New offshore wind energy project will not require subsidies from Germany governmentApril 18, 2017
Germany will be building its first wind energy system that will not use government subsidies
Germany is preparing to build its first offshore wind energy system that is not dependent on government subsidies. The project comes from Bundesnetzagentur (BNetzA), which has approved bids on the project coming from various organizations. The company intends to develop some 1,490 megawatts worth of wind energy capacity in the North Sea. The organizations that would be involved in this endeavor would be providing electricity from these wind farms at approximately $4.67 per megawatt-hour.
Wind farms may help drive down the cost of electricity
According to BNetzA, the bids that it has received for the new offshore wind energy project are well below what it had expected. Because these bids are lower than the market price for electricity in Germany, the new project will not need to make use of financial support from the government. Because the new project will not rely on government subsidies, the cost of the electricity it produces will be less expensive for consumers.
Wind energy continues to see expansion in Germany
Offshore wind energy has become quite popular in Germany. Offshore projects have the potential to generate more electricity than their onshore counterparts. As such, Germany sees major promise in the offshore wind energy sector. These wind energy projects are quite expensive to develop and, until very recently, they have relied on government subsidies in order to take form. As wind development moves away from using government subsidies, more projects may begin to crop up throughout the country.
Wind energy may soon no longer rely on government subsidies as the sector becomes more mature
Wind energy has already established a very strong presence in Germany. The country is home to one of the most active wind markets in the world and has served as an example for other countries who are interested in clean power. Wind power was never meant to rely on government subsidies forever and the recent progress being made in Germany’s wind energy sector is yet another step forward for the country’s plans for clean energy.