The head of RWE’s offshore wind business has warned governments that auctions are only successful if projects ultimately reach a final investment decision.
Sven Utermohlen told delegates on day three of WindEurope that he had heard several speakers discuss “successful” allocation rounds.
However, the RWE boss said he wanted to “pour a little water into the wine” on such comments to say that only when wind farms achieve FID can an auction be considered a success.
He said he is not convinced by the business case for some projects that have come through recent auctions.
The same reason is behind why some rounds are failing to attract bidders, he added.
“It’s because the business cases don’t work”, he told delegates in Copenhagen, with high supply chain costs, increased capital costs and merchant risks.
Utermohlen said governments must shift to CfDs to resolve these issues.