Germany’s latest offshore wind auction failed to attract any bids, with developers RWE and EnBW attributing the outcome to the design of the tender and regulatory framework. Both companies pointed to the tender rules and an uncapped negative bidding mechanism as key factors deterring investment in the North Sea sites N-10.1 and N-10.2, which together offer 2.5 gigawatts (GW) of capacity.
A spokesperson for EnBW said, “We did not participate in this year’s tender for the centrally pre-examined area. Based on our assessment and, apparently, the view of the entire industry, it is not possible to develop an economically viable project under the current regulatory framework.”
RWE and EnBW echoed calls from the Bundesverband Windenergie Offshore (BWO) for urgent reforms, including the introduction of two-sided Contracts for Difference (CfDs) to provide a more stable investment environment.
An RWE spokesperson said, “From our perspective, the auction requires urgent adjustments. We welcome the initiative of the German Ministry of Economic Affairs to conduct an assessment as part of the so-called ‘monitoring report.’ In our view, this provides a strong foundation for dialogue between policymakers and companies to refine the framework conditions.”
Industry group WindEurope said Germany was “swimming against the tide” by maintaining a zero-subsidy auction regime while other countries, such as Denmark, have adopted CfDs after facing similar zero-bid tenders.
“The auction result must be a wake-up call for the German government,” said WindEurope director of advocacy and messaging Viktoriya Kerelska. “Negative bidding adds costs that make offshore wind more expensive and reduces the number of companies willing and able to participate in auctions. It’s time to amend the model so Germany can deliver on its offshore wind targets and industrial competitiveness.”
