UK Back in Offshore Wind Driving Seat, Says KPMG

Commenting on the UK government’s announcement that it has approved five offshore wind farm projects, Adrian Scholtz, head of renewables at KPMG said:

“The government’s announcement to approve five offshore wind farms puts the UK back in the driving seat, ahead of Germany and France. The industry must now seize the opportunity to invest in the domestic supply chain, successfully demonstrate incremental cost reductions and therefore increase the return on each project. 

Capital will have an essential role in delivering these cost reductions, however the challenge for firms will be managing its cost. Experience, capital recycling and risk allocation will all have a role to play in optimising the cost of this capital throughout these projects’ lives. 

In addition, we are seeing a growing pool of active and speculative attention paid to the sector by a range of capital providers. Given these industry drivers, we are confident that the resulting reduced lifecycle cost of capital will help reduce the cost of offshore wind – ultimately securing the industry’s long-term future beyond today’s successes.”

Press Release, April 25, 2014; Image: eib