4,600 of 6,500 MW Offshore Grid Connection Capacity Completed – Offshore Surcharge on Steady Level, Costs EUR 162.7 million

The offshore transmission system operators 50Hertz and TenneT have completed offshore grid connections with a capacity of over 4,600 MW in the North Sea and the Baltic Sea. That brings the offshore grid expansion closer to the EEG expansion target of 6,500 MW for offshore wind by 2020. The four TSO have published the new offshore surcharge for 2016 to reallocate expected costs of EUR 162.7 million.

Based on this the Energy Ministry State Secretary Rainer Baake stated: “The offshore grid expansion makes very good progress, the phase of  delays in offshore grid expansion has come to an end. This shows also the steady offshore surcharge.” The Energy Ministry’s website with Mr. Baake’s quote did not mention the actual costs expected for 2016: EUR 162.7 million. This is considerably less than the EUR 421.6 million calculated for 2015.

Section 17f German Energy Act (EnWG) allows TSOs under certain conditions to pass on compensation payments to wind park owners for grid connection delays and disruptions of power lines (including due to maintenance of more than 10 days a year) to the electricity consumers (offshore surcharge).

On 15 October the TSO published the new offshore surcharge for 2016. This forecast is based on the estimated costs for compensation payments for the next year (2016) and the difference between the actual costs for compensation payment of 2014 and the forecast of the costs for compensation payments in 2014.

The exact amount of the offshore surcharge for 2016 is currently not clear, as the ongoing revision of the Combined Heat and Power Act (Kraft-Wärme-Kopplungsgesetz – KWKG) is planning to amend the amount of the increases of the final consumption categories B ‘and C’ (Article 2 para. 3 draft KWKG).

Therefore the TSO alternatively calculated the offshore surcharge on the basis of the current KWKG and the draft KWKG that is expected to enter into force on 1 January 2016.

Year/Version Group A Group B Group C
Revised KWKG      
2016 0.039 ct/kWh 0.026 ct/kWh 0.030 ct/kWh
Current KWKG      
2016 0.040 ct/kWh 0.027 ct/kWh 0.025 ct/kWh
  • “Group A” end consumers with a consumption of up to 1,000,000 kWh at an individual point of delivery;
  • “Group B” end consumers: end consumers, whose consumption at a point of delivery exceeds 1,000,000 kWh have to pay the afore-mentioned amount for electricity exceeding 1,000,000 kWh;
  • “Ggroup C” end consumers: end consumers, whose consumption at a point of delivery exceeds 1,000,000 kWh and whose electricity costs in the previous year exceeded 4% of the turnover, have to pay the afore-mentioned amount for electricity exceeding 1,000,000 kWh.

The offshore surcharge is part of a wider range of surcharges that are levied on electricity prices.  Regarding the renewable surcharge (EEG surcharge) for 2016, please see here.

Source: BWMi, Netztransparenz

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