Offshore wind farms without subsidies may remain on paper. German associations urge government to act

Questions still hang over offshore wind farm projects that developers won in German auctions without requiring operating support. Given current market conditions, it is far from certain that these projects will be built. On the contrary, it appears that developers want to get rid of their projects. German associations are therefore calling on the government to take the necessary countermeasures and come up with a new auction model by the end of the summer.

Wind power, together with photovoltaics, is one of the main pillars of Germany’s energy sector transformation. The further development of offshore wind farms is also expected to play a key role, as unlike onshore plants, they do not have to contend with opposition from some members of the public. In recent years, Germany had relied on a model under which offshore wind farm developers paid the state for sites instead of receiving operating support.

Investor interest in this auction model fell sharply in recent rounds, reaching a low point last year. The latest offshore auction in Germany ended in fiasco, with not a single bid submitted. Germany’s auction system, in which developers compete to offer the state the most money for the right to build and operate an offshore wind farm instead of receiving support, has long been criticized by local associations.

Projects from previous auctions at risk

The failure of the latest auction has now been followed by further warning signs. TotalEnergies and BP, which won previous auctions and were therefore due to pay billions of euros for the right to operate their wind farms in the future, are exploring ways to withdraw from the projects, according to Clean Energy Wire. TotalEnergies cites delays in building grid connection lines and worsening economic conditions among the main reasons, the outlet reports.

The German Wind Energy Association (BWE) and the IG Metall trade union are therefore urging the German government to act. The associations say the government should present a new auction model for offshore wind farms by the end of the summer, so that new auctions can be held before the end of this year. The union says the absence of a new auction system could have a major negative impact on local industry and employment.

"The looming return of areas designated for offshore wind development to the state shows that the current model does not provide investors with the required level of certainty. No offshore wind projects were submitted for the 2025 auctions, and the 2026 auctions were cancelled entirely," said BWE director Bärbel Heidebroek.