Juwi requires longer green project target dates in Germany amid supply chain woes
- The German federal government should expand the target dates for the execution of subsidised green power projects as the persistent supply chain interruptions and also extended distribution times are jeopardising lots of initiatives, according to renewables designer Juwi AG.
Developers of renewable resource projects are presently risking of being fined for their inability to execute projects within the timeframe set by the regulation since the shipment of components, particularly for substations, transformers, and also transfer stations, presently takes regarding two years. This duration is longer than the deadlines provided for the realisation of the projects, Juwi said on Wednesday.
The troubles triggered by disrupted supply chains intimidate not only the conclusion of projects but put also the federal government's ambitious development goals at risk, Juwi explained.
To solve the problem, the German developer proposes that the execution deadlines should be expanded by year and the Federal Network Agency (BNetzA) should be authorised to change these due dates in the future without changing the Renewable Energy Act (EEG).
Under the current law, solar projects granted by the regulatory authority should be carried out within 18 months while the deadline for onshore wind is 24 months.
Juwi kept in mind further that project designers bear disproportionate risk due to the fact that the present problems are forcing them to secure the funding as well as order the components before they are granted a contract by the Federal Network Agency. However, the majority of market participants have the ability to get financing just after safeguarding subsidies.
As a result, Juwi is contacting the German federal government to decide on a target date expansion before June 23 when the Bundestag will certainly vote on the already planned amendments to the EEG.