Germany’s offshore wind industry associations and transmission system operators have jointly called for major reforms to the country’s offshore wind auction framework, warning that without political action, Germany risks losing its appeal as an investment location.
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 proposals to strengthen market stability, reduce costs and restore investor confidence.
BWO managing director Stefan Thimm (pictured) 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 groups are urging the government to postpone the next offshore tender round from summer 2026 to the fourth quarter of 2026 to allow time for a redesigned auction model based on bilateral contracts for difference (CfDs).
They said introducing CfDs as a core financing mechanism, complemented by long-term power purchase agreements, would help lower capital and generation costs while ensuring predictability and stable returns for investors.
The declaration also calls for a more efficient approach to spatial planning and grid coordination, focusing on electricity actually produced rather than installed capacity. Lower turbine density and better coordination between wind farm and grid planning could increase efficiency and reduce costs for households and industry.
Further immediate measures proposed for 2026 include extending project permit terms to 35 years and introducing a graduated system of penalties for delays to operational readiness.
The associations said these reforms, combined with extended refinancing periods and improved planning security, would help safeguard offshore wind expansion and maintain Germany’s position as a leading market for clean energy investment.