Germany's Offshore Wind Auction Ends Without Bidders Amid Investor Skepticism

Germany's offshore wind auction ended without bidders, showing investors are not interested in zero-subsidy contracts. The failed auction is the latest setback for offshore wind in Europe, where developers prioritize profitability over growth, and governments need to provide subsidies to stimulate investment. The result poses a risk to Germany's target for expanding renewable energy capacity. The areas will be re-tendered next year.

Germany's latest offshore wind auction ended without any bids, signaling a significant setback for the country's renewable energy targets. The Federal Network Agency did not receive any offers for two areas in the North Sea, as reported by BWO [2]. This failure to attract investors underscores the challenges posed by zero-subsidy contracts and the broader shift in priorities within the renewable energy sector.

The failed auction is the latest in a series of setbacks for offshore wind in Europe, where developers have increasingly focused on profitability rather than growth. This shift has led to a decline in investor appetite for unsubsidized projects, including both solar and wind power. As a result, governments are increasingly required to provide subsidies to stimulate investment in renewable energy infrastructure.

The absence of bids in Germany's auction is a stark contrast to recent years when offshore wind farm developers were willing to invest without government backing. For instance, two years ago, BP Plc and TotalEnergies SE agreed to pay billions of euros for the right to develop major projects. However, the current market dynamics have led to a strategic review of offshore wind investments by companies like BP, which is now focusing on its fossil fuel business, and TotalEnergies, which is reassessing its involvement in Germany.

The failed auction is part of a broader trend where developers are prioritizing profitability over growth, making unsubsidized projects less attractive. This trend is evident in both the offshore wind and solar sectors, where dwindling investor appetite for unsubsidized projects has been observed. The declining interest in unsubsidized projects poses a significant risk to Germany's target for expanding renewable energy capacity.

To address these challenges, the areas will be re-tendered next year, with the hope of attracting more investors. The European Commission is also working on an EU-wide Ports Strategy to mobilize additional funding and streamline permitting processes, which could help in meeting the post-2030 offshore wind deployment targets.

References:
[1] https://www.morningstar.com/news/pr-newswire/20250804hk43303/sinbon-doubles-us-manufacturing-footprint-to-meet-growing-demand-in-industrial-robotics-automotive-and-renewable-energy-sectors
[2] https://www.bloomberg.com/news/articles/2025-08-06/germany-gets-no-bidders-in-zero-subsidy-offshore-wind-auction
[3] https://www.offshorewind.biz/2025/08/04/windeurope-eur-6-4-billion-needed-for-ports-and-vessels-to-meet-offshore-wind-goals/