The last tenders for offshore wind capacity in Germany ended with surprises: some projects no longer require subsidies. This was enabled by the substantial technology learning, economies of scale and cost reductions as well as the policy learnings achieved in Europe during the last two decades.
The German experience shows that policy makers need to find the balance between policy adaptability and strategic continuity. While there were significant regulatory changes through the transition to auctions and centralized pre-development of offshore wind sites, the political consensus on the goals of the energy transition persisted. This created positive conditions for private investment. But despite lower costs and few projects not requiring subsidies anymore, policy support is still necessary, especially in regions without the corresponding supply chain and effects of economies of scale.
The short study includes an analysis of the trends, challenges and drivers of offshore wind deployment in Germany as well as a summary of policy lessons focusing on target setting, support schemes, maritime spatial planning and grid connection. The short study was produced on May 16, 2019 as an accompaniment to the New England-Germany Energy Transition Forum in Cambridge, Massachusetts.
Further publications in the series
- Power systems in the 2020s: What can Germany and the PJM region learn from each other? (October 2018)
- PJM as the largest US system operator – Introduction and current debates (in German only) (October 2018)
- Community Choice Aggregation – Kommunen in Kalifornien und anderen US-Bundesstaaten werden als CCA zum Stromversorger (August 2018)
- Overview of energy policy and energy economy in Texas (in German only) (February 2018)
- The debate on the Grid Resiliency Pricing Rule - Electricity market policy under President Trump (in German only) (January 2018)
- Overview of energy policy and energy economy in California (in German only) (September 2017)
- Overview of the energy policy of Canada (in German only) (June 2017)
- Overview of Australia's energy policy (in German only) (March 2017)
- Power Cuts in South Australia 2016 and 2017 (in German only) (February 2017)
- California and Germany: energy policy cooperation with neighbouring states in the electricity sector (in German only) (December 2016)
- Overview of the energy efficiency policy in the US (in German only) (December 2016)
- Overview of the US electricity markets (in German only) (November 2016)