In a joint letter to political decision-makers, members of the Association of German Offshore Windfarm Operators (BWO) and Wind Energy Agency (WAB), have asked the German Government to implement a reliable, long-term investment and financing framework for offshore wind projects in the country.

They would like Germany to introduce a contract for difference (CfD) scheme like that used so successfully in the UK and enter into a dialogue about the expansion of long-term targets, up until 2035.

As highlighted previously by OWJ, the German Government has been reviewing auction designs for offshore wind and industry bodies such as WindEurope have also advocated introducing CfDs, according to Riviera.

WindEurope said Germany should change its auction scheme to two-sided CfDs to enable it to rapidly boost capacity. In a two-sided CfD, windfarms ‘pay back’ when the market price exceeds the auction price.

Government and consumers would pay much less overall than they do in the current system, if they adopted such a system, WindEurope believes.