Europe installed 3.6 GW of new offshore wind capacity in 2019, according to statistics released today by WindEurope. This is a new record in annual installations.
10 new offshore wind farms came online across 5 countries. The UK accounted for nearly half of the new capacity with 1.7 GW. Then came Germany (1.1 GW), Denmark (374 MW) and Belgium (370 MW). And Portugal installed 8 MW of floating offshore wind. Europe now has 22 GW of offshore wind. The UK and Germany account for three-quarters of it. Denmark, Belgium and the Netherlands share nearly all of the rest.
The average size of the offshore turbines installed last year was 7.8 MW. A 12 MW offshore wind turbine was installed in Rotterdam. Offshore wind farms are also getting bigger. The average size doubled – it was 300 MW in 2010. Now it is over 600 MW. The largest is Hornsea 1 in the UK – 1.2 GW.
- 160 turbines at sea with a capacity of 1,111 MW with first-time electricity feed-in in 2019, 1,469 turbines with a total capacity of 7,516 MW connected to the grid - offshore wind energy is becoming increasingly cost-effective and delivers the usual reliable high electricity volumes
- Increase the expansion target for offshore wind energy to at least 20 GW by 2030 - Implement quickly - Long-term expansion planning to 2035 (30 - 35 GW) and 2050
- Free capacities of up to 2 GW need to be allocated as quickly as possible to cushion the consequences of the expansion gap
- EU level: 450 GW offshore wind capacity planned by 2050 - technology from Germany as an export hit
- Strong domestic market is crucial for maintaining and expanding value creation and jobs in Germany and for remaining innovative
Berlin, 23 January 2020 - Today in Berlin, the German offshore wind industry presented the expansion figures for offshore wind energy in 2019. According to these figures, 160 turbines with a capacity of 1,111 MW were connected to the grid for the first time last year. This means that a total of 1,469 offshore wind turbines with a capacity of 7,516 MW will feed electricity into the grid. "At the beginning of offshore development in Germany in 2010, only 12 turbines with a capacity of 60 MW supplied clean electricity from the 'alpha ventus' test field. Ten years later, there are around 1,500 turbines with a capacity of over 7.5 GW. Electricity from offshore wind energy is cost-efficient, consistently reliable and competitive. Offshore wind energy has developed from Germany into an international success story," the industry representatives commented on the figures. "This makes the increase in the expansion targets for offshore wind energy decided by the Federal Government all the more important. The industry has long been calling for an expansion to at least 20 GW by 2030 andan expansion path that goes beyond that. To achieve this, the federal government must quickly create the legal basis and, in the first step, allocate free capacities of up to 2 GW to cushion the consequences of the expansion gap for the domestic industry. Only in this way can the domestic supply chain be maintained and earlier successes, such as the 2 GW expansion in 2015, be achieved again.
The industry representatives of BWE, BWO, Stiftung OFFSHORE-WINDENERGIE, VDMA Power Systems and WAB further explained: "Any further loss of time leads to additional job losses and endangers the international competitiveness of German companies. The know-how acquired in the offshore wind industry over the last decade is an important competitive edge in international competition that must be maintained. We still need a strong domestic market in order to remain successful in the constantly growing world market."
Creating long-term planning security for the expansion of renewable energies beyond 2030
Due to the long project cycles of offshore wind farms, long-term planning security is of great importance, so that the expansion of offshore wind energy up to 2035 and 2050 must be planned now, the industry representatives explained. Otherwise, there is a risk of bottlenecks and time distortions. However, the expansion paths for all renewable energy technologies would have to be reviewed in view of rising electricity requirements and the framework conditions adjusted accordingly. After the clarity of the phase-out of coal-fired power, we need an ambitious expansion of renewables to replace the missing electricity. According to industry representatives, offshore wind capacity of 30-35 GW will be required by 2035, and this will have to rise to over 50 GW by 2050.
Use EU Council Presidency and Presidency of the North Sea Cooperation for intensified and coordinated offshore wind development in Germany and Europe
Without high expansion volumes, the national and international climate targets could not be achieved. "With appropriate signals, Germany can present itself as a credible pioneer in climate protection, also against the background of its EU Council Presidency this year. Initiatives for a stronger networking of the North Sea countries in a joint offshore grid planning would also contribute to this", said the industry representatives. "The importance of large-scale coordinated offshore wind development in Europe has also been highlighted by the European Commission with its policy approach of the European Green Deal. For example, the EU considers it necessary to expand offshore wind energy to 450 GW by 2050 in order to achieve climate neutrality within the EU by 2050.
Germany should also promote these issues during its current chairmanship of the North Seas Energy Cooperation. The cooperation aims to promote the coordinated expansion of offshore wind in Europe in order to achieve cost advantages and energy efficiency gains.
Further promote grid expansion and grid utilisation as well as sector coupling and adapt the support system accordingly
In the area of network planning, onshore network expansion measures should be accelerated and all possibilities for better utilisation of existing networks should be exploited. In addition, regulatory hurdles in the area of the use of green electricity for sector coupling had to be removed. For this purpose, changes in the levy and allocation system in particular are necessary, the industry representatives said.
There must also be a further development of the support system in the near future. For example, according to the current legal situation, the zero-cent bids of the last tender round are the maximum price of all future tenders. This means that there is no possibility of differentiating future bids. In addition, the economic viability of some parks is no longer assured due to various factors, such as the increasing distance to the mainland. The necessary reform of the subsidy system would relieve electricity consumers in the high three-digit million range.
Using offshore wind energy for national hydrogen strategy
The industry also believes that an effective CO2 price is necessary with the aim of making the actual cost advantages of climate-neutral generation capacities visible. The initiated CO2 pricing in the transport and heating sectors is therefore a first important step towards creating a market for "green" hydrogen generated by renewable electricity. Offshore wind energy can significantly support the German government's national hydrogen strategy.
About the annual figures “Status of offshore wind energy expansion in Germany”
In the analysis of Deutsche WindGuard, the development figures for offshore wind energy have been collected separately from those for onshore wind energy since 2012. The clients are the Bundesverband Wind-Energie (BWE), the Bundesverband der Windparkbetreiber Offshore e.V., the Stiftung Offshore-Windenergie, VDMA Power Systems and WAB e.V.
About Bundesverband Windenergie e.V.
BWE, a member of Bundesverband Erneuerbare Energie [German Renewable Energy Federation (BEE)] with more than 20,000 members, represents the entire industry. Members of BWE include the mechanical engineering industry's suppliers and manufacturers; project developers; specialist jurists; the financial sector; companies from the fields of logistics, construction, service/maintenance and storage technology; electricity traders; network operators; and energy suppliers. As a result, BWE is the primary contact for politics and business, science and the media.
About Bundesverband der Windparkbetreiber Offshore e.V.
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 for representatives from politics and authorities at federal level on all questions concerning offshore wind energy.
About Stiftung OFFSHORE-WINDENERGIE
The German Offshore Wind Energy Foundation (Stiftung der deutschen Wirtschaft zur Nutzung und Erforschung der Windenergie auf See) was founded in 2005 on the initiative of the Federal Ministry of the Envi-ronment, Nature Conservation and Nuclear Safety (BMU). The foundation’s objective is to ensure the integration of offshore wind energy in the future energy mix of Germany and Europe and to promote its expansion in the interest of environmental and climate protection.
About VDMA Power Systems
VDMA Power Systems is a division of the non-profit German Engineering Federation (VDMA). The association represents the interests of manufacturers of wind turbines and hydroelectric plants, fuel cells, gas/steam turbines and plants and engine systems at home and abroad. VDMA Power Systems serves them all as an information and communication platform for all industry issues, such as energy policy, energy policy, legislation, market analyses, trade fairs, standardisation, and press and public relations.
WAB is the voice of Germany´s offshore wind industry and the onshore wind energy network in the Northwest region. WAB represents some 250 businesses and institutes active in all value-creation stages of the onshore and offshore wind energy sector, from manufacturers, planners, investors and municipal utilities, to power companies as operators of large wind farms on land and at sea. Shipping companies, experts in logistics, and port authorities, all working in the maritime industry and essential for the development of wind energy at sea, are also members of WAB.
Bundesverband WindEnergie e.V.
Bundesverband der Windparkbetreiber Offshore e.V.
VDMA Power Systems
In the run-up to the meeting of EU energy ministers in Brussels on 4th December the member countries of the North Seas Energy Cooperation met to promote the further development of joint offshore wind projects. Within the framework of the North Seas Energy Cooperation, ten European states (Belgium, Denmark, France, Germany, Ireland, Luxembourg, the Netherlands, Norway, Sweden, and the United Kingdom) and the European Commission are working to promote the coordinated and cross-border expansion of offshore wind energy and grid infrastructure in Europe. Germany will take over the chairmanship of the cooperation from Denmark from January 2020.
The ministers agreed in particular to improve the regulatory framework for cross-border offshore projects and to coordinate grid planning on land and sea more closely. In addition, the potential of offshore wind energy for Power-To-X applications is to be examined more closely.
WindEurope’s Baltic Taskforce has released a new report, ‘Boosting offshore wind energy in the Baltic Sea’, at the WindEurope Offshore Conference & Exhibition 2019 in Copenhagen, Denmark. The report ist meant to facilitate the exploitation of offshore wind energy potential in the Baltic Sea.
The report set out the steps required to exploit the potential of offshore in the Baltic Sea, which could reach 83 GW in the long term. Recommendations include that European countries provide a secure policy framework, access to wind sites, long-term revenue certainty and auction schedules. The report also details how important cross-border cooperation is in the Baltic Sea, where an interconnected market would help to overcome the issue of different power pricing zones with different patterns and technical standards. Grid development should also anticipate major growth in both offshore and onshore wind energy.
WindEurope’s Baltic Taskforce is a network of Industry representatives and National Associations promoting offshore wind energy in the Baltic States. The Taskforce regularly engages with governmental institutions – at both national and international level – and organises targeted workshops in the Baltic countries.
- Offshore wind energy expansion in the North Sea is crucial to achieve Paris' climate targets
- PROMOTioN partners call for far-reaching regional cooperation and coordination on offshore wind farm and grid infrastructure roll-out
- Solutions for overcoming regulatory differences have been identified, along with next steps for important stakeholders
Arnhem/Berlin, 6 November 2019. Countries around the North Sea need to implement a harmonized regulatory and economic framework to fully exploit the potential of a meshed offshore grid in the North Sea. This is a key conclusion of the EU-funded research project PROMOTioN (Progress on Offshore Meshed HVDC Transmission Networks).
Tim Meyerjürgens, COO at TenneT, stresses: “The development of a cross-border HVDC grid is one of the most promising opportunities for a sustainable energy future in Europe. TenneT is cooperating closely with other TSOs to develop the idea of a meshed and efficient offshore grid in the North Sea, which requires the creation of a common regulatory framework. PROMOTioN's research shows the way to make this happen.”
Similarly Ditlev Engel, CEO of DNV GL Energy, states: “The development of a reliable transnational European offshore transmission grid is a key enabler for a successful, cost effective and timely energy transition. This project delivered a great framework with regulatory and financial guidelines for national governments to speed up collaboration on the joint development of energy infrastructure such as offshore transmission grids. And that is really needed to accommodate the rise of renewables and meet our goals in the Paris Agreement.”
PROMOTioN’s latest report, “D7.9 Regulatory and financing principles for a meshed HVDC offshore grid”, summarizes the key findings on the design of a legal, regulatory and financing framework for cross-border HVDC offshore connections and provides recommendations for policy makers and other stakeholders to take appropriate measures to enable the first hybrid assets to be built.
In the short-term, it is recommended to
- improve the governance and the regulation of the internal market for (offshore) electricity by including in the Electricity Regulation a definition and substantive provisions on the regulation of a hybrid asset; assets which combine both interconnection and wind farm export functionalities
- provide innovation funding for novel ideas and technologies (e.g. novel energy storage techniques), and fund anticipatory investment which is cost-effective in delivering a meshed offshore grid (e.g. island hubs)
- support early communication between developers, authorities and other key stakeholders about new wind farm projects to enable early identification of meshed offshore grid development needs. Opportunities for wider stakeholder involvement in the decision making process should also be identified
- formalize of the Cross-Border Cost Allocation (CBCA) as a binding contract between the involved parties with a clear specification of non-compliance penalties. CBCA coordination is one of the most important pillars in the economic framework and should be promoted for complementary projects.
Long-term regulatory stability
To provide long-term regulatory stability, PROMOTioN recommends Member-States, third countries and the EU to consider the adoption a North Sea treaty, containing the aims and principles of the offshore grid. This treaty would provide a stable governance and decision-making structure, a common interpretation of maritime law, and processes for long-term wind farm and grid planning (geographical and temporal, in a similar way as the Ten-Year Network Development Plan process). Moreover, it would allow for formal operational regulatory governance, fixing the terms of cooperation between National Regulatory Authorities and their decision-making process regarding cross-border links.
Financing the infrastructure
The long-term legal and regulatory stability is especially important for financing the offshore grid. Investors rely on stable and predictable conditions which includes an assignment of clear roles and responsibilities among the relevant actors. Moreover, equity provision for the required offshore grid investment volumes needs to be facilitated. This can be realized in several ways that are presented in the report. Additionally, it is essential that transmission owners’ income is not based on congestion rents, but is regulated with a long-term predictable revenue stream which creates certainty to investors and thus, attracts investments in offshore grid assets.
The published report summarizes the crucial elements for defining a regulatory framework and identifies the conditions necessary to support the financing of a meshed offshore grid. The report can be downloaded here. More detailed information can also be found in other reports on the Legal Framework, Economic Framework and Financial Framework. All public PROMOTioN reports are available at: https://www.promotion-offshore.net/results/deliverables/.
During the WindEurope Offshore 2019 conference and exhibition in Copenhagen from 26 – 28 November 2019, project experts invite to a side event and will elaborate on details regarding the policy recommendations as well as give an outlook on the deployment plan for meshed offshore grids until 2050. More information and registration here.
The recommendations were developed as part of work package 7 of the ‘Progress on Offshore Meshed HVDC Transmission Networks’ (PROMOTioN) project. The PROMOTioN project aims to tackle technical, regulatory, financial and legal challenges to the implementation of offshore meshed HVDC transmission networks. The consortium consists of 33 partners ranging from all major European HVDC equipment manufacturers, TSOs and academia to industry associations, research groups, test labs and consultants. This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 691714.
If you wish to have further information on the topic, feel free to contact Sebastian Menze, P: +49 (0) 4451 9515 205, E: firstname.lastname@example.org
Today, the European Commission adopted the fourth list of Projects of Common Interest (PCI) for a connected European energy grid, fit for the future providing clean, affordable and secure energy for Europeans.
PCIs are cross border infrastructure projects that link the energy systems of EU Member States.They are intended to help the EU achieve its energy policy and climate objectives: the long-term decarbonisation of the economy in accordance with the Paris Agreement. PCI's are projects that have a significant impact on energy markets and market integration in at least two EU countries, they boost competition on energy markets and foster the EU's energy security by diversifying sources, finally, they contribute to the EU's climate and energy goals by integrating renewables.
The PROMOTioN project will be present at the European WindEUROPE Offshore exhibition and conference from 26 to 28 November in Copenhagen. Two side events will present important regulatory and technological interim results. The aim of the first side event is to examine the regulatory and economic conditions necessary for the development of a bequeathed offshore grid. From a technical point of view, the aim of the second side event is to present innovative components such as circuit breakers and gas-insulated switchgear. Within the framework of the EU project "PROMOTioN", in which the foundation is significantly involved, the positive effects associated with the development of a joint offshore power grid infrastructure - especially on the basis of a meshed high-voltage direct current transmission technology (HVDC) - will be analysed.
Bremerhaven/Berlin, 9 October 2019 - At the invitation of Lower Saxony's Environment Minister Olaf Lies, the northern states, representatives of the federal government and industry met on 7 October in Hanover for a joint conference on the future of the offshore wind industry. Olaf Lies explained that there is a great need for action after the German government had set clear goals in motion with the climate package. This need for action is acute from the point of view of WAB and the Offshore Wind Energy Foundation.
The economic significance and potential of the onshore and offshore wind industry must finally be recognised and taken into account politically. According to the industry representatives, the rapid implementation of the special contribution of up to 2 gigawatts written down in the coalition agreement can at least mitigate the "thread break" that has already occurred in the domestic expansion of offshore wind power and safeguard threatened jobs. The Federal Government and the Bundestag are now called upon to make the necessary legal adjustments to the "EEG" and "WindSeeG" in the short term. Without this special contribution, grid connection capacities will not be fully utilised for several years, which makes little economic sense. Since the current imbalance of offshore companies already has an influence on the current project implementation, it is important to find solutions as quickly and unbureaucratically as possible together with politicians and industry.
Hydrogen production with wind power can play an important role for the energy system transformation, but is not taken into account in the draft of the Federal Climate Protection Act. A faster expansion of wind power is essential for hydrogen production on an industrial scale.
The draft law does not take into account the current situation, which is characterised by insolvencies, job cuts and declining added value for the domestic wind industry. Andreas Wagner, Managing Director of the Offshore Wind Energy Foundation, explains: "In addition to short-term measures, we also need a significant increase in offshore wind capacity beyond 2030, with a clear perspective up to 2040 and 2050. Since September 2017, the industry and the coastal countries have been advocating a capacity of at least 30 GW by 2035. This corresponds to an increase of 2 GW per year after 2030."
"Taking into account the development of new storage technologies and sector coupling, WAB together with Bremen's state policy is calling for an offshore expansion path of 35 gigawatts by 2035," adds Heike Winkler, Managing Director of WAB. According to a study by the institute wind:research, the number of employees could be increased to 35,000 jobs with an expansion path of 40 GW, which would also gain acceptance among the population.
The WAB and the Offshore Wind Energy Foundation appraise the meeting initiated by Lower Saxony's Environment Minister Olaf Lies as an important step towards the further implementation of the Climate Cabinet's resolutions: "We need a strong alliance of government and business to preserve the industrial policy opportunities in Germany and make the domestic market more attractive again," said the two organisations. There must be a clear roadmap for an energy turnaround. Over the past two decades, the "EEG" has enabled a rapid development of the onshore and offshore wind industry. With a view to the global competition for the supplier industry and further export opportunities, it is also important to maintain and expand this position through reliable framework conditions.
Andreas Wagner | Stiftung OFFSHORE-WINDENERGIE | 030 27595 241 | 01520 89908 23 | email@example.com
Heike Winkler | WAB e.V. | 0471 39177 11 | 0151 158439 24 | firstname.lastname@example.org
The German OFFSHORE WINDENERGIE Foundation welcomes the decision of the Climate Cabinet on Friday to increase the expansion targets for offshore wind energy to 20 GW by 2030: "Increasing the expansion targets is an important signal for climate and industrial policy. In this way, additional jobs can be created while protecting the climate at the same time," said Andreas Wagner, managing director of the foundation. "The target of 20 GW by 2030 corresponds to the minimum demand of the industry, the trade unions and all North German coastal countries since 2017. This gives the offshore sector with its almost 25,000 employees a clear expansion perspective for Germany as a location for industry". Wagner went on to say: "Nevertheless, further ambitious measures by the Federal Government are needed to increase the share of renewable electricity to 65 percent by 2030 and to achieve more C02 savings in the other sectors as well".
Wagner explained: "The Bundestag, the Federal Government and the authorities must now quickly create the legal framework to get the additional expansion of offshore wind energy underway. The German OFFSHORE-WINDENERGIE foundation will play a constructive role in this."
Wagner continued: "But we also need to increase offshore wind capacity beyond 2030. For example, the industry and the coastal countries need a capacity of at least 30 GW by 2035. In addition, the industry is still waiting for the special contribution Offshore Wind promised in the coalition agreement. Unfortunately, this was not decided on Friday".
On 20th September the British government announced the winners of the CfD contracts for offshore wind farms of the "Round 3" projects. A total of 5,466 MW were awarded to 6 projects, the average price for all projects being 40.67 GBP/MWh (4.6 cents/kWh), with grid connection in the UK being part of the scope of the project. This represents a further cost reduction of around one third compared to the last round in 2017.
Four projects with a total capacity of 5,000 MW will be implemented at Doggerbank in the North Sea by SSE, Statoil and Innogy. The two remaining projects are off the coast of Scotland (Seagreen Phase 1 of SSE with 454 MW and the demo project Forthwind with 12 MW).