Wind turbine OEM Nordex claimed a “design error” in the tendering system for German onshore wind had left equipment manufacturers “high and dry”.
Nordex said the overwhelming success of cooperative-style ‘citizens energy’ companies in May’s 807MW tender had created unintended but serious consequences for the wind supply chain.
The citizens-energy projects – which took 96% of the capacity available in the tender, Germany’s first onshore round under a competitive process – do not need permits under the German Federal Emission Control Act and have 54 months to build their wind farm, rather than the two years that is standard in the market, Nordex said.
According to the manufacturer “no producer received any contracts worth mentioning from the tender volume”.
Nordex chief sales officer Patxi Landa said: “Manufacturers that do not have any business outside Germany have now been largely left high and dry as they are dependent for their survival on the shrinking volume of transitional projects under the German Renewable Energies Act.”
Although the government has adjusted the system for the first two rounds of 2018, Landa said “the ability to take part in tendering without a construction permit is a design error which must be eliminated permanently to avert any risk to the German wind power industry”.
Nordex’s own exposure to the German market was reduced when it bought the Acciona Windpower turbine business last year.
Nordex said it grew in line with its domestic market in the first half of 2017, as Germany added 2.28GW onshore from January to June, an 11% year-on-year increase.
The OEM held its market share steady at about 17%. Landa said: “This is a positive sign that proves that our current range is competitive in the hotly contested market. What is more, we are about to launch a far more efficient wind power system, which we are confident will attract strong demand in the foreseeable future.”