50Hertz, the Electricity transmission system operator, is set to invest €5.6bn ($6.21 billion) in the offshore grid connections of Baltic and North Sea wind farms.
Offshore wind farm investments are a pretty safe bet right now as more and more wind farms are developed, and 50Hertz has stated their intention to plow investment into the industry over the next five years.
The company plans to invest billions in submarine cables, land and power lines, as well as wind farm substations. This is almost double the amount they invested in the five years leading up to 2021.
By doing so, the company hoped to contribute significantly to climate protection goals, while also further securing supply and bolstering energy sovereignty.
The company is also motivated by forecasts of a significant increase in demand for electricity in the company’s grid area and many other parts of the world besides.
As more industries seek to decarbonize their operations, a move away from fossil fuels and towards electricity is almost inevitable. This, combined with a move toward electricity-powered vehicles and electric-based eating sources will surely see a spike in energy consumption, that wind farms can, in part, provide.
In fact, it is estimated by 50Hertz that electricity demand could increase by as much as 40 percent in their grid area by 2030.
With so much money being plowed into the industry, it is safe to say that offshore wind investments are likely to be a safe bet in the coming months and years.