Industry associations are calling for urgent political action to reform the German offshore wind energy tendering system.
German offshore wind industry associations and the non-profit foundation OFFSHORE-WINDENERGIE have published 2025 installation figures, which were compiled by the consultancy Deutsche WindGuard. 41 new offshore wind turbines with a total capacity of 518 MW were connected to the grid in Germany in 2025. 19 turbines with a combined capacity of 278 MW were erected but have not yet fed electricity into the grid.
In total, at the end of 2025, Germany had 1,680 turbines with a capacity of 9.74 GW installed. This rate of development puts the country’s expansion target of 30 GW by 2030 out of reach. At the present, the earliest the goal will be hit is 2032.
The associations blamed delays in connecting the turbines to the grid and the lack of bids in the August 2025 tender round, noting that the current challenges jeopardise investments in projects that have already been awarded as well as future projects.
The parties called for a tender design that secures investments and predictable framework conditions for the industry which focus on project implementation. They said: “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. Instead of maximising 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.”
They used the UK as an example of how short-term adjustments can lead to a rapid improvement in the framework conditions and successful tenders. That country’s latest allocation round, AR7, awarded 8.2 GW of bottom-fixed alongside almost 200 MW of floating projects – a stark contrast 2023 failed AR5 round.
WindEurope attributed the success to the UK auction design that offers two-sided contracts for difference (CfD).
The German government plans to put the spaces that were not awarded in August 2025 back into the tender process in June of this year, but the associations expect that this round will fail again if the necessary adjustments are not discussed as quickly as possible and take effect for the 2026 tenders.
New tender design needed
To avoid another no-bid round, a new tender design must put an end to negative bidding. 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 CfDs, which proved successful 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.
“Industry associations and organisations have been criticising 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 associations 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.”
European cooperation
The industry associations – which included the German Windenergy Association (BWE), German Offshore Wind Energy Association (BWO), German Offshore Wind Energy Foundation, VDMA Power Systems, WAB and WindEnergy Network (WEN) – also called for intensified European cooperation.
“The governments of the European countries bordering the North Sea and Baltic Sea should coordinate more closely on expansion paths, spatial planning, and their goals in order to ensure a continuous ramp-up of the market and investment security. Germany and Denmark in particular should work closely together on cross-border land use. In addition, effective instruments are needed at the European level to protect against market distortions caused by unfair pricing practices by state-subsidised players. A level playing field is essential.”
There does seem to be progress in that regard. The North Sea Summit, which took place in Hamburg earlier this week, saw representatives from nine North Sea countries sign a pact that commits to building 15 GW of offshore wind per year over 2031-2040 while de-risking offshore wind investments.
