German offshore wind industry groups and transmission system operators are urging the federal government to reform the country’s auction system for offshore wind projects, citing concerns over investment deterrence and development delays.
The German Offshore Wind Energy Association (BWO), the German Association of Energy and Water Industries (BDEW), VDMA Power Systems, and grid operators TenneT, Amprion, and 50Hertz released a joint statement on November 10. They requested changes to the legal and auction design for offshore wind projects.
The groups proposed delaying the next offshore wind auction from mid-2026 to the fourth quarter of that year, allowing time to redesign the tender process. They advocated for introducing contracts for difference (CfDs) and long-term power purchase agreements (PPAs) to enhance price stability and reduce financing costs.
According to the associations, Germany’s current offshore wind auction framework has failed to attract bids. A recent 2.5 GW tender saw no offers, raising concerns about the economic viability of projects under current conditions.
The statement also recommended extending operating lifetimes for new offshore wind projects from 25 to 35 years and implementing a tiered penalty system for delays, providing investors with greater certainty. The groups emphasized these measures would help maintain Germany’s competitiveness in offshore wind development.
The industry organizations called for better coordination between wind farm construction and grid infrastructure to minimize delays. German grid operators have reported up to two-year postponements on several North Sea connection systems.
“With clear rules and fair investment conditions, offshore wind energy will remain the backbone of the energy transition,” said BWO Managing Director Stefan Thimm.
Germany aims to install 30 GW of offshore wind capacity by 2030 and 70 GW by 2045 as part of its energy transition plans. Industry groups believe achieving this target will be challenging without adjustments to the current auction and permitting framework.
Further Reading
For more information on Germany’s energy transition, visit these energy transition resources.
Original Story at www.offshorewind.biz