WindEurope has called for an end to financial bid auctions after BP and TotalEnergies put down over €12bn to acquire development rights for four sites in the 7GW German lease round.
Negative bidding creates additional costs for offshore wind developers, the trade body said.
“Crucially the European Union wants to strengthen its energy security with competitive and home-grown renewables. The EU needs as much new wind energy capacity as it can get, as fast as it can get it. All the money paid in negative bidding is money our companies cannot invest in other wind energy projects. European governments should therefore not follow the German example of negative bidding.”
WindEurope said the German projects, which are due online by 2030, will need an expanded supply chain in the country.
“For example the industrial capacity for the construction of wind turbines, foundations and the installation vessels. But investments are also needed in grids, ports and skilled workers.
‘Negative bidding is unhelpful here. Companies along the wind energy supply chain will have to work with even tighter margins, as developers pass on the extra costs of negative bidding to them.”