Costs for offshore wind energy may rise in Germany - report

Nov 25, 2013 - Angela Merkel's CDU and the Social Democrats (SPD) proposal for the two-year extension of the incentives for offshore wind energy may lead to costs for consumers of up to EUR 4.5 billion (USD 6bn) by 2020, German news agency DPA said on Friday.

The negotiating parties suggested on Thursday, in case of a new government coalition, to extend the guaranteed feed-in tariff of EUR 0.19 per kWh for offshore wind farms over the first eight years of operation by two years to 2019, thus ensuring the successful offshore wind capacity expansion targeted at 6.5 GW by 2020.

The Federation of German Consumer Organisations VZBV's energy expert, Holger Krawinkel, has calculated that in case of a prolongation of the offshore wind power incentives, the electricity price for consumers will rise to EUR 30 billion from EUR 23.5 billion, estimated for 2014, in a year.

Together with the electricity transport costs, consumers would have to pay EUR 75 additional expenses for the offshore generated power annually, he added. According to Krawinkel, electricity generation by onshore wind energy costs a fifth of the offshore power.

The offshore wind energy sector, however, welcomed the proposal as the extension of the promotion would bring security to investors and many projects currently on hold would be completed. According to the minister of environment, Peter Altmaier, the extension will cause investments in the range of EUR 12 billion.

(EUR 1.0 = USD 1.354)

Choose your newsletter by Renewables Now. Join for free!