That is an extract from the newest version of the report “Offshore Wind: Worldwide Regulatory Framework in Chosen International locations, fifth Version 2024.” by The World Discussion board Offshore Wind. This extract particularly focuses on Germany and the Netherlands.
Germany
Present state of offshore wind growth and initiatives: At present, Germany is without doubt one of the world’s largest markets within the offshore wind vitality sector. Not solely has it the world’s third largest put in offshore wind capability, however additionally it is house to a number of key gamers within the international market. In 2023, wind vitality continued to be the prevalent supply {of electrical} energy in Germany, adopted by brown coal, photo voltaic, pure fuel, biomass, black coal, hydropower and nuclear energy. Public electrical energy era from offshore wind farms amounted to about 23.5 TWh and 116.3 TWh from onshore wind farms (and collectively 139.8 TWh out of a complete of 435.8 TWh of public electrical energy era). This constitutes an general improve of 14.1 % in comparison with the earlier yr, resulting in a share of 32% for wind generated electrical energy: 5.4 % by offshore wind and 26.7 % by onshore wind. Whereas 38 offshore wind turbine turbines (OWTGs) with a nominal capability of 342 MW had been put in in 2022, 2023 skilled a slight lower in offshore wind energy installations with solely 27 new OWTGs producing 257 MW coming on-line. Through the first half of 2024, 36 OWTGs with a nominal capability of 377 MW had been put in and began to feed-in into the grid and 25 OWTGs with a capability of 271 MW have been put in however not but began to feed-in.
Anticipated market dynamics till 2030 and past: Contemplating that the event of the primary eight GW of offshore wind turbine capability took greater than 13 years from the primary offshore wind farm commencing operation in 2009, these enlargement plans signify a major and fast progress for the German market within the upcoming years. Furthermore, the newest draft replace of the positioning growth plan expects that 60 GW will probably be put in by 2037. To understand this potential, in 2022 Germany considerably revised the laws in regards to the tender rounds with which manufacturing websites are allotted to builders of offshore wind farms. In 2023, Germany signed the Ostend Declaration of Vitality Ministers on the North Seas as Europe’s Inexperienced Energy Plant wherein it, together with Belgium, Denmark, France, Eire, Luxembourg, Norway, the Netherlands, and the UK dedicated itself to a collection of vitality initiatives. In complete, these 9 international locations purpose to put in 300 GW of offshore wind energy capability within the North Sea by 2050.
Regulatory framework
Federal degree: The principle federal authorized devices setting the regulatory setting for offshore wind vitality are the Offshore Wind Vitality Act, the Renewable Energies Act and the Vitality Business Act. The Renewable Energies Act encompasses rules in regards to the general growth of renewable vitality of all sources, relevant feed-in tariffs, and market premiums. The Vitality Business Act primarily regulates points concerning the operation and entry to the electrical energy grids. With respect to offshore wind vitality, this act contains guidelines on the obligation of the transmission system operators to assemble and function the grid connection programs for OWTGs and compensations in case of a failure to take action. The executive authorities competent for the execution of the above-mentioned authorized acts are, primarily, the Federal Maritime and Hydrographic Company which is an authority related to the Federal Ministry of Digital and Transport and inter alia concerned within the particular planning and web site growth.
State degree: If put in inside the territorial sea, the development and operation of OWTGs (and different services) is topic to a allow issued by the competent state authorities primarily based on the allowing regime of the (basic) Federal Immission Management Act, not the Offshore Wind Vitality Act.
Scheme in relation to exclusivity to assemble, personal, and function a undertaking, in addition to to obtain feed-in revenues
Exclusivity: Below the German regulatory regime, the profitable bidder within the public tender process is granted the unique proper to assemble, function and (doubtlessly) obtain subsidies for OWTGs. In accordance with the Offshore Wind Vitality Act, the bidder who receives the award for a selected offshore wind growth web site acquires unique proper to participate within the process for the planning approval or planning allow that are the varieties of permits required for the development and operation of OWTGs.
Totally different tender procedures relying on pre-investigation: The 2023 revision of the Offshore Wind Vitality Act has launched materials modifications to the tender regime for offshore wind websites. To date, a “central” mannequin utilized beneath which the German federal state was accountable not just for the spatial planning but additionally for the pre-examination of attainable set up websites.
Web site Improvement Plan: In a primary step, the Federal Maritime and Hydrographic Company (BSH) develops a “Web site Improvement Plan” for the EEZ (and if agreed with the states additionally for the territorial sea) which is the primary (spatial) planning instrument in respect of the OWTGs and GCSs. This Web site Improvement Plan determines the zoning rules primarily with respect to OWTGs and GCSs, together with determinations of eligible zones (Gebiete) and specific websites inside zones, sequence of participation of web sites within the tender procedures; goal set up years for the OWTGs within the specific websites or for the related GCS, areas of converter platforms and many others.
Web site pre-investigation: If the positioning growth plan determines {that a} pre-investigation of a selected web site will probably be performed, the pre-investigation will probably be performed beneath the accountability of the related authority with the goal to (i) assess the suitability of the websites, (ii) assess sure points that are unbiased from the precise undertaking design to be able to speed up.
Tender course of
(i) Websites with out pre-investigation: Whereas the primary stage of the tender stays unchanged from the method previous to the 2023 revision of the Offshore Wind Vitality Act, the reform launched an public sale as a second stage (“dynamic tender process”).
(ii) Websites with pre-investigation: Following the 2023 reform of the Offshore Wind Vitality Act, the analysis of bids for centrally pre-investigated websites doesn’t solely take into consideration the financial bid worth in Euro per MW, which displays the cost to be made by the bidder to the state, but additionally 4 extra standards.
(iii) Delays and results of delays Bidders are sure by sure undertaking realisation milestones. If delays of the realisation of the undertaking happen, the bidder is topic to penalties payable to the competent transmission system operator (TSO).
(iv) Safety Bidders are required to offer safety to the Federal Community Company which secures potential claims of the TSO for penalties.
(v) Bid quantity The bid quantity (put in capability) should correspond to quantity tendered for the precise web site.
Incentives for investments: Contemplating that pre-investigated websites are not eligible for receiving public subsidies, the help scheme of the Renewable Energies Act would apply in precept solely applies for OWTGs on websites with out pre-investigation.
Timeframe for the realisation of the undertaking: The profitable bidder is topic to a undertaking realisation timeline (cf. sec. 81 of the Offshore Wind Vitality Act) beneath which sure milestones as much as reaching the OWTG’s technical readiness for operation must be met.
Public regulation and regulatory permits
Offtake, remuneration and tariff scheme: Below the Renewable Energies Act, a so-called “direct advertising and marketing” idea applies, which signifies that the produced vitality is offered to a 3rd occasion, until the electrical energy is used within the direct neighborhood of the OWTG and isn’t transmitted by way of the grid. In additional sensible phrases which means that the produced electrical energy is offered beneath an influence buy settlement (PPA).
Penalties of a undertaking delay: The results of a delayed undertaking completion with regard to the offtake regime generally rely on the respective provisions within the PPA. Normally, a delay of the undertaking or OWTGs would, after elapse of a grace interval, entitle the offtake to demand an inexpensive adjustment of the value.
Grid and Grid Connection: In accordance with the Offshore Wind Vitality Act, acceptance of the bid offers the profitable bidder receives the precise (i) to get a bodily connection of the OWTGs with a selected GCS and (ii) to make use of the connection capability, each restricted to the quantity of capability accepted with the bid.
Netherlands
Present state of offshore wind growth and initiatives: The Netherlands goals that by 2050 all vitality used within the Netherlands comes from sustainable vitality sources. In efforts to succeed in this objective, it’s agreed within the Local weather Settlement that in 2030 49 TWh (roughly 11 GW) of vitality is generated by wind energy. In 2022, the Dutch authorities raised the goal for offshore wind capability from 11 to 21 GW by 2030/2031. In April 2024, the Dutch Minister for Local weather and Vitality knowledgeable that there’s a delay and that offshore wind capability of 21 GW is predicted to be reached by 2032. There are presently 10 lively wind farm zones within the Dutch North Sea. As soon as the goal of 21 GW is reached, wind vitality is predicted to offer roughly 75% of complete electrical energy within the Netherlands. It’s famous, nevertheless, that electrical energy is round 20% of complete vitality use whereas round 80% of vitality use within the Netherlands is from coal, oil and fuel. The Dutch authorities extremely prioritises the event and building of recent offshore wind farms. On the identical time, the federal government additionally recognises that the North Sea is topic to intensive use, together with for fisheries, is without doubt one of the busiest worldwide seas on the earth and requires ecological restoration and nature conservation. The Netherlands was set to generate 4.5 GW of wind vitality in 2023 in keeping with the Local weather Settlement in 2013. The precise capability that was reached in 2023 was nevertheless 4.7 GW which was reached in time.
Offshore wind promotion system: The Netherlands Enterprise Company conducts the offshore wind vitality subsidy and permits tenders on behalf of the Dutch State. In tenders with subsidy, the subsidy comes from the subsidy programme Stimulation of Sustainable Vitality Manufacturing of the State. Manufacturing of renewable vitality isn’t all the time worthwhile as a result of the price worth of renewable vitality could also be increased than the market worth. SDE++ compensates OWFs for the distinction between the price worth and the market worth for a hard and fast variety of years.
Public regulation and regulatory permits: The spatial planning of OWFs within the Netherlands is especially topic to the OWEA and the Water Act. Within the Nationwide Water Program 2022-2027, which finds its authorized foundation within the Water Act, the Minister of Financial Affairs and Local weather Coverage can appoint designated areas that are deemed appropriate for OWFs. A so-called Wind Farm Web site Choice may be adopted for the event of an OWF in a delegated space. There have been certainly web site selections for OWFs IJmuiden Ver Alpha and Beta and there can even be web site selections for OWFs IJmuiden Ver Gamma and Nederwiek I.
Offtake, remuneration and tariff scheme: The event of an OWF includes loads of prices. The event course of takes time and requires many research, procedures and consultations with native residents and different events. There are building prices of the OWF, the acquisition of the wind generators, the grid integration, and the prices as soon as the wind farm is up and operating. Using long-term contracts for the acquisition or sale of electrical energy is growing. A PPA is meant to cut back monetary dangers by offering for a long-term worth settlement with a buyer. As there isn’t a laws on these PPAs, no particular stipulations for the content material of such PPAs exist. Nonetheless, in apply, there’s a sure established market apply as to the same old and required contents. Moreover, the Electrical energy Act and the Offshore Grid Compensation Decree set out the legal responsibility regime relevant to the OWF proprietor in case of a delay within the completion of the offshore grid or the unavailability of the offshore grid.
Planning and building of the grid connection system: Based mostly on the Electrical energy Act, the Dutch authorities appointed the corporate TenneT as onshore and offshore transmission system operator. TenneT designs, constructs, and operates the onshore grid connection. TenneT shall enter right into a Realisation Settlement and a Connection and Transmission Settlement with the OWFs. Within the Realisation Settlement, the phrases and situations governing the realisation of the connection of the OWF to the Offshore Transformation System are laid down.
Entry the report right here
That is an extract from the newest version of the report “Offshore Wind: Worldwide Regulatory Framework in Chosen International locations, fifth Version 2024.” by The World Discussion board Offshore Wind. This extract particularly focuses on Germany and the Netherlands.
Germany
Present state of offshore wind growth and initiatives: At present, Germany is without doubt one of the world’s largest markets within the offshore wind vitality sector. Not solely has it the world’s third largest put in offshore wind capability, however additionally it is house to a number of key gamers within the international market. In 2023, wind vitality continued to be the prevalent supply {of electrical} energy in Germany, adopted by brown coal, photo voltaic, pure fuel, biomass, black coal, hydropower and nuclear energy. Public electrical energy era from offshore wind farms amounted to about 23.5 TWh and 116.3 TWh from onshore wind farms (and collectively 139.8 TWh out of a complete of 435.8 TWh of public electrical energy era). This constitutes an general improve of 14.1 % in comparison with the earlier yr, resulting in a share of 32% for wind generated electrical energy: 5.4 % by offshore wind and 26.7 % by onshore wind. Whereas 38 offshore wind turbine turbines (OWTGs) with a nominal capability of 342 MW had been put in in 2022, 2023 skilled a slight lower in offshore wind energy installations with solely 27 new OWTGs producing 257 MW coming on-line. Through the first half of 2024, 36 OWTGs with a nominal capability of 377 MW had been put in and began to feed-in into the grid and 25 OWTGs with a capability of 271 MW have been put in however not but began to feed-in.
Anticipated market dynamics till 2030 and past: Contemplating that the event of the primary eight GW of offshore wind turbine capability took greater than 13 years from the primary offshore wind farm commencing operation in 2009, these enlargement plans signify a major and fast progress for the German market within the upcoming years. Furthermore, the newest draft replace of the positioning growth plan expects that 60 GW will probably be put in by 2037. To understand this potential, in 2022 Germany considerably revised the laws in regards to the tender rounds with which manufacturing websites are allotted to builders of offshore wind farms. In 2023, Germany signed the Ostend Declaration of Vitality Ministers on the North Seas as Europe’s Inexperienced Energy Plant wherein it, together with Belgium, Denmark, France, Eire, Luxembourg, Norway, the Netherlands, and the UK dedicated itself to a collection of vitality initiatives. In complete, these 9 international locations purpose to put in 300 GW of offshore wind energy capability within the North Sea by 2050.
Regulatory framework
Federal degree: The principle federal authorized devices setting the regulatory setting for offshore wind vitality are the Offshore Wind Vitality Act, the Renewable Energies Act and the Vitality Business Act. The Renewable Energies Act encompasses rules in regards to the general growth of renewable vitality of all sources, relevant feed-in tariffs, and market premiums. The Vitality Business Act primarily regulates points concerning the operation and entry to the electrical energy grids. With respect to offshore wind vitality, this act contains guidelines on the obligation of the transmission system operators to assemble and function the grid connection programs for OWTGs and compensations in case of a failure to take action. The executive authorities competent for the execution of the above-mentioned authorized acts are, primarily, the Federal Maritime and Hydrographic Company which is an authority related to the Federal Ministry of Digital and Transport and inter alia concerned within the particular planning and web site growth.
State degree: If put in inside the territorial sea, the development and operation of OWTGs (and different services) is topic to a allow issued by the competent state authorities primarily based on the allowing regime of the (basic) Federal Immission Management Act, not the Offshore Wind Vitality Act.
Scheme in relation to exclusivity to assemble, personal, and function a undertaking, in addition to to obtain feed-in revenues
Exclusivity: Below the German regulatory regime, the profitable bidder within the public tender process is granted the unique proper to assemble, function and (doubtlessly) obtain subsidies for OWTGs. In accordance with the Offshore Wind Vitality Act, the bidder who receives the award for a selected offshore wind growth web site acquires unique proper to participate within the process for the planning approval or planning allow that are the varieties of permits required for the development and operation of OWTGs.
Totally different tender procedures relying on pre-investigation: The 2023 revision of the Offshore Wind Vitality Act has launched materials modifications to the tender regime for offshore wind websites. To date, a “central” mannequin utilized beneath which the German federal state was accountable not just for the spatial planning but additionally for the pre-examination of attainable set up websites.
Web site Improvement Plan: In a primary step, the Federal Maritime and Hydrographic Company (BSH) develops a “Web site Improvement Plan” for the EEZ (and if agreed with the states additionally for the territorial sea) which is the primary (spatial) planning instrument in respect of the OWTGs and GCSs. This Web site Improvement Plan determines the zoning rules primarily with respect to OWTGs and GCSs, together with determinations of eligible zones (Gebiete) and specific websites inside zones, sequence of participation of web sites within the tender procedures; goal set up years for the OWTGs within the specific websites or for the related GCS, areas of converter platforms and many others.
Web site pre-investigation: If the positioning growth plan determines {that a} pre-investigation of a selected web site will probably be performed, the pre-investigation will probably be performed beneath the accountability of the related authority with the goal to (i) assess the suitability of the websites, (ii) assess sure points that are unbiased from the precise undertaking design to be able to speed up.
Tender course of
(i) Websites with out pre-investigation: Whereas the primary stage of the tender stays unchanged from the method previous to the 2023 revision of the Offshore Wind Vitality Act, the reform launched an public sale as a second stage (“dynamic tender process”).
(ii) Websites with pre-investigation: Following the 2023 reform of the Offshore Wind Vitality Act, the analysis of bids for centrally pre-investigated websites doesn’t solely take into consideration the financial bid worth in Euro per MW, which displays the cost to be made by the bidder to the state, but additionally 4 extra standards.
(iii) Delays and results of delays Bidders are sure by sure undertaking realisation milestones. If delays of the realisation of the undertaking happen, the bidder is topic to penalties payable to the competent transmission system operator (TSO).
(iv) Safety Bidders are required to offer safety to the Federal Community Company which secures potential claims of the TSO for penalties.
(v) Bid quantity The bid quantity (put in capability) should correspond to quantity tendered for the precise web site.
Incentives for investments: Contemplating that pre-investigated websites are not eligible for receiving public subsidies, the help scheme of the Renewable Energies Act would apply in precept solely applies for OWTGs on websites with out pre-investigation.
Timeframe for the realisation of the undertaking: The profitable bidder is topic to a undertaking realisation timeline (cf. sec. 81 of the Offshore Wind Vitality Act) beneath which sure milestones as much as reaching the OWTG’s technical readiness for operation must be met.
Public regulation and regulatory permits
Offtake, remuneration and tariff scheme: Below the Renewable Energies Act, a so-called “direct advertising and marketing” idea applies, which signifies that the produced vitality is offered to a 3rd occasion, until the electrical energy is used within the direct neighborhood of the OWTG and isn’t transmitted by way of the grid. In additional sensible phrases which means that the produced electrical energy is offered beneath an influence buy settlement (PPA).
Penalties of a undertaking delay: The results of a delayed undertaking completion with regard to the offtake regime generally rely on the respective provisions within the PPA. Normally, a delay of the undertaking or OWTGs would, after elapse of a grace interval, entitle the offtake to demand an inexpensive adjustment of the value.
Grid and Grid Connection: In accordance with the Offshore Wind Vitality Act, acceptance of the bid offers the profitable bidder receives the precise (i) to get a bodily connection of the OWTGs with a selected GCS and (ii) to make use of the connection capability, each restricted to the quantity of capability accepted with the bid.
Netherlands
Present state of offshore wind growth and initiatives: The Netherlands goals that by 2050 all vitality used within the Netherlands comes from sustainable vitality sources. In efforts to succeed in this objective, it’s agreed within the Local weather Settlement that in 2030 49 TWh (roughly 11 GW) of vitality is generated by wind energy. In 2022, the Dutch authorities raised the goal for offshore wind capability from 11 to 21 GW by 2030/2031. In April 2024, the Dutch Minister for Local weather and Vitality knowledgeable that there’s a delay and that offshore wind capability of 21 GW is predicted to be reached by 2032. There are presently 10 lively wind farm zones within the Dutch North Sea. As soon as the goal of 21 GW is reached, wind vitality is predicted to offer roughly 75% of complete electrical energy within the Netherlands. It’s famous, nevertheless, that electrical energy is round 20% of complete vitality use whereas round 80% of vitality use within the Netherlands is from coal, oil and fuel. The Dutch authorities extremely prioritises the event and building of recent offshore wind farms. On the identical time, the federal government additionally recognises that the North Sea is topic to intensive use, together with for fisheries, is without doubt one of the busiest worldwide seas on the earth and requires ecological restoration and nature conservation. The Netherlands was set to generate 4.5 GW of wind vitality in 2023 in keeping with the Local weather Settlement in 2013. The precise capability that was reached in 2023 was nevertheless 4.7 GW which was reached in time.
Offshore wind promotion system: The Netherlands Enterprise Company conducts the offshore wind vitality subsidy and permits tenders on behalf of the Dutch State. In tenders with subsidy, the subsidy comes from the subsidy programme Stimulation of Sustainable Vitality Manufacturing of the State. Manufacturing of renewable vitality isn’t all the time worthwhile as a result of the price worth of renewable vitality could also be increased than the market worth. SDE++ compensates OWFs for the distinction between the price worth and the market worth for a hard and fast variety of years.
Public regulation and regulatory permits: The spatial planning of OWFs within the Netherlands is especially topic to the OWEA and the Water Act. Within the Nationwide Water Program 2022-2027, which finds its authorized foundation within the Water Act, the Minister of Financial Affairs and Local weather Coverage can appoint designated areas that are deemed appropriate for OWFs. A so-called Wind Farm Web site Choice may be adopted for the event of an OWF in a delegated space. There have been certainly web site selections for OWFs IJmuiden Ver Alpha and Beta and there can even be web site selections for OWFs IJmuiden Ver Gamma and Nederwiek I.
Offtake, remuneration and tariff scheme: The event of an OWF includes loads of prices. The event course of takes time and requires many research, procedures and consultations with native residents and different events. There are building prices of the OWF, the acquisition of the wind generators, the grid integration, and the prices as soon as the wind farm is up and operating. Using long-term contracts for the acquisition or sale of electrical energy is growing. A PPA is meant to cut back monetary dangers by offering for a long-term worth settlement with a buyer. As there isn’t a laws on these PPAs, no particular stipulations for the content material of such PPAs exist. Nonetheless, in apply, there’s a sure established market apply as to the same old and required contents. Moreover, the Electrical energy Act and the Offshore Grid Compensation Decree set out the legal responsibility regime relevant to the OWF proprietor in case of a delay within the completion of the offshore grid or the unavailability of the offshore grid.
Planning and building of the grid connection system: Based mostly on the Electrical energy Act, the Dutch authorities appointed the corporate TenneT as onshore and offshore transmission system operator. TenneT designs, constructs, and operates the onshore grid connection. TenneT shall enter right into a Realisation Settlement and a Connection and Transmission Settlement with the OWFs. Within the Realisation Settlement, the phrases and situations governing the realisation of the connection of the OWF to the Offshore Transformation System are laid down.
Entry the report right here
