Monday, 17 June 2024 Reading time : 4 minutes

Wind energy has been with us since the Middle Ages. Today, we can use it not only to power windmills, but also to generate electricity. However, the wind does not blow evenly on land, so we cannot rely on this sustainable source of energy. One interesting alternative is offshore wind turbines.

Along the Portuguese coast, you can now see dolphins and ships as well as three-toed giants. Research on offshore wind turbines has been going on for some time. Offshore wind turbines are built over open, shallow water, usually in the sea. Now that it is possible to anchor the turbines with mooring lines, it is possible to venture into deeper, more turbulent waters. Unlike fixed wind turbines, floating wind farms can be anchored at depths of more than 60 meters. They are also considered more environmentally friendly because they avoid the side effects of conventional installations, such as noise emissions and sediment damage caused by driving concrete foundations into the seabed.

The energy potential of offshore wind turbines is generally greater because wind speeds over water tend to be higher and more consistent. In addition, many offshore wind turbines are larger than their onshore counterparts, giving them an efficiency advantage. They also have a positive impact on biodiversity in the areas where they are installed, as the ban on fishing in these regions allows fish stocks to recover. However, installation on the water must also take into account the ecology, the surrounding communities and the fishing industry. In addition, the installation of floating wind farms is expensive. In many harbors, additional investment is required to construct the rotors, which can be up to 260 meters in diameter, and to transport them by tugboat.

This is easier with land-based wind turbines. The technology is very mature and cost effective. Along with solar and nuclear power, it is one of the cheapest ways to generate energy. Onshore wind turbines can be installed in a few months and are easy to maintain. The problem is that the wind often blows inconsistently, or does not blow at all, making it an unreliable source of energy. Another obstacle is objections from surrounding communities about the landscape and noise.

According to Wind Europe's 2023 industry report, current wind energy capacity in Europe is still below 300 gigawatts. In 2023 alone, additional wind turbines with a total capacity of 18.3 gigawatts (GW) will be installed, 79% of which will be onshore. Looking at installations by country, the Netherlands, Denmark and the UK in particular have already installed more than 60% of their capacity offshore. Offshore wind is part of the Green Deal, and in order to meet its 2023 climate targets, the EU has set a target of installing an average of 33 GW of wind capacity by 2030. By 2030, approximately 50% of the installations in the EU are expected to be offshore. 

The ZKB Tracker Certificate Sustainable Wind taps into this potential. It invests in companies from the Zürcher Kantonalbank's sustainable investment universe that are active along the wind energy value chain. The focus is on the production of wind turbines for power generation (manufacturers and suppliers) as well as the planning of wind farms and other services for wind farms.

ZKB Tracker Certificate on the MeinIndex Sustainable Wind 

• Open-end 
• Termsheet

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