2020-09-22
http://w3.windfair.net/wind-energy/news/34674-cfd-germany-windeurope-criticism-offshore-bid-zero-bidding-wind-farm-investor-company

WindEurope: Germany Needs to Introduce CfDs

Image: WindEuropeImage: WindEurope
“You’ve got to pay for the right to build offshore wind.” What?!

Official Press Release WindEurope:

“You’ve got to pay for the right to build offshore wind.” What?!

Wind Industry Profile of
“You’ve got to pay for the right to build offshore wind.” What?!

Yes, that’s what Germany is proposing. If two or more companies bid to build a wind farm purely on income from the electricity market, then Berlin thinks whoever offers to pay the government more should build it.

Germany already allows “zero bidding” where you earn the market price. And that’s bad enough. The costs of financing “zero bid” wind farms is 250 basis points higher than those that have a “Contract for Difference” (CfD). Because the banks prefer the revenue stability you get with a CfD. “Negative bidding” would make things even worse. Many companies don’t like bidding at zero. Even fewer would want to pay. And who knows what interest the banks would charge. No, Germany, go for CfDs.... ... More: Official Press Release WindEurope

Keywords:
CfD, Germany, WindEurope, criticism, offshore, bid, zero bidding, wind farm, investor, company







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