Offshore Wind Energy in Germany

The sustainable transformation of the German economy is essential to ensure long-term competitiveness and energy supply security in Germany. This includes the expansion of offshore wind energy. The German government is systematically driving this project forward.

This is because the installed offshore wind capacity in Germany currently stands at just over nine gigawatts (GW). This is to be significantly increased to at least 30 GW of installed capacity by 2030, 40 GW by 2035 and 70 GW by 2045.

To this end, the amendment to the Offshore Wind Energy Act (WindSeeG) defines guidelines for focussing on offshore wind energy as a key technology for the energy transition. This includes the following measures:

Pre-examined areas receive a shortened authorisation procedure: The state will take over important assessments in advance (e.g. environment, wind conditions) so that project developers can start construction more quickly.

The duration of procedures will be limited: Authorities must finalise approvals and inspections within fixed deadlines to avoid delays.

Environmental and participation procedures are bundled: Environmental assessments and participation by the public and associations will run simultaneously in future, which will save time and make processes more efficient.

 Responsibilities are centralised at the Federal Ministry for Economic Affairs and Climate Protection (BMWK): The BMWK assumes primary responsibility so that decisions are no longer split between several ministries.

Grid connections can be allocated earlier: The connection to the electricity grid can be promised and planned at an early stage of the project to avoid bottlenecks and delays.

Repowering measures are also planned for existing turbines. This means that outdated technologies will be replaced by more powerful and efficient systems so that a significant proportion of offshore turbines will have been modernised by 2040.  

Another measure in the direction of more offshore wind energy: smaller projects from 500 MW are now also eligible for tendering.

The offshore wind market in Germany offers considerable growth and investment opportunities for companies in the coming years. The combination of ambitious expansion targets, state subsidies and technological advances makes this market equally attractive for domestic and foreign investors.

However, this also leads to more intense competition. Companies wishing to enter this market or expand their market position should therefore make strategic decisions at an early stage. This includes the following measures in particular, which can help to develop holistic market entry and growth strategies:

• Identify market gaps and growth areas as well as development opportunities for innovative solutions. Rely on well-founded market analyses for this.
• Keep an eye on innovative approaches, such as the integration of hydrogen technologies.
• Rely on holistic claim management along the entire project life cycle to avoid conflicts and surprises: from the planning phase through the construction phase to the operation and maintenance (O&M) phase.
• At the same time, consider strategic partnerships such as joint ventures.
• Support from external experts can also be useful, especially for legal issues and claims, due diligence and M&A transactions.

Offshore wind energy in Germany has gone through two phases of development over the past two decades:

The first phase began with the introduction of feed-in tariffs in 2009, supported by government subsidies and technological innovations. This laid the foundation for the first large-scale projects such as the "Alpha Ventus" offshore wind farm. The focus was on trialling new technologies and creating a regulatory framework.

The second phase began in 2015, characterised by falling electricity generation costs and an increased focus on competitive mechanisms such as tenders. Technological progress and increased market demand led to a significant reduction in costs. Today, offshore wind is one of the most economical sources of renewable energy.