According to GlobalData, the German onshore wind market has seen a significant annual rise in installations of 46 percent with the addition of 1.431 MW or 420 turbines in 2020.
By 2030 the country wants to obtain 65 percent of its electricity from wind, solar energy and other renewable energies, and then subsequently emerge as carbon neutral by 2050. However, the nation requires an average of 5GW+ of new onshore wind energy licenses annually from now until 2050 in order to meet its climate goal.
The German onshore wind industry has suffered with stringent distance legislation of the federals and state governments since the implementation of the Renewable Energy Sources Act (EEG) in 2000 and faced historical lowering in 2019 when more than 11 GW is stopped because of licensing problems.
“These were mainly around mandatory minimum distance from the residential areas and aviation infrastructure. This was coupled with the flawed auction mechanism. The flawed auction design and difficulties in obtaining licenses for turbine construction have discouraged investors, resulting in a lackluster performance of the auction mechanism.”Mohit Prasad, project manager at GlobalData.
GlobalData indicates that Germany recorded a decline of 2.2 GW in 2018 net annual installations to an all time low of approximately 900 MW in 2019 following the transition to open auctions in 2017.
The EEG 2021, which was passed in late 2020, outlines a capacity of 71 GW onshore wind by the end of 2030. At the end of 2020, Germany had cumulative onshore wind installations of approximately 55 GW, according to GlobalData. In the next 10 years, the target must be raised by 30 percent.
“With a view to the election year 2021, the country might avoid a regulatory standstill. The EEG 2021, which provides a planning security of almost 4 GW of tender volume per year up to 2028, be the catalyst for the revival of onshore wind industry.”Mr Prasad.
With the last nuclear power plant to be shut down in 2022 and the coal power plants to be phased out by 2038, the country is aiming to achieve 65 percent of its power from renewable energy sources by 2030.
“The target of 71 GW of onshore wind by 2030 and carbon neutrality by 2050 can be addressed by making amendments to the existing auction mechanism and project licensing for onshore wind projects.”Mr Prasad.