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CFD Contracts for difference

Tomorrow's financing system 

CFD - Contracts for Difference

Contracts for difference (CFD) reduce investment risks and thus the financing costs of offshore wind projects. As a result, the electricity generation costs drop by around 30 percent.

In addition, contracts for difference (CFD) reduce the risk of negative impacts of changes in the legal framework on awarded projects. Contracts for difference therefore increase the probability of realization and ensure the continued operation of offshore wind farms. This ensures that the expansion targets are achieved, serves to protect the climate and contributes to security of supply.

Contracts for difference are attractive for investors due to the effects mentioned above. This strengthens the added value in the country and secures jobs.

Contracts for difference have been tried and tested internationally and are already being used in several European countries (DK, UK, IT, FR). Poland and Lithuania also recently decided to use contracts for difference for the refinancing of offshore wind farms in the future.

The demand for contracts for difference is now coming from all parts of the economy. In addition to the wind farm operators, manufacturers and the supply chain as well as large parts of the financial sector and industry for offshore wind farms also support the difference contract model.

Posts

Offshore wind energy: Strengthen capacities and infrastructures along the value chain!

24 new plants with 229 MW went into operation in the first half of the year Total capacity increased to 8.385 MW Positive trend in project implementation recognizable Closing the gap between expansion targets and reality Future
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Offshore wind energy expansion can spark a new economic miracle

"Today's award of four offshore wind farm areas in the German North Sea and Baltic Sea by the Federal Network Agency with a capacity of 7 gigawatts is a big step for the energy transition. she brings
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Net Zero Industry Act & Critical Raw Materials Act

The European Commission yesterday proposed the Net Zero Industry Act to expand the production of net zero emissions technologies in the EU.
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Statement: Electricity market plans of the European Commission

Press statement by Stefan Thimm on the European Commission's electricity market plans
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WindSeeG amendment leaves room for improvement

As part of the association consultation, the BWO issued an opinion on the present draft law. In addition to the auction design, topics such as grid connection, implementation deadlines and dismantling are also addressed here.
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Policy recommendations for offshore wind energy

The offshore industry defines fields of action for the next legislative period: securing the achievement of the offshore expansion targets, further developing market design, promoting green hydrogen for offshore wind, deepening the co-use approach
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A step in the right direction! — For more climate protection and added value in Germany as an industrial location

The amendment to the WindSeeG, which is to be decided in the Bundestag today, points the way for the further expansion of offshore wind energy in Germany.
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Agreement on the wind energy at sea act

"Today's agreement at WindSeeG is a big step in the right direction," says Stefan Thimm, Managing Director of BWO. However, the financing model still needs to be discussed.
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BWO welcomes the joint declaration by the Baltic Sea States

“We very much welcome the joint declaration by the states bordering the Baltic Sea on the further expansion of offshore wind energy,” comments Stefan Thimm, BWO managing director, on the signed “Baltic Sea Offshore Wind Joint Declaration of Intent”. On the German side
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EEG amendment creates reliability in planning — other uncertainties remain

“Clear expansion paths are important and create planning security for producers and consumers of green electricity. We therefore welcome the federal government's course," comments Stefan Thimm, managing director of the Federal Association of Offshore Wind Farm Operators
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Changes of the wind energy at sea act: and next?

“We should all be concerned with expanding offshore wind energy as cost-effectively as possible and thus ultimately relieving the burden on electricity customers,” says CEO, Catrin Jung, as part of yesterday's online event organized by the Federal Association of Offshore Wind Farm Operators e.V. (BWO).

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Despite the expansion gap — offshore wind industry in Germany with positive future prospects

"Especially in light of the low expansion, we welcome the fact that the anchoring of 20 GW offshore wind energy by 2030 and 40 GW by 2040 will now create long-term planning security. With the increased expansion targets, offshore wind energy strengthens climate protection and creates economic development, ”comment the industry organizations BWE, BWO, VDMA, WAB and the OFFSHORE WINDENERGIE foundation on the offshore expansion figures published today by Deutsche WindGuard.

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Setting the course for wind energy at sea

Both BWO board chairmen, Catrin Jung, as well as managing director, Stefan Thimm, had planned to take part in tomorrow's top meeting on offshore wind energy, which had to be canceled at short notice due to COVID19. The focus of the event should have been the question of what measures need to be taken to implement the 20 GW target for 2030.

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