Expansion of offshore wind energy: Strengthen supply chains and ports now!
Joint press release of the associations
- The expansion of offshore wind energy in Germany, with 377 MW in the first half of the year, continues to gain momentum.
- The tender design must be adjusted immediately. A quick evaluation is a good basis for this. Further delays in the network connection must be avoided at all costs.
- The European offshore wind industry can implement projects when tenders lead to projects and sufficient port capacities are available.
Berlin, Bremerhaven, Frankfurt, Hamburg, Rostock, July 15, 2024 - The industry associations of the German offshore wind industry and the non-profit OFFSHORE WIND ENERGY Foundation today published the new construction figures for the first half of 2024. The figures prepared by the consulting firm Deutsche WindGuard show that during this period a total of 36 turbines with an output of 377 megawatts (MW) fed into the power grid for the first time in Germany and 73 further foundations were built. In total, 29 offshore wind projects with an installed capacity of 8.858 MW or 1.602 turbines are currently in operation in Germany. Two further projects are under construction.
Revise 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 cost pressure in the industrial value chain and slow down urgently needed investments. In the future, the tender design must be more geared towards safe and timely project implementation. It is therefore good that the federal government wants to evaluate the tender criteria," commented the industry organizations BWE, BWO, VDMA Power Systems, WAB eV and WindEnergy Network eV as well as the OFFSHORE WIND ENERGY Foundation on the results of the latest offshore wind tender. The industry continues to work towards strengthening the diversity of players and minimizing the risk of failure in the implementation of projects with a reformed tender design.
Eliminate expansion bottlenecks
A substantial portion of the revenue from the tenders should also be used to ramp up the capacity required for the increasing expansion of offshore wind energy. The "transformation component" introduced by the federal government is suitable for this, and must be earmarked for a specific purpose. "It is important that the offshore wind industry can continue to expand its capacity and maintain its innovation and technology leadership," say the organizations. This is only possible if the awarded projects can be realized and result in orders from the European wind industry. "Immediate investments in infrastructure and logistics are also required to ensure that the projects are implemented on time. This includes, in particular, investments in heavy-duty and storage areas in ports and their hinterland connections. The construction of special ships for preliminary exploration, construction and operation of the projects as well as converter platforms is also required," the players agree.
The industrial capacity for the legally stipulated expansion of offshore wind energy must be increased significantly in a few years. In order to support this ramp-up, it is good that the KfW has recently started providing low-interest loans for the construction and expansion of production facilities. However, the limit on the loan amount must be significantly higher than the current 25 million euros. "We welcome the fact that the federal government also wants to strengthen the supply chain with additional financing instruments," said the organizations.
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. This promotes further diversification of the supply chain with increased industrial added value in the EU and enables innovation and high environmental standards in the expansion of offshore wind energy," the industry organizations emphasize. "Competition on an equal footing in Europe and on mutually fair terms with non-European partners must be guaranteed," they add. When implementing the Net-Zero Industry Act (NZIA), the industry organizations are calling for a Europe-wide coordinated solution that is as simple, unbureaucratic but effective as possible.
Ensuring network expansion
The expansion of offshore wind energy can only be achieved as quickly as the expansion of the grid allows. In view of the current challenges in the supply chain, it is urgently necessary to further increase investment security for grid technologies in order to avoid further delays in grid connection. "It is good that the federal government is supporting the construction of substations in Germany with new guarantee programs. This creates investment security and helps to ensure the legally stipulated expansion of offshore wind energy.
Eliminate the shortage of skilled workers
The ramp-up of offshore wind energy is creating a wide range of additional employment opportunities. The industry is continually creating new jobs for which it needs qualified specialists. A closer dialogue with politicians is needed here in order to find supportive solutions. Net-Zero Academies for offshore wind energy specialists and a bundled offshore wind information service from job centers should be part of a qualification offensive by the federal government. "In order to meet the rapidly increasing demand for skilled workers, we are relying on the simplified immigration of skilled workers and the unbureaucratic recognition of foreign qualifications. If necessary, it should be possible to acquire additional qualifications for the recognition of qualifications while working," demand the industry organizations.
Protection of critical infrastructure
With its expansion, offshore wind energy is now playing a central role in Germany's energy supply. Effective protection of offshore wind energy projects and grid connection systems against physical and digital attacks is therefore necessary. Critical points of the offshore wind energy infrastructure are located 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 the future through a binding legal framework that ensures close coordination and offers protection," demand the industry organizations.
Attached are the press releases:
German Offshore industry associations_PM expansion WaS first half of 2024_07
English Offshore associations_Press release_Expansion of offshore wind_2024-07_EN
Fact sheets:
German Status of offshore wind energy expansion_half year 2024_final Status of Offshore Wind Energy Development_First Half 2024_final
Status of Offshore Wind Energy Development_First Half 2024_final