AMWatch

Dwindling returns on offshore wind for pension funds

The dream of high returns on green wind energy is on the wane for several Danish pension funds' projects.

In 2010, Pensiondanmark invested DKK 700 million in the wind farm Nysted in Denmark. However, the pension fund had to write down the project by about DKK 100 million (EUR 13.4 million) last year due to expected lower electricity costs in the future.

"This has to do with the period during which the electricity generation from the park can be sold at a fixed, guaranteed settling price running out as expected in 2016. Concurrently with the falling electricity costs, expectations for the park’s future revenues have been reduced, which has caused the devaluation of the park’s estimated market value, and that particularly affected the 2016 results," says Claus Stampe, CIO at Pensiondanmark, to Inside Business.

Furthermore, Pensiondanmark has, along with PKA, experienced a decline in profits from Anholt Wind Farm, and PKA, Industriens Pension, Lærernes Pension, and Lægernes Pension have shown a total deficit of DKK 135 million on an investment in German wind farm Gode Wind 2 due to technical problems.

English Edit: Marie Honoré

Frontpage right now

Danske AM has learned from private equity criticism, chief says

The decision early this summer to move Danske Private Equity closer to Danske Asset Management -- resulting in the departure of two managers, Peter Thellufsen and John Danielsen -- led to murmurs of discontent. In an interview with AMWatch, Henrik Gade Jepsen responds to the criticism.

Spektrum offers infrastructure to smaller pro investors with CIP feeder fund

Søren Dal Thomsen, the newly appointed CEO of Kirstein offshoot Spektrum, is already working with the firm on a fund giving smaller institutional and professional investors exposure to infrastructure assets. The firm’s founder Jesper Kirstein tells AMWatch it is not just large pension funds that need alternatives in their portfolios.

Industriens Pension adds derivatives to guard against halting markets

The Danish labour-market pension fund has been actively making tactical changes to its investment portfolio to protect investment gains it made over the last few years. Both equity and bond markets are set for a bout of weakness six to 12 months from now, though a real crash is unlikely, predicts Morten Kongshaug, the fund’s investment strategist.

Brexit creates uncertainty in Europe’s financial center

More than a year after the Brexit vote, London still seems to be a dynamic Mecca for finance. But below the surface, people working in the sector in the UK capital harbour worries that the lack of political agreement over the break with the EU could damage the financial industry.

Latest Pension

Related articles

amwatch trialbanner.jpg

Latest news

Jobs

See all

See all

Latest news from FinansWatch (dk)

Latest news from EnergyWatch

Latest news from ShippingWatch