How to slash cost of offshore wind capital in APAC

Multilateral Development Banks and export credit agencies have a critical role.

The offshore wind potential in Asia Pacific can be fuelled by utilising innovative finance tools.

According to a new report by Global Wind Energy Council (GWEC), blended finance cam potentially half the cost of capital for offshore wind projects, with multilateral development banks and export credit agencies playing “a pivotal role in unlocking local and international capital.”  

“GWEC numbers show that offshore wind in the APAC region is on the verge of booming. Offshore wind will play a key role in powering fast growing emerging economies like the Philippines and Vietnam,” said GWEC Deputy CEO Rebecca Williams.

Williams said the GWEC analysis showed that when projects are commercially viable and risks are effectively managed, both domestic and international capital are ready to flow.

This will be primarily driven by reducing the cost of capital, which can be supported by combining strong policy frameworks with credible developers and robust financial structures.

This effort will make offshore wind a highly attractive and scalable investment in emerging markets, Williams said.

With 83 gigawatts of power coming from offshore wind, which powers 73 million homes, the “next wave of offshore wind markets must be supported as they drive their continued economic growth with their own energy resources.”