Updated Regulation

Berlin under fire for 'two-stage' offshore CfD model

BWO says German offshore wind support contracts should be available from project outset, not delayed under a staged approach.

By · drafted with the Vantage newsroom system, approved before publication

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Germany's offshore wind sector is pushing back against a proposed 'two-stage' contract-for-difference structure that would delay the availability of support contracts. The BWO, Germany's offshore wind association, has publicly criticised the model, saying CfD contracts should be accessible from the start of project development rather than introduced in a second stage.

The core concern is bankability. Projects that cannot secure revenue certainty early in development face higher financing costs and delayed final investment decisions. BWO's position, per Renews.biz, is that the staged model undermines the investment case for German offshore wind at a time when the zone is targeting significant capacity additions.

No revised timeline or alternative government proposal has been published. The debate adds regulatory uncertainty to a German offshore pipeline already navigating grid connection bottlenecks and permitting delays.

Source: Renews.biz

Photo by Artur Roman on Pexels.

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