German Tender for Offshore Wind Without Subsidy Attracts No Bids

The German agency that oversees the country’s offshore wind energy development confirmed that there were no bids in the most recent auction. It was Germany’s second auction of the year, but unlike the first, which TotalEngeries won the site, this one failed to receive interest from investors.

Germany was offering two North Sea sites, which combined would have a capacity of 2.5 GW. The country currently has 9.2 GW of offshore wind capacity operational in the North Sea and Baltic Sea, according to BNetzA, with ambitious goals to reach 30 GW by 2030, 40 GW by 2035, and 70 GW by 2045. It added just .7 GW in 2024.

“The auction result must be a wake-up call for the German government,” said Viktoriya Kerelska, Director of Advocacy & Messaging at the trade group WindEurope. “It’s time to amend the auction model so Germany can deliver on its offshore wind targets and industrial competitiveness.”

Analysts note that investors’ mood changed as they face rising costs and challenging supply chains. A few years ago, investors were driving down the level of subsidies, and countries such as Germany and the Netherlands celebrated the first subsidy-free agreements. Now, the major developers are citing the increased risks they face and costs, saying they must have protection. Even in some cases, such as the UK’s Hornsea 4 project, developer Ørsted said the economics had changed to the point that it would not proceed in the current form, even with its government contract.

WindEurope highlights that most countries in Europe have introduced two-sided Contracts for Difference (CfDs) as a revenue stabilization mechanism for offshore wind development. Countries that have not moved forward with this model experienced the same challenges. Denmark in December 2024 also received no bids, and even the UK, which offered CfDs, had an unsuccessful round in September 2023, with the companies saying the support was too low. The current UK government has moved to increase the CfD levels and improve the structure, and it has been receiving stronger interest.

Germany’s Federal Minister for Economic Affairs and Energy, Katherina Reiche, admitted during a press conference that the results were sending a message. She said it would be “beneficial” for the regulator to look at adjusting the tender going forward.

The German Offshore Wind Energy Association (BWO) noted that it has repeatedly called for the introduction of the CfD approach. It says that Germany must also provide long-term power purchase agreements.

“The result sends a clear message,” said BWO’s managing director, Stefan Thimm. “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.”

The authorities reported that under the terms of the tender, the two sites will be re-tendered with a new bid deadline of June 1, 2026.