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Solid wind returns for pension funds in new markets – but not for long

Pension funds are witnessing offshore wind projects generate smaller returns than was the case just two-three years ago. However, there are greater returns to be made if you are willing to take the risk of being among the first to enter the offshore wind markets in the US and Taiwan. PKA is already evaluating specific projects in the new markets.

Photo: Windpark Noordostpolder

Pension funds can make solid returns if they are willing to take on ventures in offshore wind. While the market for offshore wind farms in the North Sea has become so competitive that the returns for investors have shrunk significantly, new markets such as the US and Taiwan are poised to bulk up returns.

As FinansWatch wrote Monday, several pension funds have turned their backs on offshore wind turbines as the returns are no longer good enough on this type of investment. The lower returns are a result of factors including developers of the offshore wind farms, such as Dong, having been joined by new players on the market, and competition has thus intensified. As such, the developers must accept smaller payments to erect and operate the offshore wind farms.

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