Germany Issues Tender For 5.5 GW Offshore Wind Project

Germany Issues Tender For 5.5 GW Offshore Wind Project

Federal Network Agency of Germany has launched auctions for offshore wind farms comprising a total of 5,500 MW at three centrally pre-investigated sites in the North Sea. The three sites with a combined 5,500 MW of projected generating capacity are situated about 110 km north-west of the island of Borkum, bordering the Netherlands exclusive economic zone.

According to the press release, bids must be submitted by 1st August. The bidders will be informed of the decision and the auction results will be published once the bids have been assessed and the award procedure completed. The successful bidders will receive the right to apply for planning approval from the Federal Maritime and Hydrographic Agency to construct an offshore wind farm on the site.

The award will be made using a points system set out in law, as was done for the first time last year. Up to 60 points will be awarded for the bid value, which reflects the amount the bidder is willing to pay. Then qualitative criteria will also be applied. These assess the proportion of electricity from renewable sources used in the manufacture of the wind turbines, the share of trainees, the use of particularly environmentally friendly foundation methods, and the scope of long-term electricity supplies to third parties. A total of up to 35 points will be awarded for the qualitative criteria. 90% of the payments by the successful bidder will go towards bringing down electricity costs. The last auctions of centrally pre-investigated sites in 2023 were for a combined 1,800 MW and resulted in total proceeds of €784mn.

A report by Rystad Energy suggests that wind power generation is also expected to increase in 2024. However, the growth rate will not match the one seen in 2023, when wind energy output increased by 50 TWh thanks to additional capacity installations and a windier year. Apart from this, during 2023, Germany witnessed a record-breaking growth of over 14 GW, majorly driven by the installation of rooftop PV systems, read the report.