The government will tender just 2.5 to 5 gigawatts, down from an earlier plan for as much as 6 gigawatts, according to a bill approved by lawmakers Thursday evening.
Germany boasts more offshore wind than any other country in the European Union, but rising costs and a lack of certainty over future revenues have made developers more reluctant to commit to new projects. The country is far off track to reach a target to more than triple offshore wind capacity by 2030.
“Offshore wind is facing a difficult market environment, both internationally and in Germany,” the Economy Ministry said in a statement, citing “tight” supply chains and cost hikes.
A North Sea wind auction in August ended without a single bid, prompting calls for an overhaul of the way such tenders are run. Germany doesn’t offer any subsidies to developers, a setup that didn’t deter investors when power prices were higher, but is now turning them away.
Given the lack of reform in the process, industry groups had proposed to delay next year’s auctions to the fourth quarter to allow the government to get a new system in place. They said it should include so-called contracts for difference, which reduce risks for developers by guaranteeing a fixed price for their power.
Another auction without subsidies “could run empty and cause a standstill in the supply chain,” creating “risks for local value creation and employment,” said Stefan Thimm, managing director of offshore wind group BWO.
The Economy Ministry acknowledged that a “fundamental examination of the framework conditions” is needed, including a reassessment of offshore wind targets.
But the government decided it will go ahead with the 2026 auctions because a delay would be a “gamble,” erasing any chance of new capacity agreements until the end of the year, according to Social Democrat lawmaker Nina Scheer.
The administration plans to tender seabed areas on Feb. 1, with further rounds due in June and August. It has opened a consultation on redesigning the auctions, but changes would only take effect from 2027.
(Bloomberg, December 5, 2025)