With the Borkum Riffgrund 3 project, Ørsted is breaking new ground in 2019: For the first time, a Offshore wind farm in Germany financed through long-term power purchase agreements with industrial customers. Jörg Kubitza erexplains why this step was crucial – and which What lessons does the industry learn today from the PPA-pioneering phase. 

Men Kubitza, Ørsted signed the first large-scale PPA for offshore wind in 2019 Germany completed. How did this come about?      

"Two years earlier, Ørsted had for the first time completed the construction of an offshore wind farm without state For the counter-financing of the Borkum Riffgrund 3 project, we had - as First in offshore wind-Branche – for long-term power purchase agreements with Industrial companies decided. Interest from customers was high. With Covestro We were able to win over a company that at that time the greatest Corporate PPA for wind energy with us. stone BASF that REWE Group as well as Amazon and Google. Another important aspect of Financing was also the partial sale of the wind farm to our investor Nuveen Infrastructure – many years before operations began. For the first time, we had shares in a project before the final investment decision to an institutional Investor sold and thus additionally secured the financing." 

EnBW Hohe See wind farm under construction © EnBW
Today, many people are talking about green electricity for industry – you were the first to How does it feel to have been part of this development?

"We had the right offer at the right time – and partners from the industry who were specifically electricity from offshore wind. This was a statement about the performance of Offshore wind. Covestro and our other PPA partners are – representing the German industry – a fundamental part of decarbonization in Germany. This Development plays a key role in achieving climate neutrality in Germany by 2045. achieve." 

Installation of the first wind turbine in the Hohe See wind farm © EnBW
If you look back over the last five years: Has the PPA model proven itself – and what is needed to ensure reliable offshore wind in the future-Aexpansion?     

"The demand for green electricity remains high – PPAs continue to be a very suitable means and facilitate the realization of projects. However, given today's cost situation fundamentally, other incentives for implementation are needed. Countries like Germany, which rely on offshore wind for their future energy supplyenergy should ensure that these are actually realized shall. This should cost and benefits between wind farmsdeveloper and the state. The resources in the The concession payments introduced in the last legislative period are economically inefficient and increase the cost of electricity. Contracts for difference, so-called CfDs, as in Great Britain, significantly reduce electricity production costs and minimize risks." 

Transition pieces for the German Bight offshore wind farm © Northland
What 2019 also important was: 
  • In Europe, 10 offshore wind farms with a total capacity of 3,6 GW were installed, bringing the total capacity to 22,1 GW.  
  • 1162 MW were newly connected to the grid in Germany: 497 MW High Seas, 269 MW German Bight, 396 MW Merkur Offshore  
  • The Grid Expansion Acceleration Act comes into force: The Federal Network Agency receives more powers 
  • Wind turbine manufacturer Senvion files for insolvency 
Borkum Riffgrund 3 under construction © Ørsted