The German offshore wind supply chain urgently needs Berlin to back new sector expansion targets for 2035 to secure the long-term future of small and medium companies.
Industry association WAB said new research shows that up to 10,000 jobs may be at risk in the local supply chain if the government fails to show significant ambition.
The research shows that there are some 24,350 supply chain jobs in Germany that depend heavily on the federal government’s expansion targets.
“The 20GW planned by the federal government by 2030 without a perspective for the period up to and after 2035 are not sufficient,” said WAB managing director Heike Winkler.
“Germany will be able to unlock a potential of 57GW of offshore wind in the German North and Baltic Seas, and interest in ‘green’ hydrogen is increasing. That is why we are calling for the 2GW special tender immediately and for 35GW by 2035.
“With these goals, offshore wind can continue to show that it is cost-efficient, that it reliably delivers high amounts of electricity and that it combines climate protection with domestic added value.”
Local outfits need a “strong home market” to tap into export potential and create jobs but have been left at risk by “unambitious” goals for offshore wind to 2030.
“Over the next 2-3 years, the expansion rate of offshore wind energy in German waters will be significantly below its long-term average,” said WAB.
“This foreseeable development is a high economic burden for numerous companies. The expansion gap that has been foreseeable for some time now threatens jobs in Germany and can lead to companies moving abroad.”
The research also shows the diversity of the local supply chain with Lower Saxony the most lucrative area for work in the industry taking in a turnover of €2.5bn in recent times.
The state is followed by Hamburg (€1.8bn) and North Rhine-Westphalia (€1.1bn) and Baden-Württemberg (€1bn)
“The analysis has shown that – also to our surprise – there is a lot of added value that includes sales, jobs and market participants, especially in Baden-Württemberg,” said Dirk Briese, the managing director of wind:research, which carried out the study.
“Baden-Württemberg has a strong presence in offshore wind energy, particularly in research and development and engineering, and that has even increased since our first analysis nine years ago,”
He added: “Our third scenario shows that in order to achieve the goals of the energy transition, including sector coupling, policy makers need to ensure the expansion of offshore wind energy – then the added value will again increase again, across Germany.”