Impact on Wind Supply Chain
All of Europe’s wind turbine and component factories are now open following the easing of restrictions across Europe. Sanitary measures are strengthened within sites to guarantee full compliance with government recommendations.
Wind energy installations for 2020 are expected to be 30% down compared to industry forecasts. This will depend on how quickly activity can ramp up in the most heavily impacted countries. And on the disruptions in the global and European supply chains. Any continuous restriction to movement of goods and people is expected to slow activity and to drive up capital expenditures (CAPEX).
The International Monetary Fund (IMF) forecasts the world economy to shrink by 4.9% in 2020. Meanwhile the European Commission expects the EU economy to shrink by 7.4% this year, according to its summer outlook. Some EU Member States will be hit harder than others, the forecast contraction ranging from -4.3% in Poland to -9.7% in Greece.
The uncertainty over the evolution of the COVID-19 crisis will also likely increase the cost of finance. In the short-term banks will be less willing to lend as they are concerned about liquidity and corporate finance will be more challenging, notably for debt.
It will not be possible to make up the lost ground in wind energy installations in 2021. The outlook for the sector will also depend on the effectiveness of national and EU recovery plans.
See archive
27/5/2020The IEA in its new report predicts global energy investments to face a historically big fall of 20% this year with the complete financial impact due to falling demand, lower prices and bill defaults potentially surpassing $1tn. Investment in fossil fuels is expected to drop the most and investments in renewables will jump from one-third to 40 percent of total energy investment as a result. However, necessary investments for the energy transition will also be hit. The IEA’s Executive Director Fatih Birol warned that the drop in investments could undermine “the much-needed transition to more resilient and sustainable energy systems”. Source: IEA
19/5/2020Construction at the Neart na Goaithe wind farm (448MW) off the Scottish coast has restarted. A small number of staff first visited the site to put in place control measures and the rest of the team joined in only later. Construction will continue with a smaller workforce on site, including essential supervisory staff. Source: 4C Offshore
15/5/2020Petrofac, the substation producer for the Seagreen offshore wind farm in Scotland, stated that it has experienced significant disruption due to the COVID-19 outbreak. It mentioned stringent health protocols, supply chain disruptions, travel restrictions and government-enforced lockdowns as the main reasons. Their projects are progressing but some construction activity will not be recovered in 2020 due to material delays. Source: reNews
12/5/2020The examination period for the Norfolk Boreas offshore wind farm off the English coast has been extended from 12 May to 12 October. Due to the outbreak of the coronavirus, a number of hearings had been cancelled which would not allow all interested parties to participate fairly in the examination. Vattenfall which will be developing the project stated that they “are confident that there is very little left to explore, and that it will be possible to complete the process well within the five-month limit provided by the Secretary of State.”Source: reNews
12/5/2020The Aquila Renewables Income Fund has been affected by the COVID-19 outbreak too, having faced a 3% loss in value per ordinary share compared to the last quarter. The Fund said that the main reason for this was the reduction in the near-term forecast of power prices. Simultaneously, electricity production of those part of the fund exceeded forecasts by 22.7% which the fund expects to contribute positively to its 2020 income. Source: reNews
11/5/2020ScottishPower Renewables has confirmed that construction at multiple projects has restarted. It had earlier halted construction at the Halsary Wind Farm in the Scottish Highlands due to the coronavirus lockdown but work at the project restarted today. It also continued working on the grid connection of three other wind farms in Scotland. Source: reNews
6/5/2020German offshore wind operators received around €50m less in FITs or market premiums in February due to the “six-hour rule”, which takes effect when wholesale spot prices have been negative for six hours or more. Germany’s offshore wind association BWO has asked Berlin to change the market design and warns that due to COVID-19 and the lower power demand estimates for electricity prices are even harder. Source: Recharge
5/5/2020Vestas’ CEO Henrik Andersen stated that Vestas is ready to operate effectively in a global market that risks being disrupted for the long term by COVID-19. He highlighted that the manufacturer had learned lessons early on and that has led to disruptions being minimal. This has had the effect that longest any Vestas factory has been closed is two weeks, in China. Source: Recharge
5/5/2020Nordex joins the list of OEMs that have withdrawn their financial guidance for 2020. The company listed uncertainties regarding the duration and severity of the disruptions caused by the outbreak of COVID-19 as the main reason. Due to this uncertainty it can’t assess the further consequences on its supply chain, production and execution of project installations. Source: NORDEX
4/5/2020As of today many Italian companies will be allowed to restart production as the first phase of reopening the country will allow manufacturers and construction companies to get back to work. Other sectors such as retail and restaurants will have to wait an additional two to four weeks. Italian turbine production facilities which faced limitations are amongst the first group allowed to reopen. Source: Reuters
3/5/2020The UK’s National Grid has rung alarm bells stating that there is a “significant risk of disruption to security of supply” due to the low energy demand which threatens to leave the electricity grid overwhelmed by surplus power on 8 May, a bank holiday in the country. It has asked the Office of Gas and Electricity Markets for emergency powers which will allow it to switch off solar and wind farms for one day. Source: The Times
30/4/2020Even though most governments have put in place lockdowns, construction was allowed to continue in many countries. Construction for big projects such as the East Anglia 1 offshore wind project (714MW) also continued and Siemens Gamesa has installed the last turbine at the project during this period. Source: Recharge
30/4/2020The auction for the Hollandse Kust Noord offshore wind farm (700MW), which went ahead despite the coronavirus crisis, has closed on 30 April which is according to plan. The Netherlands Enterprise Agency announced that it received multiple bids and expects to publish the results within 13 weeks. Source: Rijksdienst voor Ondernemend Nederland
30/4/2020The IEA in its Global Energy Review predicts CO2 emissions will drop by 8% this year. This would be the largest decrease in emissions ever recorded and would bring back emissions to the level of 10 years ago. The report stresses that all fuels will be affected negatively, only demand for renewables energy is expected to increase. Source: IEA
29/4/2020Ørsted stated that it will submit a bid in the Hollandse Kust North tender which closes on 30 April. The company’s Chief Financial Officer Marianne Wiinholt stated that Ørsted will take the higher merchant risk that appeared due to the coronavirus outbreak. EnBW has followed Vattenfall and announced it would not enter a bid, however. The Dutch Ministry of Economic Affairs meanwhile said the tender round is progressing as planned with enough competition. Source: Recharge
28/4/2020 BP’s CEO Bernard Looney praised the resilience of renewable energy during the oil price shock caused by the COVID-19 crisis. He also said that the current situation adds to the momentum behind the energy transition and that there will be a sharper pressure for the energy transition after the pandemic is over. Source: Recharge
24/4/2020 The World Bank in its Commodity Markets Outlook estimates that global energy prices will drop by 40% compared to last year due to the outbreak of COVID-19. However, energy prices will see a “sizeable rebound in 2021”. In the same report it calls on governments to see this as an opportunity to eliminate subsidies on oil. Source: The World Bank
24/4/2020 Due to the COVID-19 outbreak and the increasing uncertainty revolving around it, TPI Composites has withdrawn its financial guidance for 2020. The uncertainty mainly stems from the rapidly evolving nature, magnitude and duration of the coronavirus crisis. The variety of measures implemented by governments to address the effects are also increasing uncertainty. Source: reNEWS
23/4/2020 The ORE Catapult test facility which carries out research for offshore wind farms has resumed testing and validation activities. The centre located in Blyth, England had halted testing but essential staff has now returned to work with extra safety measures. Source: reNEWS
22/4/2020 Siemens Gamesa becomes the second large wind OEM to pull its financial guidance for 2020. It stressed that the outbreak of COVID-19 made it impossible to “forecast or quantify with reasonable accuracy the full duration and financial magnitude of the impact” on its commercial activity. It also highlighted that for now the onshore sector is more affected. Source: Recharge
16/4/2020 The German government announced that it won’t introduce a lockdown of manufacturing but underlined that employers have a “special responsibility” for their employees. The German industry responded by stating that recovering from the coronavirus crisis should be aimed at keeping “the damage to companies and workforce as little as possible. Rather than adding burdens to the economy, it’s now about protecting the economy, also in view of climate efforts”. The European Green Deal should provide incentives to reduce CO2 rather than introduce new limits and bans according to Germany’s industry lobby. Source: POLITICO
16/4/2020 Due to the drop in power demand resulting from the corona virus, EDF has dropped its earning expectations for 2020 and 2021. Power demand in France has dropped by 15 to 20 percent because of the pandemic. Source: POLITICO
14/4/2020 The IMF has provided an economic outlook considering the impact of the coronavirus outbreak. They predict global trade in goods and services to drop by 11% and the global economy to shrink by 3% this year. They expect the Euro Area’s economy to shrink by 7.5% in 2020. However, they also expect the economy to grow again in 2021 but the growth depends on how government measures affect the economy. Source: IMF
13/4/2020 The Spanish Government has lifted some restrictions it had imposed at the end of March including those on manufacturing activity. As a result, Siemens Gamesa, Vestas, Nordex and LM Wind Power have reopened their production facilities in Spain while still applying strict health and safety standards. Source: Recharge and Nordex
9/4/2020 DEME is now pre-quarantining its staff that will board offshore vessels to ensure their health and safety and to avoid the risk of contamination. It has hired a hotel ship as of this weekend which is moored in Ostend, staff will stay there for two weeks before boarding one of the vessels. DEME transports and installs foundations, turbines, inter-array cables, export cables and substations for offshore wind farms. Source: DEME
8/4/2020 The Irish energy regulator CRU has stated that it will show flexibility and relax penalties for wind farms if they have difficulties maintaining operations. The regulator has taken this decision as overseas suppliers might face difficulties to undertake maintenance or perform outage work. It also stated that they consider putting penalties for operators that don’t comply to the grid code up for discussion during the crisis. Source: reNEWS
8/4/2020 TPI Composites has announced reductions and suspensions of production at a number of its facilities. Affected plants are located in Turkey, India and Mexico. Its manufacturing facilities in Izmir are operating at approximately 50% of capacity during the first half of April. Source: TPI Composites
8/4/2020 Navantia has decided that its staff will not return to work until the state of alarm is lifted in Spain. The company produces fixed structures like jackets, floating structures and offshore substations. Source: CORE
8/4/2020 Vattenfall’s Senior Vice President and Chair of WindEurope Gunnar Groebler warned that the coronavirus pandemic is starting to cause shortages impacting the construction and operation of offshore wind farms. He also highlighted once more the importance of the flexibility in the exact timing of tenders and that policymakers need to listen carefully to the needs of the industry. Source: RECHARGE
7/4/2020 The Scottish government has extended the planning permission periods that would expire within the next six months. Planning permissions are normally valid for three years in Scotland. Those that were to expire in the next half year will not expire until April 2021 due to the change in law. Source: Scottish Renewables
6/4/2020 European Economic Affairs Commissioner Paolo Gentiloni stated on Monday that the economic response to COVID-19 should lead to a change in our economic model. The recovery package should use the opportunity of “correction, environmental sustainability, innovation and digitalization but also about how to preserve our democratic model in a system where the public function will be stronger now”. Source: POLITICO
6/4/2020 Austria’s new “Corona Law” also introduced changes to the country’s Green Energy Law. Practically, it extends the construction period for wind farms by half a year so that delays caused by the crisis do not lead to the expiration of the subsidy contracts. It applies to projects that had a construction deadline between 16 March 2020 and 16 March 2021. Source: IG Windkraft
6/4/2020 The Italian renewables associations are calling on the government to tackle administrative burdens which could create 75,000 permanent jobs in the country and support it in reaching its Green Deal Emissions reduction targets. They also consider the lifting of these barriers the indispensable starting point for realizing the more than €80 bn of additional investments envisaged by the National Energy and Climate Plan. Source: Free Coordinamento
5/4/2020 The UK’s energy demand has fallen by around 10% due to lockdown measures which has led to record-low electricity prices with instances of negative prices. Households that fall under the new home energy tariffs may even have negative electricity prices and receive money back for the power they use. Source: The Guardian
3/4/2020 DEME and Van Oord have asked the Dutch labour inspection for a change of the rotation schedules for offshore wind workers. They would like to temporarily extend the offshore working period up to 6 weeks compared to 2 or 3 normally. This change would minimise the risk of contamination. Source: NWEA
2/4/2020 The deadlines for the tender for geological modeling and reporting on offshore wind areas in Germany have been pushed back by the country’s Maritime and Hydrographic Agency (BSH). The original deadline for submission of requests to participate was 30 March and this has been moved to 7 AprilSource: offshoreWIND.biz
2/4/2020 The construction of the electrical substation for the Saint-Nazaire offshore wind farm has been halted by Atlantique Offshore Energy. EDF stressed that other manufacturing elements for the projects are continuing. Source: reNEWS
2/4/2020 A further two onshore wind construction sites in Scotland have come to a standstill. Works at the Burnfoot East (10.8 MW) and Gordonbush (47 MW) wind farms have stopped. Other wind farms in development continue to be worked on such as at Crossdykes (48 MW). Source: reNEWS
2/4/2020 Since the Spanish government introduced stronger lockdown measures this week, Iberdrola has halted all its work at construction sites of renewables projects in the country. Outside of Spain much of its construction work continues. Source: RECHARGE
1/4/2020 Nordex has closed all its production facilities in Spain after the Spanish government’s decree on what constitutes an essential service. It affects two of Nordex’s nacelle factories in Valencia and Val d’Uixó and its blade factory in Lumbier. Source: Nordex
1/4/2020 The Hull blade and assembly facility in the UK has reopened today after it temporarily closed last week. Thermal imaging equipment has since then been installed to check workers’ temperatures and extra personal protective equipment is being given to staff. Source: RECHARGE
1/4/2020 The Wind Energy Training Centre in Constanța, Romania has been closed until the Emergency Situation in the country is lifted. As a result, 200 technicians will not be able to be trained in the coming months. Alternatives for online education are being looked into for now. Source: Monsson Operation GmbH
1/4/2020 Vestas has reduced production to a minimum in its Spanish factories. At its blade factory in Daimiel, minimum production of blade root continues as this is an essential segment to its global supply chain and a complete shutdown would create a disproportional disruption. The generator factory in Viveiro is closed except for some minimal logistic services. Source: Vestas
1/4/2020 Statkraft has put the construction of the Windy Rig wind farm (43 MW) in Scotland on hold due to the measures the UK government introduced last week. the Scottish government ruled that the necessary social distancing cannot be guaranteed on construction sites. The company said construction at the Fosen Vind project, which will be the largest onshore project on Europe, will continue. Source: Statkraft
31/3/2020 March Vattenfall announced that it will not participate in the Dutch offshore wind tender in April due to coronavirus uncertainties. It cited the general fall in energy prices as one of the factors to guide this decision. The company will continue focusing on existing operations and projects instead to ensure a timely delivery in a safe manner. Source: RECHARGE
30/3/2020 The Spanish Government issued a decree on Sunday on what constitutes essential services and should therefore continue. And what does not. Operation and Maintenance activity can continue including the supply and installation of spare parts and equipment. And companies have an exemption to continue with limited manufacturing of essential new equipment. In practice this means manufacturers are drastically limiting the number of people in the factories and applying enhanced health and safety protocols. But it is critical that this minimum level of activity is allowed to continue. Fully stopping would mean our global wind supply chain is paralysed and post COVID-19 recovery is all the more challenging, with thousands of jobs at stake.
26/3/2020 EnBW has promised that it will continue offering a stable energy supply during the corona virus crisis. Most of its operational team is still “ensuring that [the] energy supply system is working safely and reliably during this difficult time” Its CEO also highlighted that the company can’t rule out delays on individual projects. Source: FOCUS
26/3/2020 The Port of Esbjerg has launched an initiative to support companies, suppliers and activities to support them during this period. They also stated they will be moving forward with construction projects at high speed to support the construction industry. Source: Port Esbjerg
25/3/2020 LM Wind Power’s blade factory in Cherbourg was closed for three days earlier last week but has reopened again this week. GE Renewable Energy closed the plant as a precautionary step to strengthen sanity measures within the site, guarantee compliance with government recommendations and adapt the organisation to these new procedures. Source: reNEWS
25/3/2020 Due to the drop in oil and gas prices, wind and solar projects now match upstream hydrocarbon investment returns according to Wood Mackenzie. Their Vice-President of Corporate Analysis Valentina Kretzschmar stated that even if the price goes back up, renewables still present opportunities for companies with strong balance sheets, due to the growing pressure on the sector to commit to net-zero carbon. She also highlighted that investments in oil and gas historically are not correlated with investments in renewables. Source: RECHARGE
25/3/2020 Ørsted stated that their assets for both onshore and offshore are fully operational at normal availability rates despite the coronavirus outbreak. Key suppliers could be exposed to risk of delays due to travel restrictions, people working from home, and government stakeholders being occupied by crisis management but solutions have been found for this until now. Risks have been relatively contained and the volatility of oil and gas prices are not impacting their businesses. Source: Ørsted
24/3/2020 Dragados Offshore has ceased its activity from Monday on. The company is currently producing an electrical substation platform for the Dolwin 6 offshore wind farm which planned to be completed in late 2021 or early 2022. Source: La Voz de Cádiz
23/3/2020 Slovenia has decided to exempt small businesses and households from the obligation to pay for the support to producers of power from renewable sources and high-efficiency cogeneration. Additionally, the Energy Agency cut the network charge by 33% for the same group. The measures will stay in place until the end of May. Electricity bills are expected to drop by one fifth on average. Source: Balkan Green Energy News
23/3/2020 COVID-19 can lead to the delay in the construction of renewable energy projects in Germany due to supply chain interruptions according to the German federal grid agency Bundesnetzagentur. As a result the agency will treat construction deadlines for wind and biomass projects from past tenders with flexibility. If developers need an extension, these can be asked for in a “non-bureaucratic manner” by simply sending a formless request telling the reasons for the delay of a project. Source: RECHARGE
23/3/2020 The Bundesnetzagentur also announced that the tender deadlines will remain unchanged for this year, including those that have not yet been published on their website and participants must thus submit their bids on time. They do note that here could be a delay in the opening, checking and rankings of the bids as this is a labour-intensive process and the presence of several people in a room is required. Source: Bundesnetzagentur
23/3/2020 Portugal for the moment is not facing any delays in new energy acts, nor in delays of auctions for repowering projects. Repowering is a big priority for the Portuguese wind sector at the moment. However, investment costs have gone up in the country due to COVID-19 leading to higher investment costs. An extension of the commission deadline would thus be desirable as it would lead to a lower LCOE. Source: APREN
23/3/2020 The outbreak of the coronavirus has led to a decrease in electricity consumption in different European countries. Belgium’s peak electricity consumption is 10 to 15% lower than at the start of March. France saw a 10% decrease compared to a normal Monday in March last week. Spain also saw a 9% decrease and Poland had a 5% decrease. The Belgian TSO Elia has stated that each extension of government measures to fight the virus leads to a lower consumption peak. They also stressed that grid stability and security of supply remain guaranteed. Source: Elia Group
23/3/2020 Vestas has reopened the Daimiel blade production facility in Spain after health authorities inspected the plant to check whether the plant complies with health guidelines. Source: reNews
20/3/2020 Deutsche Windguard is continuing most of its operation and remains open for business but has taken the appropriate safety measures to guarantee the health of its employees. The only exception to this is their safety training centre in Elsfleth which had to be closed by law, being an educational institution. Source: Deutsche Windguard
20/3/2020 The Spanish Wind Energy Association (AEE) issues a statement on the effects of COVID-19 in Spain. There will be delays, no loss of activity they stress. Some administrative procedures such as grid connections and production permits are halted by the government currently, though. These will be taken up again when the state of alarm is lifted. AAE’s priority right now lies on the commuting of O&M personnel safely to wind farms. Source: AEE
20/3/2020 ENEL’s CEO Francesco Starace stated that both wind and solar are well-placed for a rebound as huge investments to restore growth are flowing in. He also reported that there are minimal disruptions so far to ENEL’s global wind and solar build-out and does not foresee any significant disruption to its short-term targets. Source: Recharge
20/3/2020 BayWa r.e., a project developer from Germany, stated that delays to the timeframes of its projects due to COVID-19 have been minimal but supply chain issues vary from market to market. They also expect business to accelerate even quicker after the end of the ongoing health issues and note that almost all Chinese supplier factories back to full operation. Source: BayWa r.e
19/3/2020 Wood Mackenzie believes the operation and maintenance of wind farms could be affected by the outbreak of COVID-19. This could lead to the availability of operating wind farms to fall to around 85% from the current average of 95%. Most countries in Europe have enough staff for routine operations but larger problems often require specialists from other countries. Travel bans could became an issue in these cases. Source: GreenTechMedia
19/3/2020 After Serbia declared a state of emergy due to COVID-19, the Serbian government decided to freeze the payment of existing FiT contracts. These FiT contracts are meant to stimulate the production of electricity from renewable sources. Source: Balkan Green Energy News
19/3/2020 Siemens Games has closed another factory in Spain with another employee being tested positive for COVID-19. Around 10 percent of Siemens Gamesa’s annual capacity is produced at this blade production plant. Source: Recharge
19/3/2020 Vattenfall is taking precautions and is cancelling public hearings and accompanied site inspections off the east coast of England at the Norfolk Boreas wind farm this week. ScottishPower Renewables is taking a similar decision and has warned that preliminary hearing and meetings for East Anglia 1 and 2 are likely to be disruptedSource: reNews
18/3/2020 Navantia is stopping production, except for “exceptional cases”. The company has expelled from its shipyards not only most of its direct staff, but also practically all the auxiliary staff. Windar Renovables, which is Navantia’s partner in offshore wind have also decided to send their staff in the factory in Fene on early holidays. Source: La Voz de Galicia
17/3/2020 LM Wind Power, a subsidiary of GE Renewable Energy, has stopped production at its two blade factories in Spain. The company stated the health and safety of its employees is its number one priority and therefore decided to close the factories in the Castillia and León region. Source: Recharge
17/3/2020 Siemens Gamesa has decided to close a plant producing wind and solar power electronics systems in Madrid after an employee was tested positive for COVID-19. The company decided to close the plant out of precaution and will proceed to its disinfection. All of Siemens Gamesa’s office staff are already working from home in Spain and production employees continue working using a special safe work protocol. Source: Recharge
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Impact on Energy Policy and Regulation
The following countries have confirmed they will stick exactly to their 2020 auction schedules: Germany, the Netherlands, Lithuania and Greece.
France is auctioning the same volumes only a few months later than planned. Ireland gave companies four weeks longer to bid in their April auction, and the UK gave three weeks longer to bid in their latest round of seabed leases for offshore wind. Spain is hoping to run major auctions in the autumn.
Where counties have 2020 deadlines for the commissioning of previously auctioned capacity they are extending these deadlines e.g. Austria, France, Germany, Spain, Poland, Greece and Ireland. The only exception to this is Turkey.
See archive
20/5/2020The International Energy Agency expects a 13% drop in new installed renewables capacity this year as a result of the COVID-19 pandemic. However, the Agency foresees additions to resume in 2021 as delayed projects come online and supportive policies continue. Source: reNews
18/5/2020France and Germany made a joint declaration on the European Green Deal and the European Recovery Plan, setting out joint climate policy commitments such as: support for a higher 2030 emissions reduction target (in line with the Commission’ plan, 50-55% up from 40%), support for a minimum carbon price, and support for a green industrial growth. Source: European Parliament
15/5/2020In a resolution on the post-2020 EU budget revision and economic recovery plans, Members of the European Parliament demanded a “massive recovery package” of €2 trillion to tackle Covid-19 fallout. Source: European Parliament
15/5/2020Romania has joined a group of EU Member States which are calling for a green recovery. The initiative started by the Danish Environment Minister Dan Jørgensen has now been signed by 18 environment ministers throughout EuropeSource: POLITICO
14/5/2020The German Bundestag approved an extension to construction deadlines for renewables projects. The amendment to the Renewable Energy Act extends the deadlines by six months to make up for delays caused by lockdown measures and not to slow down the energy transition. Source: Bundesministerium für Wirtschaft und Energie
14/5/2020The UK’s Department for Business, Energy & Industrial Strategy has extended the deadline for the consultation for the fourth Contracts for Difference round from 22 May until 29 May due to COVID-19. The Department took the decision because it had received many requests for an extension. Source: reNews
13/5/2020The UK’s Department for Business, Energy & Industrial Strategy has opened a consultation to seek views on the plan to defer increases on electricity suppliers’ obligations under Contract for Difference rules due to exception circumstances caused by the coronavirus crisis. This follows an earlier advice from the Low Carbon Contracts Company which warned that “the lower electricity demand […] and higher payments to CfD generators because of lower wholesale electricity prices, electricity suppliers would have faced an unexpected increase in their obligations for the second quarter of 2020”Source: reNews
8/5/2020Germany’s neighbouring countries are asking the country to lift its coronavirus-related border restrictions. Border checks with Austria, France, Denmark, Luxembourg and Switzerland were extended this week. Luxembourg’s Foreign Minister Jean Asselborn questioned the need for these checks stating that they have a “negative effect on people’s minds”Source: POLITICO
7/5/2020An alliance of 94 organisations and over 500 scientists has called for an Austrian “climate-corona deal”, urging the Austrian Government to invest all recovery funds intelligently and in a climate-friendly manner. This should include state funds giving a boost to the expansion of renewables and energy efficiency in buildings and industry and a move away from subsidies for fossil fuels. Source: Energate
6/5/2020Austrian Environment Minister Leonore Gewessler said that the Renewable Energies Expansion Act is to enter into force as planned at the beginning of 2021, despite COVID-19. A first draft will be presented before the summer break with the final decision being taken en the second semester. A delay could mean that new wind power projects could be stopped for 2021 as the annual funding volume for 2021 might already be reached in 2020. Source: Energate
6/5/2020The UK’s Committee on Climate Change has advised the UK Government that recovery measures should support low-carbon infrastructure instead of investing in carbon-intensive sectors and that reducing greenhouse gas emissions and adapting to climate change should play an important role in the recovery package. Source: Recharge
5/5/2020The Greek Parliament has approved a change in environmental rules in order to boost investments and speed up the economic recovery after the coronavirus. The change affects regulations on land use, environmental licensing, the management of protected areas mainly benefiting oil and gas exploration. However, the legislation also offers benefits for renewables as investing should become easier as a result. Source: POLITICO
5/5/2020German Economy and Energy Minister Peter Altmaier together with Germany’s regional energy minister have outlined continued expansion of the country’s electricity grid and an increase in green investments as an important part of the reboot of the economy after the coronavirus crisis. Altmaier stressed that cooperation between Germany’s federal and regional governments should continue to speed up the expansion of the grid, which will be important for moving electricity from Germany’s wind-rich north to the industrial south. Source: POLITICO
29/4/2020The Spanish Ministry for Ecological Transition and Demographic Change has opened its public consultation processes on the Development of Offshore Wind. The consultation should normally be open for 15 days but the deadline for submitting contribution has already been suspended until the end of the state of alarm. Source: MITECO
29/4/2020Energy Commissioner Kadri Simson expressed her concern for the consequences for the European renewable energy industry. She pointed out the issues of supply chain vulnerability, reduced investments levels, delays in projects in emerging markets and the affected production in Europe. However, she also underlined that this moment is an opportunity to accelerate the progress towards climate neutrality. Source: European Commission
28/4/2020In a video message on Twitter, EU Commission president Ursula von der Leyen stressed the need for the EU Green Deal as a European response to COVID-19. She underlined how the EU Green Deal is important for the expansion of renewables, CO2-reductions in transport and energy efficiency in buildings and how it would make Europe more competitive and resilient. Source: Twitter
28/4/2020At her intervention during this year’s digital Petersberg Conference German Chancellor Angela Merkel called for more European collaboration in fighting climate change while referring to the ongoing COVID-19 crisis. She also welcomed the EU-objective of climate neutrality by 2050 and stressed the importance of raising the intermediate renewables target to 50-55% by 2030. In the past Germany had been reluctant raise renewable energy expansion targets. Source: Bundesministerium
für Umwelt, Naturschutz und nukleare Sicherheit
28/4/2020Authorities in Northern Ireland have removed the requirement to hold public community consultations as part of large-scale planning applications in response to COVID-19. The pre-application requirement for onshore wind projects will be suspended for five months starting 1 May. Infrastructure Minister Nichola Mallon added that public participation does remain an important part of the planning process and has proposed online meetings instead of face-to-face ones. Source: reNews
28/4/2020Following a meeting of European energy ministers Tomislav Ćorić, Energy minister of Croatia (EU Presidency), said that the EU energy market is still functioning well. It is resilient to challenges despite the disturbance caused by the coronavirus outbreak and oil market instability. The Croatian Minister also said that the ministers agreed that the current situation is a “major opportunity for transition and transformation towards green growth and recovery.” He also dismissed claims that the energy sector is being given unfair state aid, stating that the EU is “now in the phase in when every kind of help to the energy sector is needed” but the issue will be analysed and further discussed. Source: POLITICO
24/4/2020The Polish climate ministry wants recovery funds to focus on completing key projects for hitting the EU’s green targets and simultaneously reduce dependence on non-EU energy technology. The Ministry highlights that limiting funds for investments in renewables might undermine energy security. Source: POLITICO
24/4/2020April Energy ministers from 23 countries held an online meeting on how to put renewables at the centre of post-coronavirus recovery plans. It included participants from many large economies from both within and outside of Europe. The meeting resulted in the formation of the ‘contours of a green coalition’ according to Danish Climate and Energy Minister Dan Jørgensen. Source: Recharge
24/4/2020German Chancellor Angela Merkel stated that the EU’s recovery fund should be directly related to “what has to be done about climate protection” and that it shouldn’t be channelled into “carrying on as we did before the pandemic”. The €540,-bn package agreed on by EU leaders should therefore serve as an investment into the futureSource: Recharge
23/4/2020The Dutch government has called on the European Commission to raise its emissions reduction goal to 55 % by 2030. It also calls on the Commission to “withstand the temptation of short-term solutions in response to the present crisis that risk locking the EU into a fossil fuel economy for decades to come”. They specifically asked for the green recovery to focus on infrastructure projects including clean hydrogen and offshore wind. Source: POLITICO
23/4/2020The French High Council for Climate, which advises the French government on climate issues, urged governments to align climate objectives and their economic recovery plans. Giving financial support to industries should be conditional to a low-carbon trajectory according to the independent organisation. It further called for the tackling of the root cause of climate change, many of which are also amongst the causes for the outbreak of COVID-19. Source: POLITICO
21/4/2020The Spanish government has had to postpone its new climate law due to the coronavirus outbreak. When taking office the Government had promised to present its green transition measures within its first 100 days. Deputy Prime Minister Teresa Ribera who is in charge of the Ecological Transition, also leads the Spanish Government Taskforce on easing Spain’s lockdown restrictions. Source: POLITICO
21/4/2020France is facing a tightening of its funds for renewable investments as revenues from fuel taxes are expected to drop by €1bn. These taxes are partly used to cover green subsidies and are sourced from fuel and carbon taxes. France has seen a 70 to 85% drop in sales of fuel. However, Ecological Transition Minister Elisabeth Borne has earlier stated that renewable subsidies must be maintained. Source: POLITICO
21/4/2020Germany’s energy industry lobby BDEW urged the German government to remove barriers to expanding renewables to facilitate a boost in energy industry investments as part of the economic recovery programme. They also hope the government will ease energy costs and incentivise clean-tech investments by applying short-term cuts to energy-related taxed and levies. Source: BDEW
21/4/2020Italian Environment Minister Sergio Costa proposed a “green restart” for Italy. He sees the coronavirus crisis as a chance to enforce changes in Italy’s environmental policies. The package would focus on fighting environmental crimes, water pollution, littering. Both elementary and high schools will also have to educate students about the environment and climate. Source: Ministero dell’ambiente
20/4/2020More and more countries are committing to making the European Green Deal the heart of the economic recovery after the economic downturn caused by the COVID-19 outbreak. Four countries (Ireland, Malta, Slovakia and Slovenia) have signed the initiative. There now is a majority of 17 EU Member States supporting the initiative. Source: Climate Change News
20/4/2020The UK’s National Grid has published a report on what to do with excess electricity if demand remains low throughout summer. Two measures it mentioned are paying wind farms to switch off and paying hydroelectric plants to use excess power to pump water in reservoirs to be used later. This increased need to intervene could delay normal maintenance of the grid which is normally done in summer. Source: National Grid
17/4/2020The Spanish wind energy association (AEE) presented a 12-point plan for economic recovery after COVID-19. In the short term, the plan aims to maintain employment and investments and ensure construction activities as well as the operation of existing wind farms. It also includes measures to steer the pandemic response towards green technologies and to allow for the delivery of Spain’s ambitious National Energy and Climate Plan (NECP). Among those medium-term measures are the development of an offshore wind strategy, improved maritime spatial planning, the development of an electrification strategy and a national talent and education strategy for employees in wind energy. Source: AEE
17/4/2020French President Emmanuel Macron in an interview stated that we might be heading towards a change in public perception. COVID-19 has caused people to rethink their priorities, especially with regards to environment protection and climate change. “When we get out of this crisis people will no longer accept to breath dirty air” according to Macron. He also believes that the current crisis has shown that societies are willing and able to accept certain restrictions which could be reflected on environmental protection in a similar way. Source: Financial Times
17/4/2020Environmental norms in France won’t be lifted and the government’s green agenda won’t be pushed aside after the lockdown is lifted according to French Environment Minister Elisabeth Borne. She stressed that the citizens’ convention on climate which will deliver an action plan to make the country climate neutral by 2040 will not be pushed backwards. She also believes the French will gain an increased awareness of environmental issues after this crisis. Source: Ouest France
16/4/2020The Northern Irish utility Regulator warned that utility companies do not qualify for the Coronavirus Job Retention Scheme. Instead it is only for companies that have been “severely affected” by the ongoing health crisis “rather than those who have had to scale back certain activities and are seeking to cover the cost of those employees”. Source: reNews
16/4/2020The UK’s Committee on Climate Change has postponed its report on the UK’s future emission reduction targets. The report was supposed to be published in September but has been moved to December. It allows the Committee to spend more time on the analysis and reflect on the impacts of the COVID-19 crisis. Source: POLITICO
15/4/2020The European Commission is considering changing deadlines for legislation this summer. Internal documents show that the Offshore Renewable Energy Strategy amongst others will maintain a priority. However, the Smart Sector Integration Strategy, the EU’s 2030 climate target plan and the European climate pact will be moved potentially. Find the full list here. Source: POLITICO
9/4/2020The UK Department for Business, Energy & Industrial Strategy has once again confirmed that it is for the time being not deferring the Contract for Difference Round 4 auction scheduled to run until 22 May. It will, however, keep the 22 May deadline under review and reassess the situation if needed. Source: Recharge
8/4/2020The French Central Bank predicts that the country’s GDP has dropped by 6% in the first quarter of 2020 due to the COVID-19 outbreak. The head of the Central Bank also noted that Every two weeks of confinement costs 1.5 percent of GDP level. Source: POLITICO
7/4/2020Vestas announced it is suspending its financial guidance for 2020 due to poor visibility and the lack of a clear prognosis on when key wind markets such as the USA, Brazil and India will recover. As soon as it is in a position to give new estimates for 2020, a new updated guidance will be published. Source: Vestas
6/4/2020Auctions for new wind projects across Europe continue amid the COVID-19 crisis. Greece presented the results of its 500 MW technology-neutral auction. It was fully subscribed and 153 MW was awarded to an onshore wind project with a price of €55/MWh – €2/MWh lower than the latest auction. The rest of the capacity was awarded to solar projects. Source: Renewables Now
2/4/2020The German Federal Network Agency (BNetzA) presented the results of the latest German onshore wind auction. It was undersubscribed again with only 150 MW out of the available 300 MW being awarded. The average price of the projects was €61/MWh. It has been increasingly difficult to get permits for projects in Germany. This has pushed up prices in Germany and led to a number of undersubscribed auctions. Source: Bundesnetzagentur
2/4/2020European Commission President Ursula von der Leyen repeated once more that the priorities of the EU budget will remain the same and that it can play the role of a ’Marshall Plan’ in the recovery of the European economy. Decarbonisation is one of the priorities alongside digitalisation and ‘resilience for the EU’. Source: POLITICO
2/4/2020A German government spokesperson has announced that in spite of the ongoing crisis, the final presentation of the coal exit legislation will still be presented this summer. Source: POLITICO
2/4/2020Poland is sticking to the development of new wind energy legislation. COVID-19 isn’t delaying the progress for the offshore wind bill and the discussion on whether the 2016 rules restric onshore wind developments also continues. Source: POLITICO
2/4/2020The French Government has adjusted its renewable energy auction schedule. The deadline to submit bids to the next onshore wind auction was originally 1 July. The Government has decided to maintain this deadline for 250 MW, which is 1/3 of the volumes originally planned. The deadline to submit bids for the remaining 2/3 (500 MW) will be 1 November.France will also extend the commissioning deadlines for renewable energy projects. The length of the extension will only be decided after the end of the lock-down period. Find more information on the auctions, dates and volumes here.France also presented the results of the latest onshore wind auction. Projects worth 1,100 MW applied and 749 MW was awarded, more than the 630 MW which was planned originally. The average bid was competitive at €63/MWh – around 3 euros lower than the previous auction. Source: French Ministry for the Energy Transition
2/4/2020Despite announcing that it would not push through any new climate regulation due to the corona crisis, the Dutch government has presented new plans today. Economics and Climate Minister Eric Wiebes announced that electricity production at 3 of the remaining coal powered electricity plants has to be reduced this year. He didn’t rule out the closure of one of the plants. Source: NOS
2/4/2020April The UK government has postponed the date for COP26 UN climate change conference which was scheduled to take place in Glasgow in November. As a response European Commissioner Frans Timmermans said that the European Commission “will not slow down its work domestically or internationally to prepare for an ambitious COP26, when it takes place. Source: POLITICO
2/4/2020Bloomberg New Energy Finance predicts that onshore wind will be heavier hit by the pandemic than offshore wind. It expects European onshore installations to be 4GW lower in 2020 than it initially anticipated and highlights that Europe and the US will be most affected globally. Source: BNEF
2/4/2020The Scottish Government has advised all non-essential business sectors to close until there is more clarity about how operations can be undertaken safely and following the social distancing rules set out. They have thus given the advice that all business premises, sites and attractions that are not essential to close. Scottish Renewables is expecting clearer guidelines from the Scottish government on Critical National Infrastructure soon. Source: Scottish Renewables
1/4/2020The Greek government has extended a number of deadlines due to the corona crisis. It applies to a number of issues such as connecting projects to the grid; Installation Licenses and binding Grid Connection Offers; the new Reference Values for non-auctions projects; the submission of the required bank guarantees. Most of them have been postponed by either 4 or 6 months. Find the full list hereSource: HWEA
31/3/2020The Polish President signed the emergency “coronavirus” bill which allows onshore wind farms to ask for waivers to delay completion of their projects by 12 months from the earlier contracted date. Source: The First News
31/3/2020The European Parliament’s Committee on Regional Development is currently holding on to its June deadline for a final vote on the Just Transition Fund. The deadlines in March have all been met and political groups are currently consolidating position and preparing amendments to the lead lawmaker’s report. Source: POLITICO
31/3/2020In the UK, parliament has gone on recess which means that key post-Brexit environmental legislation has been put on hold. In practice nine sessions in the legislative process have been postponed which means that the bill and its amendments will only be discussed end of April at its earliest. Source: POLITICO
31/3/2020 In France the proposed reform to improve the enforcement of environmental laws and access to environmental justice has been pushed back as French MPs have been working from home. The reform has already passed its first reading. Source: POLITICO
27/3/2020The European Heads of Government held a video conference to agree on how to tackle the COVID-19 crisis and to discuss a recovery strategy. They agreed that the recovery strategy to be put in place after the worst of the pandemic is over needs to be built around the green transition and digital transformation. Source: Recharge
27/3/2020The Dutch government has announced that it will not agree new measures to further decrease the CO2 emissions due to the COVID-19 outbreak before April. This is in spite of a 1 April deadline following a court case which urged the government to take more measures to cut emissions. Dutch Minister of Economics and Climate Eric Wiebes stated that managing the coronavirus crisis will be given priority for now. Source: NOS
27/3/2020Ireland has extended the deadline for the prequalification round for its Renewable Energy Support Scheme due to the COVID-19 outbreak. The application period has been extended to 30 April, rather than 2 April as was planned initially. Source: Windpower Monthly
26/3/2020Polish Climate Minister Kurtyka has, once again, argued that due to the possibility of having a recession as a result of the coronavirus outbreak, Poland should receive more renewable aid from the European Commission. Source: POLITICO
25/3/2020Crown Estate Scotland is continuing its planning to officially launch the ScotWind seabed leasing round for offshore wind projects in spring. It intends to stick to the deadlines as announced before and will ensure that government guidance on preventing the spread of the coronavirus will be adhered to. Source: OffshoreWind
25/3/2020A Commission spokesperson has commented that COVID-19 shows us that we need to have legally binding climate goals. We need to continue giving attention and efforts to the climate crisis. He also noted that one of the key reasons for the Climate Law was to “to avoid that climate action, a generational task is sidelined by more pressing and immediate challenges”. Meanwhile, the European Parliament is still aiming to get the Climate Law bill ready for a plenary vote in September. Source: POLITICO
24/3/2020Astilleros Gondán, a shipbuilding company that is also constructing two ships for the wind sector at the moment has shut down starting today until the end of the state of emergency in Spain which is expected for 13 April. The company will not receive any government support as a result of its closure as its activity has not been prohibited by the government. Source: La Voz de Galicia
24/3/2020The European Commission urged EU countries to immediately implement its recommendations and ensure that the transport of goods remains unobstructed. Green lane border crossings should be opened for trucks and they should not spend more than 15 minutes to cross due to checks and screenings. They are also calling on a non-dicriminatory treatment of all freight vehicles “irrespective of the origin, destination, or country of registration of the vehicle, or of the nationality of the driver”Source: POLITICO
23/3/2020The Polish Wind Energy Association (PWEA) has warned that the coronavirus outbreak could slow the construction for onshore wind farms and that they might miss their deadlines therefore. The association has urged the Polish government to pass an emergency law allowing onshore wind farms to ask for waivers to delay completion of their projects by 12 months from earlier contracted deadlines. Source: PWEA
23/3/2020The Italian Prime Minister Giuseppe Conte announced that all non-essential factories over the country must be shut. Only those sectors that are necessary to “get the country through this crisis” will be allowed to stay open. In practice this means supermarkets, pharmacies, banks, post offices and public transport. Source: Corriere della Sera
23/3/2020France is discussing an initiative that will suspend gas and electricity bills for SMEs while measures to stop the spread of the coronavirus are in place. Similar plans have been discussed in Spain, Italy, Poland and the UK before. Source: POLITICO
23/3/2020The United Kingdom has extended the response period for its offshore wind leasing round. Interested parties will be given more time due to the COVID-19 outbreak to offer their bid. It will affect four different Seabed Bidding Areas (Dogger Bank, Eastern Regions, South East, and Northern Wales and Irish Sea). The awarded capacity in this tender process will be between 7 and 8.5 GW. Source: Renewables Now
23/3/2020The Council of the EU has cancelled its Working Party on Environment which was scheduled for today due to COVID-19 concerns. Officials from each Member State were supposed to start negotiations on the draft EU Climate Law. Source: POLITICO
23/3/2020The renewable energy auction scheduled for 4 April in Greece has not been affected by the coronavirus outbreak. The auction is electronic and all documents that had to be submitted physically already have been. Source: HWEA
23/3/2020Poland’s Finance Minister Tadeusz Kościński has stated that the energy sector is struggling with the effects of COVID-19 and the government might therefore provide financial support. At the same time utilities are being encouraged to declare a moratorium on energy bill payments. Source: POLITICO
23/3/2020The Danish government’s negotiations for a new climate bill have been put on hold indefinitely as they focus their effort on the coronavirus outbreak. The planned climate bill entails the ambition to cut carbon emissions by 70% by 2030. Source: Berlingske
22/3/2020Fatih Birol, the IEA’s Executive Director provided a commentary on the coronavirus crisis and modern society’s dependency on electricity. He highlighted that governments’ financial responses should focus on the development, deployment and integration of clean energy technologies. This has the benefits of stimulating economies and accelerating clean energy transitions. Source: Fatih Birol
20/3/2020A spokesperson for the Spanish Ministry for the Ecological Transition has announced that despite the ongoing health crisis the government still intends to meet its deadlines regarding its climate policies. The Ministry thus still aims to unveil its new climate law by mid-April. Source: POLITICO
19/3/2020The European Central Bank has set up a €750 billion Pandemic Emergency Purchase Programme: a temporary asset purchase programme of private and public sector securities to counter the serious risks to the monetary policy transmission mechanism and the outlook for the euro area posed by the outbreak and escalating diffusion of COVID-19. Source: European Central Bank
19/3/2020Some politicians have been questioning whether putting money into the European Green Deal is the right thing to do at this moment. Meanwhile many national governments have announced plans to support their economy by handing out cash to polluting industries. But European Commissioner for Internal Market and Services Thierry Breton highlighted at a Bruegel event on Thursday that “the European Deal is not over and we will deliver and offer ever greener solutions once the pandemic is done.”Source: POLITICO
19/3/2020On the other side of the Atlantic, the American renewables sector has asked lawmakers to extend deadlines for the tax credits wind and solar projects receive until the end of this year. They stressed that disruptions and delays caused by the spread of the virus could put 35,000 jobs at risk and jeopardize $43 billion in investment. Source: Reuters
19/3/2020Markus Söder, Bavaria’s Prime Minister, has stated that EEG surcharge and electricity taxes should be suspended for three months in Germany to offset the economic consequences of the COVID-19 outbreak. The EEG surcharge is used to finance the expansion of renewable energy. Source: Frankfurter Allgemeine Zeitung
19/3/2020The industrial shutdown as a result of the corona virus has led to a drop in the price of ETS emissions permits. The price drop between Tuesday and Wednesday was the biggest in 18 months and reached €15.23 per ton on Wednesday, down from €24.06 on 10 March. Source: POLITICO
17/3/2020The Dutch Government is not planning to postpone its offshore auction for the Hollandse Kust Noord Site 5 (700 MW), which is planned for April. It does not foresee an impact of the COVID-19 crisis for the submission of proposals. The Government should keep in mind that if there is an impact of the Corona virus and the auction will be undersubscribed, the non-awarded volumes should be awarded at a later stage. Source: Recharge
17/3/2020Polish Deputy Minister of State Affairs Janusz Kowalski criticized the European Emissions Trading System (ETS) and asked for Poland to be excluded from it starting next year, or to abandon it altogether. He argued that the ETS system has led to higher electricity prices in Poland. These measures would thus help Poland to set off the economic consequences of the coronavirus outbreak. Source: Reuters
16/3/2020Czech Prime Minister Andrej Babiš has called on the EU to change its focus from the Green Deal to the COVID-19 crisis and thereby to cancel its plan to invest over €1 trillion to reach net zero emissions by 2050. Source: Reuters
16/3/2020The European Investment Bank plans to mobilise up to up to €40 billion of financing, which will go towards bridging loans, credit holidays, and other measures designed to alleviate liquidity and working capital constraints for SMEs and mid-caps. Source: European Investment Bank
13/3/2020The European Commission has made €37 billion available from the EU budget to address COVID-19. This ‘Coronavirus Response Investment Initiative’ will advance payments, redirect cohesion funds, and take other measures to support Member States as they struggle to suppress the virus. Source: European Commission. Source: European Commission
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EU and national measures on Free Movement and Economic Relief
Restrictions on manufacturing and construction activity have now eased. All production facilities are now operational and construction activity is restarting in those countries where it was disrupted. Operation & Maintenance (O&M) services continue as they have throughout the crisis, since energy and electricity supply has been broadly recognised as an “essential service” requiring operational continuity.
Travelling within the EU, EEA, Switzerland and the UK is allowed in most cases, but in many countries quarantine restrictions are in place for non-essential workers arriving from certain countries or zones. It is therefore extremely important to check the travel advice to know the situation in the country of destination.
In July the European Council agreed on a €750 bn recovery plan. 30% of all spending will be earmarked for green investments in electrification, renewables, storage, hydrogen production and other activities that will boost value chains and position Europe as a leader on green technologies and climate protection. To access the biggest component of the fund – the €672.5 bn Recovery & Resilience Facility – Member States will need to submit national Recovery and Resilience Plans to the EU Commission by April 2021. The plans should set out investment and reform priorities in line with the long-term target of climate neutrality by 2050.
