Six German organizations dealing wind offshore wind energy development – Bundesverband WindEnergie e.V. (BWE), Bundesverband Windenergie Offshore e.V. (BWO), OFFSHORE-WINDENERGIE Foundation,VDMA Power Systems, WAB e.V., WindEnergy Network e.V. (WEN) – released joint pressrelease to flag the need to Strengthen supply chains and ports immedietely.
– The expansion of offshore wind energy in Germany continues to pick up speed with 377 MW in the firsthalf of the year.
– The tender design must be adapted immediately. A quick evaluation is a good basis for this. Furtherdelays in grid connection must be avoided as a matterof urgency.
– The European offshore wind industry can onlyrealise projects if tenders lead to projects and sufficient port capacities are available.
The industry associations of the German offshore wind industry and the non-profit OFFSHORE-WINDENERGIE foundation published the expansion figures for the first half of 2024. The figures prepared by consultancy firm Deutsche WindGuard show that a total of 36 turbines with a capacity of 377 megawatts (MW) fed into the electricity grid for the firsttime in Germany during this period and 73 additionalfoundations were installed. In total, 29 offshore wind projectswith an installed capacity of 8,858 MW or 1,602 turbines arecurrently in operation in Germany. Two further projects areunder construction.
Revise the tender design
“The results of the first tender for offshore wind in Germany this year confirm the continued interest of investors in the German market. However, they also suggest that the tender design should be adapted as quickly as possible. The bid amount of around 3 billion euros will further increase the costpressure in the industrial value chain and slow down urgentlyneeded investments. In future, the tender design must be geared more towards secure and timely project realisation. It istherefore a good thing that the federal government wants to evaluate the tender criteria,” said the industry organisationsBWE, BWO, VDMA Power Systems, WAB e.V. and WindEnergy Network e.V. as well as the OFFSHORE-WINDENERGIE Foundation, commenting on the results of the latest offshore wind tender. The industry continues to advocate a reformed tender design to strengthen the diversityof players and minimise the risk of failure in the implementation of projects.
Eliminating expansion bottlenecks
A substantial proportion of the revenue from the tendersshould also be channelled into ramping up the capacitiesrequired for the increasing expansion of offshore wind energy. The “transformation component” introduced by the German government, which must be earmarked, is suitable for thispurpose. “It is important that the offshore wind industry cancontinue to expand its capacities and maintain its innovationand technology leadership,” say the organisations. This is onlypossible if the awarded projects can be realised and result in orders from the European wind industry. “Immediate investment in infrastructure and logistics is also required to ensure the timely realisation of the projects. This includes, in particular, investments in heavy load and storage areas in harbours and their hinterland connections. The construction of specialised ships for preliminary exploration, construction and operation of the projects as well as converter platforms is alsorequired,” the stakeholders agree.
The industrial capacity for the legally stipulated expansion of offshore wind energy must be significantly increased in just a few years. In order to support this ramp-up, it is good thatKfW has recently started providing low-interest loans for the construction and expansion of production facilities. However, the loan amount limit must be significantly higher than the current 25 million euros. “We welcome the fact that the German government also wants to strengthen the supply chainwith additional financing instruments,” said the organisations.
Strengthening the resilience of European value creation
“It is positive that the European Union is working on integrating qualitative criteria into tenders as part of the Net-Zero Industry Act. This will ensure high quality standards and a resilient supply of parts and components for production. Thispromotes further diversification of the supply chain with increased industrial value creation in the EU and enablesinnovation and high environmental standards in the expansionof offshore wind energy,” emphasise the industryorganisations. “Competition on an equal footing in Europe and on mutually fair terms with non-European partners must be guaranteed at all costs,” they add. When implementing the Net-Zero Industry Act (NZIA), the industry organisations arein favour of a solution that is coordinated across Europe and as simple, unbureaucratic and effective as possible.
Ensuring grid expansion
The expansion of offshore wind energy can only succeed as quickly as the grid expansion requires. In view of the currentchallenges in the supply chain, there is an urgent need to further increase investment security for grid technologies in order to avoid further delays in grid connection. “It is goodthat the German government is supporting the construction of transformer stations in Germany with new guaranteeprogrammes. This creates investment security and helps to ensure the legally stipulated expansion of offshore wind energy.
Eliminating the shortage of skilled labour
The ramp-up of offshore wind energy creates a variety of additional fields of employment. The industry is constantlycreating new jobs for which it needs qualified specialists. A closer dialogue with politicians is needed to find supportivesolutions. Net-Zero Academies for offshore wind energyspecialists and a bundled offshore wind information offer from the job centres should be part of a qualification offensive by the federal government. “In order to meet the rapidlyincreasing demand for skilled labour, we are relying on the simplified immigration of skilled workers as well as the unbureaucratic recognition of foreign qualifications. Ifnecessary, it should be possible to obtain additionalqualifications for the recognition of diplomas while working,” demand the industry organisations.
Protecting critical infrastructure
With its expansion, offshore wind energy now plays a central role in Germany’s energy supply. Effective protection of offshore wind energy projects and grid connection systemsagainst physical and digital attacks is therefore necessary. Critical points of the offshore wind energy infrastructure arelocated in the territorial sea, the Exclusive Economic Zone and on the high seas. “The responsibilities of the federal police, the navy and the water police of the coastal states must be better coordinated in future through a binding legal frameworkthat ensures close coordination and offers protection,” the industry organisations demand.
