Germany: Wind and Solar energy numbers dashes the government’s hopes

Although wind energy tenders in Germany in 2023 reached record levels, they were unable to meet the government’s objectives of increasing their contribution to the overall mix by the end of the current decade.

The German Wind Energy Association (BWE) explained, in a report seen by the specialized energy platform, that the Berlin government was aiming to reach 10 gigawatts annually by 2030, however, the current tenders achieved only 6.4 gigawatts.

The German government is counting on wind energy in Germany, along with solar energy sources, to bring renewable energy within the country’s electricity mix to 80% in 2030, up from 52% in 2023.

Solar and wind installations in Germany set a record high in 2023, but only photovoltaics managed to reach government targets, industry associations said, predicting continued growth this year, with reduced bureaucracy.

Germany seeks to install approximately 10 gigawatts of onshore wind energy capacity annually, but the registration of tenders for only 6.4 gigawatts frustrated the government’s hopes of achieving its long-term goal, despite these tenders recording record levels.

According to the Wind Energy Association in Germany (BWE), laws to reduce bureaucracy in the sector still don’t exist, and the new draft laws approved in 2023 haven’t yet been fully effective.

Last July 2023, the results of the largest offshore wind energy auction in Germany were subjected to great criticism, due to what experts described as negative bids, as the German Federal Network Agency presented 4 sites, which more than one company pledged to build without any government support.

In this context, Wind Europe warned – in a press release seen by the specialized energy platform – that negative bids will lead to additional costs for offshore wind energy developers.

Because the costs will be passed on to the supply chain, which suffers due to inflation, or be passed on to consumers, who in turn suffer economically.

The European Organization clarified that the money paid in negative bids for wind energy in Germany cannot be invested by companies in other wind projects, stressing that European governments should not follow Berlin’s example.

During the past year 2023, Germany was able to install more than one million new solar energy systems, generating 14 gigawatts of electricity in the country, an increase of 85% year-on-year, thanks to the boom in residential demand for solar energy.

These steps put Germany on the right track towards reaching Berlin’s 2030 goal, according to a statement issued by the Solar Energy Association in Germany (BSW), and seen by the specialized energy platform.

Solar energy in Germany witnessed the installation of about 7 gigawatts for the residential sector, an increase of 135% over the previous year 2022, constituting about half of the total installed capacity, while about 31%, or 4.3 gigawatts of electricity, came from solar farms, an increase of 40% compared to the year. 2022.

The German Solar Energy Association expects demand to grow further during the current year 2024, which is consistent with a recent survey that showed that more than 1.5 million homeowners plan to install a solar system on their roofs.

The German Solar Energy Association expects a continuous solar boom to occur in 2024, at the same time there will be a need to reduce bureaucracy with appropriate measures, such as facilitating access to suitable sites for solar farms.