Offshore Wind Deployment in Germany

The last tenders for offshore wind capacity in Germany ended with surprises: some projects no longer require subsidies. This was enabled by the substantial technology learning, economies of scale and cost reductions as well as the policy learnings achieved in Europe during the last two decades.

The German experience shows that policy makers need to find the balance between policy adaptability and strategic continuity. While there were significant regulatory changes through the transition to auctions and centralized pre-development of offshore wind sites, the political consensus on the goals of the energy transition persisted. This created positive conditions for private investment. But despite lower costs and some projects not requiring subsidies anymore, policy support is still necessary, especially in regions without the corresponding supply chain and effects of economies of scale.

The short study includes an analysis of the trends, challenges and drivers of offshore wind deployment in Germany as well as a summary of policy lessons focusing on target setting, support schemes, maritime spatial planning and grid connection. The short study was produced on May 16, 2019 as an accompaniment to the New England-Germany Energy Transition Forum in Cambridge, Massachusetts.

This early June 2020 update comes in advance of a (virtual, due to the ongoing pandemic) delegation trip of US experts in regards to offshore wind deployment in Germany. The update includes the “More Electricity from the Sea" agreement between the German Federal Government, the five coastal States and the three affected transmission system operators from May 2020 as well as the proposal tabled by the Federal Government to amend the offshore wind law from June 3, 2020.

Further publications in the series

• Netzgekoppelte Speicher in Kalifornien – Analyse der Rahmenbedingungen für netzgekoppelte Speicher in Kalifornien (September 2019)
• Wasserstoffpolitik in Kalifornien (September 2019)
• Die Wasserstoffdebatte in Australien (August 2019)
• Überblick über die australische Energiepolitik (Aktualisierung Juli 2019)
• Energiepolitik in der Region New England (Mai 2019)
• Der größte US-Stromsystembetreiber PJM – Einführung und aktuelle Debatten (Oktober 2018)
• Power systems in the 2020s: What can Germany and the PJM region learn from each other? (Oktober 2018)
• Community Choice Aggregation – Kommunen in Kalifornien und anderen US-Bundesstaaten werden als CCA zum Stromversorger (August 2018)
• Auf dem Weg zur "National Energy Guarantee" – Aktueller Diskussionsstand um ein neues Instrument der australischen Energie- und Klimapolitik (Juni 2018)
• Übersicht über die Energiepolitik und -wirtschaft in Texas (Juni 2018)
• Die Debatte zur Grid Resiliency Pricing Rule - Strommarktpolitik unter Präsident Trump (Januar 2018)
• Übersicht über die Energiepolitik und -wirtschaft in Kalifornien (September 2017)
• Überblick über die kanadische Energiepolitik (Juni 2017)
• Überblick über die australische Energiepolitik (März 2017)
• Stromausfälle in South Australia in den Jahren 2016 und 2017 (Februar 2017)
• Kalifornien und Deutschland: Energiepolitische Zusammenarbeit mit den Nachbarstaaten im Stromsektor (Dezember 2016)