'Germany should not risk another year without offshore wind bids'
OPINION | The structural problems that led to no offers in the last tender have still not been properly addressed, writes Stefan Thimm
Germany stands at a turning point in its energy policy. The year 2025 has made it clear how vulnerable the investment conditions for offshore wind energy have become since too many risks were shifted unilaterally to project developers.
For the first time since the start of offshore wind auctions in Germany, a tender received no bids at all – a first after years of multi-billion-euro investments. But the industry is sending a clear message: we can deliver if the government creates reliable framework conditions. 2026 will decide whether this succeeds.
The structural problems of the German auction design remain unchanged, to the detriment of project developers and the energy transition. From the BWO's point of view, it is urgently necessary to postpone the next round of tenders until the fourth quarter of 2026.
This additional time must be used to fundamentally reform the auction design. Without revision, we face another year without bids, with massive consequences for supply chains and employment in Germany. Moreover, an unnecessarily long postponement of auction creates a harmful gap in the supply chain, leaving companies without follow-up orders at a critical moment.
Contracts for Difference: Securing Investments
The key element of the revision will be the introduction of two-sided contracts for difference (CfDs), which can increase planning security for operators and the government by creating reliable price paths and lowering capital costs. Starting with production-dependent CfDs for the auctions in 2026, followed by the further development of production-independent contracts, would be ideal.
In combination with a term of at least 20 years and inflation indexation, this offers long-term investment security and makes bids attractive again. Only such an auction design can make offshore wind expansion in Germany predictable and competitive.
Optimising the Use of Offshore Areas
In addition to questions of financing, the use of site space is crucial. Wake effects of individual wind turbines and entire wind farms is a challenge. In order to minimise these effects, it is necessary to put a larger emphasis on site yields in the administrative site planning process, and to target a power density of less than ten megawatts per square kilometre. Cooperation with European neighbours could open up additional attractive areas without jeopardising the economic viability of existing farms.
If, however, statutory overplanting is required for future projects, their costs will rise in an unbalanced manner. Rules should enable developers to determine the optimal site-specific instead of rigid overbuilding quotas. Developers calculate the optimal sweet spot for each area in terms of power, yield, load management and location conditions. Rigid overbuilding would increase risks, drive up costs and reduce willingness to invest.
On a positive note: The Environmental Research
2025 also demonstrated the ecological potential of offshore wind. New studies on harbour porpoises and migratory birds significantly improve our knowledge base about the effects of offshore wind. Harbour porpoises are found significantly more often within wind farms than within a 2.5km radius around, and migratory birds reliably avoid turbines under good visibility conditions. Collision rates do not increase with the number of passing birds, a major study in a wind farm in northern Germany and close to the coastline has found.
These findings provide new insights on how offshore wind can be expanded in an environmentally compatible way and need to be considered in future permitting and planning processes. This provides strong momentum for 2026.
New Wind Farms Showcase the Potential
With He Dreiht and Borkum Riffgrund 3, two wind farms with a combined capacity of almost 2GW reached first power in 2025. Once fully commissioned, this capacity will be enough to supply two million German households with green electricity. The projects demonstrate that offshore wind is market-ready, scalable, and industrially feasible when investment security exists. They exemplify what is possible in 2026: a fresh start that strengthens Germany’s role as an offshore wind pioneer, secures jobs, and drives the energy transition forward.
Germany Cannot Afford Another Year Without Bids
The German supply chain cannot afford another year without bids. A restart must be substantive. Tenders should be postponed to the fourth quarter of 2026, two-sided CfDs introduced, areas efficiently and flexibly planned, and cooperation with European neighbours strengthened.
Offshore wind is not a niche topic. It is an industrial policy cornerstone and a strategic advantage for our energy security. 2026 must be the year Germany reclaims this advantage. If policymakers act now, offshore wind will again be the engine driving Germany through the energy transition. If not, delays, rising costs, and uncertainty loom. The choice is ours, and it must be made now.