Germany Awards Offshore Wind Farm Contracts in North Sea
June 21, 2024 –The Federal Network Agency of Germany announced on June 21, 2024, the results of the offshore tenders for two areas in the North Sea, with a total tender volume of 2,500 MW. The winning bids, worth €3.0225 billion, were awarded to Offshore Wind One GmbH and EnBW Offshore Projektgesellschaft 1 GmbH.
The Federal Network Agency carried out a dynamic bidding process for both tendered areas, which achieved a total of 3.0225 billion euros. According to Klaus Müller, President of the Federal Network Agency, the results demonstrate the attractiveness of investing in offshore wind energy in Germany, a crucial step towards achieving the country’s offshore expansion targets.
The two sites for offshore wind farms, with an output of 1,500 MW and 1,000 MW, are located in the North Sea about 120 km northwest of Heligoland. The wind farms are scheduled to come into operation in 2031. Offshore Wind One GmbH won the contract for area N-11.2 with a bid value of €1.305 million/MW, while EnBW Offshore Projektgesellschaft 1 GmbH secured the contract for area N-12.3 with a bid value of €1.065 million/MW.
The dynamic bidding process was conducted online, with 46 bidding rounds for area N-11.2 and 55 rounds for area N-12.3. The process aimed to differentiate bids competitively after several zero-cent bids were submitted. The proceeds from the offshore tenders will be used to reduce electricity costs and promote sustainable marine protection and environmentally friendly fishing.
The portions allocated for marine protection must be paid to the federal budget within one year, while the electricity cost reduction component will be paid to the transmission system operator over 20 years, starting in 2031.
