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64 comments on The First Ever Off-Shore Wind Farm Financed by Banks...

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Ardnassac on October 31, 2006 - 12:20pm

PG, are there any specs that break down the 378 million euro cost by labor, concrete, steel, cable, future maintenance, and so on? I'm curious about the details of why each windmill costs 6,300,000 euros ($ 8 million US).

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Khebab on October 31, 2006 - 1:23pm

from the link given by Jerôme:

The financing includes EUR 219 million, 11-year, non recourse long terms facilities and EUR 160 million short term construction facilities. The long term facilities are fully underwritten by the Mandated Lead Arrangers and EKF, which guarantees EUR 68 million to support the export of Vestas equipment from Denmark.

68 / 60= EUR 1.13 million per wind turbine.

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Jerome a Paris on October 31, 2006 - 3:21pm

Very roughly:
Foundations, cable, electrical equipment: 50%
Turbines themselves: 35%
Development costs, financing costs, other: 15%

The cable is pretty expensive because the windfarm is more than 25km (15mi) offshore. The financing costs appear huge, but some of it is to fill reserve accounts (i.e. money that stands there and is available in case of big problems) that are given back to the investors when the debt is fully repaid.

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