Unmatched in Germany's history.
In a first for Germany, two offshore wind farms in the North Sea, sites N-10.1 (2,000 MW) and N-10.2 (500 MW), failed to attract any bids during the country's latest auction held on August 1, 2025. This unprecedented failure has raised concerns and sparked a series of investigations and discussions within the wind energy industry.
The primary reasons for this failure are multifaceted. The geological conditions of the tendered area were associated with higher risks, as per Federal Minister of Economics, Katharina Reiche (CDU). These increased risks for developers, such as rising construction and financing costs, have led to corresponding mark-ups by the bidders. The density of offshore wind farms is another problem that reduces possible power generation, as mentioned by both the BWO and BDEW. Unpredictable electricity market conditions also make revenue forecasts uncertain.
The design of the auction itself has been criticised for forcing developers to bear risks beyond their control without adequate risk protections. The German Offshore Wind Energy Association (BWO) has expressed this concern, stating that companies should not be burdened with too many risks, a concern they have been expressing for years.
In response to the failed tender, the Federal Network Agency (BNetzA) is mandated to re-tender these sites, with a new auction planned for June 2026. Katharina Reiche has ordered an investigation into the suitability of the unauctioned areas for bidding to ensure the success of future tenders for offshore wind farms in Germany.
Industry stakeholders are calling for urgent reforms to the auction design, including the introduction of two-way Contracts for Difference (CFDs) or other mechanisms that better allocate risks between government and developers. The failure threatens Germany’s ambitious offshore wind capacity targets of 30 GW by 2030, with potential reductions in volumes in upcoming tenders.
The event signals a potential slowdown in offshore wind deployment if risk factors and market uncertainties remain unaddressed, hindering progress toward Germany’s energy transition goals. The failure reflects a crucial test of the offshore wind sector’s resilience and the necessity for regulatory adaptation to sustain investor confidence and achieve future renewable energy ambitions.
Stefan Thimm, CEO of the Federal Association for Wind Energy Offshore (BWO), stated that no company participating in the tender was a foreseeable failure. However, Kerstin Andrea, chair of the management board of the Federal Association of Energy and Water Industry (BDEW), stated that developers of wind farms are facing increasing risks. These risks, combined with unpredictable market conditions and the high density of offshore wind farms, have contributed to the failed tender.
In conclusion, the failed tender for the offshore wind farms in Germany is a significant event that underscores the need for regulatory adaptation and investor confidence in the wind energy sector. The re-tendering of the unauctioned wind farms is scheduled for June 2026, and it remains to be seen how the industry will respond to the challenges posed by this failed tender.
- The failure of the wind energy auctions in Germany could potentially be attributed to the high risks associated with the geological conditions, increased construction and financing costs, and unpredictable electricity market conditions, as stated by industry stakeholders.
- Environmental-science experts may need to explore alternative tendering methods or mechanisms, such as two-way Contracts for Difference (CFDs), to better allocate risks between government and developers, ensuring a more successful offshore wind farm development in Germany.
- The financial sector, including the energy and water industry, must collaborate with the wind energy industry to understand and address the mounting risks faced by developers, fostering investor confidence and enabling progress toward Germany’s ambitious renewable energy targets.
