German Government Initiates Dynamic Auction for Offshore Wind Sites Following Surge in Zero-Cent Offers

The German government is set to launch a dynamic auction process for 2500MW of wind sites following a remarkable influx of 16 zero-cent offers. This move, facilitated by the Federal Network Agency (BNetzA), marks a significant milestone in the country's renewable energy landscape.

Commencing on June 17th, rounds for the N-11.2 (1.5GW) and N-12.3 (1GW) sites will commence, driven by nine subsidy-free entries for the former and seven for the latter. The dynamic auction mechanism will see developers vying to match lease prices published by BNetzA, fostering a competitive bidding environment.

Under this format, bidding rounds will occur daily, with up to 13 rounds each day until a victor emerges. The starting price for these bids will be €30,000 per megawatt. Last year's dynamic bidding process saw the Federal Network Agency award bids totaling €12.6 billion for four sites, boasting a combined capacity of 7GW.

The proceeds from these auctions are earmarked primarily for reducing electricity costs, alongside initiatives aimed at marine conservation and promoting environmentally friendly fishing practices.

Reflecting on the outcome of the tender process, BNetzA President Klaus Müller remarked, “The results of the tender are good news for the energy transition in . It is gratifying that companies do not need any to expand offshore . The zero-cent bids make it clear that offshore wind energy is economically attractive.”

Müller added, “Consumers will be relieved of the costs of offshore connection lines,” underlining the potential benefits for end-users amidst the ongoing energy transition.

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