Offshore Wind Energy Foundation demands secure refinancing of offshore wind projects
In view of the current discussions on the future refinancing of offshore wind energy projects, the Offshore Wind Energy Foundation calls for the creation of framework conditions for the secure refinancing of future offshore wind projects. "Offshore wind projects have very high investment sums and therefore require the clearest possible refinancing prospects and a high degree of planning security. For this reason, no new hurdles for investors such as additional bids should be created in the future design of the remuneration system", said Andreas Wagner, Managing Director of the Offshore Wind Energy Foundation. Politicians should engage in a constructive and open exchange with the entire offshore wind industry, in particular with representatives of operating companies, manufacturers and industry organisations, on the design of an optimal remuneration system. This way, optimal solutions can be found for the further rapid and cost-effective expansion of offshore wind energy.
A secure refinancing perspective within the framework of a contract-for-difference model can significantly reduce electricity production costs due to lower financing risks for future projects, Wagner continues. This is also shown by experience abroad. Furthermore, such a model could significantly increase the probability of projects being realised. This would also increase the attractiveness of Germany as a business location compared to international competitors and thus strengthen competition in the bidding market. This is of particular importance against the background of the current economic distortions caused by the Corona crisis. Politicians should currently create optimal framework conditions for climate-friendly investments and production. In particular, investments in renewable energy plants such as offshore wind energy can create added value and sustainable growth.
Andreas Wagner further explained: "In addition to secure refinancing, we first and foremost need legal clarity of the increased offshore expansion target of 20 GW by 2030, which was already agreed on by the Climate Cabinet in September 2019. The offshore wind industry in Germany and its almost 25,000 employees cannot afford any further delay". Offshore wind energy is crucial for the success of the energy transition and industrial development. For further expansion, the industry needs a secure regulatory and economic framework. To this end, the legislator should promptly set the appropriate framework conditions.
About the Offshore Wind Energy Foundation
The Offshore Wind Energy Foundation was founded in 2005 to promote environmental and climate protection by improving research and development of offshore wind energy. It has established itself as a non-partisan, supra-regional and independent institution to support offshore wind energy in Germany and Europe. The foundation is a communication platform for actors from politics, business and research, serves the exchange of knowledge and sees itself as a source of ideas. At the same time, it bundles the various interests and represents them vis-à-vis politics, the public, industry and science.