Joint press release
Federal Minister of Economics and Technology Philipp Rösler and Federal Minister for the Environment, Nature Conservation and Nuclear Safety Peter Altmaier have agreed on key elements of legislation to accelerate offshore wind energy expansion. Major aspects of their agreement include a liability regime and a system change towards a separate offshore grid development plan governing the connection of offshore wind farms to the grid.
Minister Rösler stated: “The planned legislation will allow us to push ahead with the expansion of offshore wind energy. We want to improve coordination between the construction of wind farms and the necessary grid connections by means of a binding offshore grid development plan. We will thus enhance planning security for all those involved and ensure that the expansion of the offshore grid is efficient. This will be of benefit to both industry and consumers. The envisaged liability regime will create legal certainty, remove investment barriers and render investments in offshore wind farms and grid connections economically attractive. And this will give a boost to the transformation of our energy system.”
Minister Altmaier commented: “The law we plan to adopt is a decisive step in the transformation of our energy system and an important signal to private investors. The expansion of the offshore grid in a clearly defined procedure will provide a reliable framework for investors in wind farms and for transmission system operators. The liability regime will give investors and grid operators the level of certainty that is needed for the further expansion of offshore wind energy.”
Based on the proposals developed by the working group on the acceleration of offshore grid connection, initiated by Minister Rösler, both ministries agreed on introducing a multiannual offshore grid development plan. This plan will officially stipulate the time of completion, the location and capacity of future grid connection points to allow for better coordination with the onshore grid expansion process. It is envisaged to link the offshore grid development plan with a liability regime for delays during construction and disruptions in the operation of offshore grid connection lines.
A transitional provision will apply for offshore wind farms which have relied on their right to individual grid connection pursuant to § 17 para 2a of the Energy Industry Act (EnWG). This is to ensure that they are entitled to the standardised compensation payment from the time they receive an unconditional grid connection pledge. This will help those offshore wind farm projects which have already been affected by considerable delays in grid connection.
The liability regime is planned to include the following key elements:
- If they are not connected to the grid in due time, or if there are extended disruptions to the electricity line, operational offshore wind farms will be entitled to a standardised compensation payment amounting to 90% of the lost feed-in tariffs under the Renewable Energy Sources Act (EEG) from the 11th consecutive day of being unable to feed electricity into the grid. If feed-in is not possible on more than 18 days per calendar year due to several individual disruptions, compensation can be claimed from the 19th day. The calculation of the standardised tariffs is based on the assumption that the installation would have produced 11 kilowatt-hours per kilowatt of installed capacity on each day of disruption.
- Whether a grid connection is considered to have been established in due time will in future be determined according to the date of grid connection specified in the offshore grid development plan. To avoid that maintenance costs arise for offshore wind farms in case of delays in grid connection, offshore installations are deemed to be operational once the foundations for the wind turbines have been completed.
- Operational offshore wind farms will be entitled to standardised compensation if maintenance work carried out on the grid connection for operational reasons exceeds a total of 10 days per calendar year.
- The costs of this compensation are to be borne by the transmission system operator obliged to ensure grid connection. The operator may pass on the costs via a liability surcharge nation-wide and without delay, depending on the level of fault on his part. Exception: In cases of gross negligence, the grid operator has to bear 20 percent of the costs (up to a maximum of €20 million per case of damage and €60 million per calendar year). If the operator has acted intentionally, costs cannot be passed on.
- If the grid connection is unavailable for more than 90 days, the transmission system operator obliged to ensure grid connection can only pass on the costs of standardised compensation via the liability surcharge if the operator has taken all possible and reasonable measures to minimise or redress the damage.
- The liability of transmission system operators towards offshore wind farms for unintentional material damage will be limited to €100 million per case of damage.
- To limit the financial burden on consumers, the transmission system operator obliged to ensure grid connection has to conclude appropriate and economical insurance contracts according to market conditions. These contracts must be submitted to the Federal Network Agency for approval.
- Offshore wind farms will not be entitled to feed-in tariffs under the EEG for the period of time for which they claim the standardised compensation payment, or the period for which they are entitled to increased feed-in tariffs under the EEG will be shortened accordingly.
The ministry draft containing details on all planned provisions will be presented this summer. The legislative amendments will enter into force as soon as possible.