Germany’s Offshore Wind Industry, Grid Operators Call for Reform of Auction Rules

November 11, 2025, by Adrijana Buljan

German offshore wind industry groups and transmission system operators have called on the federal government to reform the country’s offshore wind auction system, warning that the current framework is deterring investment and slowing project development.

The German Offshore Wind Energy Association (BWO), the German Association of Energy and Water Industries (BDEW), VDMA Power Systems, and grid operators TenneT, Amprion and 50Hertz issued a joint statement on 10 November, urging changes to the legal and auction design for offshore wind projects.

The groups proposed postponing the next offshore wind auction from mid-2026 to the fourth quarter of that year to allow time for a redesign of the tender process. They called for the introduction of contracts for difference (CfDs) and long-term power purchase agreements (PPAs) to provide price stability and lower financing costs.

According to the associations, Germany’s current offshore wind auction framework has failed to attract bids. A recent 2.5 GW tender received no offers, highlighting concerns about the economic viability of projects under existing conditions.

Germany’s 2.5 GW Offshore Wind Tender Fails to Attract Bids

Planning & Permitting

The statement also called for extending operating lifetimes for new offshore wind projects from 25 to 35 years and introducing a tiered penalty system for project delays to give investors greater certainty. The groups said such measures would help maintain Germany’s competitiveness in offshore wind development.

The industry organisations also urged better coordination between the construction of wind farms and grid infrastructure to reduce delays. Germany’s grid operators have reported postponements of up to two years on several North Sea connection systems.

Germany Facing Offshore Wind Grid Expansion Delays

Grid Connection

“With clear rules and fair investment conditions, offshore wind energy will remain the backbone of the energy transition”, said BWO Managing Director Stefan Thimm.

Germany aims to install 30 GW of offshore wind capacity by 2030 and 70 GW by 2045 as part of its energy transition plans. Industry groups say that the target will be difficult to achieve without adjustments to the current auction and permitting framework.