(Bloomberg) -- UAE renewable energy firm Masdar is beefing up its British operations in a bid to scoop up offshore wind and other green energy projects in a sector struggling with supply-chain snarls and soaring costs.
“We are currently ramping up our organization in the UK,” Husain Al Meer, Masdar’s director for global offshore wind and UK operations, said in a call from the sidelines of COP28 in Dubai. “We are doubling down on building the team to be in the position where we take a lead on some of those investments going forward.”
Within the past week, Masdar said it’s taking a stake in RWE AG’s £11 billion ($14 billion) UK Dogger Bank South offshore wind farm, unveiled new green investments in Poland and committed €15 billion ($16 billion) to wind and green hydrogen projects with Spain’s Iberdrola SA.
The deal whirlwind comes as Europe struggles to rebuild its once-darling wind sector after soaring raw-material prices, higher borrowing costs and long-running logistical problems triggered project failures and multi-billion dollar writedowns. For Masdar, positive signs from governments are emerging, with the UK last month bumping up the guaranteed power price developers get from new offshore wind farms.
Read More: Europe’s Battered Wind Sector Starts to Find Hope In Year of Crisis
“We have seen the right signal from the UK government when they increased the strike price for the next renewables auction round,” Al Meer said. “Those signals will definitely incentivize investors, developers and the supply chain to make an investment decision on expanding manufacturing facility.”
It’s a boost for Britain, which is consistently in the bottom 10% for business investment among nations tracked by the Organisation for Economic Cooperation and Development. Resolving the issue has become a key priority for the country’s ruling Conservative and opposition Labour parties.
More broadly, Masdar aims to be involved in projects with 100 gigawatts of capacity worldwide by 2030, compared with the 20-gigawatt gross capacity of projects in which it holds a stake currently, Al Meer said.
“We are expecting that the market is going to open up,” he said. “We are very keen to deploy capital globally and it’s a day-by-day work.”
--With assistance from Philip Aldrick.
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