RWE and EnBW have blamed Germany’s offshore wind auction design for the failure of the country’s latest tender to attract any bids.
Both developers said the lack of offers for either of the N-10.1 and N-10.2 North Sea sites with a combined capacity of 2.5GW stemmed from tender rules and an uncapped negative bidding component that were unappealing to investors and did not reflect wider economic conditions faced by the industry.
“We did not participate in this year’s tender for the centrally pre-examined area,” said a spokesperson for EnBW.
“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 have joined calls from trade body Bundesverband Windenergie Offshore (BWO) for an immediate overhaul of the system including the introduction of two-sided Contracts for Difference to create a more stable investment environment.
An RWE spokesperson added: “From our perspective, the auction requires urgent adjustments.
“We welcome the initiative of the German Ministry of Economic Affairs to conduct an assessment (on the role of offshore wind in the energy transition) 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.”
WindEurope said Germany was “swimming against the tide” by sticking with its zero-subsidy regime when other countries including Denmark have switched to offering CfDs after experiencing 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.”