UPDATED: RWE, Luxcara win 5.5 GW of capacity in latest German offshore wind auction

RWE secured the rights to build offshore windfarms in the N-9.1 and N-9.2 sites, each with capacity for 2 GW, which will be fully fed into the grid in 2030 and 2031. Luxcara was awarded the 1.5-GW N-9.3 site in the North Sea, which is expected to be fully operational in 2029. The areas were approved for the development of offshore wind capacity earlier in 2024.

RWE said it will explore the possibility of developing the offshore wind projects together with TotalEnergies, with whom it has collaborated before. It will take an investment decision on the sites by 2027 and 2028 and start offshore construction in 2029 and 2030.

Luxcara, an independent asset manager for clean energy infrastructure projects, attracted controversy recently when it signed a preferred supplier agreement for another German offshore wind project, Waterkant, with Chinese turbine maker Mingyang Smart Energy. It is not known whether its bid for the N-9.3 site is based on the use of Chinese turbines, but a spokesperson for the company told OWJ, “We make individual and specific decisions for each of our projects. As before, the turbines will be selected on the basis of a tender and we are already looking forward to receiving offers.”

RWE chief executive offshore wind Sven Utermöhlen said, “Offshore wind is one of the main pillars of Germany’s energy transition and RWE’s growing green strategy. With these projects, we are adding two more large-scale windfarms to our already strong German offshore wind portfolio. We look forward to realising the new projects – possibly with TotalEnergies and our teams are already ready in their starting blocks.”

Announcing the results of the auction for capacity in three areas that had already been ‘pre-investigated’ by the Federal Maritime and Hydrographic Agency, the Bundesnetzagentur, the Federal Network Agency said five bids were submitted for the three areas, one for area N-9.1 and two each for areas N-9.2 and N-9.3. It noted the bidding process used qualitative criteria and negative bidding.

Federal Association of Windfarm Operators (BWO) managing director Stefan Thimm congratulated the winners of the auction, but said, “In my opinion, the fact that only five bids were submitted for the three areas is a warning signal. Spatial planning of the areas for offshore wind ensures very low full load hours in this area. This robs this technology of its great strength and makes it less attractive for investors.”

The BWO is one of several industry organisations to have called on the German government to revise the framework for offshore wind tenders and take steps to ensure targets can be met without using negative bidding which, they say, drives up costs which must be passed on to consumers and increases pressure on the supply chain.

Mr Thim said he also regretted that the Bundesnetzagentur decided not to publish the total proceeds raised by the tender. “I would have liked more transparency here,” he said. “It is important to understand the extent to which offshore wind energy contributes to solving problems for society as a whole, such as expanding grids or protecting the marine environment. 

“In addition, a ‘transformation component’ would make sense. However, in contrast to the previous year, it should support further expansion with income from the auctions, for example in the form of urgently needed investment in the expansion and upgrading of German sea ports.”