Germany’s latest offshore wind auction without government subsidies failed to attract a single bid on Wednesday, alarming the local offshore wind sector, which is calling for a fundamental redesign of Germany’s renewable energy auctions.
The Federal Network Agency’s auction for 10.1 gigawatt (GW) offshore wind farms in the German part of the North Sea ended with no investor submitting a bid for any of the two proposed sites, the Federal Association for Offshore Wind Energy, BWO, said.
The auction flop signals that offshore wind power developers are wary of taking on riskier, zero-subsidy projects amid rising costs and supply chain issues.
BWO sees the failed auction “as an alarming signal and calls on the German government to fundamentally reform the auction design,” the association said.
“The current auction design forces developers to bear risks beyond their control without any protection,” said BWO’s managing director Stefan Thimm.
“The result sends a clear message: The German offshore wind market is currently not attractive to investors. The federal government is thus missing the opportunity for significant value creation and employment in Germany and Europe,” Thimm added.
Germany urgently needs to revamp the auction design and help eliminate bottlenecks in the supply chain, such as barriers to port expansions and modernization, the executive noted.
“The federal government must finally pave the way for a reliable CfD [contract for difference] system alongside long-term electricity supply contracts. Contracts for Difference lead to a reduction in electricity generation costs of up to 30 percent – the basis for competitive electricity prices,” Thimm said.
“Without this reform, further auctions could fail – and with them the energy transition.”
Last month, industry associations warned that Germany’s offshore wind power installations stagnated in the first half of 2025, with 9.2 GW as of June 30, the same as at end-2024.
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.
By Charles Kennedy for Oilprice.com
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