RWE Renewables and EDF Renewables have been awarded development rights for three zones in the German offshore wind tender.
The German developer has been selected for the 225MW N-3.7 and the 300MW O-1.3 in the North and Baltic Sea, respectively.
The French developer has been awarded the 433MW N-3.8 in the North Sea.
Winning bids were zero cent.
However, developers that had been working on projects in the zones prior to the switch to a centralised tender system retain step in rights to acquire the development rights on the same terms.
The step in right must be exercised by 2 November and is expected to be taken up.
Northland Power and RWE are expected to step into the N-3.8 while Iberdrola holds the right for the O-1.3.
The award entitles the winner to a grid connection – financed by the electricity consumer through the grid fees – and the possibility of operating the offshore wind farm for 25 years.
In addition, the owner of the contract has the right to apply to the responsible Federal Maritime and Hydrographic Agency (BSH) for planning approval for the development of the areas with an offshore wind farm.
The offshore wind farms are scheduled to go into operation in 2026.
“Surcharge values of 0 cents / kWh on all areas confirm the attractiveness of investments in offshore wind energy,” said BNetzA president Jochen Homann (pictured).
“The results of the tenders on all three areas in the North Sea and Baltic Sea impressively continue the development of subsidy-free offshore wind farms. The zero cent bids show the high level of interest shown by the bidders, despite the comparatively moderate size of the space and the existing entry rights of the former project developers.”
Stefan Thimm, managing director of the BWO, said with the 2021 tendering round, the expansion of offshore wind energy in Germany is “finally picking up speed again”.
“After the long break, this is a very important impetus for the industry.”
He said the federal government failed to introduce contracts for difference (CfD) in last year’s reform of the tender design, which have already proven themselves in other countries and would exclude the “lottery associated with the 0 cent bids”.
Thimm said: “The decisive advantage of a CfD system is that the electricity production costs can be reduced by up to 30%, which would make the expansion of wind energy at sea much cheaper.
“We very much hope that Germany will also use differential agreements for offshore wind projects when re-evaluating the tender design in 2023, analogous to numerous neighbouring European countries.”