The Anonymous Widower

Octopus Energy Forays Into German Offshore Wind Market With Butendiek Acquisition

The title of this post, is the same as that of this article on offshoreWIND.biz.

This is the sub-heading.

Octopus Energy’s generation arm has made its first offshore wind investment in Germany with the acquisition of a 5 per cent stake in the 288 MW Butendiek offshore wind farm from Ewz, the Zurich Municipal Electric Utility.

This paragraph introduces the wind farm.

Located 32 kilometres west of Sylt Island in the North Sea, the Butendiek offshore wind farm features 80 3.6 MW Siemens Gamesa wind turbines. The project has been operational since 2015, generating enough clean power for 370,000 homes.

It appears to be a mature smaller wind farm. As it has been operating for eight years, the electricity generates and any costs associated with the farm, will be well defined.

If someone made an investment, the return could probably be fairly accurately predicted.

These paragraphs outline Octopus’s strategy for investing in wind farms.

According to Octopus Energy, the deal marks the next step in the company’s global offshore wind strategy and follows its decision to channel more than EUR 1 billion of investment into green energy infrastructure in Germany by 2030.

Since entering the market last year, the company invested in four onshore wind farms with a combined capacity of 100 MW.

Octopus Energy plans to unleash USD 20 billion in offshore wind investment globally.

Besides Germany, the company invested in offshore wind farms in the UK and the Netherlands, as well as in developers of new offshore wind projects including Norway, Sweden, and South Korea.

In World’s Largest Wind Farm Attracts Huge Backing From Insurance Giant, I explain how Aviva invest in wind farms to get a return to back up their pension and insurance businesses.

As Octopus probably understand wind farms as well as, if not better than Aviva, what better place is there for the company to invest their spare cash and customers’ balances?

Octopus and Aviva are almost showing how wind farms can be used as deposit accounts, that generate a predicable return.

I suspect that other assets like energy storage, interconnectors and solar farms, where there is a history of electricity flows and maintenance costs, can also be run as deposit accounts for investors.

I can also see individuals being able to put their money into a bank account backed by renewable assets.

Note.

November 13, 2023 - Posted by AnonW | Energy, Finance | Aviva, Octopus Energy, Offshore Wind Power, Solar Power, Wind Power