The German offshore wind industry association WAB has welcomed the draft amendment to the Offshore Wind Energy Act (WindSeeG) as a basis for reforming the offshore wind tender system. The association has submitted its position as part of the consultation process with the Federal Ministry for Economic Affairs and Energy. WAB supports several elements of the draft, including retaining the target of at least 70 GW of offshore wind capacity by 2045, a more flexible tendering approach and improvements to grid integration and administrative procedures. However, it considers further changes necessary to ensure that awarded projects can secure financing and reach construction.
The association also argues that offshore wind development should increasingly be assessed based on electricity generation and achievable full-load hours rather than installed capacity alone.
WAB is calling for:
- reliable and continuous offshore wind tenders from 2027, preferably starting in the first quarter;
- individual tender areas to be limited to a maximum of 1 GW;
- tenders to generally focus on sites that have undergone central preliminary investigations;
- the first tender stage to be made effective, with the second stage providing a reliable back-up mechanism including inflation and cost adjustments;
- the extension of the standard operating period to 35 years to be supported by clear technical and economic conditions; and
- workable solutions for projects that have already received awards but have not reached a final investment decision.
WAB considers a maximum size of 1 GW per tender area important for maintaining competition and reducing project risks. Smaller sites could increase the number of potential bidders and limit the impact on overall capacity targets if an individual project does not proceed.
A broader distribution of projects could also provide more consistent demand for the offshore wind supply chain.
WAB also favours concentrating future tenders on sites that have undergone central preliminary investigations. Making key site information available before tendering would allow developers to assess risks more accurately and make investment decisions on a more informed basis.
Where investigations are only carried out after an award, additional uncertainties can arise and the period before a final investment decision can be extended. WAB therefore considers the likelihood and speed of project delivery more important than simply bringing sites to tender at an early stage.
WAB broadly supports the proposed two-stage tender model. The first stage would test whether projects can be developed without state-backed revenue support, for example through long-term power purchase agreements (PPAs). If no bidder can proceed on this basis, the second stage would provide support through a two-sided Contract for Difference (CfD).
The association considers recent large-scale offshore wind PPA agreements an indication that the market-based route can work. However, it argues that PPAs need to provide sufficient long-term certainty for developers, lenders and electricity buyers.
WAB also supports a CfD as a back-up for projects that cannot be financed entirely through market-based arrangements. It considers a reliable inflation and cost adjustment mechanism necessary to provide sufficient long-term investment certainty.
WAB sees the draft WindSeeG amendment as an important step in developing Germany’s offshore wind sector. It is calling for further changes to ensure that tendered projects can be financed and built, while supporting industrial activity and a reliable pace of offshore wind development.
