Dutch Pension Fund Takes Stake in German OWF

Dutch pension fund manager PGGM is taking part in the new German offshore wind farm Baltic 2. PGGM will invest in the project alongside Macquarie Capital, who agreed to acquire a 49.89 percent stake in the project earlier this year.

This investment is in line with the ambition of PGGM’s clients to use pension money to contribute to a more sustainable world. To PGGM, Baltic 2 falls in the category of ‘investing in solutions’, where solid financial returns are realized and at the same time contributions are made to solving major societal issues like the climate problem, the fund stated.

Baltic 2 will be subjected to the current German regulatory regime under which it will benefit from approximately eleven years of fixed energy prices and another nine years of downside protection when it sells electricity at market prices.

Frank Roeters van Lennep, Head of Infrastructure at PGGM said: “With Baltic 2 we will realize a good financial return and with our investments we can take a next step in helping to make Europe’s energy infrastructure more sustainable. Germany will still need a lot of capital to fulfill its Energiewende ambitions and PGGM would like to contribute. Our clients fully support investments in the energy transition.”

Baltic 2 is constructed by the German utility EnBW, which keeps a stake of 50.11 percent in the project. EnBW will take over responsibility for the management of the wind farm and the maintenance work over the lifetime of the project.

Image: EnBW