Skip to main content

Main menu

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

User menu

  • Sample our Content
  • Request a demo
  • Log in

Search

  • ADVANCED SEARCH: Discover more content by journal, author or time frame
The Journal of Structured Finance
  • IPR Logo
  • About Us
  • Journals
  • Publish
  • Advertise
  • Videos
  • Webinars
  • More
    • Awards
    • Article Licensing
    • Academic Use
  • Sample our Content
  • Request a demo
  • Log in
The Journal of Structured Finance

The Journal of Structured Finance

ADVANCED SEARCH: Discover more content by journal, author or time frame

  • Home
  • Current Issue
  • Past Issues
  • Videos
  • Submit an article
  • More
    • About JSF
    • Editorial Board
    • Published Ahead of Print (PAP)
  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter
Primary Article

Wind Power Project Returns—What Should Equity Investors Expect?

John Dunlop
The Journal of Structured Finance Spring 2006, 12 (1) 81-89; DOI: https://doi.org/10.3905/jsf.2006.628546
John Dunlop
The Manager of the department of Renewable Energy Finance at HSH Nordbank, London Branch, London.
  • Find this author on Google Scholar
  • Find this author on PubMed
  • Search for this author on this site
  • For correspondence: John.Dunlop@hsh-nordbank.co.uk
  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
Loading

Abstract

The wind power market has reached a new stage of maturity as dozens of new renewable energy and infrastructure funds enter large and liquid capital markets to compete for investors against established asset classes. These funds typically acquire equity stakes in wind farms that are project financed using non-recourse debt at the project or portfolio level. However, both investors (buyers) and developers (sellers) of wind projects are currently searching for a benchmark project equity return around which to place their return expectations given the emergence of institutional investors as the dominant new class of buyers. The author judges the benchmark return for wind project equity to be 12%, in line with privately held infrastructure and PFI assets. However, he expects it to fall to 9%, in line with listed shipping, real estate, and regulated water companies. After management fees, this equates to an internal rate of return of 7% that is actually delivered to the ultimate investors. This may appear low, but it implies a required dividend yield of 9.5% for 20 years, given that wind farms have little residual value.

  • © 2006 Pageant Media Ltd

Don’t have access? Click here to request a demo

Alternatively, Call a member of the team to discuss membership options

US and Overseas: +1 646-931-9045

UK: 0207 139 1600

Log in using your username and password

Forgot your user name or password?
PreviousNext
Back to top

Explore our content to discover more relevant research

  • By topic
  • Across journals
  • From the experts
  • Monthly highlights
  • Special collections

In this issue

The Journal of Structured Finance
Vol. 12, Issue 1
Spring 2006
  • Table of Contents
  • Index by author
Download PDF
Article Alerts
Sign In to Email Alerts with your Email Address
Email Article

Thank you for your interest in spreading the word on The Journal of Structured Finance.

NOTE: We only request your email address so that the person you are recommending the page to knows that you wanted them to see it, and that it is not junk mail. We do not capture any email address.

Enter multiple addresses on separate lines or separate them with commas.
Wind Power Project Returns—What Should Equity Investors Expect?
(Your Name) has sent you a message from The Journal of Structured Finance
(Your Name) thought you would like to see the The Journal of Structured Finance web site.
CAPTCHA
This question is for testing whether or not you are a human visitor and to prevent automated spam submissions.
Citation Tools
Wind Power Project Returns—What Should Equity Investors Expect?
John Dunlop
The Journal of Structured Finance Apr 2006, 12 (1) 81-89; DOI: 10.3905/jsf.2006.628546

Citation Manager Formats

  • BibTeX
  • Bookends
  • EasyBib
  • EndNote (tagged)
  • EndNote 8 (xml)
  • Medlars
  • Mendeley
  • Papers
  • RefWorks Tagged
  • Ref Manager
  • RIS
  • Zotero
Save To My Folders
Share
Wind Power Project Returns—What Should Equity Investors Expect?
John Dunlop
The Journal of Structured Finance Apr 2006, 12 (1) 81-89; DOI: 10.3905/jsf.2006.628546
del.icio.us logo Digg logo Reddit logo Twitter logo CiteULike logo Facebook logo Google logo LinkedIn logo Mendeley logo
Tweet Widget Facebook Like LinkedIn logo

Jump to section

  • Article
  • Info & Metrics
  • PDF (Subscribers Only)
  • PDF (Subscribers Only)

Similar Articles

Cited By...

  • No citing articles found.
  • Google Scholar

More in this TOC Section

  • Another Active Year in the Life Settlement Industry
  • Evolution of the Life Settlement Industry
  • Extending the Efficient Frontier through Life Settlements
Show more Primary Article
LONDON
One London Wall, London, EC2Y 5EA
United Kingdom
+44 207 139 1600
 
NEW YORK
41 Madison Avenue, New York, NY 10010
USA
+1 646 931 9045
pm-research@pageantmedia.com
 

Stay Connected

  • Follow IIJ on LinkedIn
  • Follow IIJ on Twitter

MORE FROM PMR

  • Home
  • Awards
  • Investment Guides
  • Videos
  • About PMR

INFORMATION FOR

  • Academics
  • Agents
  • Authors
  • Content Usage Terms

GET INVOLVED

  • Advertise
  • Publish
  • Article Licensing
  • Contact Us
  • Subscribe Now
  • Log In
  • Update your profile
  • Give us your feedback

© 2021 Pageant Media Ltd | All Rights Reserved | ISSN: 1551-9783 | E-ISSN: 2374-1325

  • Site Map
  • Terms & Conditions
  • Cookies
  • Privacy Policy