Germany’s Federal Network Agency (Bundesnetzagentur) has set an important marker for investor confidence in offshore wind with its preliminary concept for a new General Electricity Network Tariff System (AgNes). The German Offshore Wind Energy Association (BWO) has welcomed the draft, particularly its provision to exempt existing offshore wind farms and already-tendered projects from the planned capacity charge — a measure the association says protects decisions made under previous regulatory conditions.
A study commissioned by BWO from energy economics consultancy Neon Neue Energieökonomik, published on 3 June, concludes that generator network charges (Erzeugernetzentgelte) would not achieve the intended steering effect for offshore wind and would not make grid financing more efficient. The core argument is structural: unlike other generation assets, offshore wind sites, grid connections and connection capacity are centrally planned and assigned by the state. Additional charges therefore cannot incentivise more grid-friendly siting decisions — there is no location choice to influence.
The study also finds that generator network charges would raise the cost of offshore wind and, in turn, increase bid prices in future Contracts for Difference (CfD) tenders. Since the German federal government underwrites those contracts, the additional costs would ultimately flow back to the federal budget — making the charges a form of indirect grid financing through public expenditure rather than an efficiency measure.
“I expressly welcome the fact that the Bundesnetzagentur is taking up key concerns of the offshore wind industry on investor protection. Those who have already invested or submitted bids in tenders must not be retrospectively burdened with additional, previously unforeseeable risks,” said BWO Managing Director Stefan Thimm. He added that the agency had “clearly sharpened its position compared with the initial considerations from February,” and that this development deserved recognition.
BWO also welcomed the regulator’s current position of not pursuing dynamic generator network charges for offshore wind. However, the association stressed that a formal, permanent exemption — covering both dynamic generator charges and construction cost contributions — will be needed as the regulatory process progresses. The association has committed to actively engaging with the upcoming consultation on the draft ruling.
