The German government will ultimately only auction 2.5 to 5 GW of offshore wind power capacity for 2026, compared to the up to 6 GW foreseen in the original planning. The relevant bill was approved by members of parliament, confirming that Germany is applying the brakes to one of the key tools of the energy transition.
Investors hesitant due to cost and uncertainty
Although Germany has the largest offshore wind capacity in the European Union, rapid cost increases and uncertainty about future revenues have made investors more cautious. The country is now far from the goal of tripling offshore wind capacity by 2030. The Ministry of Economics acknowledges that the environment "is difficult internationally and within Germany," citing strained supply chains and upward cost trends.
Failed auctions and lack of subsidies
The August auction in the North Sea was completed without a single bid, a fact that triggered demands for a comprehensive overhaul of the tender system. Germany does not offer subsidies to investors, a model that worked when electricity prices were higher, but now acts as a deterrent. Without immediate reform, the industry had requested that the auctions be postponed to the fourth quarter of 2026, in order to prepare a new system that would reduce investment risk. Among the proposals was the adoption of contracts for difference (CFD), which would guarantee a stable price for the energy produced. The CEO of BWO, Stefan Thimm, warned that another auction without subsidies risks remaining empty, "freezing" the supply chain and creating risks for domestic employment.
Berlin admits the need for reforms
The Ministry of Economics acknowledged that a "fundamental examination of the regulatory frameworks" is required, as well as a re-evaluation of the country's goals for offshore wind energy. Despite the warnings, the government chooses not to delay the procedures. According to Social Democrat MP Nina Scheer, a postponement would be a "gamble" that would eliminate any possibility of new agreements by the end of the year.
What is coming in 2026 and what changes from 2027
The government plans to auction seabed areas on February 1, with subsequent rounds in June and August. At the same time, a public consultation has begun for the redesign of the auctions, with changes expected to take effect from 2027.
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