KfW IPEX-Bank co-finances the Nordsee One offshore wind farm

KfW IPEX-Bank is financing the Nordsee One offshore wind farm together with nine other banks. The 332 MW project with an investment volume of EUR 1.2 billion to be located 40 kilometers off the coast of Germany is owned by Northland Power Inc., Toronto, and RWE Innogy GmbH, Essen. Approximately 70% of the project’s required costs will be provided from a EUR 840 million non-recourse secured construction and term loan and related loan facilities from ten international commercial lenders.

Senvion SE, a Germany-based company, will supply, install, and maintain the 54 wind turbines for the project, each with a 6.15 MW capacity. The main works will be engineered and constructed by four experienced offshore wind contractors.

Nordsee One is entitled to a feed-in tariff subsidy under the German Renewable Energy Act. A substantial portion of the project returns are earned during the feed-in-tariff period, while the remainder of the planned returns are expected from the robust and mature German wholesale electricity market.

Construction of the offshore components is scheduled to start in 2016. Commercial operation is set to begin by the end of 2017.