accounts for 70% of all offshore wind capacity in Europe, followed by the Irish Sea with 16%, the Baltic Sea with 12%, and the Atlantic Ocean with 2%.

FIGURE 6 Cumulative Installed capacity by sea basin (MW)

North Sea 12,938 MW

Irish Sea 2,928 MW

Baltic Sea 2,218 MW

Atlantic Ocean 413 MW

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Net Installed Capacity (MW) Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 19 WindEurope 2. TRENDS: TURBINE SIZE, WIND FARM LOCATION

2.1 WIND TURBINE RATED CAPACITY

In 2018 the average rated capacity of newly installed tur- The largest turbine in the world was installed in the Unit- bines was 6.8 MW, 15% larger than in 2017. Since 2014 ed Kingdom in 2018. Two V164-8.8 MW from MHI Ves- the average rated capacity of newly installed wind tur- tas Offshore Wind, with a rotor diameter of 164 m, were bines has grown at an annual rate of 16%. connected at the European Offshore Wind Development Centre (EOWDC) wind farm.

FIGURE 7 Yearly average of newly installed offshore wind turbine rated capacity (MW)

8 7 6 5 4 3 2 1 0 2011 1991 2017 1997 2015 2014 2013 1995 2012 1994 1993 2010 2001 1992 2016 2018 1999 1996 1998 2007 2005 2004 2003 2002 2009 2000 2006 2008

Average rated turbine (MW) Source: WindEurope

20 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Trends: turbine size, wind farm location

2.2 WIND FARM SIZE

In the last ten years, the average offshore wind farm has Decision (FID) to date. Its construction started in 2018, increased in size from 79.6 MW in 2007 to 561 MW in with 156 foundations already installed by the end of the 2018. The 1,200 MW Hornsea One project (174 turbines) year. So far, no turbines have been installed. is the largest offshore wind farm to reach Final Investment

FIGURE 8 Average size of commercial offshore wind farms in construction and grid-connected in the given year

600 500

400

300

200

100 0 2011 1991 2017 1997 2015 2014 2013 1995 2012 1994 1993 2010 2001 1992 2016 2018 1999 1996 1998 2007 2005 2004 2003 2002 2009 2000 2006 2008 Average wind farm size (MW) Source: WindEurope

Most of the wind farms in construction are using turbines wind farms using turbines below 6 MW are Rampion in above 6 MW (the average rated power for the turbines the United Kingdom and a few demonstration projects is 6.8 MW, indicated by the red line in figure 9). The only (mostly floating).

FIGURE 9 Average turbine rated capacity and number of turbines of wind farms under construction in 2018

200

100

Number of turbines per wind farm 0 0 1 2 3 4 5 6 7 8 9

Turbine Rated Capacity (MW)

United Kingdom Germany Belgium Denmark France Spain Sweden Turbine average rated power in 2018 Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 21 WindEurope Trends: turbine size, wind farm location

2.3 WATER DEPTH AND DISTANCE TO SHORE

The average water depth of offshore wind farms under Kincardine Pilot, a floating demonstration project off the construction in 2018 was 27.1 m, slightly less than in 2017 coast in Scotland, has an average water depth twice as deep (27.5 m). The average distance to shore of those projects as all the bottom-fixed offshore wind farms, with 77 m. was 33 km, a decrease on the previous year (41 km).

Hornsea One in the UK and EnBW Hohe See in Germany are the projects located farthest from the shore, 103 km away. Deutsche Bucht, also in Germany, follows at 93 km from the shore.

FIGURE 10 Average water depth and distance to shore of offshore wind farms under construction in 2018. The size of the bubble indicates the overall capacity of the site

80

60

40 Water Depth (m)

20

0 0 20 40 60 80 100 120 Distance to Shore (km)

United Kingdom Germany Belgium Denmark France Spain Sweden

Source: WindEurope

22 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Trends: turbine size, wind farm location

FIGURE 11 Average water depth and distance to shore of bottom-fixed offshore wind farms, organised by development status. The size of the bubble indicates the overall capacity of the site.

60

50

40

30 Water Depth (m) 20

10

0 0 50 100 150 200 Distance to Shore (km)

Online Partially online Under construction With permit

Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 23 WindEurope Photo: GE Renewable Energy 3. INDUSTRY ACTIVITY AND SUPPLY CHAIN

3.1 WIND TURBINE MANUFACTURERS

Siemens Gamesa Renewable Energy5 supplied 62.2% of GE Renewable Energy connected its Haliade 150-6 MW all the new capacity in 2018. MHI Vestas Offshore Wind turbine for the first time in Europe. In 2018, 20 of these followed with 33.3%. Other turbine suppliers include GE turbines were connected at the Merkur offshore wind renewable Energy and Eolink (prototype). farm in Germany (another 44 will be connected in 2019).

FIGURE 12 Wind turbine manufacturers’ share of the 2018 annual capacity (MW) and number of turbines connected to the grid

GE Renewable Energy Eolink 5% 1 Turbine 20 Turbines <1 MW Connected 120 MW Connected

MHI Vestas Offshore Wind 33% 150 Turbines 885 MW Connected

Siemens Gamesa 62% 245 Turbines 1,655 MW Connected

Source: WindEurope 5. Adwen offshore company has been merged with Siemens Gamesa.

Offshore Wind in Europe - Key trends and statistics 2018 25 WindEurope Industry activity and supply chain

Siemens Gamesa Renewable Energy has the most off- by (5%). These 3 manufacturers represent 98% of shore wind turbines in Europe with 69% of the total in- the total number of turbines connected in Europe at the stalled capacity (see figure 13). MHI Vestas Offshore Wind end of 2018. is the second largest turbine supplier with 24%, followed

FIGURE 13 Wind turbine manufacturers’ share at the end of 2018

Siemes Gamesa 69% 12.8 GW / 3,115 turbines MHI Vestas 24% 3.8 GW / 1,068 turbines Senvion 5% 1.2 GW / 206 turbines Bard Engineering 2% 0.4 GW / 80 turbines Others 1% 0.07 GW / 46 turbines GE Renewable Energy 1% 0.15 GW / 28 turbines

TOP 3 REPRESENT 98% OF ALL TURBINES CONNECTED

Source: WindEurope

26 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Industry activity and supply chain

3.2 WIND FARM OWNERS

Ørsted connected the largest amount of wind capacity and Macquarie Capital with 6% complete the top five in 2018, representing 17%6, followed by E.ON with 11%. owners with new capacity last year. Together they account Global Infrastructure Partners with 9%, with 7%, for 51% of all new capacity in 2018.

FIGURE 14 Owners’ share of 2018 annual installations (MW)

Ørsted 17%

E.ON 11% Global Infrastructure Partners 9% Equinor 7%

Macquarie Capital 7%

Vattenfall 5%

SSE 4%

PKA 4%

PFA 4% Copenhagen Infrastructure Partners 4% Innogy 3%

Siemens 3%

SDIC Power 3%

Partners Group 2%

DEME NV 2%

Enbridge 2%

Others (below 50 MW) 15%

0 50 100 150 200 250 300 350 400 450 500

Capacity owned in MW Source: WindEurope

6. Grid-connected market shares are indicative only. Projects owned or developed by several companies have been split according to their respective shares. Where the shares are not known, they have been split in equal parts between the partners.

Offshore Wind in Europe - Key trends and statistics 2018 27 WindEurope Industry activity and supply chain

Ørsted is the largest owner of offshore wind power in Eu- followed by (7%), Innogy (7%), and Macquarie rope with 16% of the total capacity at the end of 2018 Capital (5%). The top five owners represent 42% of all in- (figure 15). E.ON is the second largest owner with 8%, stalled capacity in Europe, similar to 2017.

FIGURE 15 Owners’ share of total cumulative installed capacity at the end of 2018 (MW)

Ørsted 16% E.ON 8% Vattenfall 7% Innogy 6% Macquarie Capital 5% Northland Power 3% Stadwerke München 3% Iberdrola 3% Siemens 3% Equinor 3% SSE 2% Global Infrastructure Partners 2% Ocean Breeze Energy 2% PKA 2% Masdar 1% Copenhagen Infrastructure Partners 1% Pension Danmark 1% Trianel 1% Eneco 1% Sumitomo 1% EnBW 1% SEAS-NVE 1% Others 25% 0 1,000 2,000 3,000 4,000 5,000

Capacity owned in (MW) Source: WindEurope

28 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Industry activity and supply chain

3.3 SUBSTRUCTURES AND FOUNDATIONS

Monopiles remained the most popular substructure type sioned respectively for the Eolink Prototype and the Kin- in 2018, representing 74.5% of all installed foundations, a cardine project. decrease compared to 2017 (86%). Jackets were the sec- ond most used substructure, with 119 jackets installed in On the supplier side, EEW installed 49% of all foundations 2018, representing 24.5% of all foundations installed. in 2018, followed by Sif (29%) and Steelwind Nordenham (7%). One floating barge was commissioned for the Floatgen project and 2 floating semi-sub structures were commis-

FIGURE 16 Foundations installed in 2018 by manufacturing company7

EEW

Sif

Steelwind Nordenham

Lamprell

ST3 Offshore

Navantia-Windar Consortium

Smulders

Esteyco

Chouteaux Metalform Bouygues Travaux Publics

ASM Industries

0 50 100 150 200 250

Monopile Jacket Semi-Sub Gravity Base Barge

Source: WindEurope

7. Shares are calculated according to the actual number of individual foundations installed in 2018. Where the project developer con- tracted more than one company to manufacture the foundations, and where the respective shares (in case of consortia/joint venture) were not specified, foundations installed were split in equal parts between the partners.

Offshore Wind in Europe - Key trends and statistics 2018 29 WindEurope Industry activity and supply chain

Regarding the total installed fleet (see figure 17), Mono- was previously installed to support the substation at Bor- piles represents 81.5% of all installed substructures in kum Riffgrund I). Europe. A new type of substructure was introduced in Europe with Tripile (1.6%) and Tripod (2.5%) saw no additional instal- the commissioning of the Floatgen project, using Ideol’s lations in 2018. And the share of jacket foundations (8%) floating solution, the Damping Pool (Barge). rose due to construction at Beatrice 2, East Anglia 1 and EOWDC. At the latter, Vattenfall installed the first com- mercial suction-bucket jackets (one suction-bucket jacket

FIGURE 17 Share of substructure types for grid-connected wind turbines at the end of 2018

Floating Spar Floating Semi-Sub Tripile 6 Foundations 2 Foundations 80 Foundations Floating Barge Tripod 1 Foundation 126 Foundations Others 16 Foundations Gravity base 301 Foundations

Jacket 403 Foundations

Monopile 4,105 Foundations

Source: WindEurope

30 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Industry activity and supply chain

3.4 CABLES

FIGURE 18 Share of energised intra-array cables by supplier in 2018

42% of new intra-array cables8 energised in 2018 were from Nexans. JDR Cable Systems (32.1%) and Prysmian PRYSMIAN (16.1%) were the other suppliers with energised intra-ar- Powerlink ray cables. 67 cables With the commissioning of the Nexans last year, Nexans has now supplied 2 new wind farms with 175 Cables its new 66 kV cable technology.

JDR Cable Systems 166 Cables

Source: WindEurope

FIGURE 19 Share of energised export cable by supplier in 201810

9 Nexans In terms of export cables in 2018 (figure 19), 8 export 1 cable cables manufactured by NKT Group were energised, rep- resenting 53.3% of the annual market.

JDR Cable Systems Prysmian, Ls Cable & System, and JDR Cable Systems each 2 cables had a 13.3% share, and Nexans represented the remain- ing 6.7%.

Ls Cable & System NKT Group 2 cables 8 cables

PRYSMIAN Powerlink 2 cables

Source: WindEurope

8. Shares are calculated taking into account the number of grid-connected turbines in each wind farm during 2018. 9. In Germany, the export cable is the cable connecting the offshore HVDC substation to the land. In other countries the export cable is understood as the cable connecting the wind farm to land. 10. Shares are calculated by taking into account the number of export cables in fully completed new wind farms.

Offshore Wind in Europe - Key trends and statistics 2018 31 WindEurope Chapter name

Photo: Ørsted 32 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope 4. INVESTMENTS

4.1 FINANCING ACTIVITY IN 2018

New offshore wind investments in Europe increased to third highest level on record. Project costs in 2018 were €10.3bn, up 37% from 2017. After the drop in Final Invest- lower than in the previous three years, allowing 4.2 GW ment Decisions (FID) in 2017 as the market transitioned to of additional capacity to be financed. This is the second auctions, investments in offshore wind recovered to the highest amount after a record year in 2016.

FIGURE 20 New offshore wind investments and capacity financed: 2010 – 2018 (€bn)

20 20 18 18 18.2 16 16 14 14 12 13.1 12 €bn 10 10 10.3 GW 8 8 8.4 8.8 6 7.2 7.5 6 6.1 4 5.0 4 2 2 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018

Total investments (€bn) New capacity financed (GW) Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 33 WindEurope Investments

12 projects reached Final Investment Decision (FID) in in the UK, including and Moray East, totalling 2018, 95% of which were concentrated in four countries: 1.8 GW of capacity between them. Other significant pro- the UK, Belgium, Denmark and the Netherlands. The ma- jects were Kriegers Flak (606 MW) in Denmark and Seam- jority of the new capacity financed – a total of 52% – was ade (487 MW) in Belgium.

TABLE 4 Investment in European offshore wind farms in 2018

TOTAL INVESTMENTS NEW CAPACITY NUMBER OF (€BN) FINANCED (MW) PROJECTS United Kingdom 5.4 1,858 3

Netherlands 1.4 732 1

Denmark 1.1 605 1

Belgium 1.8 706 2

Germany 0.4 258 2

Italy 0.1 30 1

Portugal 0.1 25 1

Norway 0.0 4 1

Total 10.3 4,217 12

Since 2010 the UK has attracted 48% of new investments, worth €40bn, making it the biggest offshore wind market over the last nine years. Germany follows with 34% or €28bn invested over the same period.

34 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Investments

FIGURE 21 Offshore wind investments by country since 2010

UK 48 % Germany 34 % Other countries 18 %

82% OF OFFSHORE WIND INVESTMENTS SINCE 2010 HAVE BEEN IN THE UK AND GERMANY

Source: WindEurope

In addition to the investments in new wind farms, 2018 in transmission assets of €0.7bn, offshore wind generated also saw €8.5bn in refinancing transactions, an 85%- in a total financing activity of €19.6bn. crease over 2017. With the addition of new investments

FIGURE 22 Investments in the offshore wind sector in 2018 (€bn)

Construction of new €10.3bn 2018 offshore wind projects €7.5bn 2017

€8.5bn Refinancing offshore wind projects €4.6bn

Investments in transmission lines: €0.7bn construction and refinancing €0bn

Source: WindEurope

Offshore Wind in Europe - Key trends and statistics 2018 35 WindEurope Investments

4.2 OFFSHORE WIND DEBT FINANCE

Non-recourse debt continues growing in offshore wind fi- to use the favourable market conditions and increased nancing. In 2018, lenders extended a record €16.5bn of liquidity to restructure their project debt. non-recourse debt across twenty transactions for the fi- nancing of both new and operational wind farms. The attractive sector yields have diversified the profile of lenders. A mix of 50 lenders were active in 2018, a sub- Non-recourse debt for new asset finance amounted to stantial increase to those present in 2017, including multi- €8bn in 2018, driven mainly by Moray East and Triton lateral financial institutions, insurance companies, export Knoll wind farms in the UK, Borssele III & IV in the Nether- credit agencies, and commercial banks. As confidence lands and Seamade wind farm in Belgium. continues to increase further in the European offshore wind sector, Japanese banks continue to strengthen their Refinancing of operational wind farms raised €8.5bn presence in the market. across nine transactions in the Netherlands, Belgium, Ger- many and the UK. This is the fourth consecutive year that refinancing has risen steeply. Project sponsors continue

FIGURE 23 Non-recourse debt trends per type of transaction (€bn)

9 8.5 8 8 7 6 5.3 5 4.6 4.6 4 3 2 2.4 2.3 1.5 2 1.1 recourse debt in € bn 0.9 - 1 0.4 1.6 0 0 0.5 0.3 0.3 Non 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 New assets Refinancing

Source: WindEurope

36 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope Investments

4.3 ACQUISITION ACTIVITY

Project acquisition activity11 increased 30% compared to 2017, totalling 3.8 GW. The equity mix continues to be approx- imately one third coming from financial investors, and two thirds from power producers.

FIGURE 24 Project acquisition activity in 2018 by type of investor

Power producers Financial services Infrastructure 2,537 MW 1,255 MW funds 67% 33% 647 MW 17%

3.8 GW Asset ACQUISITION ACTIVITY managers 173 MW 5%

Diversified financial services 435 MW 11%

Source: WindEurope

The majority of transactions happened at the pre-con- transactions at the construction and operation phase had struction stage, the most critical phase for a project’s increased significantly. There were 630 MW acquired at fundraising, with a record of 2.7 GW acquired. Mean- the construction phase and 425 MW at the operational while, 2018 bucked the trend of previous years, where phase, a 2% increase and a 4% decrease, respectively.

11. Excluding pre-development phase of projects.

Offshore Wind in Europe - Key trends and statistics 2018 37 WindEurope Investments

FIGURE 25 Acquisition activity per project stage 2015-2018

3,000

2,500

2,000

1,500

1,000

500

0 Pre-construction Construction In operation

2015 2016 2017 2018

Source: WindEurope

In addition to those listed above, acquisitions in the pre-development stage amounted to the equivalent of 2.3 GW of potential projects.

38 Offshore Wind in Europe - Key trends and statistics 2018 WindEurope

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