Germany clears offshore wind auction overhaul

Germany’s cabinet has approved a major rewrite of the country’s offshore wind law, introducing contracts for difference and extending the standard operating life of projects from 25 to 35 years as Berlin looks to revive investment in its stalled development pipeline.

The federal government approved the Wind Energy at Sea Act amendment on September 2, saying the new framework would put greater emphasis on affordability, investment security and reducing the overall cost of offshore wind development.

Among the main changes are the introduction of two-sided contracts for difference, under which developers receive protection below an agreed electricity price while excess revenues above it are returned, and the extension of standard project operating periods by a decade. The legislation also provides for changes to offshore grid planning intended to better coordinate generation and transmission capacity.

Germany will also incorporate resilience and cybersecurity criteria under the EU Net-Zero Industry Act, aimed in part at reducing dependence on single third-country supply chains. Existing offshore wind expansion targets remain unchanged.

The reform follows mounting pressure on Berlin to overhaul its auction regime. A 2.5 GW tender for the N-10.1 and N-10.2 North Sea sites attracted no bids in August last year, prompting the government to postpone their re-auction until 2027.

Splash reported in July that Germany had reached 10.8 GW of installed offshore wind capacity, while another 17.5 GW of awarded projects had yet to reach final investment decision. Industry groups have repeatedly argued that the negative-bidding model and uncertain project economics were putting the next wave of developments at risk.

This month’s cabinet approval is the first time the proposed reforms have cleared the federal government, moving the offshore wind reset beyond the consultation draft published in August.

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