RWE Wins German Offshore Wind Tender with Zero-Subsidy Bid, Vattenfall Expected to Step In

Contracts & Tenders

RWE Renewables Offshore HoldCo Four GmbH has won the tender to develop a 980 MW offshore wind farm in the N-7.2 zone in the German North Sea.

RWE (Illustration)

RWE proposed to build an offshore wind farm in the N-7.2 area without government subsidies.

”The zero-cent bid further confirms the attractiveness of investments in offshore wind energy in Germany. It shows that companies assume that they can market wind power profitably,” said Klaus Müller, President of Germany’s Federal Network Agency, said.

Swedish energy company Vattenfall, who participated in this tender, holds the step-in rights for the N-7.2 zone. The step-in rights were awarded to companies whose projects had not made it through the second transitional tenders in previous auctions.

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Vattenfall holds the step-in rights for the zone through Vattenfall Atlantis 1 and Global Tech 2 Offshore Wind GmbH. The right of entry must be exercised by October 31, 2022.

The company has until 31 October to exercise its step-in rights by matching RWE’s bid.

The Federal Network Agency said the tender award goes hand in hand with the right to a grid connection, financed by the electricity consumer via the grid fees, and the opportunity to operate the offshore wind farm for over 25 years.

In addition, the awardee has the right to apply to the competent Federal Maritime and Hydrographic Agency (BSH) for planning approval for the development of the area with an offshore wind farm. The offshore wind farm is scheduled to go into operation in 2027.

The BSH had previously extensively examined the area on behalf of the Federal Network Agency and determined the suitability of the area for the construction of an offshore wind farm in the tendered capacity. The BSH examined, among other things, the marine environment, the subsoil, and the wind and oceanographic conditions for the area. The costs of the preliminary investigations will be passed on to the bidder who has been awarded the contract.

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