Investor Q&A: Allianz Capital Partners' Stefan Henge
Allianz became an investor and developer in wind projects due to their high cash flow visibility. Longer-term PPAs play important role for long-term capital markets, says Allianz Capital Partners Head of Renewables, Europe, Stefan Henge.
About this report
Longer-term PPAs are an enduring trend, one playing an important role for long-term capital markets, says Allianz Capital Partners Head of Renewables, Europe, Stefan Henge. Henge looks optimistically on demand in a European PPA market that has seen some price volatility, amid a wave of shorter tenors and booming demand so far in 2023. He eventually expects to see more price cannibalistion.
Allianz became an owner and developer of renewables in 2005 due the assets’ high cash flow visibility backed by, at the time, regulated long term feed-in tariffs. On the back of this, Allianz built a 3.5GW offshore, onshore and solar generation portfolio in Europe, comprising both sole ownership and joint venture models.
We discuss the following issues:
- Long-term PPA trends
- Insurer perspective on the renewables asset class
- Price cannibalistion
- Power prices in Europe
- Negotiations and risk allocation
- Power price forecasting