Germany has announced the results of its first offshore wind auction for projects to be commissioned in 2025. The tender covered the not centrally pre-developed N-9.4 site in the North Sea, with a surface area of 146 km² and a planned capacity of up to 1.2 GW. The auction followed a price-only format and included negative bidding.
TotalEnergies submitted the winning bid and will pay €180 million for the right to develop the wind farm.
WindEurope has criticised the current auction design, arguing that negative bidding imposes unnecessary costs on the energy system. “Negative bidding creates additional costs which are ultimately passed on to consumers and the wind energy supply chain,” said Giles Dickson, CEO of WindEurope. “It may appear beneficial for finance ministries in the short term, but it is a long-term burden for society.”
Only two companies participated in the tender, highlighting concerns that negative bidding discourages market participation and limits competition.
Most European countries now favour two-sided Contracts for Difference (CfDs) as the preferred revenue stabilisation mechanism for offshore wind. CfDs reduce financing costs and provide greater certainty for investors. WindEurope is urging Germany to align with this approach, which is also promoted by the European Union. Alternatively, developers should be allowed to use Power Purchase Agreements (PPAs) to sell electricity directly to industrial consumers.
Germany's second offshore wind auction of the year will take place in August and cover two centrally pre-developed sites with a combined capacity of 2.5 GW. This round will use a mix of negative bidding and non-price criteria.
