Germany opens largest offshore wind farm

Germany inaugurated its largest offshore wind farm in the North Sea on Thursday, as the wind industry faces uncertainty over energy policy and market conditions.

The He Dreiht wind farm, located 90 kilometres north of Borkum near the Dutch border, has 64 turbines and a total capacity of 960 megawatts. Operator EnBW said it cost about 2.4 billion euros, or $2.8 billion, to build and can power about 1.1 million homes.

German Environment Minister Carsten Schneider said the investment came "at a time when market conditions are not currently easy." Schneider, a centre-left Social Democrat, has said Germany's target of tripling offshore wind capacity to 30 gigawatts by 2030 remains in force.

Centre-right Energy Minister Katherina Reiche has proposed cuts to subsidies for solar and wind power and has favoured building new gas-fired power plants to help stabilise the grid.

EnBW chief executive Georg Stamatelopoulos said uncertainty was weighing on the expansion of wind power.

He Dreiht is the first wind farm in Germany to operate without state subsidies for the electricity it feeds into the grid. EnBW is relying on power purchase agreements, long-term contracts with companies including Frankfurt Airport operator Fraport and automotive supplier Bosch.