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Germany’s 2.5 GW North Sea Wind Auction Draws No Bids

Industry groups are urging the introduction of two-sided Contracts for Difference to mitigate uncapped risks in the auction model.

Illustration; Borkum Riffgrund 2 offshore wind farm in Germany; Photo source: Ørsted
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Overview

  • Germany’s 2.5 GW auction for North Sea sites N-10.1 and N-10.2 ended without a single bid, leaving planned capacity unawarded.
  • The current negative-bidding framework requires developers to pay for project rights without any revenue stability, deterring investors.
  • Stefan Thimm of the German Offshore Wind Energy Association and Viktoriya Kerelska of WindEurope have called for two-sided Contracts for Difference and long-term PPAs to lower generation costs by up to 30%.
  • Offshore wind capacity in Germany has stalled at 9.2 GW since late 2024, highlighting investor hesitation over policy and cost uncertainties.
  • The Federal Network Agency plans a fresh tender for the same sites, but stakeholders say a fundamental auction overhaul is essential to meet 2030 targets.