BWO is calling for offshore wind auction reform in Germany, saying the system is “no longer up to date”.
It comes as the federal government plans to redirect parts of offshore wind auction revenues into the general budget in 2025 and 2026.
In addition, funding for marine nature conservation and fishing is to be capped at €200m, and even the earmarking of these funds is to be weakened.
Stefan Thimm (pictured), managing director of the Federal Association of Offshore Wind Energy (BWO), criticised this approach.
He said: “The auction design for offshore wind energy is no longer up to date. The greed of politics for auction revenues for the federal budget ignores market realities.
“Offshore wind energy does not need revenue maximisation right now, but rather a maximisation of energy and industrial policy resilience.
“Therefore, we need tenders that rely on two-sided CfDs – alongside the previous refinancing through long-term electricity purchase agreements.”
The auction revenues are over 85% lower compared to 2024, and BWO said the decreased participation of only two bidders showed that investment costs have risen significantly, exacerbated by new overplanting rules.
BWO said it was irresponsible to stick to an auction system that prioritises short-term budget effects instead of ensuring the long-term feasibility and urgently needed expansion of offshore wind energy.
BWO is seeking Contracts for Difference (CfDs) as a resilience instrument to secure projects and reduce capital costs.
It is also calling for an auction design that rewards feasibility and value creation instead of just the highest bidder.
In addition, BWO recommends the reinvestment of auction proceeds into ports, production, skilled labour, and research.