Germany’s Economy Minister, Katharina Reiche, has expressed serious concerns regarding the country’s offshore wind energy sector, following the unprecedented outcome of recent tenders that attracted no bids, as reported by Reuters.
This alarming development highlights significant issues related to site selection and evolving market dynamics.
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The two tenders, announced in August 2024 for offshore wind energy plants with capacities of 2GW and 500MW, were intended for commissioning in 2030 and 2031.
However, the Federal Network Agency has reported that for the first time, no bids have been submitted, as confirmed by the utility association German Association of Energy and Water Industries (BDEW).
Reiche pointed out that the designated areas for these projects posed considerable risks due to geographical and geological conditions.
Located in deep waters, the sites are susceptible to foundation erosion and present challenging structural conditions.
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By GlobalDataAt a news conference in Berlin, she stated: “The first question is: were the designated areas appropriate, or were potential risks for developers … underestimated? We need to look at this critically.”
In addition to site-related concerns, Reiche highlighted changing market conditions as a contributing factor to the lack of interest from developers.
Many customers are now hesitant to commit to power purchase agreements (PPAs) amid periods of negative electricity prices, opting instead to secure their electricity needs directly from the market.
To address these challenges, Reiche suggested that the Federal Network Agency should reassess its tender design and consider implementing reforms similar to those in the UK to better protect Germany’s offshore wind potential.
The agency was not immediately available for comment on the recent auction results.
BDEW further attributed the lack of bids to rising project and capital costs stemming from geopolitical tensions and supply chain disruptions.
The electricity market has become increasingly unpredictable, with fluctuating prices and volume risks complicating investment decisions.
This latest setback follows a slow start to 2025 for the offshore wind sector, during which Germany failed to connect any new turbines to the grid.
Industry groups are now urging the government to introduce improved auction measures to facilitate the addition of more turbines.
As of 30 June 2025, Germany’s installed offshore capacity remained at 9.2GW, unchanged since 31 December 2024.
1.9GW of new turbines are currently under construction, according to data compiled by consultancy Deutsche WindGuard, commissioned by industry lobbies.
The Economy Ministry also recently announced plans to diversify the sourcing of essential components for offshore wind turbines by 2035, to reduce dependence on China.
