The German Offshore Wind Energy Foundation has called for reforms to the country’s offshore wind auction system, warning that the current model could drive up electricity prices and pose long-term risks to energy policy and industrial competitiveness.
In a newly published study, the Foundation proposes the introduction of two-sided Contracts for Difference (CfDs), a cap on tender volumes per bidder, and tighter prequalification standards to ensure a more sustainable and balanced expansion of offshore wind capacity.
Currently, Germany awards offshore wind development rights through a competitive bidding process that prioritises the highest financial offers. The Foundation argues that this structure may prompt developers to recover their investment through higher power purchase agreement (PPA) prices, which could eventually affect industrial consumers.
“The results of the analysis must be understood as a call to the next federal government to finally correct course here,” said Karina Würtz, managing director of the Offshore Wind Energy Foundation.
The study notes that sectors with high energy consumption, including transport operator Deutsche Bahn and Germany’s chemical industry, could face increased electricity costs under the existing auction model.
By contrast, two-sided CfDs—which provide a guaranteed price floor and ceiling—are seen by the Foundation as a mechanism that could offer greater price stability for both developers and consumers, while still supporting investor confidence.
The Foundation’s recommendations come amid broader European efforts to expand renewable energy capacity while ensuring affordability and energy security.
