Germany hopes offshore wind link law will help woo investors

EnBW's Baltic 1, the first commercial offshore wind farm in German waters.

Germany hopes the new law will see more offshore plants joining Baltic 1

Germany’s Bundesrat – its upper house of parliament – today approved a law that many hope will ease the grid issues that have dogged the country’s fledgling offshore wind industry.

A key part of the law is a provision capping the liability on transmission system operators (TSOs) in the event of delayed or damaged offshore grid links, which observers believe will finally allow pension funds, insurance companies and other institutional investors to begin pumping capital into the sector.

Germany’s lower house, the Bundestag, had already backed the legislation in November. It will now come into force at the beginning of 2013.

The legislation caps damages TSOs – principally TenneT – will be eligible for at €17.5m ($22.9m). Earlier drafts had foreseen…

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