Germany authorised low cost offshore wind farms beyond 2020

18/04/2017 13:05 Wind

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Germany authorized 1,490 megawatts (MW) of offshore wind capacity on the German North Sea at lower than expected costs, proving that the renewable energy source can operate with lower support payment than it presently gets.

The projects which are likely to be implemented beyond 2020 were cleared at an average price needing a subsidy of 0.44-euro cent per kilowatt-hour (kWh) of power, according to the regulator, Bundesnetzagentur.

 

Denmark's DONG Energy and Germany's EnBW won the first public bidding.

 

Under the existing tariffs, operators of offshore wind receive a subsidy of 12 cents/kWh. The power price paid by final consumers is around 30 cents/kWh, one of the highest in Europe.

 

Bundesnetzagentur president Jochen Homann, whose job it is to reduce costs for consumers, declared that the auction process has unlocked cost-cutting potential in the medium and long term that will result in an unforeseen reduction of support payments.

 

In a second round next year, the authority will put to auction approval for additional 1,610 MW.

 

DONG announced it had been granted three projects with scheduled commissioning in 2024 and that two of them, OWP West and Borkrum Riffgrund West 2, each 240 MW, will obtain no subsidies on top of the wholesale power price. Meanwhile, the third project, the 110 MW Gode Wind 3 project, was offered on a bid price of 6 cents per kWh.

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