RWE wants contracts for difference (CfDs) to spur German offshore wind

Thu, 13th Aug 2020 11:13

FRANKFURT, Aug 13 (Reuters) - German utility RWE
supports the introduction of contracts for difference (CfDs) to
spur growth in the country's offshore wind sector, chief finance
office Markus Krebber said during a call with reporters on
Thursday.

Germany's upper house of parliament backs such an
internationally proven mechanism, which guarantees qualifying
projects a guaranteed strike price at which they can sell
electricity, while allowing renewable power investors to bid for
CfD in auctions.

The economy ministry currently holds on to zero-price bid
auctions for new capacity, which could imply investors would pay
on top to win the permit should there be many initial bidders at
zero.

"That will not work," Krebber said.
(Reporting by Vera Eckert and Christoph Steitz; editing by
Thomas Seythal)