Juwi calls for longer deadlines for tender projects in Germany due to supply bottlenecks

Solar and wind energy project developer Juwi AG is calling for an extension of the implementation deadlines for wind and solar tenders in Germany due to current supply bottlenecks »especially for grid-related components» such as substations or transformer stations.
Currently, the country’s Renewable Energy Law (EEG) stipulates that PV projects must be implemented within 18 months of surcharge. After that, the confirmed compensation rates are reduced by 0.3 euro cents per kilowatt hour. After 24 months, the surcharge expires, as does the guarantee which has to be deposited for such projects. For wind power plants, penalty payments are due from the 24th month after the announcement of the surcharge, and after 30 months the surcharge expires here as well. These regulations are intended, among other things, to prevent projects from being delayed, smaller than announced or not implemented at all because investors were counting on further falling costs when submitting their bids.
Juwi claims that delivery times for grid technology components in particular are currently more than 24 months – if a date is promised at all: »We are currently experiencing that many manufacturers can no longer contractually guarantee delivery dates due to the tense situation in Ukraine and the currently prevailing material bottlenecks,« says Juwi board member Christian Arnold. The company is therefore calling for a blanket extension of the deadlines by twelve months. This should be done in the course of the upcoming EEG amendment, which is expected to be voted on by parliament in second and third reading on June 23/24. Juwi does not see any danger of projects being delayed in the event of such a deadline extension: every project developer will »continue to want to complete their projects as quickly as possible and push ahead with commissioning for reasons of liquidity and profit-making intentions«.

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