The BMWK has come to the conclusion that the capital costs for wind and solar energy generation must be reduced. The BWO supports the BMWK in its efforts to use financial and industrial policy instruments to help reduce the financing costs of renewable energy generation and thus lower electricity prices for industry and households. In addition to the PPAs, bilateral contracts for difference should also play a role. Care should be taken to ensure that market mechanisms are not overridden.

BWO Managing Director Stephen Thimm: “The best means for competitive and low industrial electricity prices are the lowest possible generation costs for offshore wind energy generation. In order to get there, the federal government must, on the one hand, take industrial policy measures for the offshore value chain – here it made the first good proposals today – and on the other hand release the existing brakes. In view of the concept presented today, the uncapped bid component in the offshore tenders seems all the more outdated because it increases the financing costs for the construction of wind turbines at sea and this is reflected in rising electricity prices. It must therefore be omitted”

The BMWK outlined its plans for an industrial electricity price in a working paper on the 5h of May, pointing out the potential of electricity generation from renewable sources for reducing electricity prices for industry and in particular for energy-intensive companies.  They have proposed guarantee schemes and interest rate subsidies as long-term measures to reduce financing costs for new RES capacities. Last year, the BWO described in an expert opinion how the uncapped bid component in the Wind Energy at Sea Act increases the financing costs of offshore electricity generation.

Source: BWO