In 2018, the wind sector invested US$30.05 billion in new wind farms in Europe. WindEurope reported the news. It also reported that investment is similar to past few years. But, owing to price reduction, it will result in whopping 16.7 gigawatt (GW) in latest energy capacity.
Now, the capital investment for 1 megawatt (MW) of latest onshore wind energy requires US$1.57 billion. In 2015, the required amount was US$2.0 billion. In offshore industry, 1 megawatt (MW) of energy requires US$2.81 million as compared to US$5.06 million euros, back in 2015.
Overall, the European wind sector invested nearly US$73.07 billion last year, says the Financing and Investment Trends report. Moreover, among the key investments in new sectors, the money was put for company merger and acquisitions, refinancing operations, and public market fundraising.
On analyzing the figures, the investment in latest onshore wind services hit around US$18.4316.4 billion last year. Whereas, investments in latest offshore projects soared nearly US$11.58 billion.
Power Production Sector Accounts for 60% of Overall Investments
Europe is a hub for various wind energy projects. It includes Walney Extension Offshore Wind Farm, which is the largest operational offshore service in the world. These projects are based in the Irish Sea, with the overall capacity of 659 megawatts (MW). As per Danish Energy Business, Orsted, “It has the ability to power around 600,000 houses in the U.K”.
The CEO of WindEurope, Giles Dickson, stated on Thursday, “Around 60% of overall investment is bagged by power production industry.”
Moreover, CEO also stated it was an important year considering the investments made in generating more wind energy capacity. Decrease in costs helps investor gain more megawatt per dollar. Furthermore, the prices of finance are also falling since lenders are ready to take the risks.