Making wind pay its way

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Adam Barber
April 25, 2013
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Making wind pay its way

Looking at some of the results for the utilities this week, it’s clear that wind energy is starting to deliver the returns that have always been hoped for.

In its Q1 results, Dong Energy highlighted that a combination of earnings from the construction of the Anholt project in Denmark, and the sale of wind energy from the London Array project, helped increase its income by DKK 0.7bn.

It was similar story for the renewables division of Iberdrola, too. The Spanish utility saw wind energy account for an increase in EBITDA of 20.8% to €533.3m. This, it’s worth noting, is in spite of levies applied to renewable energy earnings increasing 158% to €50m, and taxes on wind generation costing €25m.

Clearly then, wind energy can be made to pay, and this should be good news for secondary investors, particularly those looking at taking a stake in projects developed by the utilities, or indeed for those eyeing up a slice of BP's US wind energy assets - already being lined up and put on the block.

And whilst some of the income that is derived from projects will be from political support, it’s worth noting in Iberdrola’s case that it’s still a two-way street, with taxes and levies sometimes cancelling out any favourable returns.

But as the wind industry develops, Indeed as the wind industry develops, it’s certainly a positive sign - and another clear indicator that wind has become an increasingly financially viable industry and an asset class in its own right.

Now naturally, we can’t draw too much from two sets of quarterly results. And if political uncertainty continues, the figures may well look very different again this time next year.

Nevertheless, as more of the large-scale, utility-backed projects come online, the greater the impact they'll be expected to have on future balance sheets. No bad thing. Since wind is evidently becoming an ever more potent new energy source.

Looking at some of the results for the utilities this week, it’s clear that wind energy is starting to deliver the returns that have always been hoped for.

In its Q1 results, Dong Energy highlighted that a combination of earnings from the construction of the Anholt project in Denmark, and the sale of wind energy from the London Array project, helped increase its income by DKK 0.7bn.

It was similar story for the renewables division of Iberdrola, too. The Spanish utility saw wind energy account for an increase in EBITDA of 20.8% to €533.3m. This, it’s worth noting, is in spite of levies applied to renewable energy earnings increasing 158% to €50m, and taxes on wind generation costing €25m.

Clearly then, wind energy can be made to pay, and this should be good news for secondary investors, particularly those looking at taking a stake in projects developed by the utilities, or indeed for those eyeing up a slice of BP's US wind energy assets - already being lined up and put on the block.

And whilst some of the income that is derived from projects will be from political support, it’s worth noting in Iberdrola’s case that it’s still a two-way street, with taxes and levies sometimes cancelling out any favourable returns.

But as the wind industry develops, Indeed as the wind industry develops, it’s certainly a positive sign - and another clear indicator that wind has become an increasingly financially viable industry and an asset class in its own right.

Now naturally, we can’t draw too much from two sets of quarterly results. And if political uncertainty continues, the figures may well look very different again this time next year.

Nevertheless, as more of the large-scale, utility-backed projects come online, the greater the impact they'll be expected to have on future balance sheets. No bad thing. Since wind is evidently becoming an ever more potent new energy source.

Looking at some of the results for the utilities this week, it’s clear that wind energy is starting to deliver the returns that have always been hoped for.

In its Q1 results, Dong Energy highlighted that a combination of earnings from the construction of the Anholt project in Denmark, and the sale of wind energy from the London Array project, helped increase its income by DKK 0.7bn.

It was similar story for the renewables division of Iberdrola, too. The Spanish utility saw wind energy account for an increase in EBITDA of 20.8% to €533.3m. This, it’s worth noting, is in spite of levies applied to renewable energy earnings increasing 158% to €50m, and taxes on wind generation costing €25m.

Clearly then, wind energy can be made to pay, and this should be good news for secondary investors, particularly those looking at taking a stake in projects developed by the utilities, or indeed for those eyeing up a slice of BP's US wind energy assets - already being lined up and put on the block.

And whilst some of the income that is derived from projects will be from political support, it’s worth noting in Iberdrola’s case that it’s still a two-way street, with taxes and levies sometimes cancelling out any favourable returns.

But as the wind industry develops, Indeed as the wind industry develops, it’s certainly a positive sign - and another clear indicator that wind has become an increasingly financially viable industry and an asset class in its own right.

Now naturally, we can’t draw too much from two sets of quarterly results. And if political uncertainty continues, the figures may well look very different again this time next year.

Nevertheless, as more of the large-scale, utility-backed projects come online, the greater the impact they'll be expected to have on future balance sheets. No bad thing. Since wind is evidently becoming an ever more potent new energy source.

Looking at some of the results for the utilities this week, it’s clear that wind energy is starting to deliver the returns that have always been hoped for.

In its Q1 results, Dong Energy highlighted that a combination of earnings from the construction of the Anholt project in Denmark, and the sale of wind energy from the London Array project, helped increase its income by DKK 0.7bn.

It was similar story for the renewables division of Iberdrola, too. The Spanish utility saw wind energy account for an increase in EBITDA of 20.8% to €533.3m. This, it’s worth noting, is in spite of levies applied to renewable energy earnings increasing 158% to €50m, and taxes on wind generation costing €25m.

Clearly then, wind energy can be made to pay, and this should be good news for secondary investors, particularly those looking at taking a stake in projects developed by the utilities, or indeed for those eyeing up a slice of BP's US wind energy assets - already being lined up and put on the block.

And whilst some of the income that is derived from projects will be from political support, it’s worth noting in Iberdrola’s case that it’s still a two-way street, with taxes and levies sometimes cancelling out any favourable returns.

But as the wind industry develops, Indeed as the wind industry develops, it’s certainly a positive sign - and another clear indicator that wind has become an increasingly financially viable industry and an asset class in its own right.

Now naturally, we can’t draw too much from two sets of quarterly results. And if political uncertainty continues, the figures may well look very different again this time next year.

Nevertheless, as more of the large-scale, utility-backed projects come online, the greater the impact they'll be expected to have on future balance sheets. No bad thing. Since wind is evidently becoming an ever more potent new energy source.

Looking at some of the results for the utilities this week, it’s clear that wind energy is starting to deliver the returns that have always been hoped for.

In its Q1 results, Dong Energy highlighted that a combination of earnings from the construction of the Anholt project in Denmark, and the sale of wind energy from the London Array project, helped increase its income by DKK 0.7bn.

It was similar story for the renewables division of Iberdrola, too. The Spanish utility saw wind energy account for an increase in EBITDA of 20.8% to €533.3m. This, it’s worth noting, is in spite of levies applied to renewable energy earnings increasing 158% to €50m, and taxes on wind generation costing €25m.

Clearly then, wind energy can be made to pay, and this should be good news for secondary investors, particularly those looking at taking a stake in projects developed by the utilities, or indeed for those eyeing up a slice of BP's US wind energy assets - already being lined up and put on the block.

And whilst some of the income that is derived from projects will be from political support, it’s worth noting in Iberdrola’s case that it’s still a two-way street, with taxes and levies sometimes cancelling out any favourable returns.

But as the wind industry develops, Indeed as the wind industry develops, it’s certainly a positive sign - and another clear indicator that wind has become an increasingly financially viable industry and an asset class in its own right.

Now naturally, we can’t draw too much from two sets of quarterly results. And if political uncertainty continues, the figures may well look very different again this time next year.

Nevertheless, as more of the large-scale, utility-backed projects come online, the greater the impact they'll be expected to have on future balance sheets. No bad thing. Since wind is evidently becoming an ever more potent new energy source.

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Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.