A cluster analysis of investment strategies in the offshore wind energy market

A. Ioannou, C. Vaienti, A. Angus, F. Brennan

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

2 Citations (Scopus)

Abstract

This paper maps different investor strategies in the offshore wind energy market based on data from existing wind farms in the UK. This is realized through the employment of cluster analysis, which classifies offshore wind energy investors - who have purchased equity stakes-in terms of the entry timing, exit timing, purchase timing and stake purchased. We, then, perform a SWOT analysis to identify the major strengths, weaknesses, opportunities and threats encountered by each cluster of stakeholders. Cluster analysis revealed the existence of three distinct investment strategy profiles: i) Late entry investors, ii) Pre-commissioning investors, and iii) Own-build-transfer investors. Corporate and institutional investors tend to be late entry investors, whose strategy is based on buying assets while they are fully operational avoiding construction risks, retaining a risk aversion profile. The exit timing of OEMs and EPCI contractors usually takes place before or right after the commissioning of the wind farm. Finally, major Utilities tend to keep the operating assets on their balance sheet and divest only part of them (mostly minority stakes) during the operating stage; Independent energy companies are found in both 2nd and 3rd cluster; however, exceptions may be observed.

LanguageEnglish
Title of host publication2017 6th International Conference on Clean Electrical Power
Subtitle of host publicationRenewable Energy Resources Impact, ICCEP 2017
Place of PublicationPiscataway, NJ
PublisherIEEE
Pages362-369
Number of pages8
ISBN (Electronic)9781509046829
DOIs
Publication statusPublished - 18 Aug 2017
Event6th International Conference on Clean Electrical Power, ICCEP 2017 - Santa Margherita Ligure, Italy
Duration: 27 Jun 201729 Jun 2017

Conference

Conference6th International Conference on Clean Electrical Power, ICCEP 2017
CountryItaly
CitySanta Margherita Ligure
Period27/06/1729/06/17

Fingerprint

Cluster analysis
Farms
Wind power
Contractors
Industry

Keywords

  • cluster analysis
  • entry and exit timings
  • equity capital investors
  • investment strategies
  • offshore wind
  • SWOT

Cite this

Ioannou, A., Vaienti, C., Angus, A., & Brennan, F. (2017). A cluster analysis of investment strategies in the offshore wind energy market. In 2017 6th International Conference on Clean Electrical Power: Renewable Energy Resources Impact, ICCEP 2017 (pp. 362-369). Piscataway, NJ: IEEE. https://doi.org/10.1109/ICCEP.2017.8004841
Ioannou, A. ; Vaienti, C. ; Angus, A. ; Brennan, F. / A cluster analysis of investment strategies in the offshore wind energy market. 2017 6th International Conference on Clean Electrical Power: Renewable Energy Resources Impact, ICCEP 2017. Piscataway, NJ : IEEE, 2017. pp. 362-369
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Ioannou, A, Vaienti, C, Angus, A & Brennan, F 2017, A cluster analysis of investment strategies in the offshore wind energy market. in 2017 6th International Conference on Clean Electrical Power: Renewable Energy Resources Impact, ICCEP 2017. IEEE, Piscataway, NJ, pp. 362-369, 6th International Conference on Clean Electrical Power, ICCEP 2017, Santa Margherita Ligure, Italy, 27/06/17. https://doi.org/10.1109/ICCEP.2017.8004841

A cluster analysis of investment strategies in the offshore wind energy market. / Ioannou, A.; Vaienti, C.; Angus, A.; Brennan, F.

2017 6th International Conference on Clean Electrical Power: Renewable Energy Resources Impact, ICCEP 2017. Piscataway, NJ : IEEE, 2017. p. 362-369.

Research output: Chapter in Book/Report/Conference proceedingConference contribution book

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Ioannou A, Vaienti C, Angus A, Brennan F. A cluster analysis of investment strategies in the offshore wind energy market. In 2017 6th International Conference on Clean Electrical Power: Renewable Energy Resources Impact, ICCEP 2017. Piscataway, NJ: IEEE. 2017. p. 362-369 https://doi.org/10.1109/ICCEP.2017.8004841