Germany’s latest offshore wind auction for 2500MW of capacity has closed without a single bid, prompting the country’s offshore wind association to call for immediate reform of the system.
No investors submitted offers for zones N-10.1 and N-10.2 in the North Sea, a result the Bundesverband Windenergie Offshore (BWO) described as a predictable failure caused by poor policy design.
“The industry has warned for years that too many risks are being placed on developers,” said BWO managing director Stefan Thimm.
“The current rules force developers to shoulder risks beyond their control without any safeguards,” he said.
Thimm added that the outcome sends a clear message: “The German offshore wind market is currently not attractive to investors.”
He warned that the lack of reform jeopardises value creation, job growth, and progress on climate targets, despite the sector’s potential to mobilise over €200bn in investment by 2045.
BWO is calling for a shift to a dual-track model including Contracts for Difference (CfDs), which it says could cut generation costs by up to 30%.
“Without this reform, future auctions are also at risk of failure – and with them, the energy transition,” Thimm said.
The two sites, spanning around 182 square kilometres, were due to enter operation in 2030 and 2031.
Under current law, the Federal Network Agency must relaunch the tender for the same sites, but BWO said only the government can create the right conditions for success.
The Offshore Wind Energy Foundation has issued a stark warning following the complete absence of bids for Germany’s latest offshore wind tender, calling the outcome “a clear alarm signal” for national policy.
No bids were submitted for the centrally pre-examined offshore wind areas N-10.1 and N-10.2 by the 1 August 2025 deadline, prompting the foundation to renew calls for fundamental reform of the tendering framework.
“The loud silence of the market is a clear sign against the current tender design. This means that ‘business as usual’ is off the table,” said Karina Wurtz, managing director of the Offshore Wind Energy Foundation.
She added that a reform package including bilateral contracts for difference (CfDs) “can drastically reduce the financing costs of offshore expansion,” and said the current framework already allows in principle for different revenue structures.
The foundation said June’s auction for area N-9.4 had already revealed structural weaknesses, with just two bidders participating and a final award price of €180,000 per megawatt-more than 80% below the 2023 level.
A study commissioned by the foundation earlier this year warned that Germany’s uncapped bidding regime, combined with disrupted supply chains, inflationary pressure, and higher capital costs, was undermining project bankability and increasing investor risk.
“In this situation, Germany is in danger of losing sight of its offshore expansion targets,” the foundation said.
It called for urgent reforms to restore confidence and ensure continued growth, including the introduction of CfDs to provide financial security and reduce the levelised cost of electricity.
The foundation also advocated limiting auction volumes per bidder to maintain market diversity, and setting more precise and realistic prequalification requirements to support sustainable development.