Danish pension providers ready to invest in new offshore wind farms

Several pension providers are interested in investing in the three new offshore wind farms outlined in the new Danish energy policy, writes Danish business daily Børsen.
Henrik Nøhr Poulsen | Photo: PR
Henrik Nøhr Poulsen | Photo: PR
BY DANIEL HEDELUND, FINANSWATCH

The newly ratified Danish energy policy includes plans for three new offshore wind farms to be installed forward to 2030, and several of the country's largest pension providers have announced their willingness to invest, writes Danish business daily Børsen.

"We invested last year in what will become the world's largest offshore wind farm in the UK. Wind farms of similar size are now planned for Denmark, and we find that most interesting. It is a technology and a type of project we a familiar with and know works," says Henrik Nøhr Poulsen, CIO at Danish pension provider PFA, to Børsen.

Michael Nellemann Pedersen, CIO at Danish pension provider PKA, says the company is "very interested in that type of investment," other other domestic pension providers such as Pensiondanmark, Industriens Pension as well as ATP have aired similar interest.

Børsen writes that returns on invested capital in the wind energy industry are estimated to be between 6 and 8 percent. Such returns, however, are associated with high uncertainty, and pension providers are therefore looking for alternatives.

English Edit: Daniel Frank Christensen

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