Germany’s offshore wind industry and transmission system operators have called on the government to overhaul the country’s offshore wind auction system, warning that delays in reform could undermine investor confidence.
In a joint declaration, the German Wind Energy Offshore Association (BWO), the German Association of Energy and Water Industries (BDEW), VDMA Power Systems, and grid operators TenneT, Amprion, and 50Hertz outlined measures aimed at reducing costs, improving market stability, and restoring the country’s appeal to investors.
BWO managing director Stefan Thimm said: “With clear rules and fair investment conditions, offshore wind energy remains the backbone of the energy transition. The BWO, the BDEW, the VDMA and the grid operators are jointly showing what cost reduction potential lies in offshore wind energy.”
The associations recommended postponing the next offshore wind tender from summer 2026 to the fourth quarter of that year to allow time for a redesigned auction model based on bilateral contracts for difference (CfDs). They argued that CfDs, combined with long-term power purchase agreements, could lower capital and generation costs while providing predictable and stable returns for investors.
The declaration also called for more efficient spatial planning and grid coordination, prioritizing electricity generation over installed capacity. Suggestions included reducing turbine density and improving alignment between wind farm and grid planning to increase efficiency and lower costs for households and industry.
Additional measures proposed for 2026 include extending project permit terms to 35 years and implementing a graduated system of penalties for delays in achieving operational readiness.
The groups said the reforms, along with extended refinancing periods and enhanced planning certainty, would help safeguard offshore wind expansion and maintain Germany’s standing as a leading market for clean energy investment.
