Expansion of offshore wind energy: strengthen supply chains and ports now!

• The expansion of offshore wind energy in Germany with 377 MW in the first half of the year is continuing to pick up speed.
• The tender design must be adapted immediately. A quick evaluation is a good basis for this. Further delays in grid connection must urgently be avoided.
• The European offshore wind industry can realise projects if tenders lead to projects and sufficient port capacities are available.

Berlin, Bremerhaven, Frankfurt, Hamburg, Rostock, 15 July 2024 - The industry associations of the German offshore wind industry and the non-profit foundation OFFSHORE-WINDENERGIE today published the expansion figures for the first half of 2024. The figures, which were prepared by the consultancy firm Deutsche WindGuard, show that a total of 36 turbines with a capacity of 377 megawatts (MW) were connected to the grid for the first time in Germany during this period, and 73 further foundations were installed. In total, 29 offshore wind projects with an installed capacity of 8,858 MW and 1,602 turbines are currently in operation in Germany. Two further projects are under construction.

Revising the tender design

"The results of the first offshore wind tender in Germany in 2024 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 future, the tender design must be more strongly geared towards the safe and timely realisation of projects. It is therefore good that the federal government wants to evaluate the tender criteria," is the comment of the industry organisations BWE, BWO, VDMA Power Systems, WAB e.V., WindEnergy Network e.V. and the Stiftung OFFSHORE-WINDENERGIE on the results of the latest offshore wind tender. The industry continues to advocate a reformed tender design to strengthen the diversity of players and minimise the risk of failure in the implementation of projects.

Eliminating bottlenecks in expansion

A substantial proportion of the revenues from the tenders should also be channelled into the ramp-up of the capacities required for the increasing expansion of offshore wind energy. The "transformation component" introduced by the federal government is suitable for this purpose, but it must be earmarked for a specific purpose. "It is important that the offshore wind industry can continue to expand its capacities and maintain its innovation and technology leadership," the organisations said. This is only possible if the projects can be realised and lead to orders for the European wind industry. "In addition, immediate investments in infrastructure and logistics are required to ensure the timely implementation of the projects. 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 significantly increased in a few years. To support this ramp-up, it is good that the Kreditanstalt für Wiederaufbau (KfW) has recently started providing low-interest loans for the construction and expansion of production facilities. However, the limit of the loan amount must be significantly higher than the current 25 million euros. "We welcome the fact that the German government also wants to strengthen the supply chain with other financing instruments," the organisations said.

Strengthening the resilience of European value creation

"It is positive that the European Union is working to integrate 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 will promote further diversification of the supply chain with increased industrial value added in the EU and enable innovation and high environmental standards in the expansion of offshore wind energy," emphasise the industry organisations. "It is essential to ensure that competition in Europe is on an equal footing and that it is fair for both sides when dealing with non-European partners," they add. When it comes to implementing the Net-Zero Industry Act (NZIA), the industry organisations are in favour of a solution that is coordinated across Europe and is as simple, unbureaucratic and effective as possible.

Ensuring grid expansion

The expansion of offshore wind energy can only succeed as quickly as the grid expansion allows. In view of the current challenges in the supply chain, it is urgently necessary to further increase investment security for grid technologies to avoid further delays in grid connection. "It is good that the German government is supporting the construction of transformer stations in Germany with new guarantee programs. This creates investment security and helps to ensure the legally stipulated expansion of offshore wind energy.

Eliminating the shortage of skilled workers

The ramp-up of offshore wind energy is creating a wide range of additional employment opportunities. The industry is continuously creating new jobs for which it needs qualified specialists. A closer dialogue with politicians is needed to find supportive solutions. Net-Zero Academies for offshore wind energy specialists and a bundled offshore wind information service from the job centres should be part of a qualification campaign by the federal government. "To meet the rapidly growing demand for skilled workers, we are relying not only on the simplified immigration of skilled workers but also on the unbureaucratic recognition of foreign qualifications. If necessary, it should be possible to obtain additional qualifications for the recognition of qualifications while working," demand the industry organisations.

Protection of critical infrastructure

The expansion of offshore wind energy has now become a central part of Germany's energy supply. This is why it is necessary to effectively protect offshore wind energy projects and grid connection systems from physical and digital attacks. Critical points in the offshore wind energy infrastructure are located in coastal waters, 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 by means of a binding legal framework that ensures close coordination and offers protection," demand the industry organisations.

 

About the commissioners of the annual figures "Status of offshore wind energy expansion in Germany"

About the German Windenergy Association (BWE)

The German Wind Energy Association (BWE) is a partner to more than 3.000 companies in the wind industry sector and represents the interests of its approximately 17.000 members. BWE pools the combined know-how of a diverse industry sector.

About the German Offshore Wind Energy Association (BWO)

The aim of the BWO is to represent the political interests of the offshore wind industry in Germany. The BWO acts as central point of contact for politicians and authorities at federal and state level for all questions relating to offshore wind energy.

About the German Offshore Wind Energy Foundation

The non-profit organization’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. Since 2005, it has been established as a non-partisan, supra-regional and cross-sector think tank as well as an independent communication platform for the entire offshore wind energy industry.

About VDMA Power Systems

VDMA Power Systems is the association for the power plant engineering. It represents the interests of manufacturers and suppliers of electricity and heat generation systems in Germany and abroad. These include wind energy, photovoltaic and hydropower plants, engines and thermal power plants as well as storage and sector coupling technologies.

About WAB e.V.

The WAB 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. Wind Industry and Hydrogen Association WAB e.V. includes around 250 smaller and larger companies as well as institutes from all areas of the wind industry, the maritime industry, the emerging hydrogen economy and science.

About WindEnergy Network e.V. (WEN)

The WEN is the leading company network for wind energy in the northeast region with currently 106 member companies. The aim is to promote the expansion of companies and supply chains in order to enhance regional value creation in the future sector renewable energies. The key topics are windenergy on- and offshore, maritime technologies in connection with offshore wind as well as the development of green hydrogen.

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