The Bundesrat is expected to vote on the law on 14 December, with industry sources optimistic that it will pass.

Only several weeks ago it was unclear whether parliament would have time for the law before the end of the year, and its passage would end a challenging 2012 for the German offshore wind industry on a high note.

The most important 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.

Critically,