Published: 15 May 2020 15 May 2020
In a joint letter to political decision-makers, the members of the Association of German Wind Farm Operators (BWO) and WAB advocate a long-term reliable investment and financing framework for offshore wind projects in Germany. This would require, on the one hand, the introduction of contracts for difference (CfD) and, on the other hand, a dialogue on a long-term expansion target until 2035.
Electricity from offshore wind energy is now more cost-effective than almost any other technology, and the introduction of Contracts for Difference will make it possible to reduce electricity generation costs by another 30 percent compared to refinancing via Power Purchase Agreements (PPAs). In addition, the focus now needs to be directed beyond 2030. The two associations ask for long-term expansion targets up to at least 2035 and the development of a domestic market for "green" hydrogen from offshore wind. In order to enable a progressive and competitive start after the crisis, the first offshore wind projects should be put out to tender at short notice. In the medium term, two gigawatts of added capacity per year are realistic. This should be considered in the Wind Energy at Sea Act (WindSeeG).