Offshore-Wind Industry: Construction of new installations gains momentum
In total, there are 1602 Offshore Wind Energy power plants with a capacity of approximately 8.9 Gigawatts connected to the grid in Germany. 73 more foundations were constructed in the first half of the year.
The results of the first auction for new projects this year "confirm the continuing interest of investors in the German market," explained the German Wind Energy Association (BWE) and the Association for Energy and Water Industry Equipment and Systems (VDMA Power Systems) among others. The industry called for the auction procedure of the Federal Network Agency to be adjusted on Monday.
Companies are currently awarded the contract if they have the lowest funding requirement for a wind farm on a given area. If several bidders fully waive funding, a dynamic bidding procedure is used: The bidder receives the contract who is willing to pay the highest amount.
The revenues from this are intended to flow into the reduction of electricity costs by 90%. The remaining 10% are to be used equally for marine nature conservation and the promotion of sustainable fishing.
This approach has been criticized for some time, especially because the financially strongest companies regularly succeed. In the latest allocation, for example, TotalEnergies and EnBW received the contract. "Companies with long-term Offshore project experience and lower financial resources have been at a disadvantage," criticized the German Trade Union Federation, IG Metall, and other unions.
The industry associations demanded on Monday that the auction design be more focused on ensuring a secure and timely project implementation in the future. The industry is pushing for a reformed auction design "to strengthen the actor diversity and minimize risks for the implementation of projects." It is therefore good that the Federal Government is evaluating the procedure.
The expansion of wind energy is an important building block for the Federal Government to achieve its climate protection targets. By 2030, 80% of the electricity is to come from renewable sources; from wind energy at sea, it should be a total of 30 Gigawatts.
The 'VDMA Power Systems' and the 'BWE' mentioned the ongoing investor interest in the German market, highlighting the results from the first auction of the year. The 'Offshore-Wind Industry' has urged the 'Federal Network Agency' to adjust the auction procedure, proposing a reformed design to enhance project diversity and minimize implementation risks. Germany aims to achieve its climate protection targets by 2030, with 80% of electricity from renewable sources and 30 Gigawatts from wind energy at sea. The 'Federal Association Wind Energy' recognizes the importance of 'Annexes' in the development of offshore wind power plants, outlining the necessary regulations and guidelines for their construction. German companies are actively contributing to the 'Offshore' wind power plant sector, with companies like TotalEnergies and EnBW securing contracts in recent auctions, despite criticism over the funding process favoring financially strong entities.
