The German Offshore Wind Energy Foundation is calling for a revision of Germany’s offshore wind tender system, proposing the introduction of two-sided contracts for difference (CfDs) and a cap on tender volumes per bidder.
According to a study conducted by the Foundation, the current tendering model for offshore wind farms may lead to significant negative economic and energy policy consequences over the long term.
At present, the German government allocates offshore wind energy sites through a bidding process that awards contracts to the highest bidder.
However, the study warns that these high bids could result in rising electricity prices in the long run, as operators are likely to pass on the costs to industry through power purchase agreements (PPAs).
Energy-intensive sectors, such as Deutsche Bahn and the chemical industry, would be particularly affected.
“The results of the analysis must be understood as a call to the next federal government to finally correct course here,” said Karina Würtz (pictured), managing director of the Offshore Wind Energy Foundation.
To build a more coherent model for offshore wind expansion in Germany, the Foundation recommends several reforms, including the introduction of two-sided CfDs, limits on tender volume per bidder, and the implementation of realistic prequalification criteria.