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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Germany has significantly increased its offshore wind targets to reach at least 30 GW by 2030, 40 GW by 2035 and 70 GW by 2045. The revision of the Offshore Wind Energy Act led to new tendering conditions aimed at accelerating planning and approval processes and strengthening the interests of offshore expansion.
Offshore wind energy has made considerable progress in recent years and is already contributing to a sustainable energy supply. Despite its promising future, however, there are also various challenges associated with this technology. One of the biggest challenges in offshore wind energy is the complex logistics, installation and maintenance of the turbines. Building and operating wind farms in remote marine areas requires specialised vessels, equipment and skilled personnel.
Despite its excellent prospects, offshore wind energy also faces considerable financial and technical challenges that influence its development and expansion. These financial aspects cover various phases, from planning and financing to the construction and operation of offshore wind farms. Due to long lead times, technical complexity and unavoidable uncertainties, loans and investments often carry high interest rates. This can significantly increase the overall cost of projects and affect their profitability. Significant increases in output, advances in technology and economies of scale have led to an overall reduction in the electricity generation costs of offshore wind projects. Although the costs of offshore wind energy have fallen in recent years, they remain high compared to other renewable energy sources. The availability of sufficient financing at appropriate conditions and appropriate support mechanisms can help to strengthen the competitiveness of this renewable energy source.
Overall, the offshore wind industry requires suitable infrastructure and comprehensive management that considers technological, logistical, environmental and economic aspects.