Germany’s Offshore Wind Sector Stalls

Germany’s offshore wind power installations stagnated in the first half of 2025, with 9.2 gigawatts (GW) as of June 30, the same as at end-2024, German industry associations said, calling for major changes in tender terms and pricing to revive the stalled sector. 

Still, offshore wind turbines with a total capacity of 1.9 GW are currently under construction, said the German wind energy association, Bundesverband WindEnergie (BWE), and several other sector groups, citing research they have commissioned to consulting firm Deutsche WindGuard. 

Developers have taken final investment decisions on a total of 3.6 GW capacity, while another 17.5 GW in capacity have been awarded contracts in auctions, according to the data. 

Offshore wind will play a key role in the energy transition in Germany, the industry associations said. 

However, for offshore wind to reach the ambitious government targets of boosting capacity to 70 GW by 2045, policy makers need to fundamentally revise the tenders and ensure additional revenue and planning security, according to the lobby groups.  

Globally, the offshore wind industry continues to face significant headwinds relating to supply chain, regulatory, and macroeconomic developments. 

Orsted, the world’s biggest offshore wind project developer, in May warned of a continued challenging environment for the industry. 

In the onshore wind sector, Germany saw the highest number of onshore wind turbines commissioned in the first half of 2025 for eight years, but the rebound in installations is still off track to reach the official targets, BWE said earlier this month.  

Despite the jump in wind power installations, Germany still has a gap between the rate of capacity expansion and the legally mandated goals in the Renewable Energy Sources Act, the so-called EEG, BWE president Bärbel Heidebroek said.

Germany has a target to install 10 GW of wind power capacity every year to have renewables account for 80% of its electricity generation in 2030.

BWE called for continued simplification in project approvals and noted the urgent need of modernization of the grid to handle the rise in renewable electricity. 

By Charles Kennedy for Oilprice.com

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