RWE Innogy sees investments in offshore wind parks at risk - report
Sep 27, 2013 - RWE Innogy, the renewable energy unit of German utility RWE (ETR:RWE), sees increasing risks for investments in new offshore wind parks due to the unclear subsidy system after 2017 and calls on the new government for actions, daily Westdeutschen Allgemeinen Zeitung said on Friday.
According to the current renewable energy act, the state provides fixed feed-in tariffs of EUR 0.19 (USD 0.26) per kWh for the first eight years of operation of an offshore wind farm, connected to the grid by 2017.
RWE Innogy's CEO, Hans Buenting, told the newspaper that the offshore sector should be provided with security in planning. In order to invest in new projects, which take three to four years to be developed, the industry needs clarity on the matter.
In case of subsidy cuts under the renewable energy act (EEG), new offshore wind farms will no longer be profitable. The decline in investments would hinder innovation and cost reductions from the introduction new wind power technology, the CEO added.