Germany: Bidders’ willingness to pay will decide offshore wind auction

Several bidders submitted zero-subsidy bids in Germany’s latest auction for operating support for offshore wind farms. A second round of bidding will decide who can build wind farms in the designated areas. In that round, bidders will offer the price they are willing to pay to win the auction.

Germany’s Federal Network Agency (BNetzA) announced preliminary results of the ongoing tenders for the construction of offshore wind farms. Several zero-price bids were received for all four areas put out to tender, meaning the bidders effectively waived their entitlement to support. The auction winners will be decided in a second round, known as a dynamic bidding procedure. In this round, bidders’ willingness to pay for the opportunity to develop a wind farm in the area will be assessed.

“The results of the tender are good news for Germany’s energy transition. It is gratifying that companies do not need subsidies to expand offshore wind power. The zero-price bids clearly show that offshore wind power is economically attractive,” says Klaus Müller, president of BNetzA.