Offshore wind developers in Germany are urging the government to adopt the EU Wind Power Package’s measures, specifically the introduction of index-linked Contract for Difference (CfDs). This call comes from VDMA Power Systems, a prominent trade body representing the sector, as they emphasize the necessity for a well-defined regulatory framework to facilitate offshore wind projects.
VDMA Power Systems has underscored the importance of regulatory clarity to meet the nation’s offshore expansion goals. They stated, “In order to achieve the offshore expansion targets, it is now important to create the right regulatory framework so that the projects can be implemented. In the European Wind Power Package of October 24, 2023, the EU Commission confirms that the auction design must be changed. It makes a clear commitment to inflation adjustment and qualitative criteria – both in the pre-qualification and award phases – and takes a stand against negative bids.”
Germany’s offshore wind industry is calling for amendments to the Wind Energy at Sea Act to align it with several recommendations before the upcoming tender scheduled for June 2024. Among the key recommendations presented in a VDMA Power Systems document are the inclusion of an inflation compensation mechanism within any CfD regime. Additionally, the industry seeks to address the financial strain placed on manufacturers, suppliers, infrastructure, and logistics due to uncapped bid values. Ensuring mechanisms for the safe and timely execution of projects and the implementation of minimum participation requirements in tenders based on harmonized standards are also part of the industry’s recommendations.
As Germany continues its commitment to offshore wind energy expansion, stakeholders are advocating for regulatory adjustments that can drive the sector forward while safeguarding its long-term sustainability.
