WindEurope believes investment in the European wind energy sector will fall this year as a move to competitive tenders impacts.

The industry group says investment levels were inflated in the last year as projects were rushed through before auction-based renumeration systems locked into place.

The analysis was published in WindEurope’s annual ‘Financing and Investment Trends’ report. European wind developers raised a total of $47bn last year for the construction of new wind farms, refinancing operations, project acquisitions and public market fundraising, up 22 per cent from $38bn in 2015.
Offshore wind power development
Key markets such as Germany and France have switched to auctions and this has caused a lull in financial investment decisions in projects.

WindEurope CEO Giles Dickson voiced an additional concern for the sector when he stated, “What is worrying is the uneven growth geographically,” the statement added. Some 80% of new investments came from four countries alone – the UK, Germany, Belgium, and Norway.”

Platts reports that a total of 14 EU member states did not announce any new wind energy investments in 2016 with many countries struggling to manage the transition to auctions.

Only seven EU member states have clear policies for renewables beyond 2020 with the unclear policy outlook in the rest making investors and project developers go elsewhere.

Europe’s total installed wind capacity has risen above 150 GW with 25 GW added in the past two years.