Financing offshore wind projects Matthias Bausenwein General Manager for Asia Pacific 14 th Nov 2017
過去十年沃旭能源集團的轉型 碳排放量減半 CO 2 emissions halved g/kwh 營業收入增加 3 倍 (EBITDA) tripled DKK Bn 企業轉型 Share of capital employed 1 % 國際擴張 Share of operating profit (EBITDA) % 462 (50%) 3x International share >5x 19.1 24% 0% 16% 224 60% 84% 5.3 16% 2006 2016 2006 2016 2006 2016 2006 2016 2
沃旭能源簡介 Ørsted at a glance Headquarters in Denmark Listed in the Nasdaq OMX: ORSTED 5,600 employees Revenue in 2016 DKK 61.2 bn (GBP 7.4 bn) EBITDA in 2016 DKK 19.1 bn (GBP 2.3 bn) Phase out the use of coal by 2023 84% * Wind Power 風力發電 Develops, constructs, owns and operates offshore wind farms in Denmark, Germany, the Netherlands and the UK Development projects in Taiwan and the USA 4% * Bioenergy & 地熱及生質能發電 Thermal Power Generates and sells power and heat to customers in Denmark and Northwestern Europe 12% * Distribution & Customer Solutions 配電等 Power distribution grid on Zealand and sale of power and gas to customers in Northwestern Europe * Share of the Ørsted Group s capital employed 3
We are the Global Leader in Offshore Wind, with more than 25 years of experience 擁有超過 25 年經驗的全球離岸風電巨擘 Headquarters in Denmark 50.1% owned by the Danish State Listed in the Nasdaq OMX: ORSTED 5,600 employees Revenue in 2016 DKK 61.2 bn (EUR 8.2bn) Largest offshore wind player globally today Global offshore wind capacity GW 26% 8.8 8% 9% 8% 0% 1% 2% 4% 2% 1% 0% Operational 2% 1% Under Construction 25+ years of experience and 1991 2017 track record in offshore wind 3.6 5.0 22 offshore wind farms in operation 3.5 GW World's leading operator 3.8 GW Constructed capacity 7 offshore wind farms under construction 5.0 GW under construction 3.8 2.8 2.1 2.0 1.5 0.8 0.8 1.1 0.9 1.3 1.3 1.2 1.1 0.6 0.3 Vattenfall Iberdrola Innogy E.ON EnBW 0.9 0.6 0.3 SSE 0.9 0.3 0.6 Northland Power Van Oord 0.7 0.4 0.3 Van Oord 0.5 0.3 Statoil 0.2 0.4 0.4 EDPR 0.4 0.1 0.3 0.3 0.1 0.2 Statkraft WPD Installed 1 Under construction % share of global installed capacity Source: Bloomberg New Energy Finance, September 2017, DONG Energy analysis 1. If a project is executed on behalf of a lead developer managing the construction, then 100% of capacity is allocated to the lead developer. If construction is executed by an integrated joint venture, capacity is allocated in proportion to the JV share 4
沃旭能源集團風力發電全球觸角 Ørsted Wind Power - Global Footprint 5
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灣綠能發展 大彰化離岸風電計畫 大規模離岸風場加速台 1 subject of further permitting and financial investment decision (FID) 7
We are not just a developer, but an integrated Energy Company 沃旭能源不只是開發商, 而是一家整合能源公司 Strong integrated end-to-end business model 從開發到運維的強大整合商業模式 Develop Build Operate Own 25+ years in offshore wind sector 超過 25 年離岸風電經驗 Long-term commitment in Taiwan, we are here to stay! 長期深耕台灣市場, 我們會一直在這裡! Experience and expertise along the entire value chain allow for better understanding and management of risks and Always built on time, on budget! 總是如期依預算完工 Proven track record in developing local long-term partnerships 與本地夥伴發展長期合作關係 A trusted partner & advisor 值得信賴的夥伴和顧問 8
離岸風場專案融資選項 Project level vs. corporate level financing Corporate finance still comprises the majority of funding for the offshore wind market, with non-recourse project financing making up 33% of new asset financing in 2016, down from 44% in 2015 Source: Wind Europe, The European offshore wind industry, Key trends and statistics 2016 (published in Jan. 2017) 9
離岸風電風險與獲利 Offshore Wind Risk / Return 歐洲的經驗 The learning curve for banks and institutional investors in Europe Parties that typically invest during development phase: developers/ipps/consortia of parties and utilities (1) Support from European Export Credit Agencies and the European Investment Bank allowed commercial banks to step in their first project financing from construction stage (2) Most institutional investors (Insurance/Pension) entered the offshore wind market by funding / investing in offshore wind projects at the operational phase, i.e. not being exposed to construction risk (3) - After some time, once these investors better understood the technology and the risks associated with offshore wind equity risks, they got sufficiently comfortable to fund/invest during the construction phase (4) Development Maturation / Pre-construction Construction Operation Project phases 3-6 years Highest Risk/Return 1-2 years High Risk/Return 2+ years Medium Risk/Return 25+ years Lowest Risk/Return Banks Debt 2 With some support senior lenders (Banks) could lend to projects at construction stage Investors Equity 1 Few institutional investors (only private equity) do invest in earlier phases of the projects. Developers/IPPs and utilities do 4 3 Most equity investors start at (3) and gradually move to (4) 10
與合作夥伴長期耕耘的經驗 Proven track record in developing long-term partnerships Major institutional investors are partners in Ørsted's offshore wind projects Walney I & II (50.1%) 367 MW (2009 / 2010) Walney Extension (50%) 659 MW (2017) Westermost Rough (50%) 210 MW (2014) Race Bank (50%) 573 MW (2016) Anholt (50%) 400 MW (2011) West of Duddon Sands (50%) 389 MW (2010) Horns Rev 1 (40%) 160 MW (2006) Burbo Bank Extension (50%) 258 MW (2016) Nysted (42.7%) 166 MW (2010) (KIRKBI) Lincs (25%) 270 MW (2017) Gode Wind 2 (50%) 252 MW (2014) Gunfleet Sands (50.1%) 173 MW (2011) London Array (25%) 630 MW (2009 / 2014) Borkum Riffgrund 2 (50%) 450 MW (2017) Borkum Riffgrund 1 (50%) 312 MW (2012) Gode Wind 1 (50%) 330 MW (2015) (KIRKBI) (%) represents Ørsted ownership interest and year when the partnership was created 11
案例 Case study: Financing Gode Wind 1 offshore wind farm I Germany with local investors (1/3) Facts about Gode Wind 1 330 MW offshore wind farm 55 Siemens 6.0 MW turbines Located approx. 40 km off the coast Offshore construction finalized To supply CO 2 free power for 340,000 German households Key dates Nov. 2013 DONG Energy took FID Sep. 2015 GIP acquired 50% stake, bond financed by German insurance companies with Talanx as cornerstone lender Oct. 2015 Financial close achieved Dec. 2015 PFI Awards 2015 Renewables deal of the year (Europe) Jan. 2016 First turbine installed Mar. 2016 IJ Global Award for European Project Bond 12
案例 Case study: Financing Gode Wind 1 offshore wind farm I Germany with local investors (2/3) Rated Green Bonds 50% 50% GODE WIND 1 Bondholders Consortium of renowned German insurance companies Senior debt financing of Gode Wind 1 broke new ground in 5 ways 1 st investment grade pre-completion project bond financing of an offshore wind farm 1 st senior debt financing of an offshore wind farm by institutional investors 1 st issuance of a certified green bond dedicated to co-finance offshore wind under construction 1 st structuring and debt financing of an offshore wind farm without any involvement of banks 1 st HoldCo financing in Germany for offshore wind farm under construction 13
案例 Case study: Financing Gode Wind 1 offshore wind farm I Germany with local investors (3/3) 6 success factors Experienced infrastructure and project finance team Trusted and strong relationships with institutional co-investors Attractive project developed by offshore wind market leader Committed project and management team at DONG Energy, GIP and Talanx Professional partners: technical, legal, and financial Daring to think outside the box and to closely cooperate with all parties involved 14
對台灣的相關建議 Some conclusions for Taiwan In order to finance the first large scale projects, it is crucial to have experienced players to take the financing and EPC risk. In Europe Ørsted has applied balance sheet financing for its offshore wind projects and taken the construction risk where needed. We consider this an important way forward to manage the risk in the Taiwanese market and to ensure significant offshore wind build out in the early 2020ies. We are open for local investors taking a significant share of our projects. Ørsted is also a pioneer in carrying out project financing for the first Taiwanese offshore wind project Formosa-1. There is much interest and engagement from international and local banks during the current RFP (request for proposal) process. We are putting efforts into improving the PPA and regulatory landscape. A long-term stable framework is needed to realize offshore wind infrastructure projects. Changes to the framework (e. g. FiT for initial projects or the reduction of the grid capacity being allocated by 2025) create uncertainty among investors. 15
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