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Germany’s green energy fiasco: Offshore wind auctions cancelled as investors stay away

Germany’s green energy fiasco: Offshore wind auctions cancelled as investors stay away

Auctions failed to attract investment interest.

Another fiasco is hitting Europe's notorious green growth agenda as the German Ministry of Economy plans to cancel all offshore wind auctions for 2026. This follows a failure to attract sufficient interest during the previous year, a ministry spokesperson confirmed to Montel.

Supply chain problems

Daniel Greve emphasized that offshore wind energy is currently operating within a "difficult market environment," both internationally and within Germany. He pointed to the failed auction of August 2025, citing supply chain issues, increased costs, and delays in connecting offshore wind farms to the grid. "Given that conditions remain unchanged compared to the failed 2025 auction, a tender in 2026 does not appear promising," the spokesperson added. Despite the delay, the German government insists that the target of 40 GW of offshore wind by 2035 and 70 GW by 2040 will not be compromised. The country remains committed to the expansion of offshore wind energy, seeking greater efficiency. However, German industry organizations had warned that the country would miss its 2030 target of 30 GW even before the plans to postpone the auctions became public.

Disagreements within the governing coalition

The governing coalition of the CDU/CSU and SPD has not yet reached a final agreement on the postponement of the offshore tenders. Nina Seer, an energy spokesperson for the SPD, stated that the decision to delay "has not been agreed upon between the parliamentary groups" and emphasized that such a plan should include measures to improve investment conditions, which are not provided for in the current draft. Germany's offshore wind energy law obliges the regulatory authority, BNA, to conduct tender rounds for 2.5 to 5 GW annually, with the 2.5 GW from the failed 2025 auction supposed to be added on top. To date, Germany has an installed capacity of 9.7 GW of offshore wind. The delay in the auctions indicates that Germany is struggling to balance investment incentives with market difficulties, putting the achievement of its ambitious energy goals under severe pressure.

www.bankingnews.gr

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