German Parliament Passes Offshore Wind Law, TenneT Applauds

The German Parliament (Bundestag) passed the amended Energy Act. TenneT welcomes new amended Energy Act, which incorporates TenneT’s wishes and recommendations, providing greater legal certainty for investors in offshore wind energy.

“TenneT instigated the discussion about the feasibility of the required development of wind energy in Germany well over a year ago. The discussion centred on the lack of regulation and meaningful long-term planning impeding the further development of offshore wind energy capacity. With that in mind, we are happy to see that our detailed recommendation has now been incorporated in the new Energy Act. Before the end of this year, the German Federal Council (Bundesrat) will take a final decision on the amendment of the Energy Act, which will effectively clear the way for the further development of offshore wind energy,” says Mel Kroon, CEO of TenneT.

The new Act includes a number of urgently awaited new rules regarding liability, as well as an expansion plan for offshore wind energy.

Limitation of risks a welcome development for all investors
The new liability arrangement and long-term planning for offshore wind energy mean that there is now a liability limit and more (investment) securities for transmission system operators and operators of wind parks. TenneT is pleased that a new solution has been reached regarding liability with the introduction of a liability cap for simple negligence of EUR 17.5 million. Mel Kroon says: “By enacting this measure, the German federal government has removed a major obstacle for the participation of investors in connections to offshore wind parks.”

Long-term security
TenneT is pleased that with the new long-term offshore plan tools are now available to make the construction of grid connections and wind parks more efficient. The fact that there is now an actual plan also allows for more effective coordination between construction activities for wind parks and platforms. The offshore plan and the measures for minimizing damage reduce the risk of delay and, as a consequence, limit possible liability expenses.

New rules necessary
As early as November 2011 TenneT warned that the existing preconditions were not adequate for the development of more offshore wind energy capacity. TenneT has therefore repeatedly argued for new regulations to ensure that the targets of the German government’s energy transition (Energiewende) can be achieved. In the months that followed, the German government consulted with all offshore partners in order to discuss the problems concerning the expansion of offshore wind energy capacity.

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Press release, November 30, 2012; Image: Windreich