Juwi calls for longer green project deadlines in Germany amid supply chain woes
Solar park Bettingen in Rhineland-Palatinate, Germany. Image by Trianel. Source: https://www.trianel.com/
The German government should extend the deadlines for the implementation of subsidised green energy projects as the persistent supply chain disruptions and prolonged delivery times are jeopardising many initiatives, according to renewables developer Juwi AG.
Developers of renewable energy projects are currently running the risk of being fined for their inability to implement projects within the timeframe set by the law because the delivery of components, especially for substations, transformers, and transfer stations, currently takes about two years. This period is longer than the deadlines granted for the realisation of the projects, Juwi said on Wednesday.
The troubles caused by disrupted supply chains threaten not only the completion of projects but put also the federal government's ambitious expansion goals at risk, Juwi explained.
To solve the problem, the German developer proposes that the implementation deadlines should be extended by 12 months and the Federal Network Agency (BNetzA) should be authorised to adjust these deadlines in the future without changing the Renewable Energy Act (EEG).
Under the current law, solar projects awarded by the regulator must be implemented within 18 months while the deadline for onshore wind is 24 months.
Juwi noted further that project developers bear disproportionate risk because the current conditions are forcing them to secure the financing and order the components before they are awarded a contract by the Federal Network Agency. However, the majority of market participants are able to get financing only after securing subsidies.
Therefore, Juwi is calling on the German government to decide on a deadline extension before June 23 when the Bundestag will vote on the already planned amendments to the EEG.
Anna is a DACH expert when it comes to covering business news and spotting trends. She has also built a deep understanding of Middle Eastern markets and has helped expand Renewables Now's reach into this hot region.