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CfD regime for offshore wind in Germany

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Ascherfeld Nicolaus
Dr Nicolaus Ascherfeld

Partner

Hamburg

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Landshut Max
Max Landshut

Partner

Hamburg

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Meister Moritz
Dr Moritz Meister

Senior Associate

Hamburg

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26 May 2022

The new German government has ambitious targets for offshore wind.

It aims at more than 70GW of offshore wind by 2045. At least 30GW of offshore wind capacity shall be installed by 2030 already. Less than 10GW are currently in operation. This means that more than 20GW of offshore wind capacity needs to be commissioned in little more than eight years. Hence, the German government plans offshore wind tenders of up to 9GW in 2023 and 2024, 5GW in 2025 and 2026, followed by 4GW each year for the next decades.

However, the current tender and support regime for offshore wind in Germany struggles to cope with zero subsidy bids and high electricity prices. Against this background, new legislation has been proposed.

In addition to other substantial changes, it shall introduce a contract-for-difference regime, something that the offshore wind industry has long been demanding.