German Offshore Wind Industry Urges Gov’t to ‘Quickly Reform’ Tendering System

Germany’s offshore wind industry is calling on the federal government to urgently reform the tendering system after a failed auction and slow grid connections in 2025 made it clear that the country will miss its offshore wind target for 2030.

Industry associations BWE, BWO, VDMA Power Systems, WAB e.V., WindEnergy Network e.V., together with the OFFSHORE-WINDENERGIE Foundation, said on 27 January that the lack of bids in the August 2025 tender round and ongoing delays in grid connections are already putting awarded projects and future investments at risk.

They warned that without rapid political action, Germany risks losing industrial value creation and undermining the cost-efficient expansion of offshore wind power.

“15 years after Alpha Ventus, the first German offshore wind energy project, was connected to the grid, the industry sees an urgent need for political action after a year of modest expansion and a failed tender round in August 2025. The federal government is now called upon to fundamentally and quickly reform the future tendering system in cooperation with the industry”, the organisations said.

“Instead of maximizing revenue for the state, the focus must be on project implementation for a secure and cost-efficient energy supply. A genuine restart is now needed, otherwise there is a risk of losing European and German added value and failing to achieve the necessary expansion for the future electricity supply. The example of the UK shows how short-term adjustments can lead to a rapid improvement in the framework conditions and successful tenders with a high prospect of project implementation.”

The warning comes as the organisations published offshore wind expansion figures for 2025, compiled by consultancy Deutsche WindGuard.

According to the data, 41 offshore wind turbines with a total capacity of 518 MW were connected to the grid in Germany last year. While 65 foundations were installed and 19 additional turbines with 278 MW were erected, these have not yet begun feeding power into the grid. By the end of 2025, Germany had a total of 1,680 offshore wind turbines installed, representing 9.74 GW of capacity.

Because of the failed tender and grid delays, the industry now expects that only around 20 GW of offshore wind capacity will be connected by 2030, well short of the 30 GW target.

Under current conditions, that target would not be reached before 2032 at the earliest, the associations argue, adding that the tender design must be overhauled to end negative bidding and provide predictable revenues that allow projects to be financed and built.

It is sought that the refinements to the tendering system are implemented in 2026, even if that would mean extending the deadlines.

The industry is calling for a revenue model that better guarantees both project realisation and investment security within a harmonised European market framework. For example, by abolishing the uncapped bid component, introducing bilateral contracts for difference (CfD), which have been successfully implemented in the UK, and securing power purchase agreements (PPAs) to reduce implementation risks, lower financing costs, and secure the expansion path.

At the same time, sanctions and security deposits, as well as penalties, must be adjusted to avoid option-based bidding and prevent project cancellations, according to the German industry organisations.

“Industry associations and organizations have been criticizing the tender design for years and calling for comprehensive changes. The failure of the tender in August 2025 underscores the validity of this criticism, as well as the urgent need for reform”, the organisations said.

“The necessary changes to the Offshore Wind Energy Act (WindSeeG) must not be put on the shelf any longer, but must finally take into account the urgency of the challenges. There also needs to be a greater focus on revenue in spatial planning, for example by reducing shadowing effects. It is not the number of turbines built or the installed capacity that is decisive, but the most cost-efficient energy yield. In the case of offshore wind energy, too, it is important to keep an eye on the overall system costs and not just the grid costs.”

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