Managing Director Dominik Hübler recently gave an interview to German trade magazine Energiewinde in which he discussed proposed changes to the German Offshore Wind Act. Mr. Hübler covered the introduction of contracts for difference (CfDs) and why the proposed German model remains riskier than auctions in other markets. He also discussed the outlook for future auctions, why there remains a risk of future unsuccessful auctions and project cancellations, and what can be done to reduce those risks. In his interview, he referred to recent NERA work for Iberdrola that showed the benefits of reorganizing the auction process and potentially introducing inflation indexation of strike prices to reduce strike prices and cancellation risks.
Mr. Hübler also discussed how the introduction of CfDs for future offshore wind farms could damage the business case of previously awarded wind farms and what could be done to mitigate such damage. You can find the interview (in German) here.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
