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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland) -- Germany is backing the drive for more offshore wind by introducing a bill that will see consumers and grid operators being charged more if there are any more serious delays to getting windfarms built and connected to the grid.
The new bill has the backing of the Cabinet of Ministers and is seen as vital to overcoming the chronic delays plaguing offshore windfarm projects, especially getting them grid connected. Energy majors including E.ON AG (OTC:EONGY) (Dusseldorf, Germany and RWE AG (OTC:RWEOY) (Essen, Germany) have complained openly about the problems with grid connection, which is threatening to derail the country's goals of having 10,000-megawatts (MW) of new offshore windfarms deployed by 2020.
Last month, RWE announced that it was postponing its first German offshore wind project, blaming uncertainty over ongoing grid connection issues with the government. The company was due to make a decision on the 295 MW Innogy Nordsee 1 Windfarm this year but RWE has now pushed it back until sometime in 2013, claiming it is waiting for the government to introduce legislation that will guarantee compensation for energy companies if there is a delay in connecting windfarms to the electricity grid. For additional information see July 31, 2012, article - RWE Delays Nordsee Offshore Project.
The new bill will see consumers paying up to 0.25 cents per kilowatt hour (KWh) if there are delays to offshore power reaching the grid. There will also be fines imposed on the grid operators.
The energy companies blame grid operator TenneT TSO BV (Arnhem, Netherlands) for many of the delays in linking facilities in the German North Sea to the grid.
German Economics Minister Philipp Rösler (FDP) claimed that not knowing who would pay for delays means that "we lacked investments in wind parks and grid projects. With this regulation, the likelihood that liability losses will arise is now minimised."
He added: "The cost of electricity customers remain low. It will be increased to a levy of 0.25 cents per kilowatt hour for compensation if the operator of an offshore wind farm stands without a network connection or the network connection is disrupted long-term."
Speaking of its plans to delay the Innogy Nordsee 1 windfarm last month, RWE CEO, Peter Terium explained: ."As long as the liability issue of the network operators for delays and failures is not regulated, I will not propose any further projects to the Board of RWE AG, since they would have no chance of approval".
In June, it was revealed that Germany will need to invest around 20 billion ($25 billion) to upgrade its electricity grid to support its shift away from nuclear power towards more renewable energy. At the government's request, the country's four leading grid operators 50Hertz (Berlin, Germany), Amprion (Dortmund, Germany), TenneT TSO BV (Arnhem, Netherlands) and TransnetBW (Stuttgart, Germany) collaborated on an upgrade plan. The government is expected to pass the grid expansion law by the end of this year and the expansion work is expected to be carried out between 2013 and 2022. For additional information see June 7, 2012, article - Germany Plans 20 Billion Grid Upgrade.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
The new bill has the backing of the Cabinet of Ministers and is seen as vital to overcoming the chronic delays plaguing offshore windfarm projects, especially getting them grid connected. Energy majors including E.ON AG (OTC:EONGY) (Dusseldorf, Germany and RWE AG (OTC:RWEOY) (Essen, Germany) have complained openly about the problems with grid connection, which is threatening to derail the country's goals of having 10,000-megawatts (MW) of new offshore windfarms deployed by 2020.
Last month, RWE announced that it was postponing its first German offshore wind project, blaming uncertainty over ongoing grid connection issues with the government. The company was due to make a decision on the 295 MW Innogy Nordsee 1 Windfarm this year but RWE has now pushed it back until sometime in 2013, claiming it is waiting for the government to introduce legislation that will guarantee compensation for energy companies if there is a delay in connecting windfarms to the electricity grid. For additional information see July 31, 2012, article - RWE Delays Nordsee Offshore Project.
The new bill will see consumers paying up to 0.25 cents per kilowatt hour (KWh) if there are delays to offshore power reaching the grid. There will also be fines imposed on the grid operators.
The energy companies blame grid operator TenneT TSO BV (Arnhem, Netherlands) for many of the delays in linking facilities in the German North Sea to the grid.
German Economics Minister Philipp Rösler (FDP) claimed that not knowing who would pay for delays means that "we lacked investments in wind parks and grid projects. With this regulation, the likelihood that liability losses will arise is now minimised."
He added: "The cost of electricity customers remain low. It will be increased to a levy of 0.25 cents per kilowatt hour for compensation if the operator of an offshore wind farm stands without a network connection or the network connection is disrupted long-term."
Speaking of its plans to delay the Innogy Nordsee 1 windfarm last month, RWE CEO, Peter Terium explained: ."As long as the liability issue of the network operators for delays and failures is not regulated, I will not propose any further projects to the Board of RWE AG, since they would have no chance of approval".
In June, it was revealed that Germany will need to invest around 20 billion ($25 billion) to upgrade its electricity grid to support its shift away from nuclear power towards more renewable energy. At the government's request, the country's four leading grid operators 50Hertz (Berlin, Germany), Amprion (Dortmund, Germany), TenneT TSO BV (Arnhem, Netherlands) and TransnetBW (Stuttgart, Germany) collaborated on an upgrade plan. The government is expected to pass the grid expansion law by the end of this year and the expansion work is expected to be carried out between 2013 and 2022. For additional information see June 7, 2012, article - Germany Plans 20 Billion Grid Upgrade.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, and eight offices outside of North America, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.
