> 2022 Kaskasi (342 MW) in operation - Arcadis Ost 1 (247 MW) under construction
> Expansion targets for offshore wind energy increase worldwide and across Europe
> Less than eight years to install around 22 gigawatts of offshore wind capacity in Germany
> Urgent need to build capacity for the German and European energy transition (supply industry, ports, shipbuilding, skilled workers)
> Need for adjustment in WindSeeG (offshore wind law)
Berlin, Bremerhaven, Frankfurt, Hamburg, Rostock, January 16, 2023 - Today, the expansion figures for offshore wind energy 2022 were presented by the German offshore wind industry. According to the figures, 38 offshore wind turbines with a capacity of 342 MW were connected to the grid for the first time in the Kaskasi project last year. This means that a total of 1,539 offshore wind turbines with a total capacity of 8,100 MW feed electricity into the German North Sea and Baltic Sea. In addition, all 27 foundations for Arcadis Ost 1 were installed by the end of the year, nine of which have already been equipped with offshore wind turbines. Arcadis Ost 1 is expected to be completed and commissioned in the current year. In the coming years, Deutsche WindGuard expects higher rates of new construction for the industry. The projects for realization of the 2023-tenders will take place as of 2028, with a total of 8,800 MW being tendered.
"To achieve the expansion targets by 2030, 22 gigawatts (GW) must be installed offshore in Germany in less than eight years. In Europe, a total of around 150 GW of wind energy capacity is to be installed during this period. The industry therefore expects a significant increase from 2025 and especially towards the end of the 2030 expansion target, which requires industrial feasibility. A steady and even expansion path is needed to build stable supply chains and a future-oriented expansion of manufacturing capacities. The production capacities and skilled workers needed to achieve the expansion targets have been lacking to a substantial degree to date. A plan alone is not enough here. Together with politicians, we must immediately create a realistic basis for the implementation of the expansion targets for offshore wind energy for electricity and green hydrogen," urge the industry organizations BWE, BWO, Stiftung OFFSHORE-WINDENERGIE, VDMA Power Systems, WAB e.V. and WindEnergy Network e.V..
In order to secure the targets, adjustments to the WindSeeG are also necessary. The bidding component introduced in the WindSeeG 2022 increases the risks for investors and burdens electricity customers with additionally rising prices. This is because it is clear that offshore wind farm operators will have to earn back the bid component. The Ukraine war has painfully shown how important diversity of players is. However, there is no safeguard mechanism in the current tender design to ensure this. The maximum amount of expansion to be subsidized per bidder and year should be limited. "Due to the large volume of the tenders, the government and industry must work hand in hand right from the start to avoid subsequent improvements. This also relates to preserving the diversity of players among project developers," the industry organisations said.
The tenders that will make order entries possible for the supplier industry are still pending. Orders are needed to enable the "ramp-up" of the offshore wind industry for the German market and the necessary investments in production and supply chain, infrastructure and logistics. "With a growth of the offshore wind supply chain, immense value creation potentials open up, in addition to a cost-effective energy supply and greater security of supply for Europe. In addition, long-term and future-oriented employment prospects are also offered. These must be realized in addition to the necessary climate protection," the industry organizations emphasize the current need for political action.
In 2022, significantly less than one gigawatt was built. Many German suppliers are busy processing orders for the international offshore wind market. Another bottleneck is the materials required for component construction for offshore wind turbines. In addition to the lack of industrial capacities for the expansion of offshore wind energy, port infrastructures are required as well as a significant increase in the supply of German shipyards for the construction of foundation structures, transformer and converter platforms, special ships for service & maintenance and for erection.
Achieving the expansion targets for offshore wind in Germany of at least 30 GW by 2030, between 40 and 50 GW by 2035 and at least 70 GW by 2045 requires decisive political action. The realization agreement for more offshore wind energy in November 2022 defined milestones for the necessary grid expansion, which the industry views positively.
The production of green hydrogen at sea is still in its infancy and requires the necessary regulatory framework to enable the development of concrete business models. Only in this way can the defined ramp-up of hydrogen production from offshore wind energy through tenders of at least 500 MW per year from 2023 succeed.
"The offshore wind industry needs a major training and qualification offensive supported by the German government, easy investment and financing conditions and the promotion of new production capacities that provide the necessary liquidity in the manufacturing industry, as well as internationally fair competitive conditions. Europe must find a strong, joint response to the measures of the US Inflation Reduction Act in particular," explain the industry organizations. With regard to the need for skilled workers, the associations would like to see more freedom of movement for workers across EU borders and an effective immigration policy.
About the commissioners of the annual figures "Status of offshore wind energy expansion in Germany"
About the German Windenergy Association (BWE)
The German Windenergy Association (BWE) is partner to over 3,000 companies in the wind energy industry and represents the interests of about 20,000 members. The entire know-how of a multifaceted industry is pooled through BWE.
About Bundesverband der Windparkbetreiber Offshore e.V. (BWO)
The association of German offshore wind farm operators (BWO) represents all companies that plan, construct and operate offshore wind farms in Germany. The BWO is the central contact on all questions concerning offshore wind energy.
About the German Foundation OFFSHORE WIND ENERGY
The foundation’s overall purpose is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate protection. It has established itself as a non-partisan, supra-regional and independent communication platform for the entire offshore wind energy sector.
About VDMA Power Systems
The trade association VDMA Power Systems and its working groups represent the interests of manufacturers and suppliers of power and heat generation plants.
About WAB e.V.
Bremerhaven-based WAB is the nationwide contact partner for the offshore wind industry in Germany and the leading business network for onshore wind energy in the north-west region. The association fosters the production of “green” hydrogen from wind energy. It comprises some 250 SMEs as well as institutes from all sectors of the wind and maritime industry as well as research.
About Wind Energy Network e.V
About WindEnergy Network e.V. (WEN) WEN is the leading business network for wind energy in the northeast region with currently about 100 member companies. The aim is to expand the industrial base and regional value creation in the future sector of renewable energies. Thematic focal points are onshore and offshore wind energy, maritime technologies in connection with offshore wind and the development of green hydrogen.
Press contacts:
Bundesverband der Windparkbetreiber Offshore e.V.
Natalie Schorr-Erhardt
Tel. +49 176 466 464 53
n.schorr-erhardt@bwo-offshorewind.de
Bundesverband WindEnergie e.V.
Frank Grüneisen
Tel. +49 30 212341-253
f.grueneisen@wind-energie.de
Stiftung OFFSHORE-WINDENERGIE
Marlen Sunnyi Bohne
Tel. +49 162 439 86 53
m.bohne@offshore-stiftung.de
VDMA Power Systems
Beatrix Fontius
Tel. +49 69 6603-1886
beatrix.fontius@vdma.org
WAB e.V.
Thorsten Preis
Tel. +49 173 238 28 02
thorsten.preis@wab.net
Wind Energy Network e.V.
Andree Iffländer
Tel. +49 381 377 19 254
ifflaender@wind-energy-network.de
Offshore expansion is starting up again – not yet smoothly!
- Expansion targets of at least 30 gigawatts (GW) by 2030, 40 GW by 2035 and 70 GW by 2045 offer long-term prospects for offshore wind energy and the supply industry
- In the first half of 2022, the first foundations were installed in the offshore wind energy projects Kaskasi and Arcadis East, but no wind turbines have been installed yet
- New Wind Energy at Sea Act threatens to further increase costs and thus jeopardise the achievement of the new expansion targets
- German offshore wind energy sector urgently needs industrial policy support and qualified personnel
Berlin, Bremerhaven, Frankfurt, Hamburg, 12th of July 2022 – With the new expansion targets for offshore wind energy of at least 30 gigawatts (GW) by 2030, at least 40 GW by 2035 and at least 70 GW by 2045, Germany finally has the ambition the industry needs to accelerate expansion. Construction activity is also finally picking up this year. While no offshore wind turbines were built in the first half of 2021, there was initial construction activity in the Kaskasi and Arcadis Ost 1 offshore wind projects. Contin-uous, annual additions will be crucial in future to supply Germany with turbines and equipment in competition with other markets. However, the framework for future offshore expansion just estab-lished with the Wind Energy at Sea Act (WindSeeG) poses challenges for the industry.
"A central weakness of the amended Wind-on-Sea Act is the new tender design, which puts the price for the expansion of areas in the North and Baltic Seas first and foremost," comment the industry organisations BWE, BWO, Stiftung OFFSHORE-WINDENERGIE, VDMA Power Systems and WAB. "Due to the freeze on expansion in recent years, Germany has fallen behind in international comparison. This makes it all the more important to have a functioning system that removes obstacles in the inter-national competition for resources, skilled workers and investors." In future, project developers will first have to put money on the table - similar to the auctions of mobile phone licences - in order to build an offshore wind energy project at all. Instead of being awarded according to the lowest costs, the bidder who pays the highest price for the rights to use the area will be awarded the contract.
By up to €21/MWh, industrial electricity prices could rise as a result of the newly enshrined bidding component, according to NERA Economic Consulting. "Cost pressure on the value chain, which is al-ready weakened by the lack of expansion, will also increase - depending on the orientation of the pro-ject developers," criticise the industry organisations. "The federal government and the offshore wind industry cannot afford fundamental mistakes in the tender design if the first stage target for 2030 is to be achieved. The bidding component must therefore be abolished as soon as possible or capped as in the Netherlands. Sustainability criteria, such as the integration of offshore-produced energy into our electricity grid, practicable and thus realisable decarbonisation contributions from planned offshore wind energy projects, the economic production of green hydrogen and the strengthening of the Euro-pean industry should be in the foreground. They should be consulted with the wind energy industry and, if possible, introduced in a standardised manner across Europe in order to avoid unnecessary costs. The criteria now introduced must be adapted pragmatically and purposefully in cooperation with the industry in order to have their intended effect. Here we see an urgent need for correction in the current WindSeeG."
The industry organisations take a positive view of the ramp-up of hydrogen production by offshore wind as stipulated in the new WindSeeG through six annual tenders of 500 megawatts (MW) of in-stalled capacity from 2023. However, the industry expects to be closely involved at an early stage in the development of the tender design this time.
In order for the medium- and long-term goals to be realised, further measures must now be taken urgently. "2030 is virtually today," the industry organisations warn. Offshore projects have long lead times. The de facto standstill of the last few years has left deep scars in the supply chain, as has the Corona pandemic. Now the demand for production capacities at home and abroad is increasing signif-icantly. A special industrial policy effort with fair international competition is necessary. The produc-tion facilities of manufacturers and suppliers must be expanded in Europe and functioning supply chains must be guaranteed. The upgrading of shipyards and ports as well as specialised shipbuilding is essential and must be supported politically.
"It also needs a major training and qualification offensive supported by the German government. In the last three years, more than 3,000 jobs have been lost in the German offshore wind industry. Con-sequently, the industry has a high demand for well-trained skilled workers - a lot of good personnel has migrated abroad as a result of the failure to expand. The task now is to meet this demand by recruiting skilled personnel in a targeted manner. Concrete ideas, such as training clusters for wind energy, can help to meet the necessary demand for skilled workers. The training criterion now adopted in the WindSeeG is in itself an interesting approach to promoting training, but is likely to be very com-plex in its application for selecting the successful bidder," the industry organisations conclude.
About the annual figures "Status of offshore wind energy expansion in Germany".
In the Deutsche WindGuard analysis, the expansion figures for offshore wind energy have been col-lected separately from those for onshore wind energy since 2012. The clients are the German Wind Energy Association (BWE), the German Offshore Wind Farm Operators Association, the Offshore Wind Energy Foundation, VDMA Power Systems and WAB e.V.
About the German Wind Energy Association e.V. (BWE)
As a member of the German Renewable Energy Federation (BEE), the BWE represents the entire wind energy sector with its more than 20,000 members. Together, the supplier and manufacturer industry anchored in the German mechanical engineering sector, project developers, specialised lawyers, the financial sector as well as companies from the areas of logistics, construction, service/maintenance and storage technologies, electricity traders, grid operators and energy suppliers ensure that the BWE is the first point of contact for politics and business, science and the media on all issues relating to wind energy.
About the Federal Association of Offshore Wind Farm Operators e.V. (BWO)
The German Offshore Wind Farm Operators Association (BWO) represents all companies that plan, construct and operate offshore wind farms in Germany. The BWO is the central point of contact for politicians and author-ities at federal level on all issues relating to offshore wind power.
About the German Foundation OFFSHORE WIND ENERGY
The foundation was founded in 2005 on the initiative of the industry and under the moderation of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV). The foundation’s overall purpose is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate pro-tection.
About VDMA Power Systems
VDMA Power Systems is a trade association of the German Engineering Federation VDMA e.V. The trade associ-ation represents the interests of manufacturers of wind energy and hydropower plants, fuel cells, thermal plants and storage systems in Germany and abroad. For all of them, VDMA Power Systems serves as an information and communication platform for all industry topics such as energy policy, legislation, market analyses, trade fairs, standardisation and press and public relations.
About WAB e.V.
Bremerhaven-based WAB is the nationwide contact partner for the offshore wind industry in Germany and the leading business network for onshore wind energy in the north-west region. The association fosters the produc-tion of “green” hydrogen from wind energy. It comprises some 250 smaller and larger businesses as well as in-stitutes from all sectors of the wind industry, the maritime industry as well as research.
Press contacts:
Federal Association of Wind Farm Operators Offshore e.V.
Lena Botter
Tel. 030 28 44 93 40
l.botter@bwo-offshorewind.de
German Wind Energy Association e.V.
Frank Grüneisen
Tel. 030 212341-253
f.grueneisen@wind-energie.de
Foundation OFFSHORE WIND ENERGY
Svenja Schneeweiß
Tel. 0152 2941 0489
s.schneeweiss@offshore-stiftung.de
VDMA Power Systems
Beatrix Fontius
Tel. 069 6603-1886
beatrix.fontius@vdma.org
WAB e.V.
Hans-Dieter Sohn
Tel. 0173 238 28 02
hans.sohn@wab.net
Press release as PDF: https://www.offshore-stiftung.de/sites/offshorelink.de/files/documents/PI_Zubauzahlen%20WaS_2022-07-12_EN-1.pdf
Status of Offshore Wind Energy Development in Germany: https://www.offshore-stiftung.de/sites/offshorelink.de/files/documents/Status%20of%20Offshore%20Wind%20Energy%20Development_First%20Half%202022-1.pdf
Status Quo Offshore Wind Energy Map (2022): https://www.offshore-stiftung.de/en/status-quo-offshore-windenergy
From a perspective of planning we, the German Offshore Wind Energy Foundation, oversee the activities conducted by the National Test Field Offshore Wind Energy (NaT-Off) project in the Baltic Sea off the coast of Warnemünde. Our tasks include the superordinate project management and the coordination of the numerous stakeholders involved in planning, this including communication and information work with other interest groups on site.
Our team develops proposals and concepts for the future operation of this research-oriented wind farm, e.g. we are developing the usage constitution and operator concept for the test field. In addition, we analyze and evaluate the possibilities of further accompanying research in the National Test Field and the subsequent integration of this research during the operational phase.
The aim of the involvement is to create a framework so that the sea area off Warnemünde can be used as a test field for innovations in the sector of offshore energy generation and while enabling a maximum of participation along the entire value chain. Local peculiarities and the sensitivity of the special ecosystem of the Baltic Sea will of course be taken into account during the development process.
Do you have an innovative idea and can you imagine testing it in the field near Warnemünde? Does your company or association want to get involved as part of a project development company or a future operator consortium? Then contact us!
This short form [.pdf, approx. 150 KB] offers you the opportunity to outline your request and to define the extent of your project. Please send the completed form to our email address. You are welcome to use our template for expressions of interest. The NaT-Off team will contact you promptly to clarify further details.
We look forward to your ideas and your vision for the future of offshore wind energy!
Hamburg/Tervuren, March 23, 2022
On March 23, 2022, William Beuckelaers, managing director of OffshoreWind4Kids, DNV, Northland Power Europe (NPE), the Competence Center for Renewable Energy and Energy Efficiency (CC4E) at Hamburg University of Applied Sciences (HAW Hamburg) and the German Offshore Wind Energy Foundation signed an agreement in Hamburg on a cooperation with OffshoreWind4Kids within the framework of “German Chapter for OffshoreWind4Kids”.
The focus of the cooperation will be on activities to promote interest in technical issues of offshore wind energy among children and young people.
OffshoreWind4Kids teaches children and young people about engineering, technologies and renewable energies in a playful way using miniature offshore wind turbines. With the help of construction kit systems developed by William Beuckelaers of "OffshoreWind4Kids", children and young people – boys and girls alike – can be enthused about technical issues and any inhibition thresholds can be reduced. The “OffshoreWind4Kids” initiative was first brought to Germany by DNV and has subsequently found further supporters here.
Karina Würtz, German Offshore Wind Energy Foundation:
„We are pleased to join forces with the Competence Center for Renewable Energy and Energy Efficiency at Hamburg University of Applied Sciences, DNV, Northland Power Europe and OffshoreWind4Kids to make offshore wind energy tangible. In view of the increased expansion targets of the German Federal Government and the already emerging shortage of skilled workers in the upcoming years in the field of offshore wind energy, this initiative offers a great opportunity to introduce children and especially young people to the interesting occupational field of offshore wind energy during the career orientation phase and to get them excited about a career in the industry.”
Prof. Peter Dalhoff, Competence Center for Renewable Energy and Energy Efficiency at Hamburg University of Applied Sciences
„OffshoreWind4Kids is a great way for children and young people to not only get to know the energy transition in a playful and explorative way, but also to get them excited about its technical aspects. In many of our projects, we at CC4E have discovered that kids in particular are often very open and interested in technical innovations; we just have to give them the opportunity to get to know them and try them out. I am therefore all the more pleased that we have been able to start this project together with the German Offshore Wind Energy Foundation, DNV, Northland Power Europe and OffshoreWind4Kids.”
Marcus Klose, DNV:
„I was immediately excited when reading about William´s idea. We had great fun with the first family event at Hamburg´s Elbe beach last year. To reach the energy transition goals, the wind industry needs to install 30 GW offshore wind capacity before 2030 and even more beyond. This rapid expansion means that a huge number of people are needed. Our aim is to encourage young people to begin their careers in offshore wind, this kind of hands-on experience is ideal to start the journey. Therefore, we are supporting the “OffshoreWind4Kids” initiative from the early beginning.”
Florian Würtz, Northland Power Europe:
„Part of building a sustainable future relies on recruiting the next generation of experts who will help support the renewable energy transition. We are pleased to support OffshoreWind4Kids expansion into Germany that will help teach young people about offshore wind, engineering, technologies and renewable energies in meaningful and engaging way.”
William Beuckelaers, OffshoreWind4Kids:
„We are excited for this collaboration, which will help to expand the OffshoreWind4Kids activities in Germany. Despite the rain during our first demo day in Hamburg last year, all groups were eager to join us for the event. With our increased presence, many more children will have the chance to install their first offshore wind turbine and hopefully they will be inspired to contribute to the green transition.”
About the German Offshore Wind Energy Foundation
The German Offshore Wind Energy Foundation was founded in 2005 on the initiative of the industry and under the moderation of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV). The foundation’s overall purpose is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate protection. It has established itself as a non-partisan, supra-regional and independent communication platform for the entire offshore wind energy sector. The foundation's board of trustees includes key federal and state ministries for offshore wind as well as operators, manufacturers, transmission system operators, suppliers, banks and insurance companies.
About the Competence Center for Renewable Energies and EnergyEfficiency
The Competence Center for Renewable Energies and EnergyEfficiency (CC4E) is a cross-faculty scientific institution of HAW Hamburg that addresses the current and future challenges of the energy transition in an interdisciplinary manner. Thus, the CC4E makes a sustainable contribution to climate and environmental protection. CC4E intensifies the dialogue with society about the energy supply of tomorrow and aims to inspire enthusiasm for the energy transition through the content and results of its research projects. The core competencies are in the areas of wind energy, storage, system integration, sector coupling, environment and acceptance as well as in the innovation management relevant for this.
About DNV
DNV is an independent assurance and risk management provider, operating in more than 100 countries. Through its broad experience and deep expertise DNV advances safety and sustainable performance, sets industry standards, and inspires and invents solutions. We provide assurance to the entire energy value chain through our advisory, monitoring, verification, and certification services. As the world's leading resource of independent energy experts and technical advisors, we help industries and governments to navigate the many complex, interrelated transitions taking place globally and regionally, in the energy industry. We are committed to realizing the goals of the Paris Agreement, and support our customers to transition faster to a deeply decarbonized energy system.
About Northland Power Europe
Northland Power is a global developer, owner and operator of renewable energy infrastructure. Northland operates three offshore windfarms in the North Sea and owns and develops further offshore windfarms in Europe and Asia.
About OffshoreWind4Kids
The main goal of OffshoreWind4Kids is to teach kids about engineering, technology and renewable energy. We use a hands on approach where children can play with small scale offshore wind turbines, illustrating various aspects of offshore wind energy. We want to support women in engineering by encouraging girls to use the wind turbine kits and we aim to teach as many girls as boys about offshore wind. Other goals are to stimulate innovation and to spread awareness of offshore wind to the general public.
• As expected, no new installations in 2021. 1,501 turbines with a capacity of 7,794 MW connected to the grid
• Earlier tendering of sites required to distribute expansion more evenly than previously planned
• Increase in planning and approval capacities through legally compliant, uniform and fast design of legal requirements and increase in staffing of authorities
• Significant increase of tender volumes this year to enable more construction activity more quickly. To maintain innovation, employment and value creation
• Expansion and targeted promotion of education and training creates and secures sustainable jobs
Berlin/Bremerhaven/Frankfurt/Hamburg, 13 January 2022 – Due to wrongly set political framework conditions, no wind turbine construction activity took place in the German North Sea and Baltic Sea in the entire year 2021. Motivated by the need for climate protection and economic sustainability, the new German government has set higher and more long-term targets in the coalition agreement. These must now be incorporated into the Wind-on-Sea Act without delay in order to avoid further loss of time.
"The commitment of the new German coalition to significantly accelerate the expansion of offshore wind energy is just as correct as the concrete target of at least 30 gigawatts by 2030. This target creates a positive perspective for the entire value chain," the industry organizations BWE, BWO, VDMA Power Systems, WAB and the OFFSHORE-WINDENERGIE Foundation commented on the new expansion tar-gets. "Now the grid and spatial planning for the implementation of the targeted expansion path should be revised without delay. The aim must be to leverage all acceleration potentials in order to enable an efficient and climate-protection-friendly expansion."
Accelerate and distribute expansion targets more evenly over the coming years, strengthen employ-ment and value chain
The planned tender volumes must be significantly increased as quickly as possible in order to maintain and expand the existing innovation potential as well as employment and the value chain in Germany. In addition, the spatial potential in German waters must be fully exploited. Conflicts of use should be resolved pragmatically and in line with climate protection , as such also supporting the interests of environmental protection. It is also important to avoid an expansion bottleneck at the end of the dec-ade, which could lead to bottlenecks in the supply chain and pose challenges for the industry's capacity planning - especially since other nations have also increased their expansion targets.
Rapid implementation of innovative approaches can also help to meet the higher targets. This includes starting construction of the 2 gigawatt (GW) systems for offshore wind grid connections earlier than
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previously planned. The potential of German waters must be fully exploited, and European solutions such as cross-border projects are also helpful in obtaining sufficient generation. This will maintain and create skilled jobs in the value chain throughout Germany.
Tender areas for green hydrogen
The German government should clarify at an early stage which additional offshore wind expansion requirements the increased target of 10 GW for electrolysis capacity for green hydrogen will require. These areas should also be promptly located and put out to tender without delay. The regulatory framework for green hydrogen requires jointly coordinated specifications in Germany and Europe to make the market ramp-up of the green hydrogen economy commercially feasible.
The appropriate infrastructure is important for the medium- to long-term expansion of offshore wind energy. This also includes the coordinated expansion of electricity and gas grids for the production of green hydrogen in the North and Baltic Seas.
Reduce approval obstacles: Reinforce authorities with personnel, speed up procedures
The authorities responsible for the expansion of offshore wind energy must be quickly reinforced in terms of personnel in order to be able to cope with the significantlyaccelerated planned expansion. At the same time, it makes sense to also rely on external expertise in case of staffing bottlenecks. "It could also be helpful to set up a central coordination office that brings all the necessary units and responsibilities for the authorities involved to one table," say the industry organizations. "The areas of spatial planning and seabed use, species and environmental protection, grid expansion and the regu-lations regarding construction and operation of an offshore wind farm should be better coordinated in the future."
Countering the shortage of skilled workers
In order to have the necessary skilled workers for the planned long-term expansion of offshore wind energy, relevant study programs must be optimized. Training and continuing education programs must be supported and promoted.
About the annual figures "Status of offshore wind energy expansion in Germany".
In the Deutsche WindGuard analysis, the expansion figures for offshore wind energy have been col-lected separately from those for onshore wind energy since 2012. The clients are the German Wind Energy Association (BWE), the German Offshore Wind Farm Operators Association, the
Offshore Wind Energy Foundation, VDMA Power Systems and WAB e.V.
About the German Wind Energy Association e.V. (BWE)
As a member of the German Renewable Energy Federation (BEE), the BWE represents the entire wind energy sector with its more than 20,000 members. Together, the supplier and manufacturer industry anchored in the German mechanical engineering sector, project developers, specialised lawyers, the financial sector as well as companies from the areas of logistics, construction, service/maintenance and storage technologies, electricity traders, grid operators and energy suppliers ensure that the BWE is the first point of contact for politics and business, science and the media on all issues relating to wind energy.
3
About the Federal Association of Offshore Wind Farm Operators e.V. (BWO)
The German Offshore Wind Farm Operators Association (BWO) represents all companies that plan, construct and operate offshore wind farms in Germany. The BWO is the central point of contact for politicians and author-ities at federal level on all issues relating to offshore wind power.
About the German Foundation OFFSHORE WIND ENERGY
The foundation was founded in 2005 on the initiative of the industry and under the moderation of the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection (BMUV). The foundation’s overall purpose is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate pro-tection.
About VDMA Power Systems
VDMA Power Systems is a trade association of the German Engineering Federation VDMA e.V. The trade associ-ation represents the interests of manufacturers of wind energy and hydropower plants, fuel cells, thermal plants and storage systems in Germany and abroad. For all of them, VDMA Power Systems serves as an information and communication platform for all industry topics such as energy policy, legislation, market analyses, trade fairs, standardisation and press and public relations.
About WAB e.V.
Bremerhaven-based WAB is the nationwide contact partner for the offshore wind industry in Germany and the leading business network for onshore wind energy in the north-west region. The association fosters the produc-tion of “green” hydrogen from wind energy. It comprises some 250 smaller and larger businesses as well as in-stitutes from all sectors of the wind industry, the maritime industry as well as research.
Berlin/Bremerhaven/Frankfurt, 15 July 2021 – For the first time in more than ten years, there will be no expansion of offshore wind energy in Germany this year. This expansion gap is not the expression of a lack of interest on the part of investors or a lack of strength on the part of the industry, but a consequence of political decisions, the effects of which are now becoming visible for the offshore wind industry in Germany. This development can only be counteracted by raising the expansion targets for offshore wind energy, retaining skilled workers, and concretising expansion plans for green hydrogen.
"The offshore industry has met the expansion target for 2020 as expected and has long since become a pillar of the energy transition. Offshore wind energy is reliable and competitive. It is an important economic driver and will continue to play a key role in achieving Germany's recently increased climate targets. However, some market participants have either already left the offshore wind industry entirely or have relocated to other countries. This circumstance can be attributed to increasing international competition as well as a lack of prospects for offshore wind construction activities within Germany this year. German politics can no longer stand by and watch such a development. A swift industrial policy impulse is needed," the industry organisations BWE, BWO, the German Foundation OFFSHORE WIND ENERGY, VDMA Power Systems, and WAB comment on the situation of the industry.
"In order to maintain the technological leadership of Germany as a wind industry location and to ensure domestic value creation and employment in the future, the expansion must be reignited and stabilised. Towards the second half of this decade, the German offshore wind industry expects an increasingly strong expansion. It is imperative to counteract this resulting imbalance in time. The acceleration of onshore grid expansion measures as well as an improved utilisation of the existing grids also remains important. Against the background of the climate targets specified by the German federal parliament, the existing offshore expansion targets no longer suffice. We need to adjust the targets for 2030 and 2040," the industry organisations continue.
Maintain employment and further develop market design
The current expansion gap must be contained. At the same time, with a view to the expansion targets for 2030 and 2040, it will be necessary to maintain value creation and employment in Germany and to sustainably strengthen the attractiveness of the German offshore wind market. To this end, free capacities must be developed as quickly as possible while attractive and reliable investment conditions must be created. "Otherwise, Germany will struggle in an increasingly international market," the industry organisations warn. Politicians should use the capacities available in the short term to reverse and positively stabilise this negative trend. Furthermore, qualification measures and a tailored export and research initiative should be deployed to sustainably protect the German offshore wind industry. The aim is to secure employment today and to make the strengths of the domestic offshore wind industry available for upcoming challenges, such as the development of a "green" hydrogen economy.
In addition, the market design for offshore wind energy must be further developed in order to relieve both consumers and the economy and to create a reliable investment framework for national and international investors from all stakeholder groups.
Concretise expansion plans for "green" hydrogen
An additional opportunity for offshore windpark construction in Germany arises through technologies to build a "green" hydrogen economy. Therefore, the necessary framework must be laid now. However, it is also clear that this will not balance out the current expansion gap. When keeping the most recent expansion targets formulated for offshore wind and green hydrogen in mind, additional areas in the North and Baltic Seas must be defined as quickly as possible. On the areas currently earmarked for the production of green hydrogen at sea – which have so far not been connected by cable or pipeline – it is not possible to produce green hydrogen in an economically feasible way. Therefore, a significant contribution to the hydrogen target of 5 GW by 2030 in Germany is unlikely. Conflicting interests of the maritime industry, the navy, and conservationists must be resolved in the interest of climate protection targets. The co-use approach developed by the EU Commission, according to which the scarce marine space should - if possible - be used by several actors at the same time, offers a great example. This idea can be further developed and should also be increasingly applied in Germany. "For us, it is clear that capacities of well over 50 GW of offshore wind are necessary and feasible in the German North and Baltic Seas. Recent reports speak of 54 and 57 GW total expansion potential.* Since the expansion of renewable energies is important for long-term species protection, there is an urgent need to find compromises. The most recent draft of the spatial development plan is a good start," explain the industry organisations.
In order to implement the National Hydrogen Strategy, policy-makers also need to create a commercially-driven basis for green hydrogen and call for such solutions at the European level. The framework for exempting green electricity from the EEG surcharge for hydrogen production is a good approach to this, which must be followed by additional steps: a binding target for the production of green hydrogen from offshore wind energy as well as reliable procurement mechanisms. In order to successfully create a green hydrogen market, it is of utmost importance to link hydrogen production with the expansion of offshore wind energy capacities.
Increase target by 2030, present targets for 2045 and 2050
The German government's new goal of achieving climate neutrality by 2045 should be followed up by concrete expansion targets for offshore wind and green hydrogen, including a long-term target for 2050. This target should be in line with demand forecasts for green electricity and green hydrogen as well as the EU's goal of expanding offshore wind to 300 GW by 2050. This allows for planning that can be further developed through pan-European and international cooperation.
*Shortlinks to the reports: https://bit.ly/3wAXbca / https://bit.ly/3i2RZbN
About the German Wind Energy Association e.V. (BWE)
As a member of the German Renewable Energy Federation (BEE), the BWE represents the entire wind energy sector with its more than 20,000 members. Together, the supplier and manufacturer industry anchored in the German mechanical engineering sector, project developers, specialised lawyers, the financial sector as well as companies from the areas of logistics, construction, service/maintenance and storage technologies, electricity traders, grid operators and energy suppliers ensure that the BWE is the first point of contact for politics and business, science and the media on all issues relating to wind energy.
About the Federal Association of Offshore Wind Farm Operators e.V. (BWO)
The German Offshore Wind Farm Operators Association (BWO) represents all companies that plan, construct and operate offshore wind farms in Germany. The BWO is the central point of contact for politicians and authorities at federal level on all issues relating to offshore wind power.
About the German Foundation OFFSHORE-WIND ENERGY
The non-profit foundation of German industry for the utilisation and research of offshore wind energy was founded in 2005 on the initiative of the industry and under the moderation of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The aim of the foundation is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate protection.
About VDMA Power Systems
VDMA Power Systems is a trade association of the German Engineering Federation VDMA e.V. The trade association represents the interests of manufacturers of wind energy and hydropower plants, fuel cells, thermal plants and storage systems in Germany and abroad. For all of them, VDMA Power Systems serves as an information and communication platform for all industry topics such as energy policy, legislation, market analyses, trade fairs, standardisation and press and public relations.
About the WAB e.V.
The WAB, based in Bremerhaven, is the nationwide contact for the offshore wind industry, the onshore network in the Northwest and promotes the production of "green" hydrogen from wind power. More than 250 smaller and larger companies as well as institutes from all areas of the wind industry, the maritime industry and research belong to the association.
The project of the German Offshore Wind Energy Foundation has been renamed "German Offshore-Wind Initiative (GOI)" for better external presentation abroad, but in the following the term "Offshore hoch 3 - Internationale Kooperation Offshore Windenergie" is still used.
The German Foundation OFFSHORE WINDENERGY and its cooperation partner the World Forum Offshore Wind (WFO) launched a project at the beginning of January funded by the German Federal Ministry for Economic Affairs and Energy (BMWi) to provide export support for German companies in the offshore wind energy sector.
The project, called "Offshore hoch 3 - Internationale Kooperation Offshore Windenergie" (Offshore to the Power of 3 - International Cooperation on Offshore Wind Energy), will run for three years (2021, 2022, 2023) and will focus on the three most attractive and dynamically growing non-European offshore wind target markets of Japan, Taiwan, and the USA. It comprises three measures: in-depth export analysis, local support in the target markets through the deployment of local representatives, and on-site specialist events. These concrete measures complement the previous initiatives and activities of export promotion in an excellent way and thus further strengthen the export momentum of the German offshore wind energy industry.
The clear objective of the project is to provide concrete support for the export activities of German companies through active and practical assistance with business development on site. "Offshore hoch 3" is intended to offer small and medium-sized enterprises (SMEs) from Germany in particular the opportunity to network more strongly in attractive foreign markets and win orders without having to set up a cost-intensive business development infrastructure there on their own. The project, which is managed by the foundation, is supported by the globally active WFO, particularly in the design of the three local foreign representative offices in Tokyo, Taipei and New York and the activities there as cooperation partners.
Thomas Bareiß, Parliamentary State Secretary at the BMWi:
"We are very pleased to be able to give the German offshore wind industry a tailwind in important future markets with this project. We want to ensure that German offshore wind turbines remain cutting-edge technology and continue to be an export hit in the future."
Prof. Dr. Martin Skiba, Chairman of the Board of World Forum Offshore Wind (WFO) and Chairman of the German Foundation OFFSHORE WINDENERGY:
"We are pleased to be able to contribute to this groundbreaking project with the accumulated expertise of the OFFSHORE-WINDENERGIE Foundation and WFO, as well as with their trustees and member companies, respectively. I am convinced that maximum benefit for the German economy in the three foreign markets can be achieved through the cooperation between the two organizations."
About the German Foundation OFFSHORE WINDENERGY
The German Foundation OFFSHORE WINDENERGY was established in June 2005 and has been the holder of the alpha ventus permit rights since September 2005. It has actively supported and promoted the development of the alpha ventus test site and the offshore wind energy industry in Germany from the very beginning. The foundation brings together the interests of a wide range of players in the offshore wind energy sector. It acts as a communication platform between industry, politics and research as well as a politically independent lobby for the interests of offshore wind energy. The foundation pursues exclusively and directly non-profit purposes.
About the World Forum Offshore-Wind e.V.
The World Forum Offshore-Wind e.V. (WFO) was founded in December 2018 as a registered association with headquarters in Hamburg. The WFO is the only global association focused exclusively on the offshore wind energy sector. The members of the WFO represent the entire value chain of the offshore wind industry as well as international offshore wind associations or networks, especially from Asia and the USA. The goal and task of the WFO is to represent the interests of the entire offshore wind industry on a global level.
Hanover/Varel, February 4, 2021 - Today (February 4th, 2021), Lower Saxony's Energy Minister Olaf Lies gave the go-ahead for the project "Green Hydrogen with Offshore Wind Energy" from the German Foundation OFFSHORE WINDENERGY. Minister Lies presented the Varel-based foundation with a grant of 550,000 euros for the two-year project. Among other things, the foundation is to use its network to promote a broad exchange of knowledge and experience among all stakeholders. The project will also develop concepts and plans for the further development of the legal and economic framework.
"Industry follows energy and the energy of the future will be generated in large part at sea. Green hydrogen is a key issue for me if the energy transition is to succeed. The Foundation is making a valuable contribution here with its network and experience," emphasized Minister Olaf Lies at today's (virtual) handover. "The determined development of a green hydrogen economy is a very central building block for the energy transition and for more climate protection. Wind energy at sea provides the high potential of renewable power generation required for this, contributes to climate protection and at the same time ensures good, highly qualified industrial jobs, particularly in mechanical and plant engineering. It is not only the energy turnaround that benefits from this. It is a huge opportunity for Lower Saxony as a business location."
Dr. Knud Rehfeldt, Chairman of the German Foundation OFFSHORE WINDENERGY, said, "We are pleased to support the state of Lower Saxony in actually achieving the ambitious goals of the federal and state governments in the field of offshore wind energy and in building a green hydrogen economy. Through our many years of expertise, we have been bringing the necessary experience at all levels since 2005. We want to use this effectively for the further expansion of offshore wind energy. The pioneering work we have done since the start of offshore wind energy in Germany must now also be applied to the development of a green hydrogen economy. We will support the state of Lower Saxony in setting the right regulatory course or working towards it, achieving a rapid market ramp-up and networking the players at the individual stages of the value chain."
"I am pleased that the Offshore Wind Energy Foundation wants to advance the topic of green hydrogen and offshore wind energy with us and the other stakeholders as a networker and driver. As a technically established and experienced player, the Foundation brings outstanding competencies and expertise to this task," added Minister Lies.
The aim of the project, which will be funded by the state of Lower Saxony for two years, is to promote and support a broad-based exchange of knowledge and experience between all stakeholders. In addition to authorities and politicians, these include offshore wind farm operators, machinery and plant manufacturers, gas and electricity grid operators, the electrolysis industry, universities and research institutes, and industrial users. In addition, utilization concepts should be developed for the oxygen produced during hydrogen production. The project promotes direct technology and knowledge transfer between stakeholders from politics, industry and research in the state of Lower Saxony and beyond.
The German Foundation OFFSHORE WINDENERGY will support the state of Lower Saxony in particular in monitoring political, legal and technological developments in the field of offshore wind energy and green hydrogen. It supports the networking of actors from politics, industry and research as well as the preparation of studies and expert opinions on various topics in the development of a hydrogen economy. The foundation also provides technical support for possible demonstration and pilot projects and develops utilization concepts for green hydrogen from offshore wind energy. The German government foresees a hydrogen demand of about 90 to 110 TWh until 2030. In order to meet part of this demand, generation plants with a total capacity of up to 5 GW are to be built in Germany by 2030, including the necessary offshore and onshore energy production.
Background
The North German Hydrogen Strategy of the five North German states was adopted on November 7, 2019. According to the strategy, at least 500 megawatts of electrolysis capacity for the production of green hydrogen are to be installed in northern Germany by 2025.
Offshore wind energy is ideally suited for this purpose, particularly due to its power plant characteristics, i.e., above all, high usage and full-load hours. In addition, if seawater were used directly, sufficient feedstock would be available for the production of hydrogen.
About the German Foundation OFFSHORE WINDENERGY
The German Foundation OFFSHORE WINDENERGY was established in 2005 to promote environmental and climate protection through improved research and development of offshore wind energy. It has established itself as a non-partisan, supra-regional and independent institution supporting offshore wind energy in Germany and Europe. The foundation is a communication platform for stakeholders from politics, industry and research, serves the exchange of knowledge and sees itself as a provider of ideas. At the same time, it bundles the various interests and represents them vis-à-vis politics, the public, business and science.
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No new installations in the second half of 2020. A total of 1,501 turbines with a capacity of 7,770 MW on the grid - offshore wind delivers clean, safe and cost-effective electricity.
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Tendering of potentially usable areas required as soon as possible to enable earlier construction activities and thus preserve existing innovation potential, employment and the value chain in Germany.
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Use positive market dynamics through the EU strategy for renewable offshore energy, trigger investment push!
Berlin, 21 January 2021 - Today, the German offshore wind industry presented the expansion figures for offshore wind energy in 2020. According to these figures, 32 turbines with a capacity of 219 MW were connected to the grid for the first time last year. In total, 1,501 offshore wind turbines with a capacity of 7,770 MW are feeding electricity into the German North Sea and Baltic Sea. Due to incorrect political framework conditions, no new plants could be built in the second half of 2020.
"While the long-term framework conditions for the offshore wind industry have improved over the past year with the EU's 'Green Deal' and the German government's new long-term targets until 2040, the short-term situation of the industry remains challenging with the very weak domestic market," industry organisations BWE, BWO, VDMA Power Systems, WAB and the OFFSHORE-WINDENERGIE Foundation commented on the offshore expansion figures for 2020 published today by Deutsche WindGuard.
Enable construction activities immediately, equalise expansion and strengthen the value chain
Numerous companies in the offshore wind industry are not only confronted with the challenges of internationalisation and the Corona crisis, but also with the outlook that not a single offshore wind turbine will be installed in German waters next year - after expansion in 2020 was already only 15 percent of the 2017 level.
The serious consequences of the lack of wind energy expansion in the North and Baltic Seas, such as company closures, employment losses and migration from the German market, which the industry has continuously warned about in recent years, must be overcome as quickly as possible. It makes sense to trigger a surge in investment now. This will secure the German offshore wind value chain. To this end, it is necessary to quickly implement the Coastal Sea Regulation proposed by the industry and to equalise the "expansion peak" in the years 2029 and 2030 towards the front. What is needed is a short-term stimulus for cost-efficient expansion. The modernisation and investment programme energy transition not only advances climate protection, it also makes Germany less dependent on energy imports, can be a job engine and offers great economic opportunities for innovative small and medium-sized enterprises in this country and on the global export markets.
To achieve this, the existing potential must be put out to tender as quickly as possible and combined with rapid commissioning. More new capacity should be added before the end of the decade. By this the German government's expansion target of 20 gigawatts by 2030 can be safely achieved. "Bringing forward investments now helps the economy and climate protection in equal measure. Offshore wind power is essential as the foundation of the energy transition for German and European climate targets." said the representatives of the industry associations.
Spatially secure offshore expansion targets
Emerging conflicts of use with shipping, marine and nature conservation must be resolved pragmatically so that the achievement of the defined goals is not prevented through the back door. In order to defuse conflicts of use to some extent, the EU Commission developed the co-use approach. According to this approach, the scarce marine space should - if possible - be used by several actors at the same time. This idea should be further developed and also increasingly applied in Germany. It is right that the expansion of wind energy plants at sea must take existing forms of use into account and also be compatible with nature. However, it is also true that we can only prevent a displacement or shortage of habitats for many species in the long term if the goals of the Paris Climate Agreement are met.
Develop the market framework for offshore wind energy and "green" hydrogen further
The next legislative period must be used urgently to initiate a fundamental reform of the electricity market design and the refinancing of offshore wind projects. The current market design is designed to finance conventional generation with fuel costs. Therefore, the industry continues to advocate for the further development of the market design with the aim of relieving the burden on consumers and the economy and creating an attractive investment framework for national and international investors of all stakeholder groups. In this context, the introduction of contracts for difference should also be considered.
Since direct electrification is not possible in all sectors of the economy, synthetic energy sources based on renewable energies are an indispensable element for complete decarbonisation. The industry organisations expressly welcome the National Hydrogen Strategy and the associated approach of developing a comprehensive energy industry and industrial policy strategy that takes the entire value chain of technologies, components, production, storage, infrastructure and logistics into account. "Green" hydrogen needs a market-based foundation. CO2 pricing in the transport and heat sectors with a simultaneous reduction or restructuring of the EEG levy and financial burdens through other levies and taxes are steps in the right direction.
For better planning of hydrogen projects, a concrete and binding volume target to produce "green" hydrogen from offshore wind energy and reliable procurement mechanisms are also needed. Last but not least, the areas that have so far been earmarked for the production of "green" hydrogen at sea and are not connected are insufficient and must be expanded as quickly as possible.
Harnessing positive market momentum through EU strategy
The EU wants to expand offshore wind to 300 GW by 2050. This shows the great export potential. The announcement to revise the EU climate target for 2030 must be backed up by a faster expansion of offshore wind energy. Furthermore, the Green Deal is an investment offensive for Europe's energy sector and needs a clear framework to trigger production and value creation in Europe.
In order to secure the expansion targets in the long term and enable European planning, Germany also needs an expansion target for 2050. In addition, European and international cooperation - as recently called for by the North Sea Energy Cooperation under German chairmanship - should be further developed.
About the annual figures "Status of offshore wind energy expansion in Germany"
In the Deutsche WindGuard analysis, the expansion figures for offshore wind energy have been collected separately from those for onshore wind energy since 2012. The clients are the German Wind Energy Association (BWE), the German Offshore Wind Farm Operators Association, the Offshore Wind Energy Foundation, VDMA Power Systems and WAB e.V.
About the German Wind Energy Association e.V. (BWE) - As a member of the German Renewable Energy Federation (BEE), the BWE represents the entire wind energy sector with its more than 20,000 members. Together, the supplier and manufacturer industry anchored in the German mechanical engineering sector, project developers, specialised lawyers, the financial sector as well as companies from the areas of logistics, construction, service/maintenance and storage technologies, electricity traders, grid operators and energy suppliers ensure that the BWE is the first point of contact for politics and business, science and the media on all issues relating to wind energy.
About the Federal Association of Offshore Wind Farm Operators e.V. (BWO) - The German Offshore Wind Farm Operators Association (BWO) represents all companies that plan, construct and operate offshore wind farms in Germany. The BWO is the central point of contact for politicians and authorities at federal level on all issues relating to offshore wind power.
About the OFFSHORE-WINDENERGIE Foundation - The non-profit foundation of German industry for the utilisation and research of offshore wind energy was founded in 2005 on the initiative of the industry and under the moderation of the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety (BMU). The aim of the foundation is to consolidate the role of offshore wind energy in the energy mix of the future in Germany and Europe and to promote its expansion in the interests of environmental and climate protection.
About VDMA Power Systems - VDMA Power Systems is a trade association of the German Engineering Federation VDMA e.V. The trade association represents the interests of manufacturers of wind energy and hydropower plants, fuel cells, thermal plants and storage systems in Germany and abroad. For all of them, VDMA Power Systems serves as an information and communication platform for all industry topics such as energy policy, legislation, market analyses, trade fairs, standardisation and press and public relations.
About the WAB e.V. - The WAB, based in Bremerhaven, is the nationwide contact for the offshore wind industry, the onshore network in the Northwest and promotes the production of "green" hydrogen from wind power. More than 250 smaller and larger companies as well as institutes from all areas of the wind industry, the maritime industry and research belong to the association.
The exposition WindEnergy Hamburg will take place online this year from the 1st until the 4th of December due to Covid-19 restrictions. The event, which takes place every two years, will serve as a meeting point for the global onshore- and offshore wind industry and will enable participants to discuss all recent relevant technological, political, and regulatoric developments. The WindEnergy Hamburg will utilize an innovative streaming tool, WindTV, in order to design the event as interactive as possible.