Wedoany.com Report-Aug. 8, Germany’s second offshore wind auction for 2025, covering North Sea sites N-10.1 and N-10.2, attracted no bids, as reported by the German Offshore Wind Energy Association (BWO). This result points to the need for revising the auction structure.

Stefan Thimm, BWO’s managing director, noted: “The fact that not a single company participated in this auction is a foregone conclusion. The industry has been warning for years against burdening companies with too many risks. However, the legal requirements no longer take into account the framework for investments in offshore wind projects in Germany. The current auction design forces developers to bear risks beyond their control without any protection.” The auction’s negative bidding approach, without revenue stabilization like Contracts for Difference (CfDs), increases financial risks for developers.

Viktoriya Kerelska of WindEurope added: “The auction result must be a wake-up call for the German Government. Negative bidding adds costs that make offshore wind more expensive and reduces the number of companies willing and able to participate in auctions. It’s time to amend the auction model so Germany can deliver on its offshore wind targets and industrial competitiveness.” This underscores the limitations of the current system.

The Federal Network Agency must now relaunch the tender for these sites. BWO advocates for improved conditions, with Thimm stating: “Specifically, we demand the following regarding the auction design: The federal government must finally pave the way for a reliable CfD system alongside long-term electricity supply contracts. Contracts for Difference lead to a reduction in electricity generation costs of up to 30 percent – the basis for competitive electricity prices. Without this reform, further auctions could fail – and with them the energy transition.”

The N-10.1 and N-10.2 sites, spanning 182 square kilometers with a 2.5GW capacity, were set to operate in 2030 and 2031. Germany’s first 2025 tender in June for the 1GW N-9.4 site was won by TotalEnergies. Denmark also faced a similar issue, switching to CfDs after a 3GW negative bidding auction failed in December.