Germany Could Increase EUR 5 Billion Offshore Wind Program

The German government is negotiating increase of financial support for the grid operators that are working on connections, reported Bloomberg.

The negotiations are a part of an effort to fight delays in connecting turbines to the power grid. As a result, the state may increase a program worth EUR 5 billion through KfW Group in order to enhance the offshore wind industry’s status.

The delays in grid connections are setting back the plan to transfer to a nuclear-free energy mix based on 80 percent renewable sources by 2050.Germanyis trying to have 25 GW of turbines in its waters by 2030.

Environment Minister Norbert Roettgen said that the aim is to make the capital market stronger with the help of the KfW, because the grid operators cannot finance multi-billion projects alone. He added that the government is considering the possibility of increasing the program, which was opened by the KfW last year. The government will make a decision on the matter this summer.

However, Roettgen didn’t specify whether this meant increasing the fund’s size or whether the fund would be opened to support projects on the grid, which are currently uncovered.

According to Wolfram Schweickhardt, a spokesman for the KfW bank, negotiation with the government could result in opening the fund for grid projects by increasing its value or by using the existing amount. “While no decision has been made, nothing is being ruled out,” he said.

Siemens AG cut its annual profit forecast for the third time in five years after it booked EUR 481 million in extra costs from delays in connecting wind farms to the grid this year. EON AG and RWE AG have threatened to stop the investment in wind projects until all obstacles are removed.

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Offshore WIND staff, April 27, 2012; Image: Alpha Ventus