Your expert for questions
Heiko Stohlmeyer
Director, Renewable Energies at PwC Germany
Tel: +49 171 3344297
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Offshore wind energy is an important part of the German energy mix and will become one of the most important German energy sources in the future. Offshore wind farms will increasingly supply Germany with fossil-free electricity, making an important contribution to the decarbonisation of Germany’s energy supply. Harnessing the enormous potential of offshore wind energy will have an equally positive impact on the climate, society, and the economy. However, the successful implementation of an offshore project involves complex technical, economic, legal and tax challenges.
Our experts have many years of consulting experience from the implementation and operation of numerous offshore wind energy projects at home and abroad. Leverage our expertise and specialised global and multi-disciplinary industry network to ensure the success of your project.
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PwC has been actively involved in the development of the offshore wind energy market since the beginning of the expansion of offshore wind energy in Europe in the mid-2000s. Since then, our experts have supported many offshore wind projects, not only in Germany but also internationally. We have a deep understanding of the dynamic market, its players, its frameworks, its transactions, and its trends. Our clients benefit from comprehensive and tailored consulting services that cover every phase of a project, from strategy to implementation.
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Offshore wind energy is a key component of the energy transition in Germany, making an important contribution to diversifying the energy mix, reducing greenhouse gas emissions and enhancing security of supply. The German government has set ambitious expansion targets for the offshore wind sector. Installed offshore wind capacity is set to rise to at least 30 GW by 2030, 40 GW by 2035 and 70 GW by 2045. To meet these targets, the framework conditions for tenders, site development and planning permission procedures are continuously refined. Recent amendments to the Offshore Wind Energy Act, including a long-term tender pathway, extended operating periods for offshore wind farms and the possibility oftwo-sided contracts for difference (CfDs), are intended to improve predictability and reduce investment risks.
Despite the clear expansion targets, project developers and investors face several challenges in implementation. These include increased investment and financing costs, higher interest rates and uncertainties regarding long-term revenue prospects. This is particularly true in the case of offshore wind farms, which are capital-intensive, large-scale projects with long development and construction times. In such cases, a reliable regulatory framework and early certainty on tendering and support mechanisms are growing in importance. Simultaneously, delays in the expansion of the necessary grid connection and transmission infrastructure remain a significant obstacle to the successful realization of new projects.
Furthermore, the complex logistics of large-scale offshore projects, bottlenecks in supply chains, capacity constraints at ports and shipyards, and the availability of specialized vessels and skilled labor present the sector with operational challenges. A stable expansion pathway, predictable grid connections and an efficient industrial and port infrastructure are therefore becoming increasingly important for the successful implementation of the necessary expansion.