Germany is set to launch a dynamic bidding process to determine the winners of the 2.5 GW offshore wind tender in the North Sea, after receiving numerous zero-cent bids for both designated areas.
As of the June 3, 2024 deadline, the Federal Network Agency reported the submission of nine bids for the 1,500 MW area and seven for the 1,000 MW site.
All bidders for each area proposed zero cents per kilowatt-hour, opting out of funding. In accordance with the Offshore Wind Energy Act, a dynamic bidding process will now be employed to distinguish bids competitively. The online bidding phase, commencing on June 17, will identify the bidders demonstrating the highest willingness to pay for the two areas, who will subsequently be awarded the contracts.
The dynamic bidding process will encompass up to 13 rounds of bidding per day.
Germany's largest offshore wind auction last year yielded EUR 12.6 billion (USD 13.73 billion) and granted development rights for four areas in the North and Baltic Seas with a total capacity of up to 7 GW.
The winners, BP and TotalEnergies, were selected through a dynamic bidding procedure, wherein developers engaged in uncapped negative bidding, paying for the rights to develop wind parks at the specified sites.
