Offshore wind energy

Your expert for questions

Heiko Stohlmeyer, Director, Erneuerbare Energien bei PwC Germany

Heiko Stohlmeyer
Director, Renewable Energies at PwC Germany
Tel: +49 171 3344297
Email

Harness the potential of offshore wind energy

Offshore wind energy is an important part of the German energy mix and will become one of the most important German energy sources in the future. Offshore wind farms will increasingly supply Germany with fossil-free electricity, making an important contribution to the decarbonisation of Germany’s energy supply. Harnessing the enormous potential of offshore wind energy will have an equally positive impact on the climate, society, and the economy. However, the successful implementation of an offshore project involves complex technical, economic, legal and tax challenges.

Our experts have many years of consulting experience from the implementation and operation of numerous offshore wind energy projects at home and abroad. Leverage our expertise and specialised global and multi-disciplinary industry network to ensure the success of your project.

Continue reading to find out more about us. Or give us a call. We look forward to hearing from you.

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PwC has been actively involved in the development of the offshore wind energy market since the beginning of the expansion of offshore wind energy in Europe in the mid-2000s. Since then, our experts have supported many offshore wind projects, not only in Germany but also internationally. We have a deep understanding of the dynamic market, its players, its frameworks, its transactions, and its trends. Our clients benefit from comprehensive and tailored consulting services that cover every phase of a project, from strategy to implementation.

As part of our transaction advisory services, our offshore wind energy experts provide professional support at key stages of fund, corporate and project transactions, and investments.

Sell-side  consulting
As your sell-side consultants we work closely with you to optimise the sales process. We can help you determine the value, identify the strengths and weaknesses of your project or company, and formulate an effective sales strategy. We also provide guidance on finding a buyer/strategic partner for your project and create all the necessary transaction documents, including an information memorandum, term sheet, or customised financial model. Our goal is to collaborate with you to ensure a successful transaction through the best possible sales process.

Buy-side  consulting
As your buy-side consultants we will work closely with you to identify and evaluate the right investment opportunities. We will help you to find investment and acquisition opportunities and support you throughout the entire purchase process. This includes due diligence of the project, valuation and purchase price determination, submission of an offer and the signing of contracts.

Commercial due diligence
Our Commercial Due Diligence (CDD) provides a thorough analysis of the economic assumptions used to value and purchase renewable energy projects, as well as business model and market analyses. We identify potential risks, opportunities, and value drivers to ensure your investment decision is well founded.

Our valuation and benchmarking services provide you with accurate analysis to help you make informed investment decisions. We will help you to identify opportunities and minimise risks.

Project, portfolio and company valuation
Our experts conduct targeted project, portfolio and company valuations to validate the value of your investments and businesses. We consider all relevant factors, from financial aspects and market conditions to strategic considerations. We provide valuations of wind and solar farms and project portfolios at every stage of project development, with the aim of determining a fair market sale or purchase price.

Deconstruction report
For offshore projects in the German Exclusive Economic Zone (EEZ), we prepare economic deconstruction reports, which usually must be submitted to the Federal Maritime and Hydrographic Agency (BSH) as part of the permitting process.

Benchmarking
Our benchmarking analyses allow you to compare the economic assumptions of your project and company with current market data. For example, we use our benchmark database, which contains a wide range of data on solar, onshore and offshore wind projects, to check that the economic assumptions made in the bid reflect current market circumstances.

Our strategic consultancy services focus on market analyses, market entry strategies, plausibility checks of business plans and the preparation of expert opinions to help you make informed business decisions.

Market analysis
Our experts carry out customised market analyses on markets and innovative new business models, such as hybrid power plants, battery storage or hydrogen production. We use our extensive network, databases and specialist knowledge of industry trends, the competitive landscape and market potentials. We provide market analysis and research on a range of renewable energy issues to inform strategic decision-making.

Market entry and analysis of business plans
We develop tailored market entry strategies based on your specific requirements. In addition, we check and analyse the plausibility of business plans in the various market segments in the field of renewable energies We advise companies on strategic decisions, such as entering a specific renewable energy market or expanding existing business activities. For this purpose, we analyse the market environment and consider the current corporate structure and strategy in our recommendations.

Expert opinion
Our expert opinions provide you with objective and in-depth analysis. We also act as consultants to courts, authorities and banks, providing expert opinions on funding opportunities or specific risks associated with renewable energy.

Our financial advisory services provide personalised, in-depth assistance with project financing and refinancing, as well as corporate finance.

Financing and refinancing of projects
Our experts will help you to develop the right financing and risk structure for your project. We help structure and arrange equity and debt capital, organise investor and bank competitions and advise on negotiating financing terms.

Corporate financing
We offer comprehensive support in the planning and realisation of your corporate financing. Our consultancy services range from the evaluation of various financing options and the structuring of equity and debt through to the optimisation of your capital structure. As with project finance, we will prepare a term sheet or information memorandum and organise the banking process for you.

Financial modelling and model review
We offer a robust, flexible, and market-proven offshore project finance model that follows international modelling standards and can be tailored to your needs. This ranges from a single-asset transaction model to a portfolio model and an operating model for wind farms under operation. We also regularly review financial models (model audit and model review) and provide trainings in financial modelling. Our models can be used to help you decide whether to finance a company, a project or a portfolio of projects.

Our tax experts specialised in renewable energy projects and transactions provide tailor-made solutions for all tax challenges, whether in the context of a transaction, financing or structuring. From tax due diligence and tax support on the financial model and the development of tax-efficient financing and project structures, to advice on contractual negotiations and tax structuring with a view to a future transaction or post-acquisition, we can help you maximise tax opportunities and minimise risks.

Tax Due Diligence
On the sell-side, if you allow us to work for you, we will contribute to a smooth process with a bespoke tax vendor due diligence report or tax factbook. On the buy-side, we provide tax due diligence to ensure that all tax risks associated with the transaction are fully understood and appropriately managed.

Tax support in relation to the financial model
As part of the financial modelling process, we ensure that the financial model correctly reflects the tax structure and current taxation.

Developing tax-efficient financing and project structures
We help in creating tax-efficient financing and project structures. By closely collaborating across disciplines, we ensure a deep understanding of your commercial project goals. Drawing on this understanding, our tax experts, specialising in the renewable energy sector, offer well-planned tax strategies to improve the profitability of your projects.

Advice during contract negotiations
During contract negotiations, we can help you to take all aspects of taxation into account. We will support you in drafting contracts to ensure tax efficiency and to minimise potential tax risks.

Tax structuring for transactions and post-acquisition
We assist you in the tax structuring of your project or company regarding a transaction or post-acquisition. We ensure that the transaction object is structured in a tax-optimised manner to make it attractive to potential buyers. We also ensure successful post-transaction tax integration.

Our legal advice provides comprehensive support to successfully manage and resolve legal aspects and issues at all stages of your project and business. From conducting a Legal Due Diligence and ensuring compliance in drafting project and financing agreements to providing expert guidance from our experienced attorneys during transaction negotiations.

Legal Due Diligence
Our legal experts conduct thorough legal due diligence reviews to provide a clear overview of legal risks and opportunities in the report format you require. We identify potential legal challenges to ensure that the negotiations and decisions made during the transaction process are well-founded.

Legally compliant drafting of project and financing contracts
Our lawyers develop tailored contract structures that not only protect your commercial and legal interests, but also ensure compliance and provide a solid foundation for the success of the project.

Legal advice and support during transaction negotiations
Our legal advice is provided by experienced lawyers who will advise you during the transaction negotiations. We ensure that legal aspects and challenges in the drafting of corporate acquisition contracts are optimally addressed, and legal issues are resolved. We assist with contract drafting and negotiation and protect your interests to ensure the smooth execution of a successful transaction.

*Services are provided by PwC Legal AG.

We understand your challenges and those of the market

Germany has significantly increased its offshore wind targets to reach at least 30 GW by 2030, 40 GW by 2035 and 70 GW by 2045. The revision of the Offshore Wind Energy Act led to new tendering conditions aimed at accelerating planning and approval processes and strengthening the interests of offshore expansion.

Offshore wind energy has made considerable progress in recent years and is already contributing to a sustainable energy supply. Despite its promising future, however, there are also various challenges associated with this technology. One of the biggest challenges in offshore wind energy is the complex logistics, installation and maintenance of the turbines. Building and operating wind farms in remote marine areas requires specialised vessels, equipment and skilled personnel.

Despite its excellent prospects, offshore wind energy also faces considerable financial and technical challenges that influence its development and expansion. These financial aspects cover various phases, from planning and financing to the construction and operation of offshore wind farms. Due to long lead times, technical complexity and unavoidable uncertainties, loans and investments often carry high interest rates. This can significantly increase the overall cost of projects and affect their profitability. Significant increases in output, advances in technology and economies of scale have led to an overall reduction in the electricity generation costs of offshore wind projects. Although the costs of offshore wind energy have fallen in recent years, they remain high compared to other renewable energy sources. The availability of sufficient financing at appropriate conditions and appropriate support mechanisms can help to strengthen the competitiveness of this renewable energy source.

Overall, the offshore wind industry requires suitable infrastructure and comprehensive management that considers technological, logistical, environmental and economic aspects.

Infographic: Chart for Visualizing the Offshore Expansion
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Heiko Stohlmeyer

Heiko Stohlmeyer

Director, Renewable energies, PwC Germany

Tel: +49 171 3344297

Henrik Wrede

Henrik Wrede

Partner, PwC Germany

Tel: +49 170 9229464

Dr. Oliver Kunert

Dr. Oliver Kunert

Partner, PwC Legal

Tel: +49 179 1451162

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