Zero Bids in Germany’s 10 GW Offshore Wind Tender Sparks Alarm

The latest auction for 10.1 gigawatts (GW) of offshore wind capacity in the German North Sea has ended without a single bid, marking a major setback for the country’s renewable energy ambitions. The German Offshore Wind Energy Association (BWO) has called the outcome an “alarming signal” and urged the federal government to overhaul its auction framework.

Zero Bids for Two Key North Sea Projects

The Federal Network Agency offered two sites - N-10.2 and N-2.5 - covering about 182 square kilometres and scheduled for operation in 2030 and 2031. Neither site received a bid from investors in the subsidy-free tender, BWO confirmed.

Rising costs, persistent supply chain issues, and the absence of government support are seemingly the key deterrents. Developers are increasingly reluctant to take on high-risk, zero-subsidy projects in the current market environment.

Framework No Longer Attractive to Investors

“The fact that not a single company participated in this auction is a foregone conclusion,” said Stefan Thimm, BWO’s managing director. “The industry has been warning for years against burdening companies with too many risks. The current auction design forces developers to bear risks beyond their control without any protection.”

Thimm stressed that the failed tender shows Germany’s offshore wind market is “currently not attractive to investors,” warning that the government is missing out on billions in potential investments, value creation, and jobs. According to BWO, the sector could invest over €204 billion in offshore expansion by 2045 - if regulatory conditions improve.

Call for Contracts for Difference (CfDs)

BWO is urging the federal government to introduce a reliable Contracts for Difference (CfD) system alongside long-term electricity supply contracts. 

Thimm noted that CfDs could lower electricity generation costs by up to 30 percent, enabling more competitive pricing and reducing investor risk. Without such reforms, the association warns that “further auctions could fail – and with them the energy transition.”

Global and Domestic Headwinds

Germany’s offshore wind capacity stood at 9.2 GW as of June 30, 2025, unchanged from the end of 2024, signalling stagnation. The challenge is not unique to Germany - global developers face rising costs, regulatory hurdles, and delayed projects. 

In May, Danish giant Ørsted, the world’s largest offshore wind developer, warned of continued difficult conditions for the sector.

With the failed tender, the Federal Network Agency will be required to reissue the auction for the same sites. Industry leaders say that without decisive policy changes, Germany risks falling short of its offshore wind targets and losing its competitive edge in the global clean energy race.