The UK’s Green Investment Bank (GIB) has announced plans to invest directly in offshore wind energy schemes in order to attract long-term investors to the sector.
The government-backed bank says that it will launch a £1 billion fund to acquire equity stakes in operational offshore wind projects in the UK and is seeking a group of strategic, long-term co-investors to participate alongside it.
The move, says the bank, is "an important development" for the UK’s offshore wind sector, which has suffered a number of setbacks in the past few months. The GIB has already made two equity investments totalling £461 million in the offshore wind sector, but says that a "broadening" of the number of long-term investors in the sector is required to help support continued growth.
The UK now has 3.6 GW of offshore wind capacity, with a further 1.4 GW under construction. "Equity investments in operational wind farms can offer a compelling opportunity for investors seeking long-term, inflation-linked returns," said GIB in a statement, noting that such investments are particularly well-suited to long-term infrastructure investors such as sovereign wealth funds and pension funds.
GIB has become the most active investor in the UK’s green economy in the 18 months since it was established. It has so far backed 28 green projects with £1.3 billion of capital.
GIB CEO Shaun Kingsbury said that the bank was "making a difference … by taking on the tough projects, de-risking new technologies and lowering the cost of capital".
Sian Crampsie
Photo: At 630 MW the London Array is currently the UK’s largest operational offshore wind farm (Credit: London Array Limited)
