German Offshore Wind Farm Owners to Get Compensated for Delays

July 2, 2012 by  
Filed under Green Energy News

Germany’s government agreed to a
framework to compensate wind farm operators for delays
connecting offshore developments to the power grid.

“With the planned liability arrangement we provide wind
park investors and grid operators with the necessary security
needed for the further development of offshore wind power,”
Environment Minister Peter Altmaier said in a statement today.

The draft bill will be presented in summer and enter into
force as soon as possible, according to the statement issued
jointly by the environment and economics ministries. There will
be a ceiling for costs transmission system operators can bear,
with additional expenses passed on to consumers except in cases
of severe negligence, according to the statement.

EON AG (EOAN) and RWE AG (RWE), the country’s biggest utilities, have
threatened to halt investment in wind projects unless obstacles
are removed, which RWE blames mainly on slow permitting and
problems with acquiring cables and transformer stations.
Chancellor Angela Merkel’s government is targeting 10 gigawatts
of offshore wind by 2020 to replace nuclear reactors.

RWE Innogy, RWE’s renewables unit, welcomed the
announcement, spokesman Konrad Boecker said by e-mail. The
company will wait for further details of the announcement.

North Sea

Grid operator TenneT TSO GmbH has told the unit of
Germany’s second-largest utility it doesn’t know when it will be
able to connect the 1 billion-euro ($1.25 billion) North Sea
East wind project to the German grid because of technical

The legislation is probably the “most awaited piece of
legislation by the offshore wind industry in Germany,” Anna Czajkowska, an analyst at Bloomberg New Energy Finance, said in
an e-mail. Many projects face delays caused by connection
problems and new wind farms are unable to get finance until the
liability issue is regulated, she said.

“Implementation of this proposed legislation basically
determines whether Germany meets-or-misses its 2020 renewable
energy target, as 10 gigawatts of offshore wind is needed to
meet it,” Czajkowska said.

To contact the reporter on this story:
Tino Andresen in Dusseldorf at

To contact the editor responsible for this story:
Will Kennedy at

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